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Unit 4: Export Marketing – Going Global

gaps between two orders, or there could be payment delays, or goods may face a number of pre- Notes
inspection rejections, making the job frustrating. The idea of making good profits through
exports is a sound one but one must also bear in mind the pitfalls. One has to be mentally
prepared to face all kind of difficult times while attempting exports.

Like domestic markets, export markets are also full of uncertainties. However, handling
domestic uncertainties is definitely easy compared to grappling with external uncertainties.
The risks are far greater in the export business and unless one is committed to face all risks and
difficulties associated with exports, one is well advised to keep away from it. Any firm
considering entering into international business transactions must understand that doing
business internationally is neither a simple task nor one for the faint-hearted. It is stimulating
and potentially profitable in the long-term but requires much preparation and research prior
to the first transaction.

In view of the nature of export business as described above, the person aspiring to become an
exporter has to analyze all aspects of getting into this trade before finally deciding to do it.
Impulse decisions will not get you anywhere. Exports demand serious commitment and not
casual romance. The most important attribute of a successful exporter is the willingness or
positive attitude to conquer foreign buyers. There is also the added charm of being a foreign
exchange earner for one’s nation.

4.1.1 Strategic Considerations

What are the goals of the business?
What are the implications of the export business in terms of the overall business goals?

How are these goals to be supported in terms of resources like finance, material, human
capital and other infrastructure?
Is the export business expected to generate sufficient returns to justify the additional
investments?

Decisions could also be summarized as 4Ws of export decision-making:
What to export?

Where to export?
When to export?
To whom to export?
What refers to the decision regarding the product or service one plans to export. If one is already
following a particular line, th e obvious choice will be to export the same or related item. At
times, it could be the other way round – one may get an order for something different from one’s
core area of competence, or existing business so the decision will become difficult, whether to
jump into the unknown or not. If a business is starting new and planning to go into exports
without any domestic business background, the decision will be even more complex.
Where refers to the countries and markets that offer the most potential for exports.

When refers to the time and sequencing of the export transactions. It may not be possible in the
beginning but subsequently one could plan this to gain advantages.

To whom to, refers to the buyers or importers. This is the micro level and here individual buyers
have to be identified as target customers.

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