Marketing
Abroad
Exporting firms range in size from the
very small exporter to the large multinational company and the methods of
marketing will naturally vary according to their size and also according to the
type of goods and the nature of the market.
For the manufacturer going in for
exporting for the first time, there is a lot to be said for trying to sell some
of his goods in a small way without making any changes in his methods of
production or types of product and hence not being involved in any additional
capital investment. He can test the market in this simple way, but there are
considerable dangers in this because the results of his efforts may not be a
true reflection of what might be achieved by careful planning and research. He
may be unlucky and choose a difficult market, for instance one in which, if he
did but know it, his goods would sell much more readily if they were slightly
modified to meet local needs or preferences. Some time and expense at the outset
are likely to save disastrous mistakes and frustrations and also yield
substantial dividends. Fortunately, there are a number of sources of statistics,
information and guidance available to the exporter to aid him in his desk
research and much of this is available for only a modest amount of
expenditure.
With the aid of this desk research the
manufacturer should be able to make his first plunge into overseas trading
without making a bad choice of market and other serious blunders. He should then
be better able to make some very important decisions as to how to organize the
export marketing.
Direct
Selling
There are obvious advantages to
the exporter of selling direct to the overseas buyer without using an
intermediary such as an agent or export house. Direct selling means having
direct communication between a representative of the exporting company (whether
he is the export manager, a traveling salesman or an officer of a branch or
subsidiary abroad) and the buyer. This communication enables the exporter to
establish a relationship with the buyer, to make him fully aware of the range of
goods available and to assess fully the buyer’s requirements both in the short- and in
the long-term period. But the exporter must bear the expense of his direct
approach to selling. If he is exporting
in only a small way this may simply amount to his own expenses in traveling
abroad to visit his customers or of sending a colleague to do this. As the
business expands, however, an export sales office may be necessary and/or a
branch office will need to be opened overseas.
A sales office abroad, although
an expense, may bring consider able benefits to the exporter. It provides a
continuous presence in the buyer’s country, enabling him to have easy
access to the exporter’s staff to place orders or seek
help or advice. It enables these members of staff to develop sales and acquire
market information, and to supervise the distribution of their firm’s goods and display and warehouse them.
Skilled engineers may be at hand to deal with technical problems such as
assembly of the product. By employing some local staff the exporter is able to
overcome the language problem which he or his representatives traveling overseas
might find a barrier to successful sales negotiations. These foreign nationals will also be more
aware of local tastes and market needs. However, setting up abroad does often
involve contending with local laws in acquiring premises or a subsidiary company
and in employing personnel. There may be also difficulties in getting profits
home.