Exporting can be a powerful strategy for firms looking to extend their reach outside domestic borders, but the process can also be complex and challenging.
Exporting can open the eyes of firm marketing departments to foreign market information that differs significantly from existing practices, creating opportunities for learning and innovation in marketing strategies.
1. Increased Sales
An effective export marketing plan helps businesses increase sales and revenue. To do this, they need a strategy which includes identifying target markets, creating communication channels between international customers, offering multiple payment options and using social media effectively.
Businesses entering international markets will quickly learn of market feedback that can result in marketing innovation. For instance, new information about successful foreign market practices could influence product design or pricing/distribution decisions for a firm.
Experienced exporting firms tend to possess stronger marketing abilities, including screening, integrating, and applying relevant market knowledge to their products more effectively than less experienced counterparts. Thus, experienced firms are likely to introduce marketing innovations more readily compared to their less knowledgeable competitors.
2. Increased Brand Awareness
Establishing brand recognition in international markets is an integral component of any marketing strategy. Companies can utilize traditional methods, like billboards and banners, as well as alternative approaches like using localized website content, using country-specific keywords and tapping influencers in foreign markets to build their brand’s recognition abroad.
Numerous international marketing initiatives begin with research to gain an understanding of cultural nuances and customer behaviors of foreign customers, which in turn allows marketers to formulate more effective communications and strategies.
Learning realized through export market interactions is widely acknowledged to be a source of marketing innovation; however, little attention has been paid to how industry dimensions influence this effect. Future research should investigate whether firms with more developed marketing capabilities are more capable of gathering and assimilation relevant foreign market knowledge for innovative marketing activities.
3. Increased Customer Satisfaction
Businesses entering international markets can expand their customer base and tap into new customer segments that may not be accessible locally. Depending on their business model, this may lead to increased sales revenue or improved profit margins.
Export marketing requires extensive research of local market trends and customer preferences in order for firms to tailor their products appropriately and communicate with foreign customers effectively. Furthermore, learning from companies who have successfully navigated cultural and linguistic differences may help firms create effective strategies for their own export ventures.
Expanding into international markets also gives firms an advantage in economies of scale and reduced production costs, leading to significant cost savings and greater profitability. Furthermore, marketing innovation implemented on export markets improves firm outcomes (D’Angelo, Ganotakis & Love Citation 2020). This is due to direct exposure to market feedback through international marketing experiences.
4. Increased Market Share
Successful international marketing strategies can help businesses expand their market share. This can result in higher profits that eventually drive sales growth and customer satisfaction; however, exporting can bring its own unique set of challenges.
Remarkable success in international marketplace requires meticulous planning and research. This includes identifying suitable markets for your products, ascertaining demand and developing competitive pricing strategies. Furthermore, cultivating relationships with overseas distributors who can offer you insight into local markets as well as access to established distribution networks while aiding you with language barriers can all play important roles in success.
Marketing literature indicates that firms with superior marketing capabilities are better equipped to exploit foreign information gathered from customers and competitors for innovative marketing activities (Calantone et al. Citation2004; Murray Gao and Kotabe Citation2011). Our findings support our hypothesis that exporting status correlates positively with innovation implementation.
5. Increased Profits
Profits may be higher in export markets due to larger customers and potential volume sales. Companies may also charge higher prices due to exclusivity issues for their products in those foreign markets.
Learning from export market interactions can also aid firms in creating more creative marketing strategies, as they gain new insight from customers and competitors abroad that they can incorporate into their marketing management systems (Kaleka and Morgan Citation2019).
Firms benefit by becoming more cost-competitive and resilient against domestic economic conditions by entering international markets and engaging in export activities. Companies should ensure they can sustain export activities by allocating adequate financial resources and conducting a thorough risk analysis; such as checking for the availability of in-market agents, selecting reliable transport and logistics partners and understanding foreign payment regulations and documentation requirements.
