A Comparative Analysis of Export Promotion Strategies In Selected AfricaCountrie(Southfca Nigea and Egypt

A Comparative Analysis of Export Promotion Strategies In Selected African Countries (South Africa, Nigeria and Egypt)

A Comparative Analysis of Export Promotion Strategies In Selected African Countries (South Africa, Nigeria and Egypt)

A Comparative Analysis of Export Promotion Strategies In Selected African Countries (South Africa, Nigeria and Egypt)

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The Meaning and Definition of Export Promotion

This article provides information about the meaning and definition of Export Promotion:

Export promotion has been defined as those public policy measures which actually or potentially enhance exporting activity at the company, industry, or national level. Although many forces determine the international flow of goods and services, export promotion is one of the principal opportunities that governments have to influence the volume and types of goods and services exported from their areas of jurisdiction.

Image Courtesy : /techcomm/files/2012/10/02-diagram-of-gestures1.jpg

Government of India, like in almost all other nations, has been endeavouring to develop exports. Export development is important to the firm and to the economy as a whole. Government measures aim, normally, at an over all improvement of the export performance of the nation for the general benefit of the economy. Such measures help exporting firms in several ways.

Export Promotion strategy promotes only the industries that have potential for developing and competing with foreign rivals. Since the goal is to trade abroad, there becomes competition, which in turn remedies the returns to scale. The main goal of the export promotion is to prepare the potential industries for competition with the foreign rivals. So the industries at their childhood must be protected for a while.

Exporters, facing the increasing competition, have to improve their technologies, their quality continuously in order to compete with their rivals. They have to make research and development studies.

Comparative advantage theory implies that a country must specialize in the production that uses the mostly possessed factors of production. By this way the structure of the overall industry is in harmony with the country structure. If the country has advantage in human capital then the EP strategy may be a remedy to the unemployment problem.

The indirect effect of the EP strategy appears in the export values of the countries. The increase in exports raises the foreign exchange inflow. However, there may be an increase in import expenditures due to the increasing income of the country, which in turn worsens the countrys trade balance.

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Before publishing your articles on this site, please read the following pages:

Plan Your Market Entry Strategy Selecting Initial Export Markets

Plan Your Market Entry Strategy: U.S. Export Regulations

Determine a Products Export Potential

Get Ready to Export: Are You Export Ready

Get Ready to Export: My Export Plan

Plan Your Market Entry Strategy: Research the Global Market Place

Plan Your Market Entry Strategy: Selecting Initial Export Markets

Success Story: Advanced Superabrasives

Success Story: Advanced Superabrasives

Finding Foreign Buyers: Trade Missions

Finding Foreign Buyers: Trade Shows

Plan Your Market Entry Strategy: Export Counseling

State & Local Government Assistance

Success Story: Spancrete Machinery Corporation

Success Story: Home Instead Senior Care

Plan Your Market Entry Strategy: Foreign Import Regulations

Intellectual Property Considerations

Navigate Your Market Successfully: Protecting your IP Abroad

E-Exporting Tools for Small Businesses

Make the Export Sale: Shipping Basics

Make the Export Sale: Export Pricing Strategy

Success Story: Alignment Simple Solution

Success Story: Patton Electronics Company

Obtaining Assistance from US Embassies and Consulates

Navigate Your Market Successfully: Business Travel Abroad

Success Story: Lightning Eliminators

Selling Overseas and Aftersales Service

Conducting Business Internationally

Rules of Origin – General Categories

NAFTA, Chile, Singapore, Australia, CAFTA-DR, Colombia, Panama, Korea, and Peru FTAs – Determining rules of origin

Rules of Origin General Categories, Chile, Singapore, CAFTA-DR, Peru, Colombia, Korea and Panama FTAs

Rules of Origin: General Categories: Israel, Jordan, Morocco, Bahrain, and Oman FTAs

Plan Your Market Entry Strategy: Selecting Initial Export Markets

As you develop your export plan and conduct international market research, you will be looking to narrow down your selection to the best foreign export markets. Selecting Initial Export Markets is the second of five videos in the Plan Your Market Entry Strategy set. This video will help further target your research: which similar products are selling in foreign markets, language and local cultural issues, product certification, pricing, and regional approaches to exporting.

How to Find the Best U.S. Export Markets

Quick Links:Next VideoMarket Entry Strategy Video SetHow to Export Video SeriesSubscribe to ourEmail Updates and Tips.

Narrowing your market research will help to identify specific differences in foreign markets that you should be aware of:

Local availability of raw materials or product alternatives

Varying amounts of purchasing power

A Step-by-Step Approach to Market Research

Once you have obtained your export statistics, your company may find the following approach useful. It involves screening potential markets, assessing the targeted markets, and drawing conclusions.

