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Introduction to Export
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 counseling 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 Japan may fall flat in Saudi Arabia. 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.
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