Exports are of crucial importance for both developing countries and particularly underdeveloped ones. The development of export has an important role in providing the opportunity to enter into global markets and to reach the condition of developed countries by improving the economy of the country.
There are certain points that companies which are new to exporting should consider. Where to start to export? What is the most important point when starting to export? When doing the export, what steps should be followed? Those are some of the issues that come to mind.
You may check out our article Key Elements of Export to see the key export factors.
We are going to guide you through one of the most important points of export which is Choosing a Target Country.
Let’s say that we are a manufacturing company and we decided to introduce our products to the buyer companies abroad. So, which country should we give priority to?
First of all, market research is one of the sources from which we can benefit. We should analyze in detail other points such as which countries our goods are imported from and where the demand for our products is high on the markets.
The economic performance of previous years of the product which is expected to be exported must be evaluated. If you choose the highly-demanded goods that have a good sales record in recent years, the probability of failure will be significantly reduced.
The economic situation, the level of welfare social and demographic structure of the country chosen as the target market should be evaluated in detail and consideration should be given to all parameters regarding the quality of the product for the target market.
The other important details while doing export is as below:
- The population of the target country
- Working or Economically active population
- The economic situation of the country
- Import ratio of the country
- Special export and customs regulations/taxes/customs of the target country
Determination of the product’s brand value and brand positioning are the subjects that should be considered in detail before all sales-related activities.
How is it going to be perceived in the market? What are the benefits that the product provides to consumers? Brand positioning is created by when the company steadily emphasizes the product’s features which they want them to stand out the most.
Some of these features might be:
Competitor analysis is one of the aspects that need to be done for both exporting and all other sales-related activities. Are there any other companies that do the same business in that country to which you will export? At what price is the product sold in the target market? What are the channels to reach the target audience? How much is the sales and market share?
Answering the questions above, analyzing them well and going into action after considering all aspects, is crucial for the company to show commercial stability.