Globalization and online commerce have contributed to the recent increase in international trade. What was once only possible for large companies is now accessible to SMEs and entrepreneurs. Products and services can more easily acquire an international dimension at reduced costs, making business expansion and outsourcing a viable option. But many companies still don't understand the benefits of investing in a global business in their sector and, even those that do, can find it difficult to know where to start.
Definition of export marketing
Exporting is the practice whereby a company sells products or services to a foreign country. The products are produced or distributed from the country of origin to buyers in international geographies. But there is a difference between products that are available to foreign countries and products that are marketed specifically to foreign customers. This is where the importance of a marketing plan export.
Companies often double or triple their products, expanding their sales internationally. But it cannot be assumed that foreign markets will be interested in the same offer as local customers. Cultural differences, transportation costs and transit time, and international trade policies all contribute to a marketing communication barrier between suppliers and their audience.
It is necessary to know the buying behavior, interests and needs of foreign customers. All of this can be addressed in a export marketingIt is designed to define a specific strategy that can be used to make the product available and attractive internationally.
The only difference between an export marketing plan and a normal marketing plan is the location of the intervention. The same type of market research carried out to obtain a diagnosis of an ideal domestic market must be carried out on an international scale.
Foreign market selection
The first and most obvious step in building an export marketing plan is selecting a market. Although this is the "simplest" step, it is also the most important. Although each country is different, many cultural differences and buying behaviors can be attributed to the continents as a whole. Once you have selected a continent, focus your research on the top three locations of your choice. This should give you more information about the country where you should sell.
Research into natural conditions
The relevance of this factor will depend very much on the product you are selling. Information such as the climate, the size of the territory, the environment, ease of mobility and various other factors will all contribute to the success of your international expansion.
Your offer must correspond to the socio-economic demographics of the region you want to sell to. The quality of the materials you use to create your product, for example, may have to be adjusted on an international market to adapt to the reference prices and quality of products abroad.
This is the only area where competition is positive. International business has been around for hundreds of years - any profitable international business venture that has a promising return has already been tested. So you can use the density of competition in a foreign country to determine whether or not it is a profitable industry.
Make sure that your research into the density of competition includes research into local companies in the foreign country, as well as international companies.