Marketing Abroad (1) Marketing, Abroad

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Marketing Abroad (1)

　

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 travelling salesman or an officer of a branch or subsidary 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 travelling 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 considerable 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 travelling 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.