First, identify 5 to 10 large and fast-growing markets for your companys product. Look at trends over the past 3 to 5 years. Has market growth been consistent year-to-year? Did import growth occur even during periods of economic recession? If not, did growth resume with economic recovery?

Then, take a look at some smaller, fast-emerging markets that may provide ground-floor opportunities. If the market is just beginning to open up, there may be fewer competitors than in established markets. To qualify as up-and-coming markets, these countries should have substantially higher growth rates. Burma (which recently opened its economy after years of economic sanctions) and Morocco (which entered into a free trade agreement with the United States in 2005) are good examples of such markets.

Look also at groupings of countries such as those with which the United States has free trade agreements within Latin America. Or look at regions within large countries such as western Canada or far eastern Russia. The U.S. Commercial Service has regional services that will help you find buyers in multiple countries in, for example, East Asia. If youre targeting Hong Kong and the Pearl River Delta area, why not stop in nearby Thailand or Singapore?

Step 2: Target the Most Promising Markets

Of the markets you have identified, select three to five of the most statistically promising for further assessment. Consult with a U.S. Commercial Service trade specialist, business associates, freight forwarders, and others to further evaluate targeted markets.

Look at your products as well as related products that could influence demand. Calculate overall consumption of the product and the amount imported. The U.S. Commercial Service offers market research reports that provide economic background and market trends by country and industry. Demographic information (such as population and age) can be obtained from theU.S. Census Bureau

and from theUnited Nations Statistics Division

Sources of competition include the domestic industry in each targeted market and competitors from other foreign countries. Look at each competitors U.S. market share, as well as its share in the targeted market.

Analyze factors affecting the marketing and use of your product in each market, such as end-user sectors, channels of distribution, cultural idiosyncrasies (for example, when translated into the local language, does your products name mean something inappropriate?), and business practices. Again, the market research reports and customized market research offered by the U.S. Commercial Service are useful.

Foreign barriers to imports can be tariff or non-tariff. U.S. barriers could include export controls. If you make a product that may have both civilian and military uses, you may need an export license. The U.S. Commercial Service can help you determine whether a license is necessary.

Drawing ConclusionsAfter analyzing the data, you may conclude that your marketing resources would be applied more effectively to a few select countries. In general, if your company is new to exporting, then efforts should be directed to fewer than 10 markets. Exporting to a manageable number of countries allows you to focus your resources without jeopardizing your domestic sales efforts.

Your companys internal resources should determine what choices you make. The U.S. government, though, has programs that can assist you with exporting to multiple markets within the same region. The U.S. Commercial Service, for example, has regional export promotion programs in Asia, Europe, the Middle East, and the Americas, in addition to country-and-industry-specific resources.

Export.gov, the U.S. federal governments export portal, links to many resources, including the following:

Country Commercial Guidesprovide the latest market intelligence on more than 140 countries from U.S. embassies worldwide.

Get up-to-date numbers for U.S. export sales to worldwide destinations throughtrade/industry statistics.

Locate a trade expert and learn about the services of theU.S. Commercial Servicesglobal office network..

Webinarsprovide insight on how to select your initial export market

provides additional insight on global web use. See

Chapter 3: Developing a Marketing Plan

Plan Your Market Entry Strategy: Selecting Initial Export MarketsAs you develop your export plan and conduct international market research, you will be looking to narrow down your selection to the best foreign export markets. Selecting Initial Export Markets is the second of five videos in the Plan Your Market Entry Strategy set. This video will help further target your research: which similar products are selling in foreign markets, language and local cultural issues, product certification, pricing, and regional approaches to exporting.Pick a Board

TheInternational Trade Administration(ITA),U.S. Department of Commercemanages Export.gov to assist U.S. businesses plan their international sales strategies and succeed in todays global marketplace. External links to other Internet sites should not be construed as an endorsement of the views or privacy policies contained therein. This site contains PDF documents. APDF Readeris available from Adobe Systems Incorporated.

Export Strategies for Small Firms

Good strategies can help SMEs reach export markets.

Todays export promotion strategies must reflect the changing nature of the international trade environment, if they are to have an impact.

Change in the past several years has taken many forms. Broad changes are affecting international trade, such as the Uruguay Round Agreement and the establishment of the World Trade Organization (WTO). In addition, three major issues have recently emerged that influence export promotion: growing interest in the environment and sustainable development, the importance of small and medium-sized enterprises (SMEs) as exporters, and the scope for increasing trade in services, especially those supplying information technology services and clean technology.

