PLANNING AND PREPARATION FOR EXPORT

 Export planning is made up of different stages:

1) ASSESSING AND SELECTING THE PRODUCT :

Before a company starts to look for exporting its products , it shows that there is first of all domestic selling and many customer leave their countries to come and make purchase in the domestic country . International markets differ widely because of great variation in certain uncontrollable environmental forces . These include; currency exchange , controls/ risk , taxation, tariffs and inflation which happen to originate outside the business enterprise . Such variation requires managers to be aware of the global threats and opportunities .

          If a company is manufacturing products and services in great amount, its reasonable assumes that it will be exported to serve the needy in other countries since resources are naturally scarce and unevenly distributed . However companies most must first determine the export potential of a product or service before investing its resources into the business for foreign trade.  To establish the export potential of a product , a firm must first consider the following factors:

(a) The success of the product in the domestic market 

(b) Participation of the company's product in oversea trade shows and trade fair.

(c) Advertising , market data collection and survey.

we are going to look at these factors in the following paragraphs 

        success of a product in a domestic market is a push that it will be successful abroad. If a product is successful in the domestic market , there is a chance that it will be successful in the market abroad.  one may start by assessing the demand for similar products domestically and abroad as well as determining the needs for certain adaptation and improvement . These statistics provide a primary indication of markets for a particular product in most countries.  Products or services that are not new with low cost , market research is often available that can help to determine market potential.  Products that are less sophisticated and that have a declining demand in developed countries often encounter a healthy demand in developing countries because the products and services are less expensive and can easily be handle. 

      participating in oversea trade show or trade fairs is a good way to test export potential of products or services . A recent study commission by the American business media found that 7/10 business executives purchase or recommended the purchase of a product or service after looking on the advertisement or promotion of the product at trade fair or trade shows .  However , if the assessment of actual and potential uses of the products or services indicate that it satisfies certain basic needs in the market place , then initial sales can be made to establish demand a low prices as well as to determine potential improvement in the market. 

        Advertising and collecting market data . To achieve success , there must be a strong management commitment to the export success. The long term commitment is necessary to ensure the recovery of high market entry cost in relation to product modification , legal representation and advertising as well as the development of an agent /distributor network .

        companies already operating in domestic markets need to to consider the development of export market through the allocation of financial and personal resources or through the use of outside experts . In the absent of sufficient knowledge about exporting , it is advisable for companies to hire a consultant who will be engaged in the establishment of the department of export and the training of personnel.on how to export and market your product abroad.