Opening of borders, progressing globalization and the development of international trade. All of these factors made companies bolder to look for new markets and sources of supply with previously unavailable raw materials. The multitude of available offers meant that we moved from the producer's market to the consumer market at an express pace. AND the issue of achieving and displaying a competitive advantage is what currently keeps all entrepreneurs awake at night. Launching the product on the market foreign, however, requires the observance of several rules.
- Do you know that even if you have the best product, you need to inform your audience about it?
- What strategy does it require to introduce a product to the foreign market?
- Marketing and the introduction of the product to the foreign market
- When is the best time to start introducing a product to the foreign market?
Launching the product on the market, including the export of goods to the border allows for additional profits. It also extends the product life cycle, allows you to gain additional experience as well as knowledge and skills on how to take advantage of emerging opportunities. It also increases the prestige of our company on the domestic market. By diversifying the markets, we protect ourselves against unfavorable changes in the local economic situation.
We can determine the competitive position based on the analysis of competition, market attractiveness and absorptivity, the level of technology and the activities of state institutions and bodies. An important issue affecting the company's achievement of a competitive advantage is the skillful management of the company's operations on international markets. New market means also new competition and new needs and problems of potential customers. Increasing the scale of production may also significantly improve the efficiency of our production - its increase will affect the cost per unit of product production.
Do you know that even if you have the best product, you need to inform your audience about it?
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What strategy does it require to introduce a product to the foreign market?
Globalization has shortened the international life cycle of products, and the constant introduction of new products is effectively eliminating weaker competitors. The development of a company that wants to conquer the foreign market largely depends on the stability of sales revenues. However, in order to really turn out to be a success, it must be based on such factors as: knowledge about the specificity of a given market, the ability to gain a competitive advantage in completely new conditions, choosing the right moment to start expansion, sufficient production capacity and an efficient logistics, marketing and exchange system. information. Determining who he is is also of great importance target group.
In order to win the hearts and wallets of new customers, we must offer them more favorable conditions for the purchase of our products or services in terms of, inter alia, prices, quality, warranty, service, terms and conditions of delivery.
The strategy we adopt must refer not only to what we have at our disposal, but above all to what the new, foreign market allows us to do. It must include not only the company's goals, but also the strategy of entering a new target market as well as a pricing, distribution and promotion strategy adjusted to new markets.
The analysis preceding the preparation of the strategy should include, inter alia, research on demand, supply, prices, factors and conditions of shaping their level and changes over time, as well as the possibility of establishing cooperation with new trade partners. Its purpose is to obtain information that allows you to make the right decisions in order to optimize risk.
There are many strategies leading to the effective introduction of a product to the foreign market, assuming, for example, market expansion, selective development or deepening of segmentation. It is also an important factor market penetration.
Marketing and the introduction of the product to the foreign market
The company's primary task is to establish individual marketing goals for each new market. The best understood foreign marketing includes a number of activities. Their goal is to get to know the future structure of demand for products or services, satisfy them by creating sales, effectively communicating with the environment, listening to the needs of potential customers and on their basis producing and offering specific goods in the right place and time.
The specificity of this type of marketing is determined by the political, cultural, social and technological diversity of the market environment and the need to adapt the activities and offer to completely new, often unknown conditions.
Marketing plan based on an export strategy should take into account various elements. This includes analysis of the company's competitive position, selection of appropriate products, definition of a pricing strategy, development of a market entry and promotion plan as well as a budget and a specific schedule of activities. It's also worth doing sales audit.
When is the best time to start introducing a product to the foreign market?
Entering a new market or product launch there is always a risk involved. therefore, such actions should be taken when the company has free access to raw materials, free production capacity and financial resources to enter the market and properly promote the product. We choose countries where our product is attractive in terms of price, quality or technology and provides additional, previously unknown value. The moment when we notice that the product or service we offer on the domestic market is in decline is actually the best moment to start the expansion of foreign markets, and thus extend the life cycle of our products.
The factors determining the choice of a specific strategy for entering a new foreign market are, among others the degree of knowledge of the market, its similarities and differences in relation to the domestic market, the company's experience in exporting, the goals of export activities and available financial resources.
The additional costs of entering the foreign market include, among others:
- customs duties,
- border taxes,
- costs of permits and certificates required on a given market
- quotas,
- commercial brokerage costs
- exchange rates,
- interest rates and fiscal policy,
- shipping and transport costs,
- costs of market research, marketing, advertising and promotion as well as new jobs, supervising the course of all processes.
In the pharmaceutical, automotive, aviation and biotechnology industries, the costs of implementing a new product are very high. A small group of companies are able to keep pace with the leaders. High research and development costs mean that ensuring profitability is possible only in the case of activities on the global market.