There is profit to be
made in exports. The international market is much larger than the local market.
Growth rates in many overseas markets far outpace domestic market growth. And
meeting and beating innovative competitors abroad can help companies keep the
edge they need at home.
There are also real costs and risks associated with exporting. It is up to
each company to weigh the necessary commitment against the potential benefit.
Ten important recommendations for successful exporting should be kept in
mind:
- Obtain qualified export counselling and develop a master international
marketing plan before starting an export business. The plan should clearly
define goals, objectives, and problems encountered.
- Secure a commitment from top management to overcome the initial
difficulties and financial requirements of exporting. Although the early
delays and costs involved in exporting may seem difficult to justify in
comparison with established domestic sales, the exporter should take a
long-range view of this process and carefully monitor international
marketing efforts.
- Take sufficient care in selecting overseas distributors. The complications
involved in overseas communications and transportation require international
distributors to act more independently than their domestic counterparts.
- Establish a basis for profitable operations and orderly growth. Although
no overseas inquiry should be ignored, the firm that acts mainly in response
to unsolicited trade leads is trusting success to the element of chance.
- Devote continuing attention to export business when the local market
booms. Too many companies turn to exporting when business falls off in the
domestic market. When domestic business starts to boom again, they neglect
their export trade or relegate it to a secondary position.
- Treat international distributors on an equal basis with domestic
counterparts. Companies often carry out institutional advertising campaigns,
special discount offers, sales incentive programs, special credit term
programs, warranty offers, and so on in the domestic market but fail to make
similar offers to their international distributors.
- Do not assume that a given market technique and product will automatically
be successful in all countries. What works in Australia may fall flat in Japan. Each market has to be treated separately to ensure maximum success.
- Be willing to modify products to meet regulations or cultural preferences
of other countries. Local safety and security codes as well as import
restrictions cannot be ignored by foreign distributors.
- Print service, sale, and warranty messages in locally understood
languages. Although a distributor's top management may speak English, it is
unlikely that all sales and service personnel have this capability.
- Provide readily available servicing for the product. A product without the
necessary service support can acquire a bad reputation quickly.