Trade Knowledge

Export Basics: Create a MAP to Grow Export Sales
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 It is now easier than ever for companies to reach potential export customers. By doing nothing more than hosting a web page and attending a few trade shows, even the smallest companies are reaching nearly as many potential international customers as only large multinational corporations could once afford to reach.


 

Even though it may be easier to locate potential international customers, that doesn’t automatically translate into a profitable, growing export business. You wouldn’t just hop in a car in a strange town and expect to find your destination without directions. Likewise, a company will quickly get lost in the world of exporting if it doesn’t know where it’s going and how to get there.

Companies need to create a MAP—a Marketing Action Plan—to ensure they are moving down the road to increased sales and profitability. Fortunately, creating an export MAP doesn’t have to be difficult or expensive. A company can ask and answer some simple questions to create their export MAP.

 

I typically ask four basic questions when I counsel small and medium-sized companies:

1. Where are you now in your export program?

For first-time exporters as well as seasoned export pros who want to enter a new market, this question asks you to look at the infrastructure of your company that you can utilize to conduct business overseas.

 

You can leverage these resources within the company by utilizing outside support such as professional contacts, banks, consultants, CPA firms, and government organizations such as the U.S. Department of Commerce, state economic development agencies, and the U.S. Small Business Administration. The time you spend contacting these support organizations is definitely time well spent.

2. What are your short and long-term export targets?

To effectively target export markets, you need to locate markets that will generate the most return for your export efforts. In other words, you should subordinate those industry sectors and countries that require high maintenance and little return to those locations and activities that generate the most revenue for the company.

 

You can ascertain the best markets by doing a search of trade data on the export.gov website, the U.S. government's one-stop shop for export related information. This website also includes a directory of the U.S. Commercial Service offices located across the country that help exporters find new markets—and potential in-country partners and distributors—for little or no cost. (Check out the blog post, Tapping into the U.S. Commercial Service's In-Country Offices.)

 

The consolidated export figures found in the PIERS (Port Import/Export Reporting Service) reports are another good source for determining the best markets for your exports. The PIERS reports are somewhat expensive; however, a careful extrapolation of these figures can reveal a lot about where you should be focusing your export activities.

3. What difficulties do you anticipate in achieving your export goals?

By defining the difficulties that need to be overcome, you will be able to concentrate your efforts where they are needed the most. For example, if the best way to sell your product in a target-rich country is through representation, then you need to carefully find, appoint and motivate a local rep or agent.

 

If your company doesn’t have someone knowledgeable about export regulations and documentation, then you should provide training for your staff. There are good workshops available as well as export shipping software that can make this job accurate and efficient for even the smallest of companies as well as multinational global exporters.

 

4. What resources do you require to meet your export targets?

Does your company have adequate production capacity to meet export demands? Does your product require engineering modification for overseas applications? Do you have to provide metric dimensions on your products? Does your product require literature, instruction manuals or labeling in a foreign language? Is your company willing to train overseas representatives to effectively promote and use your products?

 

Be sure to consider not only the resource needs of your export department, but also other supporting departments in the company such as production, engineering, accounting and advertising. Answers and information generated from these types of questions will produce an outline that clearly indicates where a company should spend its efforts and resources to grow exports.

 

By asking these questions, you can help lead your company down the path toward success in growing your global business.
( Melissa )21 Aug,2018

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