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Posted By Revrok Process Register on 01/25/2018 in Increase Your Market Size - Expand Into New Markets

The potential of Export Marketing

The potential of Export Marketing

How potential can international export marketing be for me?

There are several ways to evaluate the export potential of your products and services in overseas markets. The most common approach is to examine the success of your products domestically. If your company succeeds at selling in your own country's market, there is a good chance that it will also be successful in markets abroad, at least those where similar needs and conditions exist. Another means to assess your company's potential in exporting is by examining the unique or important features of your product. If those features are hard to duplicate abroad, then it is likely that you will be successful overseas. A unique product may have little competition and demand for it might be quite high. Finally, your product may have export potential even if there are declining sales in your country market. Sizeable export markets may still exist, especially if the product once did well in your country but is now losing market share to more technically advanced products.

Assessing your company readiness

Answering these general questions about how exporting will enhance your company's short, medium and long-term goals will help determine your company's readiness to export:

  • What does the company want to gain from exporting?
  • Is exporting consistent with other company goals?
  • What demands will exporting place on the company's key resources, management and personnel, production capacity, and finance and how will these demands be met?
  • Are the expected benefits worth the costs, or would company resources be better used for developing new domestic business?

The next step is to more closely examine the impact of exporting on your company and or request us for assistance with your evaluations.

Developing an Export Plan

Once you have decided to sell your products abroad, it is time to develop an export plan. A crucial first step in planning is to develop broad consensus among key management on the company's goals, objectives, capabilities, and constraints. In addition, all aspects of an export plan should be agreed upon by the personnel involved in the exporting process, as they will ultimately execute the export plan. The purposes of the export plan are (a) to assemble facts, constraints, and goals and (b) to create an action statement that takes all of these into account. The statement includes specific objectives, it sets forth time schedules for implementation, and it marks milestones so that the degree of success can be measured and help motivate personnel.

At least the following questions should ultimately be addressed:

  • Which products are selected for export development?
  • What modifications, if any, must be made to adapt them to overseas markets?
  • Which countries are targeted for sales development?
  • In each country, what is the basic customer profile?
  • What should marketing and distribution channels be used to reach customers?
  • What special challenges pertain to each market (competition, cultural differences, import controls, etc.), and what strategy will be used to address them?
  • How will the product's export sale price be determined?
  • What must specific operational steps be taken and when?
  • What will be the timeframe for implementing each element of the plan?
  • What will personnel and company resources be dedicated to exporting?
  • What will be the cost of time and money for each element?
  • How will results be evaluated and used to modify the plan?

The first time an export plan is developed, it should be kept simple. It need be only a few pages long, since important market data and planning elements may not yet be available. The initial planning effort itself gradually generates more information and insight. As the planners learn more about exporting and your company's competitive position, the export plan will become more detailed and complete.

From the start, the plan should be viewed and written as a management tool, not as a static document. Objectives in the plan should be compared with actual results to measure the success of different strategies. The company should not hesitate to modify the plan and make it more specific as new information and experience are gained.

A detailed plan is recommended for companies that intend to export directly. Companies choosing indirect export methods may require much simpler plans. For more information on different approaches to exporting and their advantages and disadvantages ask REVROK.NET we are there to assist you.

Manufacturers Export Expansion




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