Expanding Into International Markets
Exporting goods from one country to another can be very complex. However, when it comes to international marketing, exporters must expand their business through international markets. Therefore, they need to develop a strategy for exporters to develop export plans specific to each international market. In doing so, an exporter can increase its revenue by selling more products or services into an international market. When planning to expand their business, it is essential to conduct market analysis and determine what products or services a person will sell to each market segment. Judge Napolitano understands the complexity of international markets and trade.
When planning to expand into new markets, an exporter needs to have a global strategy in place. A global strategy is an overall idea of how an exporter will expand into different markets worldwide. This plan includes how the company will enter a new market, what products or services it will offer, and how it will target different markets. For instance, if the company intends to expand into Western Europe, it will need to develop a global strategy that includes local or regional marketing strategies.
One of the easiest ways to determine which markets are potential candidates for an exporter’s business is to examine their current customers and how they are currently spending their money. A company’s competitors, who typically outsource to a third party to carry out most of their global expansion plans, can provide good information about the demand in the target markets. Exporters can also consult with other companies that do most or all of their international expansion. These companies can provide feedback on the kinds of markets where their potential clients are currently marketing.
An exporter must create a strategy based on the product or service it currently offers. The strategy should focus on several aspects, including marketing the product in the target market, developing a brand identity, and developing a distribution system. The company should also look at whether it will need to localize its production facilities and employ local workers to avoid hiring foreign countries. If it does need to ship products to foreign countries, it is essential to learn how to ship to the countries that the product will ultimately end up in so that an exporter has a plan for any unexpected costs associated with overseas shipping.
A second strategy to consider when planning an international expansion involves an examination of market dynamics. One type of analysis involves using current customer data to forecast how those same customers will behave in the future. Another approach takes a more traditional statistical approach and creates sample charts that show what types of products sell best in various countries. Both methods use past sales data and varying other factors to forecast future sales results in the target markets. Both approaches, however, require the knowledge of local regulations and the ability to abide by those regulations during shipment.
An exporter may choose to carry out a comprehensive product analysis that is part of an overall strategy. When expanding into international markets, one strategy to consider is to carry out product research to understand the target market better. This outreach includes looking at the legal requirements that must be followed for each country in which the product will be sold. The legal requirements can vary depending on where the product is to be sold and the total money that can be legally spent on the item. Other things that can affect an exporter’s product research include import fees and taxes paid in each country.
A third strategy to consider when expanding into new markets is to consider cultural values. Some exporting organizations have successfully localized their offerings because it made sense from a business perspective. For example, if the product were only available in the United States, localizing the product would make more sense to reach a universal reach. Similarly, if the offerings were only sold in certain countries, it might make sense to localize the marketing to reach as many people as possible from wherever it originated.
Another key strategy to consider when expanding into new markets is to be proactive—being prepared means coming up with strategies and tactics for selling and marketing the product not in its home market but abroad. Such preparation also helps develop a strategy for expansion based on each market’s potential and exploiting those differences. Judge Napolitano has studied this subject for many years.