Questions:
1. What is meant by the ‘business and market environment’ of a target market? What kind of information would an exporter need to collect to understand this?
2. What is meant by the concepts ‘market segmentation’ and distribution channels’? What kind of information would an exporter need to collect to understand these?
3. What are the financial issues, export practicalities and technicalities that an exporter would need to know about to in the context of developing an export strategy?
Answers:
Introduction
Export management often stated as the strategic managerial process where the main functional area that concerns is related to the export of goods and products. Thus, it is the form of planning that required by the management to undertake in order to incorporate coordination as well as the integration of various actions related to exporting of products or goods.
In this assignment, while analyzing various details related to export management, explores various facts related to business and market environment. For an exporter, it is very essential to undertake strategic planning and in order to achieve such it is crucial to analyze business and market environment. Additionally, from this research, learner gave the opportunity to understand facts related market segmentation and distribution channels.
Additionally, this assignment also helps the learner to identify related financial issues, export practicalities, as well as technicalities, which is essential for an exporter to cultivate with a purpose to develop an export strategy. Thus, after completion of this assignment, the learner can able to access every detail of the export management that are essential for an exporter to understand in order to achieve required goals.
1. Business and market environment and required information that exporter needs to collect
Market and business environment is stated as the factors as well as forces that affect the firms or the industries operational process that affects the business outcomes. As stated by Album (2015, p.23), while analyzing the business and market environment, it is essential to consider both Micro as well as Macro environment. As the present study is based on gathering information for the exporters that help to implement effective export management process, it is essential to focus on the Macro Environment and its analysis.
Figure 1: Macro environment
(Source: Alston, 2011, p.32)
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Economic environment
In the opinion of Dubey (2012, p.45), it is essential for the management to understand the economic factors while doing the business in the external market. It is stated as one of the driving force that needs through analysis in order to gain upper hand like in exporting products outside of the domain. As agreed by Kappler (2012, p.36), the essential factors that come under this section are income, price, savings, debt as well as credit availability.
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Socio-cultural environment
In order to understand the buying patterns, it is essential for the management to develop or understand various aspects related to social and cultural factors of the target market. Under this segment, few essential factors that involve are customers perception, buying pattern, requirement, cultural beliefs etc are the drivers of socio-cultural environment that need to analyze to understand the market pattern.
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Environmental
The environmental factor is also an essential one that an exporter need to concern about before selling or exporting of its own product. One of the main aspects is the pollution control and it is essential to maintain green management effectively while doing the business.
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Technological environment
As stated by Noonan (2013, p.39), due to market globalization and openness, it is essential to keep up pace with technological changes and thus to maintain such, it is essential for any management in the export department to analyze the technological pattern and growth in the target market.
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Demographic environment
One of the driving forces that the organization needs to maintain mainly for the exporters those are doing business in exporting. The main factors that may involve are age, gender, income that is essential for an exporter to gather knowledge.
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Political and legal environment
Another essential factor that needs to analyze is the political as well as legal environment. While exporting goods it is, therefore, essential to perform business process ensuring effective implementation of legal, ethical, as well as regulatory aspects.
Thus, the above-mentioned factors help to analyze the exporters in every detail related to business as well as the market environment. In the opinion of Wilkinson (2011, p.1500), identifying the target market helps to tap the markets that may deliver better outcome in exporting as well as selling of products.
The above-mentioned factors related to Macro environment, therefore, help the exporters to develop necessary strategies to hit the target the target market with full potential and desired outcome. For instance, if the exporters are involving in exporting technological or seasonal food products, it is, therefore, crucial to have complete knowledge and analysis over technological, environmental, and socio-cultural factors.
Thus, detailed analysis of the business and market environment including the Macro environment analysis helps the organization or the exporters dealing in exporting goods and products.
2. Concepts of market segmentation and distribution channels and information that exporter needs to collect
Market segmentation
Best (2012, p.706), stated that due to change in preferences in the market as well as in customer requirements, it is essential for the management to maintain proper strategic planning over identification of necessary actions that meets the demand and supply chain. Thus, in context to this market, segmentation is another effective strategic planning that business may incorporate to derived valuable outcome.
Thus, the factors that involved in market segmentation are as follows
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Geographic
While implementing the market segmentation process, as business personnel from management need to analyze few essential factors that involve information related to the region, market size, population density and climatic factors.
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Demographic
In the opinion of Cockroft (2013, p.90), demographic factors help to provide detailed information related to customer and the few factors that involve are age, gender, family size, income, occupation, nationality and religion.
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Psychographic
This type of segmentation deals with the information related to consumer information that revolves around various activities, interests, opinions, attitudes, as well as values.
