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Dealing with export environments
Introduction
One of the major marketing challenges that faces the
aspirant exporter is the how to overcome the barriers
resulting from the different environments that you will
encounter in exporting. These environments include (click
on any of these environments listed below, to learn more):
There are big differences
In most cases, these environments
differ –sometimes
dramatically – from the equivalent home environment.
For example, some markets may be technologically superior
or inferior to that which we are familiar with. Their
economies may be stronger or weaker, or may function differently
(such as the communist environments in China or Cuba).
They are almost certain to have different political and
legal systems than what we have and the influence of their
Government is also likely to differ. Finally, and perhaps
most dramatically, their socio-cultural environment is
likely to be different from ours. You will find that they
speak a different language, function in different social
structures, have different beliefs and values, and are
drawn to different aesthetics than what we are.
You need to adapt to these differences
All of these differences make it extremely
difficult to use the same marketing package (or mix)
that we do at home. Instead, we need to consider developing
or adapting the product to ‘fit in’ with the requirements
of not only the end customer but also the environment
within which the customer lives and works. We also need
to consider pricing the product differently, perhaps to
accommodate the additional charges that are levied in
the foreign marketplace. Distribution is also a problem
and we have longer distances to cover, import duties to
contend with and a barrage of documentation to overcome.
The marketing channels – the routes from factory
to end-user – are also longer, more complex and
more costly. They are inevitably more channel members
present that influence and add cost to the distribution
process. Finally, the way that you promote your product
will need to vary dramatically to take the various environments
into consideration – especially the cultural environment,
which incorporates the question of adapting to the foreign
language!
Adapting is a marketing challenge that you will face
These differences translate into challenging marketing
issues which the exporter must face and overcome if he/she
is to be successful. One way to overcome these challenges
is to understand the foreign marketplace and end user
better. This means undertaking serious marketing research
to ensure that you know exactly what is expected of you
and how you will need to adapt your marketing mix in order
to meet these differences.
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