THE MARKETING PLAN
Once your company has established itself as export-ready and have identified a new target market with demand for your product, the next step in Export Planning is the development of a Marketing Plan.
In most developed, competitive markets, including Canada, an exporter must either offer a completely new product or be able to push aside an existing supplier with a more attractive offer in terms of design, delivery, quality, price and/or service. Exporters must compete with domestic and international suppliers who use modern equipment and processes to produce high quality products which can be sold at competitive prices. As a central feature of an effective marketing strategy, the Marketing Plan will address these issues and help get your product noticed in the new market. The ultimate goal of the marketing process is to focus all of these elements on the customer to generate a positive response—a decision to buy.
There are many steps involved in successfully marketing a product. Most literature on the subject describes the marketing process in terms of four broad elements or variables that the manager can control to make their product stand out in the marketplace. These four elements, commonly referred to as the “Four P’s” representing Product, Price, Promotion and Place will now be discussed.
Product
Arguably, the most important of the Ps is “product”. “Product differentiation”, referring to how your product differs from those of your competition, is an essential practical issue with regard to understanding and developing your position in a new market. Differentiation focuses on the distinctiveness of the product and its attributes, its colour, size, style and packaging etc. Knowing your competition helps you to differentiate your product, to determine its strengths and how it may be improved and adapted to the new market. Your product must be different and distinctive in some way from similar products that are competing for the buyer’s attention. For example: Is your product more stylish, more technically advanced, of better quality, or does it have a better guarantee and after-sales service? If you do not differ in these areas, do you offer a better price?
You need to learn about the potential customers for your product. What sells at home may not meet with immediate approval in the new market, so you need to know what will appeal to the buyers in the new market and how your product might need to be adapted to meet with greater acceptance in the market. To find out if your product will meet consumer expectations in the target market, you need to obtain market information and feedback. There are several ways to do this including: subscribing to consumer and trade magazines in the particular segment of the market of interest, visiting product specific trade show in the target market or international shows visited by buyers from the target market, and sending samples to prospective agents or buyers in the market.
A note on samples: In all cases where samples are used, it is important that they are of top quality and are representative of the complete line you wish to introduce. Request detailed feedback from the contact persons and take their advice seriously, adapting and adjusting your product according to this and other market information you have gathered.
If you have agreed to deliver samples to a prospective buyer, ensure that you have mutual understanding and agreement as to payment for transportation, costs of sample, duties, etc. (especially if you expect the buyer to cover any or all of these costs).