Export Promotion Strategies That Work

Companies like Hyundai and Toyota have been using export promotion strategies for decades to sell their automobiles to foreign markets such as the U.S. and Europe. But when a company decides to go global, what must it consider in the way of export promotion strategies in order for it to be effective? Globalization of markets is a strong reality today and more and more businesses will have to use export promotion strategies in order to stay competitive.

Export Promotion Strategies 1: Determine if your product is good for export

Export promotion strategies include determining if your product you want to export has any value in the target foreign market. A simple example of this is the cable sports network ESPN. In American markets, their programming will be baseball, basketball, and the National Football League. In Asian markets, this programming could never be exported because soccer is king there. So ESPN adapts by focusing on soccer programming as one of its export promotion strategies.

Export Promotion Strategies 2: Price must be determined

Export promotion strategies include an analysis of what your target foreign market is willing to pay for your product. You will have to study per capita household income in the target market so that you can set the right price. And your export promotion strategies should be such that you still make a profit with the determined target price.

Export Promotion Strategies 3: Market a benefit to the host country

Many countries like the fact that you are importing goods into their country but also to the extent that benefits are realized. For example, if your importing your product creates jobs for the locals in the target country then it is of great benefit. This is one of the export promotion strategies that work very well. A good example is when Toyota opened up factories in the United States and created jobs for American workers while selling their vehicles there too.

Export Promotion Strategies 4: Find a distributor

Export promotion strategies are effective by finding a distributor for your product in the host country. This is because the distributor does business locally and is very familiar with local statutes, customs regulations, shipping requirements, and taxation requirements. Never make the assumption that promoting your product in a foreign country is just like at home. With a local distributor you can leverage the advantage of having an expert in the target country.

Export Promotion Strategies 5: Determine the quality standards of the distributor

Make sure the distributor in the host country is equipped to support your export promotion strategies. The distributor must be able to have the same standards of quality you have at home. That means the distributor should have adequate storage facilities, must have adequate transportation facilities, and must make sure your goods get to the consumer in the same high quality that is commensurate with your standards.

The distributor you find should not be distributing products in direct competition with yours and you should be able to verify all records of goods reaching markets.

If your export promotion strategies are sound then your foreign markets can be very profitable.