This article takes a closer look at one of those issues, trade promotion for SMEs.

The export potential of small and medium-sized firms has been a growing subject of interest. Why should todays export promotion strategies focus on SMEs, rather than on large or micro enterprises?

• Strong growth potential. Only a small percentage of SMEs in developing countries are now engaged in export trade, yet they account for approximately 40% of export earnings. The current trend points strongly towards a sustained growth in this share, supported by expanding output and employment. Recognizing their growth potential, most governments in developing countries are giving priority to SMEs through policy support and other incentives.

• New legal framework. The WTO Agreement has created a framework for a more open global trading system, which has implications for smaller firms. An appropriate export strategy could provide the corresponding internal framework to enable smaller businesses to engage more successfully in external trade and meet international competition. By reducing tariff and non-tariff barriers and ensuring non-discriminatory treatment in foreign markets, the smaller exporters have been offered the same market access that was previously available to larger companies with resources to set up local operations to beat the tariff walls.

• Lower transport and communications costs. Technological developments in communications and reduced international transport costs make it easier for smaller firms to enter international markets. An export promotion strategy could facilitate market entry by assisting smaller firms to acquire technical know-how and familiarize themselves with new cost-saving innovations. SMEs, who have no in-house servicing facility, benefit significantly in terms of lower overall trade service cost and higher competitiveness.

• Shifting comparative advantage. Globalization of trade, investment and production has substantially altered comparative advantages between large and small firms. The smaller enterprises that have responded flexibly and adapted to the new environment-often linking with new partners and forming new alliances-are positioned for strong growth. These types of smaller firms generally enjoy advantages over large enterprises: they are usually able to preserve better labour relationships, bring a personal touch to their operations, cater to specialized market segments and have smaller capital investment requirements. The constant market pressure to stay competitive also spurs them to be inventive, innovative and flexible in their business operations. This makes it much easier for them to adjust quickly to changing economic conditions and market requirements.

In other words, small enterprises may be better positioned to adapt to changes in the 1990s than larger enterprises. In the United Republic of Tanzania, successful new product lines have emerged due to trade liberalization, including oil presses and expellers, water pumps, storage tanks and drill presses. Similarly, small textile producers in Sri Lanka have become more export-oriented in response to trade liberalization measures initiated in 1997, through the planned development of skills and institutions, which has improved product quality.

• Relative impact. Large enterprises are more likely to have the means to promote their own activities; most have resources to establish marketing channels, trade information systems and trade representation offices. A trade support institution will probably make only a marginal contribution. Furthermore, some large companies regard government-supported promotional activities as interference with their business decisions and may therefore be unwilling to cooperate.

SMEs, on the other hand, are almost entirely dependent on outside trade service providers. The impact of easily accessible and efficient services at affordable cost is correspondingly greater for them. This is crucial at the stage of initial market development efforts when SMEs need to commit scarce financial resources in advance without any guarantee of returns.

An export promotion strategy needs to define how best to help smaller firms exploit these opportunities and to overcome some of their constraints. Among the most formidable challenges to those seeking to develop new export promotion measures are the need to improve infrastructure, access to finance, and marketing. A review of the past trading performance of small firms has shown that these deficiencies are major obstacles to export success.

• Developing export infrastructure. Setting up infrastructure like export industrial estates, export processing zones, and bonded production centres can provide a real boost to export development. In the least developed countries (LDCs) the problems are at a more basic level such as electrical power, water, roads, ports, shipping and telecomunication.

• Improving financing conditions. Restricted access to finance for small firms which lack collateral and are considered high-risk borrowers puts a cap on production expansion. A recent ITC survey revealed that SMEs think of financing as their most critical problem.

• Strengthening marketing channels. Many small enterprises are unable to market their goods effectively in existing markets. Small firms continue to lack knowledge of marketing channels and fail to establish marketing networks, or have not entered into strong market relationships with existing customers.

Several options are worth exploring to improve SME marketing channels. Some trading houses have been effective channels between small producers and the market in areas such as packaging, shipping, financing, insurance, quality management, publicity and delivery, as can be seen in the box above. (See also Forum 2/98, Using an Export Development Company.) Joint marketing consortia have also been successful in certain cases.

Another option to stimulate SME export development is provided by subcontracting from large enterprises to small enterprises, as can be seen from the box below.

The primary responsibility for SME competitiveness, of course, is with the firms management. There is ample need, however, for trade promotion support. Some private sector and SME associations, which played mainly an advocacy role in the past, have gradually introduced market information and training services that complement public sector efforts. They can and should do more, as businesses are receptive to their generally market-driven approach. Many governments have set up technical support institutions for management training, product design, quality control, packaging, loan guarantees and trade promotion. Their success is often contingent upon the degree of their commercial orientation, to well-trained staff, equipment and financial resources. Public authorities need also to bear in mind that delays, poor services and high costs for infrastructure will cut the competitive edge of their SMEs.

