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| CHAPTER 2 |
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| Developing a Marketing Plan |
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| Once you have decided that your company is able and committed to exporting, the
next step is to develop a marketing plan.
A clearly written marketing strategy offers six immediate benefits:
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Because written plans display strengths and weaknesses more readily, they
are a great help in formulating and polishing an export strategy.
Written plans are not easily forgotten, overlooked, or ignored by those
charged with executing them. If deviation from the original plan occurs, it is
likely to be due to a deliberate and thoughtful choice.
Written plans are easier to communicate to others and are less likely to be
misunderstood.
Written plans allocate responsibilities and provide for an evaluation of
results.
Written plans are helpful when seeking financial assistance. They indicate
to lenders that you have a serious approach to the export venture.
Written plans give management a clear understanding of what will be required
of them and thus help to ensure a commitment to exporting. Actually, a written
plan signals that the decision to export has already been made.
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| Building an international business takes time. It usually takes months,
sometimes even several years, before an exporting company begins to see a return
on its investment of time and money. |
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| Market Research |
To successfully export your product, you should examine foreign markets
through research. The purpose is to identify marketing opportunities and
constraints abroad, as well as to identify prospective buyers and customers.
Market research encompasses all methods that a company can use to determine
which foreign markets have the best potential for its products. Results of this
research inform the firm of: the largest markets for its product, the fastest
growing markets, market trends and outlook, market conditions and practices, and
competitive firms and products. |
| A firm may research a market by using either primary or secondary data
resources. In conducting primary market research, a company collects data
directly from the foreign marketplace through interviews, surveys, and other
direct contact with representatives and potential buyers. Primary market
research has the advantage of being tailored to the company's needs and provides
answers to specific questions, but the collection of such data is time-consuming
and expensive. |
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| Sources of Market Research |
There are many domestic, foreign, and international sources of information
concerning foreign markets. This information ranges from simple trade statistics to in-depth market surveys.
Trade statistics indicate total exports or imports by country and by product.
They allow an exporter to compare the size of the market for a product in
various countries. By looking at statistics over several years, an exporter can determine which
markets are growing and those that are shrinking.
Market surveys provide a narrative description and assessment of particular
markets along with relevant statistics. The reports are often based on original
research conducted in the countries studied and may include specific information
on both buyers and competitors. |
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| Export Intermediaries |
Export intermediaries are of many different types, ranging from giant
international companies to highly specialized, small operations. They provide a
multitude of services, such as performing market research, appointing overseas
distributors or commission representatives, exhibiting a client's products at
international trade shows, advertising, shipping, and arranging documentation.
Intermediaries may work simultaneously for a number of exporters on the basis of
commissions. One advantage of using an intermediary is that it can immediately make
available marketing resources that a smaller firm would need years to develop on
its own. |
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