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
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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,
6. Outline the potential pros and cons of the 3 key strategies for developing foreign markets: exporting, licensing and franchising, and direct investment.
2) Explain the role of channel intermediaries in the product distribution process. Why is their role important?
This paper is intended to shine a light onto distribution channels, both direct and indirect, as well as, provide a better understanding of channel levels. It will also deal with the different channel organizations, including conventional, horizontal, vertical and multichannel marketing systems.
As mentioned in an earlier assignment, there are three main types of distribution channels. The first is the channel that goes from the producer, then to the wholesaler, then to the retailer or sells to the consumer. The second channel starts with the producer who sells straight to the retailer, who then sells to the consumer. The third channel goes directly from the producer to the consumer. Channels one and two are classed as indirect marketing channels, whereas channel three is a direct marketing channel as it goes straight from producer to consumer.
Comment on whether the U.S. government would support a business owner's decision to expand internationally or import in light of the balance of payments and how the move internationally may affect the business's reputation as a local small-business owner.
Many companies today want to expand their business to the international business, which can bring cost down and profits up. Taking a business internationally means knowing the rules and regulations of the countries you are entering. There can be many issues with going global which include cultural barriers, diversity issues, multicultural issues, political issues, and economical issues. It is very important to know how important expansion is to the company and what implications will come from going global.
6. You have been asked to develop a product for sale throughout the ASEAN region. What are the criteria you would apply in the
16. When managers in an international business consider market segmentation in foreign countries, they need
1. IF you were CEO of Harley Davidson, How would you compare the advantages and disadvantages of using exports, joint ventures, and foreign subsidiaries as ways of expanding international sales?
There are some important issues to consider when dealing with intermediaries on an exporting process: First of all the company would need to identify the appropriate commission structure for compensating intermediaries, which sometimes might lead
Mary Madison, Director of Market Research at U.S. Agricultural Tractor (USAT), has just come from an important meeting at which it had been decided to initiate a study a study of export opportunities for the firm’s tractors. Since she had no experience in global marketing, she was rather concerned about how best to approach this task.
‘Market segmentation represents an effort to identify and catergorise groups of customers and countries according to common characteristics’ (Keegan and Green 2016, p.228). For any business, it is crucial that they segment their market accordingly or they will risk forgoing sales opportunities. Fahy and Jobber (2015) identify the objective of market segmentation as distinguishing groups of customers with similar requirements so
“A task force concluded, the past segmentation did not fully address the emerging shift in customer needs” “(Xiameter Case Study). Dow Corning had to thus try different segmentation variables, alone and in combination to find the best way to view the market structure. (Kotler et al, 2008).
Risks that could be arising with exporting manufactured goods to a particular country must be thoroughly investigated and solutions and procedures must be implemented to mitigate against these risks. This also has an effect on the position of the current strength of the related market demands and profits that can be made in the export market. The following brief description will indicate some of the likely problems that could occur when dealing with exporting manufactured goods.
• Exporting allows managers to exercise operation control but does not provide them the option to exercise as much marketing control. An exporter usually resides far from the end consumer and often enlists various intermediaries to manage marketing activities.