The general weakness of trade promotion and export development of SMEs in many countries in all developing regions is a pervasive concern that demands sustained attention. Institutions that design export promotion strategies face a critical choice: whether to adopt an all-embracing approach or, given resource limitations, to focus on particular sectors. With few exceptions, national trade promotion organizations have chosen to adopt a broad approach in the past. With their resources spread too thinly, this approach has reduced the effectiveness of many export promotion programmes. The changing trade environment demands a second look at the prevailing trade promotion strategies for SMEs.

This article has been excerpted and adapted from an ITC technical paper on Trade Promotion Strategies in Developing Countries. The study was directed by Monwarul Islam, ITCs Chief of Functional Advisory Services. Paul Cook of the Institute for Development Policy and Management, University of Manchester, United Kingdom, was a major contributor to this portion which served as a basis for this article, along with several ITC staff.

SMEs are becoming increasingly aware of the growing competition at home and abroad. They especially require information on markets, buyers, suppliers, prices, trade regulations and business procedures in the target market.

• Trade information and commercial intelligence gathering require market research and information analysis skills as well as experience with modern information technology. For most SMEs this turns out to be a tall order.

• In an attempt to differentiate a product, create a brand image or meet the latest consumer preferences, SMEs need to undertake product development, re-design or adaptation. This calls for expertise that is in short supply everywhere, especially in developing countries.

• SMEs must consider how to upgrade product quality and packaging to internationally acceptable standards.

Most SMEs do not possess quality control laboratories nor have quality control specialists. Target market regulations or overseas buyers may demand higher quality or technical specifications. Packaging should be seen as a powerful marketing tool. New packaging regulations are being introduced to protect the environment.

• Market competition is strongly driven by price. Improving productivity and reducing cost is thus an important preoccupation. SMEs in developing countries could use advice for competitive costing and pricing techniques.

• Cost saving can be achieved by careful sourcing and inventory planning-as much as 15-20%. Few SMEs in developing countries, however, have developed the skills to achieve this level of economy. Many are content with traditional suppliers and large inventory that keep import costs unnecessarily high.

• Outdated technology may lower quality and raise cost, making the product uncompetitive. Many old technologies are also highly polluting. Sooner or later these SMEs will face exclusion from the market.

• Knowledge, skills and experience soon become obsolete unless continuously upgraded. While opportunities for academic qualifications proliferate, SMEs in developing countries have little access to practical training they really need.

Source: Speech extract, Meeting the Challenges of the Global Market, delivered at the First Asian Pacific Conference on SMEs, Ghangzhou, China, Oct. 1998, by M. Islam, ITC.

Programmes that link SMEs to larger firms as subcontractors have been introduced in the Republic of Korea, Taiwan Province of China and Singapore. The most successful ones help increase the response capacity of small enterprises to make them more attractive to large firms as suppliers for exports. Part of the secret of success is that all three countries have strong coordinating agencies to provide support: the Investment Development Bureau in Taiwan Province of China, the Ministry of International Trade and Industries in the Republic of Korea and the Economic Development Board in Singapore.

Intra-country measures to attract subcontracting links and direct foreign investment have proved beneficial in creating a wider network of inter-firm linkages in Japan and the Republic of Korea. It permitted firms in the latter country to penetrate international markets. These arrangements were supported by government screening of the technology transfer process from foreign investment, ensuring that local small firms benefited.

Some larger companies have developed models that benefit SME development. The creation of associated trading companies and trading houses by large enterprises has facilitated export marketing for SMEs. Several large company groups in Brazil, India and Turkey have created their own trading companies to act as their exporting and importing arms. While their priority is to manage trade for products of the companies within the group, they may also act as the marketing channel for a large number of SMEs. Similarly, trading houses have been established in Japan. These trading houses are not involved in production, but often act as intermediaries between small enterprises and world markets. Governments have encouraged links with SMEs, by setting up publicly funded financial incentives (tax breaks, concessionary finance) for trading companies that measurably demonstrate SME export promotion.

ITC is field-testing a diagnostic tool for consultants that work with SMEs in developing countries. Called NEEDSME, this on-line needs and demand assessment system helps consultants rapidly assess a firms problems in various business management areas.

NEEDSME can combine the evaluations of several enterprises to generate group profiles by sector, country or other categories. It determines enterprise-level needs for management assistance by assessing a firms existing achievements in marketing, production and finance.

