Thinking of exporting?
Exporting is a logical move among enterprises that have taken off and whose products have firmly established its local market presence.
Not everyone can export, however. There are many factors you need to consider to assess your readiness for export.
Management commitment
First among these is having the management commitment to go into export marketing in a sustainable way.
Ask yourself the following questions:
- Why do I want to export?
- Is exporting one of my principal business goals, such as increasing sales volume, developing a broader and more stable customer base? Or is exporting just a whim? Do I want to export just for prestige or to keep up with the competition?
- Do I have experienced personnel to carry out required export activities? Do they have special skills such as organizing international transport, handling customs clearance, foreign sales experience, and foreign language capabilities. If I do not have these in my internal organization, can I access them through consultants or other providers.
- Do I have sufficient funds to finance export marketing and operations?
The right product
Equally important is having the right product.
Basically, the right product to export are those that:
- Have worldwide appeal
- Enjoy good profit margin
- Involves low regulation and restriction in the country being eyed for export
- Are easily transported and handled.
- Are easily installed.
- Have potentially low returns (on faulty goods.)
Export product questionnaire
Here is a questionnaire which can be useful in determining whether your product has the potential to make it in foreign markets.
- Describe the product you intend to export.
- What is the level of demand for your product/service in the export countries?
- What differentiates your product/service from what is offered by your competitors?
- What is the pricing strategy for your product/service?
- Does your product/service require any modifications prior to exporting, e.g. regulatory and compliance? If so, identify and describe what is required?
- Does your product/service require any form of after-sales service or support? How will you provide this?
- Do you need to make adjustments in your marketing strategy to suit the needs of the export country? If so, describe these.
- What potential issues may prevent your product/service from succeeding in the international market? How will you address these issues?
Photo: from www.lambertwilliams.com
