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TEN KEYS TO EXPORT SUCCESS
There is profit to be made by U.S. firms in exports. The
international market is more than four times larger than
the U.S. market. Growth rates in many overseas markets far
outpace domestic market growth. And meeting and beating
innovative competitors abroad can help companies keep the
edge they need at home.
There are also real costs and risks associated with
exporting. It is up to each company to weigh the necessary
commitment against the potential benefit.
Ten important recommendations for successful exporting
should be kept in mind:
- Obtain qualified export counseling and develop a
master international marketing plan before starting an
export business. The plan should clearly define
goals, objectives, and problems encountered.
- Secure a commitment from top management to overcome
the initial difficulties and financial requirements of
exporting. Although the early delays and costs
involved in exporting may seem difficult to justify in
comparison with established domestic sales, the
exporter should take a long-range view of this process
and carefully monitor international marketing efforts.
- Take sufficient care in selecting overseas
distributors. The complications involved in overseas
communications and transportation require
international distributors to act more independently
than their domestic counterparts.
- Establish a basis for profitable operations and
orderly growth. Although no overseas inquiry should
be ignored, the firm that acts mainly in response to
unsolicited trade leads is trusting success to the
element of chance.
- Devote continuing attention to export business when
the U.S. market booms. Too many companies turn to
exporting when business falls off in the United
States. When domestic business starts to boom again,
they neglect their export trade or relegate it to a
secondary position.
- Treat international distributors on an equal basis
with domestic counterparts. Companies often carry out
institutional advertising campaigns, special discount
offers, sales incentive programs, special credit term
programs, warranty offers, and so on in the U.S.
market but fail to make similar offers to their
international distributors.
- Do not assume that a given market technique and
product will automatically be successful in all
countries. What works in Japan may fall flat in Saudi
Arabia. Each market has to be treated separately to
ensure maximum success.
- Be willing to modify products to meet regulations or
cultural preferences of other countries. Local safety
and security codes as well as import restrictions
cannot be ignored by foreign distributors.
- Print service, sale, and warranty messages in locally
understood languages. Although a distributor's top
management may speak English, it is unlikely that all
sales and service personnel have this capability.
- Provide readily available servicing for the product. A
product without the necessary service support can
acquire a bad reputation quickly.
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