Field testing is nearly complete in the United Republic of Tanzania and Southern Africa for debugging and improvements. NEEDSME is now available from ITC in the Beta version (computer diskettes). The final format will be available in CD-Rom. For more information, contact O. A. Ataç, ITC Senior Adviser, Human Resource Development Section,

ITC would like to know how you assess needs for SMEs, and what your research conclusions are. ITC is developing an SME Needs Assessment Survey to identify export practices, expectations, and needs of exporters in developing countries. If you have developed a similar assessment tool or would like further information, contact Kai Bethke, Expert, Institutional Capacity Development for SMEs,

Trade facilitation: Trade competitiveness and the development dimension

A trade facilitation agreement to increase LDC exports

Trade facilitation, international supply chains and SME competitiveness

Coffee Export

This sample marketing plan was created withMarketing Plan Prosoftware.

Silvera & Sons (S&S) prepares green Arabica coffee beans grown in Brazil for exportation to American specialty roasters and sells to wholesalers on the Brazilian market as well. S&S will expand production capacity from 72,000/60kg bags per year to 120-160,000/60kg per year. The coffee stands out from that of the competition. S&S prepare the top five percent, in terms of quality standards, of all Arabica beans on the market. S&S customers seek this product as it provides them with a point of differentiation to specialty roasters. In the past six years, demand for the coffee has exceeded the amount S&S is able to supply and have been forced to refuse requests for larger shipments.

In year three the plant will run at maximum capacity. S&S has positive indicators from current importers that the additional amount of beans will be sold.

Establishing and maintaining working relationships and contractual agreements with American importers and Brazilian coffee brokers and wholesalers.

Bringing the new facility to maximum production within three years of operation.

Increasing the profit margin with the use of improved technology in the new facility.

Effectively communicating to current and potential customers, through targeted efforts, our position as a differentiated provider of the highest quality Arabica beans in the world.

Coffee has been a growing industry for the past five years. The most notable growth has been in the American market where imports have increased almost one-hundred percent and the market price has nearly doubled. The number of specialty roasters has increased from a handful of well-known companies to thousands of independent entities. There is a constant struggle within this market to produce the best coffee and serve one or more niches within the larger market. Brazilian coffee producers and exporters have made great efforts to improve agricultural techniques, processing methods, and distribution in order to better serve this growing market. Demand for Brazilian coffee is currently greater than supply.

By providing the finest species of coffee, Silvera & Sons has taken the first step towards a differentiated product. To further distinguish their coffee, S&S adheres to higher quality standards than approximately ninety-five percent of the market. In addition, all of the beans are of the Bourbon Santos variety. The Bourbon strain is considered one of the finest Brazil has to offer. It is grown in the mountains surrounding Sao Paulo and is highly sought after by specialty roasters from around the world. S&S has assumed the position of a specialized provider of this exceptional coffee. The customers, American and Brazilian specialty roasters, recognize Silvera & Sons for their ability to provide the type of beans they require to produce award winning coffee.

Get practical ideas and good models with dozens

of examples of successful marketing plans

Preparing an export marketing strategy for your firm

What is involved in export Marketing?

Preparing to participate in a Trade Fair

Financial Assistance for Export Marketing

Export Software & Technology solutions

You are here:Step 8: Preparing your export plan Preparing an export marketing strategy for your firm

Preparing an export marketing strategy for your firm

With a summary of the research undertaken in step 7 and your export SWOT analysis (discussed in the previous section) in hand, and your export objectives clearly outlined, you can now move on to prepare an export marketing strategy. The export marketing strategy describeshowyou will meet the needs of the foreign customer. More specifically, the export marketing strategy must indicate how you will adapt your product to meet the needs of the foreign customer, at what price you will attempt to sell the product, how you will inform the customer of your product and encourage them to buy your products, and, finally, how you will get your product to the customer. The marketing information obtained from your export research efforts will be used to draw up your export marketing strategy.

We have mentionedmarketinga few times already in the above introduction as well as in several other sections leading up to step 8. At this point, it is appropriate just to briefly define marketing.

The American Marketing Association defines marketing as:

the process of planning and executing the conception, pricing, marketing communication and distribution of ideas, products and services to create exchanges that satisfy individual and organisational goals.

From this definition can be distilled a number of key elements. The first is the question ofexchange. Exchanges occur when at least two parties that each have something of value, and who wish to transact with the other person, communicate with each other and then either accept or reject the others offer.

