Export Management

2036 WordsJan 12, 20149 Pages
EXPORT STRATEGY INFORMATION DOCUMENT Introduction The aim of this assignment is to demonstrate knowledge of the information and data needed to formulate an export strategy. This will be achieved by way of addressing the following: 1. What is meant by the ‘business and market environment’ of a target market? What kind of information would an exporter need to collect? 2. What is meant by the concepts ‘market segmentation’ and distribution channels’? What kind of information would an exporter need to collect? 3. What are the financial issues, export practicalities and technicalities that an exporter would need to know about to in the context of developing an export strategy? Business and market environment of a…show more content…
Factors such as the proportion of the segment and its profitability are, therefore, crucial features of a marketing plan. Distribution channels How to operate distribution channels is of critical significance to the success or failure of an export business (Madsen, Moen and Hammervold 2012). This means making important judgements in utilising options such as the choice of foreign export firm to assume responsibility for the operation abroad. The locally recruited company would be charged with unearthing sales outlets, establishing its own export management, trading by way of local representatives, locating and using storage facilities and handle as decisions and setting up its own sales branch. The level of responsibility assigned to a distributor or agent is dependent on the number of product rights an exporter holds (Madsen, Moen and Hammervold 2012). This may include marketing roles like pricing and delivery strategies, communication and locating customers. However, it is worth noting that overburdening a distributor with too many tasks could make them less effective. Such is the significant role of the distributor that it is essential that good relations are maintained (Zhang, Cavusgil and Roath 2003). ‘Relationships between exporting firms and other members of the international distribution channel can significantly impede or enhance performance in export markets’ ( Matear, Gray, Irving 2000,
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