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Do you wish to expand your clientele? Have you analysed a new foreign market and you know its characteristics? Next, you can stablish a strategy based on your goals and the available resources.

The marketing plan for export is the synthesis of your objectives and your export strategy. It is a master plan and a tool to monitor your progress. It must concise, well structured in order to allow you to focus on the actions to be put into place, as well as to review your actions periodically in the light of the changes that have been taken place in your target markets.

You need to answer the following questions:

What is the nature of your target market?

  • Size, characteristics, growth tendencies of its market, strengths and weakness of its competitors, profile of its typical client, etc- This information will come from your export market research.
  • Characteristics of its typical client, their needs, their consumption habits and their purchases direction.

What are its goals?

What is its marketing strategy?

  • What products do you wish to market? How do they stand out from the competitors?
  • How to establish the foreign market price? How will it have to position in relation to its competitors?
  • Where must you commercialise your product or service? How are you going to organise its distribution?
  • Who will you be working with?
  • What market segment will it be directed to? What will it be its profitability short and mid-term?
  • What type of promotion are you going to do?
  • What will its financial needs be in order to achieve its marketing strategy?
  • What will the steps to implement your strategy be?

How to calculate the price of foreign markets?

To stablish foreign market prices, it is necessary to consider 3 factors:

  • General costs related with export, research, development, export readiness (market research, trips, translation, etc.), production costs, shipments and target range.
  • Price estimation that the market is willing to pay for your product or service, considering the specific characteristics of your product and possible replacement products for the same.
  • Price of competing products and its position in the market. It is necessary thus to study the target market and its environment.

What price strategy to choose?

Your price strategy can be presented in two steps.

  1. The first step is to determine the related costs with the international trade, considering the importance of its local market.
  • If your primary market is local, only consider the costs directly related with the export business, since your general expenses are satisfied in the local market.
  • If your primary market I abroad, you must consider the fixed costs and the variable export costs.
  1. The second step is to choose a strategy based on the market needs.

The options of the possible prices are the following:

  • Cost value, plus a profit percentage.
  • Fixed price for all clients.
  • Flexible price depending on the type of client.
  • Fixed price for all clients.
  • Flexible price depending on the type of client.
  • Reduced price to penetrate the market.
  • Price skimming of the market (higher than the market price for Premium prices. This option can require advantages in the quality of the service).

What are the distribution channels?

The knowledge of the distribution channel must be the base of your strategy.

It will have to answer these questions:

  • Who does what? (manufactures, wholesalers, retails, agents, etc.)
  • What are the buying habits of its potential clients? (direct, through a supplier, a local company, e-commerce, etc.)
  • Who are the intermediaries that control the distribution of the same products or services?
  • What are the business practices? (method of payment, fees to be paid, payment terms, profits margins, etc.)
  • What delivery times are acceptable?
  • What are the customer service needs?

What is your promotion strategy aboard?

In order to sell, buyers need to know that you exist and you are able to satisfy their needs. As well as the local market, several strategies are channels are offered:

  • Advertising (newspapers, magazines, television, radio, etc.)
  • Promotional material (brochure, business cards).
  • Advertising campaigns.
  • Web page and digital marketing.

Trade fairs, when they are well managed, they are a good way of meeting suppliers or checking what competitor do. It is necessary to prepare fairs way in advance.

The web page is an indispensable tool. It allows, at a low cost, to make the products or services known as long as an active digital marketing campaign is done, like the one we can develop in Comerciando Global.

 

Conclusions about the internationalisation strategy

The ideal internationalisation strategy for your company, will depend on your level of market knowledge, of your willingness to compromise and your financial capacity.

If you have limited resources, it can advisable to penetrate the market through a distributor that buys your goods and sells it amongst its customer network. This strategy gives you less control over your product and less margin, but it allows you to save the investment that entails a sales team and to provide after-sales service.

If on the contrary, you want to have a greater control and bigger market share, you can sign a distribution agreement with an agent, connoisseur of the local market, that helps you to get to know the market, eventually contributes to customise the product or the service to the local market and especially will contribute with client from its own client portfolio.

In order to choose a better strategy, we advise you to let yourself be advised by specialist in internationalisation like Comerciando Global, that:

  • Assist you in the choice of an adequate strategy.
  • Help you drafting the agency contract in your case
  • Assess your sales flaws, needs and targets.

The diagnosis of the potential of internationalisation of your company, and market and its environment assessment, will significantly help you to elaborate the ideal marketing plan that your company needs. Then, Comerciando Global, can assist you in the personalisation and implementation of the adequate strategy.