The second is the issue of satisfyingcustomer needsand organisational goals. The focus of any marketer is the customer; indeed, marketing can be said to be customer-centric. To begin with, the marketer must identify who the customer is and what their needs are (this you will already hopefully have done in the export research section). This information is vital in shaping your future export marketing efforts. The information so far gathered will suggest what changes you need to incorporate into your product, what price you can pitch your product at, how best to inform the marketplace of your product, its attributes and where they can purchase it, and, finally, how best to get the product to the customer.

In addition to having a customer focus, it is important to realise that the companies do not go into business or export for no good reason. All organisations – whether profit-making firms or non-profit organisations – have certain goals. These goals may be to generate a return on investment for the firms shareholders or to delivery certain services to their target audience. As we are mainly dealing with private sector companies, the profit motive is the main organisational goal.

The process of planning and executing the activities that we have outlined above, suggests that the firm must bring together all of its resources (financial, equipment, labour and management skills) to achieve customer satisfaction and organisational goals. A total systems approach by the firm to its activities is therefore another key element of this definition.

These three elements (i.e. customer focus, goal/profit orientation and total systems approach) combine to underpin the marketing concept, which says that in order to be marketing orientated, firms must take a systematic approach in their business activities, bringing to bear all of the resources of the firm in order to achieve customer satisfaction, while at the same time achieving company goals.

Finally, the AMA definition identifies four main activities which we have already mentioned in the above discussion (commonly referred to as the 4Ps of marketing) and which the firm must focus its attention on in order to achieve its marketing objectives. These 4Ps are:

Establishingpricesthat offer value to customers and a profit to the supplier

Promotingproducts and services through personal selling, advertising, direct mail, the internet, etc.

Distributing(also referred to as place, hence the 4Ps) the products and services from the supplier to the ultimate customer through appropriate distribution channels

These four activities constitute the traditional marketing mix and represent those aspects of marketing over which you, the marketer, have control.

Leading on from the above statement, the variables comprising the marketing mix are sometimes referred to as controllable factors and represent the micro environment of the firm. They are referred to as controllable varibales because the firm has control over them and can (relatively easily) change them as may be thought appropriate. The marketing manager, however, must also take into account uncontrollable factors such as the market and macro environments within which the firm must operate. In the domestic market, the market environment includes shareholders, customers, suppliers and the other business partners of the firm, while in the foreign marketplace, the market environment includes the import intermediaries, customers and other organisations that the exporter must deal with in his/her export endeavours. The macro environment, on the other hand, includes the legal-, politic-, socio-cultural-, technological-, and economic-environments that firms around the world have to deal with on a daily basis. These environments we dealt with in step 1 of the export process – we link to them again here, should you wish to refresh yopur memory. The market and macro environments are also commonly referred to as the external environment, while the micro environment is known as the internal environment.

In both the case of the market and macro environments, the marketer has very little or even no control whatsoever. The marketer, for example, cannot change the cultural, legal or political environments within which they operate. Similarly, although they may be able to influence their suppliers or customers, they do not actual have full control over them; for this reason the variables in the market and macro environments are known as uncontrollable factors.

A company which is able to co-ordinate its entire business system including its finances, its machinery and equipment, its human resources, its competitive processes, its management expertise, and its marketing mix to focus on the satisfaction of customer needs profitably within a dynamic external environment is usually assured of success (quite a tall order, mind you). Against the background of the companys overall business and marketing objectives, the challenge of the marketing manager is to use tools such as market research to mould the controllable elements of marketing (i.e. product, price, promotion and distribution) within the framework of the uncontrollable elements of the market place.

One mistake often made by some individuals is to confuse marketing with advertising or promotion or even selling. While marketing incorporates all of these things, it involves much more. Marketing drives the firms activities; from the research that is required to understand the firms potential customers, to sourcing and procuring the materials needed to manufacture the products that customers need at a price they can afford, to promoting and selling these products to customers, to ensuring that the products are delivered to the customers where they need them, and, finally, to ensuring that customers are satisfied with the firms efforts. Of course, the more foreign markets you attempt to target the more difficult and expensive your export marketing endeavours will become – it is therefore advisable to select a particular market at first and then once you have succeeded in this market, you can then extend your marketing endeavours to other markets.

Moving on to your export market strategy

The above discussion hopefully provides you with a broad overview of what marketing entails. Clearly, there is much more to marketing than this, but that is not part of the scope of this website. What we now need to do is to prepare an export marketing strategy. This strategy, we have already said. will outlinehowyour firm intends to adapt the countrollable variables (the product, its price, promotion and distribution) to best meet the needs of the foreugn customer.

The export marketing strategy provides a fairly broad discussion of these four elements, with perhaps no more than a page or two being devoted to each of the four elements. In the coming sections we will discuss each element in more detail highlighting some of the issues that need to be considered when preparing your strategy in respect of each element.

