Morey Manor International Marketing & Management

Stagnation in Export – How to Overcome it?

(8/2003)

Clients occasionally ask me: “The company’s exports are not growing. What should we do?” Here are a number of suggestions for action and guidelines for systematic thinking on this subject:

Have you devoted systematic thought to area of international marketing? The company’s international marketing activities should be reviewed according to the P-5 marketing components:

• Product, Price, Place, Promotion, Politics – each of these components has subcomponents, all of which should be examined. This review can be conducted in Israel when necessary, while foreign consultants can check the specific data in the target country and confirm the findings.
• Is the administrative operation responsible for international marketing and exports functioning well?
• The status of the international marketing manager and his/her staff in the company.
• The scope of international marketing as a percentage of the company’s sales.
• Has the company taken advantage of all assistance offered by the Israeli government?
• Has the company used the services of international marketing advisors, customs agents, international couriers, air and sea transporters, maritime insurance agents, bankers and other service providers?
• Is the company’s information system functioning properly?
• Does the company have up-to-date information on developments in markets abroad?
• Is the company aware of industry trends and changes abroad?
• Is there a flow of business intelligence from abroad via the company’s agents and clients?
• Via exhibitions and conferences.
• By direct mailings.
• Via the Internet.
• Through clients and inquiries from abroad.
• By visiting foreign markets and hosting reciprocal visits in Israel.
• By initiating market surveys abroad. · Via a “simulated” client. · By testing an opposite approach.
• Is there information on the companies and organizations active in the field?
• Are the company’s products, or some of them, appropriate for exporting?
• Comprehensive export activity or specific niches?
• Exporting under the company’s name or trademark, or under the client’s private trademark.
• Are the existing agents productive, bringing in orders?
• Are the company’s current marketing channels suitable for its activities, or should it switch to working abroad via a subsidiary company, independent sales office abroad, or other specific type of cooperation with local personnel (co-marketing).
• Is the company closely familiar with its network of agents?
• Is the distribution of agents correct and effective?
• Is there up-to-date on each agent and his/her business situation?
• Is there another agent in the pipeline?
• The type and quality of the connection with the agent.
• Is it feasible to consider joint production – partial or full – abroad?
• Considerations for selling information, various forms of joint ventures.
• The impact of international shipping and logistics on international activities.
• Is the company aware of global changes affecting the industry?
• Market trends (mergers, acquisitions, converging).
• Production in multiple countries for various reasons (taxes, government incentives, market protection, currency advantages, membership in economic blocs)
• International agreements, economic blocs and their impact on the industry