Chapter 1. Export Strategy Chapter 2. Export Advice Chapter 3. Market Research Chapter 4. Methods of Exporting and Channels of Distribution Chapter 5. Preparing Products for Export Chapter 6. Service Exports Chapter 7.Making Contacts Chapter 8. Business Travel Abroad
Chapter 9. Selling Overseas Chapter 10. Pricing, Quotations, and Terms Chapter 11. Export Regulations, Customs Benefits, and Tax Incentives
Chapter 12. Documentation, Shipping, and Logistics Chapter 13. Methods of Payment Chapter 14. Financing Export Transactions Chapter 15. After-Sales Service Chapter 16. Technology Licensing and Joint Ventures
Appendix I: Export Glossary Appendix II: Directory of Federal Export Assistance Appendix III: State and Local Sources of Assistance Appendix IV: U.S. and Overseas Contacts for Major Foreign Markets Appendix V: Selected Bibliography
Ten Keys to Export Success
Exports have become an engine of growth for the U.S. economy. U.S. merchandise and service exports account for an increasingly large percentage of the Gross National Product (GNP). Today, many firms export occasionally but want exporting fully integrated into their marketing plans. Others export regularly to one or two markets and want to expand into additional countries.
There is tremendous potential for U.S. business to become more active in exporting. Just 15 percent of U.S. exporters account for 85 percent of the value of U.S.-manufactured exports. The majority of exporters sell in only one foreign market. Only about 20 percent of exporters—less than 3 percent of U.S. companies overall—export to more than five markets.
There is profit to be made by U.S. firms in exports. The international market is more than four times larger than the U.S. market. Growth rates in many overseas markets far outpace domestic market growth. And meeting and beating innovative competitors abroad can help companies keep the edge they need at home.
There are also real costs and risks associated with exporting. It is up to each company to weigh the necessary commitment against the potential benefit.
Ten important recommendations for successful exporting should be kept in mind:
1. Obtain qualified export counseling and develop a master international marketing plan before starting an export business. The plan should clearly define goals, objectives, and problems encountered.
2. Secure a commitment from top management to overcome the initial difficulties and financial requirements of exporting. Although the early delays and costs involved in exporting may seem difficult to justify in comparison with established domestic sales, the exporter should take a long-range view of thi process and carefully monitor international marketing efforts.
3. Take sufficient care in selecting overseas distributors. The complications involved in overseas communications and transportation require international distributors to act more independently than their domestic counterparts.
4. Establish a basis for profitable operations and orderly growth. Although no overseas inquiry should be ignored, the firm that acts mainly in response to unsolicited trade leads is trusting success to the element of chance.
5. Devote continuing attention to export business when the U.S. market booms. Too many companies turn to exporting when business falls off in the United States. When domestic business starts to boom again, they neglect their export trade or relegate it to a secondary position.
6. Treat international distributors on an equal basis with domestic counterparts. Companies often carry out institutional advertising campaigns, special discount offers, sales incentive programs, special credit term programs, warranty offers, and so on in the U.S. market but fail to make similar offers to their international distributors.
7. Do not assume that a given market technique and product will automatically be successful in all countries. What works in Japan may fall flat in Saudi Arabia. Each market has to be treated separately to ensure maximum success.
8. Be willing to modify products to meet regulations or cultural preferences of other countries. Local safety and security codes as well as import restrictions cannot be ignored by foreign distributors.
9. Print service, sale, and warranty messages in locally understood languages. Although a distributor’s top management may speak English, it is unlikely that all sales and service personnel have this capability.
10. Provide readily available servicing for the product. A product without the necessary service support can acquire a bad reputation quickly.
A Basic Guide to Exporting is designed to help U.S. firms learn the costs and risks associated with exporting and develop a strategy for exporting. The 10 keys to export success that have been mentioned will be explored, along with ways to avoid the pitfalls and roadblocks that may be encountered. Five appendixes are provided for reference: I, Export Glossary; II, Directory of Federal Export Assistance; III, State and Local Sources of Assistance; IV, U.S. and Overseas Contacts for Major Foreign Markets; and V, Selected Bibliography.
This guide discusses what decisions need to be made and where to get the knowledge to make those decisions. You will be directed to sources of assistance throughout the federal and state governments as well as the private sector.