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Behaviouristic
As stated by Warner (2014, p. 810), it is essential for the organization or the marketers to reach the customers and to attract them. Hence, in order to achieve so, it is essential to understand their behaviouristic approach that involves customer benefits, usage rate, brand loyalty, consumer profile, and buying pattern
Distribution channels
While exporting various goods as wells products, it is essential for the management or the business to analyze the different segments related to the distribution of channels. As stated by Schittkowski (2013, p.180), it is a path through which the goods or the services are procured from the vendors to other vendors or the consumers effectively and efficiently. Thus, the various segments or the categories involved in distribution channels that the organizations may need to understand are as follows
- Wholesaler or distributor
- Direct channel or the internet
- Value added reseller
- Consultant
- Dealer
- Retail
- Sales agent as well as manufacturer’s representative
Thus from an exporter’s point of view, it is essential for the management or the business to understand the requirements that are essential in context to market segmentation and distribution channels.
While exporting, it is essential for an exporter to understand various facts related to market segmentation from which it is essential to understand customer’s or the market’s requirements, demand, their age as well as preferences. For example, while exporting clothing accessories it is essential to understand the target customers, their likings, and age based on which product need to be segmented.
As per Potter (2011, p.600), distribution of channels and having the proper relationship with the intermediaries helps to procure effective exporting process for goods as well as products. Hence, as an exporter, it is essential to maintain the proper connection with various verticals like wholesalers, distributors, agents and retailers.
3. Financial issues, export practicalities as well as technicalities
While exporting various goods as well as products, exporters have to face serious barriers in terms of financial aspects. In UK market, exporting of various goods in other countries fell by 7.2% in May 2015 (Ritz, 2013, p.1005). Therefore, the main issues that evolve due to such barriers are the financial factor and under those few essential barriers are as follows
- Funding risk
- International credit risk
- Currency payments
- Legal issues
Export technicalities involve various technical as well as social platforms that modern day export business implementing in order to experience better market lead generation. For example, when the exporters are involved in selling the unique products or goods, it is essential to have proper leads, which is very difficult. Thus, export technicalities related to the online platform may help in improving the export outcome of the business. Export practicalities involve practical approach related to understanding the market nature as well as the condition that helps the exporter to properly identifying the market opportunities. For example, while selling the IT products or food items, it is essential for the exporter to analyze export practicalities and technicalities with a purpose to identify probable opportunities.
Conclusion
After completion of this assignment, it concludes that with the effective planning and development of marketing strategies while exporting, it is essential for the organization to analyze various external factors. Thus, accessing the macro environment help the exporter to analyze the external factors that are essential for the exporting. Market segmentation and identifying the distribution channels also provide better accessing of requirements that guide the exporters in developing a proper exporting strategy. Finally, it can also conclude that analyzing financial issues helps the exporters to avoid various financial barriers towards business development and success.
List of references
Books
Albaum, G. (2015). International marketing and export management. Wokingham, England: Addison-Wesley.
Alston, R. (2011). Mastering Import and Export Management. New York: Amacom.
Dubey, V. (2012). Export management. England: Wesley
Kappler, D. (2012). Export management.. New York: Amacom.
Noonan, C. (2013). Practical export management. London: G. Allen & Unwin.
Journal
Best, S. (2012). “Macro environmental analysis” Clin Exp Ophthalmol, 34(7), pp.706-707
Cockroft, B. (2013). “Soil management of peach trees in the Goulburn Valley, Victoria” Australian Journal of Experimental Agriculture, 6(20), pp.62-98
Cox, J. (2013). “Management of exporting towards developing business” Australian Journal of Experimental Agriculture, 32(7), pp.857-1000
Martin, H. (2013). “Export and strategic management” Australian Journal of Experimental Agriculture, 43(11), pp.1281-1300
Pal, G. (2015). “Effective management and prevention measures in export managment” Int J Clin Exp Physiol, 2(3), pp.147-230
Potter, N. (2011). “Sales management and the issues related to export management” J Clin Exp Ophthalmol, 4(5), pp. 587-695
Ritz, T. (2013). “Perceived triggers of asthma: key to symptom perception and management” Clinical & Experimental Allergy, 43(9), pp.1000-1008
Schittkowski, M. (2013). “Macro and micro environmental analysis” Experimental and Clinical Endocrinology & Diabetes, 7(5), pp.175-196
Smith, J. (2014). “Import and export management and its process” Clinical and Experimental Medicine, 4(1), pp.21-29
Warner, J. (2014). “Recent advances in the sales management”. Clinical & Experimental Allergy, 44(6), pp.802-812
Wilkinson, R. (2011). “Social persistence of plant-based management of dryland salinity” Australian Journal of Experimental Agriculture, 45(11), pp.1495-2000