Revisiting an export SWOT analysis of the firm

Setting the export objectives of the firm

Preparing an export marketing strategy for your firm

Preparing an export budget for your firm

Outlining an implementation schedule for your export activities

Preparing and presenting your export plan

Obtaining approval for your export plan

The export process in 21 easy steps

Step 4:Broad mission statement and initial budget

Step 5:Confirming managements commitment to exports

Step 6: Undertaking an initial SWOT analysis of the firm

Step 7:Selecting and researching potential countries abroad

Step 8: Preparing and implementing your export plan

Step 9: Obtaining financing for your exports

Step 11: Promoting the firm and its products abroad

Step 12: Negotiating and quoting in exports

Step 13: Revising your export costings and price

Step 14: Obtaining the export order

Step 16: Handling the export logistics

Step 18: Providing follow-up support

Step 20: Reviewing and improving the export process

Universities with international Expertise

Get Ready to Export My ExporPlan

Plan Your Market Entry Strategy: U.S. Export Regulations

Determine a Products Export Potential

Get Ready to Export: Are You Export Ready

Get Ready to Export: My Export Plan

Plan Your Market Entry Strategy: Research the Global Market Place

Plan Your Market Entry Strategy: Selecting Initial Export Markets

Success Story: Advanced Superabrasives

Success Story: Advanced Superabrasives

Finding Foreign Buyers: Trade Missions

Finding Foreign Buyers: Trade Shows

Plan Your Market Entry Strategy: Export Counseling

State & Local Government Assistance

Success Story: Spancrete Machinery Corporation

Success Story: Home Instead Senior Care

Plan Your Market Entry Strategy: Foreign Import Regulations

Intellectual Property Considerations

Navigate Your Market Successfully: Protecting your IP Abroad

E-Exporting Tools for Small Businesses

Make the Export Sale: Shipping Basics

Make the Export Sale: Export Pricing Strategy

Success Story: Alignment Simple Solution

Success Story: Patton Electronics Company

Obtaining Assistance from US Embassies and Consulates

Navigate Your Market Successfully: Business Travel Abroad

Success Story: Lightning Eliminators

Selling Overseas and Aftersales Service

Conducting Business Internationally

Rules of Origin – General Categories

NAFTA, Chile, Singapore, Australia, CAFTA-DR, Colombia, Panama, Korea, and Peru FTAs – Determining rules of origin

Rules of Origin General Categories, Chile, Singapore, CAFTA-DR, Peru, Colombia, Korea and Panama FTAs

Rules of Origin: General Categories: Israel, Jordan, Morocco, Bahrain, and Oman FTAs

Get Ready to Export: My Export Plan

The key to successful exporting is having a written strategic export plan. This article provides an introduction and sample export plan outline that can be customized for your own use. Start by viewing My Export Plan, the third of three videos in our Get Ready to Export set. The video highlights the essential elements of a solid exporting business plan: identifying your product or service, doing market research on the countries of interest, pricing of your product, and a strategy for finding buyers. Finally, you will need to identify key resources to connect you with buyers, freight forwarders and other experienced exporters.

Quick Links:How to Export Video SeriesSubscribe to ourEmail Updates and Tips.

The purpose of an export plan is to assemble facts, constraints, and goals, and to create an action statement that takes these elements into account. The plan includes specific objectives, sets forth time schedules for implementation, and marks milestones so that the degree of success can be measured and can motivate personnel.

11 Questions you should answer in developing an export plan

Which products are selected for export development, and what modifications, if any, must be made to adapt them for overseas markets.

Which countries are targeted for sales development?

What are the basic customer profiles, and what marketing and distribution channels should be used to reach customers?

What are the special challenges (for example, competition, cultural differences, and import and export controls), and the strategy to address them?

How will your products export sales price be determined?

What specific operational steps must be taken and when?

What will be the time frame for implementing each element of the plan?

What personnel and company resources will be dedicated to exporting?

What will be the cost in time and money for each element?

How will the results be evaluated and used to modify the plan?

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

Your plan should be written and viewed as a flexible management tool, not as a static document. Plan objectives should be compared with actual results to measure the success of different strategies. Dont hesitate to modify and make the plan more specific as additional information and experience are gained.

A detailed plan is recommended for companies that intend to export directly, meaning selling to an end-user in another country. If your company chooses indirect export methods or sells via your or a third partys website, you may use much simpler plans.

Written plans give a clear understanding of specific steps that need to be taken and help assure a commitment to exporting over the longer term.

