Marketing Strategy for Export

Before an enterprise begins to devise an export marketing plan, certain strategic decisions need to be made.

The world is a large place. It includes over150 countries, and some of these have very large markets. An enterprise cannot target every country and must make strategic choices with regards to the target markets and segments in which it has the most competitive advantages.

?An export marketing strategy provides a framework to organise a coordinated set of efforts to position products and services in a given market.

?An export marketing strategy consists of high-level decisions on geographical markets, customer segments, and even narrow segments of segments. These decisions will govern how an SME??positions its services or products against its competitors. These key decisions must be taken before moving to export marketing planning

An export marketing plan is needed:

· To guide SMEs through different chronological activities

?· To bring all relevant marketing instruments together

· To provide justification for the money that will be spent in the process

?· To give direction to the planned activities of SMEs

· To estimate the moment at which results can be expected

· To estimate the costs involved; An export marketing plan should be contained within a single document.

Making decisions as to which products will be exported, deciding on markets, and deciding which market segments to target are all conducted at the strategic level, while preparing an activity plan, developing specific objectives, and preparing a budget are conducted at the planning level

An export marketing strategy consists of one or more strategic choices based on the relative position of the SME in terms of its export opportunities.

?A SWOT is an internal analysis of the Strengths, Weaknesses, Opportunities and Threats of an enterprise in relation to its export opportunities.

The SWOT helps to:

?· Identify market opportunities

· Pinpoint strengths and weaknesses that may foster or hinder competitiveness

?· Analyse how strengths can be leveraged to seize opportunities

· Understand weaknesses that may represent a barrier to entry

· Assess the enterprise's competitive position

Based on the SWOT internal analysis, the export marketing strategy will include the following activities and choices.

?Market Analysis

· Identification of attractive markets

?· Selection of potential markets

· Analysis of target markets Segmentation

· Market segments identification

· Segment attractiveness assessment

?· Minimum segment investment/key success factors Targeting

· Choosing the scope of market coverage

?· Deciding which segments to target (e.g. ethnic, gourmet, wellness) Positioning

?· Understanding the positioning options in a target segment

· Establishing a position vs. competitors Value Proposition

· Positioning (or value) statement

· Value attributes and components (marketing mix)

The main objective of a market analysis exercise is to identify attractive markets and to select priority markets. The diversity of the international environment requires enterprises to address each market individually. Whether an enterprise is exporting for the first time or targeting new export markets, market analysis is an important step in identifying attractive markets and/or building an understanding of the opportunities available for an enterprise in those markets. The outcomes of market analysis will feed data to the strategic planning process.

IMPORTANT MARKET INFORMATION TO BE INCLUDED IN THE ANALYSIS ARE:

?· Volumes and trends in the selected markets

· The number of competitors

?· The regulatory landscape of the markets

· Descriptions of political and cultural environments

· The potential customers and their characteristics

?· Available market entry channels