Only about a third of small -and medium-sized U.S. manufacturers have a written plan. Absent a plan, your business may overlook much better opportunities. In addition, reactive exporters may quickly give up on selling to international customers, concluding prematurely that its not worth the effort, or that its easier to serve customers closer to home even if that base may not grow, and could even shrink in the future.

Remember that while 59 percent of all U.S. exporters export to only a single market (predominantly Canada), many small exporters sell to more countries than they have employees, and these sales account for a growing percentage of total sales. These mini-multinationals are becoming more common, and your company can be one of them.

Your plan need only be a few pages to start. Here are some important preliminary questions to ask and the answers will become an integral part of the plan.

What need does my product or service fill in the global marketplace?

What modifications, if any, must be made to adapt my product for export markets?

Do I need special licenses or certificates from the U.S. or the buyers government?

Do I need to modify packaging or labeling?

What is the cost to get my product to market (freight, duties, taxes and other costs)?

Given an estimate of the shipping costs, what is my pricing strategy?

What, if anything, do I need to protect my intellectual property?

What modifications, if any, should I make to my website for marketing purposes?

Should I sell on third party eCommerce platforms?

What kinds of social media should I use to build awareness?

Should I attend a trade show where international buyers are present?

Are the reasons for pursuing export markets solid objectives (such as increasing sales volume or developing a broader customer base), or more frivolous (for example, the owner wants an excuse to travel)?

How committed is top management to exporting? Is exporting viewed as a quick fix for slumping domestic sales? Will export customers be neglected if domestic sales pick up?

What are the expectations? How quickly does management expect export operations to become self-sustaining? What level of return on investment is expected?

With which countries has business already been conducted, or inquiries already received?

Which product lines are talked about the most?

Are domestic customers buying the product for sale or shipment overseas? If so, where?

Is the trend of sales and inquiries up or down?

Who are the main domestic and foreign competitors?

What are some lessons learned from past export experiences?

What in-house international expertise does the company have (international sales experience, language capabilities, etc.)?

Who will be responsible for the export departments organization and staff?

How much senior management time should/could be allocated?

What organizational structure is required to ensure export sales are adequately serviced?

Who will follow through after the planning has been done?

How is the present capacity being used?

Will filling export orders hurt domestic sales?

What about the cost of additional production?

Are there fluctuations in the annual workload? When? Why?

What minimum-order quantity is required?

What is required to design and package products specifically for export?

What amount of capital can be committed to export production and marketing?

What level of operating costs can be supported by the export department?

How are initial expenses of export efforts to be allocated?

What other new development plans might compete with export plans?

By what date must an export effort pay for itself?

Do you qualify for any type of export financing?

Part I: Export Policy Commitment Statement

Identifying, Evaluating, and Selecting Markets

Internal Organization and Procedures

Sales Goals (Profit and Loss Forecasts)

Pricing with Consideration of Duties, Taxes

Freight Costs, and Logistics Included

, the U.S. federal governments export portal, also links to many resources, including the following:

If your business is just getting started, contact your nearest

Small Business Development Center (SBDC

representative for help in developing an overall business plan.

If you are an established firm with a record of domestic or

and are looking to export, your local

provide the latest market intelligence on more than 140 countries from U.S. embassies worldwide.

provides a roadmap for developing an export plan. See

Chapter 2: Developing an Export Strategy.

PlanningGet Ready to Export: My Export PlanThe key to successful exporting is having a written strategic export plan. This article provides an introduction and sample export plan outline that can be customized for your own use. Start by viewing My Export Plan, the third of three videos in our Get Ready to Export set. The video highlights the essential elements of a solid exporting business plan: identifying your product or service, doing market research on the countries of interest, pricing of your product, and a strategy for finding buyers. Finally, you will need to identify key resources to connect you with buyers, freight forwarders and other experienced exporters.Pick a Board

TheInternational Trade Administration(ITA),U.S. Department of Commercemanages Export.gov to assist U.S. businesses plan their international sales strategies and succeed in todays global marketplace. External links to other Internet sites should not be construed as an endorsement of the views or privacy policies contained therein. This site contains PDF documents. APDF Readeris available from Adobe Systems Incorporated.

export promotion

Astrategyforeconomic developmentthat stresses expandingexports, often throughpoliciesto assist them such asexport subsidies. Therationaleis to exploit a countryscomparative advantage, especially in the common circumstance where anover-valued currencywould otherwise createexports. Contrasts withimport substitution.

You may want to try and useexport promotionto grow your business in many new ways and areas if you can.

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Theexport promotionstrategy was effective in the short term by making their goods more competitive in the international marketplace.

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The President of the United States has adopted a free-trade policy because he wants to reduce tariffs and expand the economy through a strategy ofexport promotion.

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