Ways and Strategies for Export to Foreign Markets in Exports
In order to be successful in global markets dominated by intense competition, people or organizations wishing to open up to these markets must first of all recognize the competitive environment and adopt a modern marketing approach. With the globalization process in the 21st century, the tendency of enterprises to become international is more than ever. In developed countries, businesses are expanding into international markets.
Nowadays, it is seen that globalization, which we feel more and more with the developing technology, is beginning to adopt and implement new and more modern trade and marketing concepts. It is clear that the enterprises that are out of globalization and ignore the globalizing markets cannot survive and reach success. The days when an organization sells products that have lost their place and value in the market to less developed countries are mixed in history in global markets. Businesses should ignore international differences and make it a principle to act with the logic of ığ one big market İşlet. Especially since the early 1980s, we see the trend of globalization and Turkey as well as in other countries. The reasons for this are the stagnation of domestic markets, the incentives given by the state and the trends of globalization that spread rapidly. The wide, diverse and multidimensional nature of the foreign markets provides a large amount of sales and profits that are incomparably comparable to the domestic market, and this creates an attractive power effect to foreign markets. There may be situations in which the business is sometimes required not to grow, but to open up to survive. Government constraints may attract enterprises to foreign markets.
Export incentives and other foreign opening forms also make foreign markets attractive. Another factor that positively affects the penetration of enterprises into international markets is the globalization phenomenon in these markets. Rapid developments in communication and transport technologies lead to similarity of tastes and preferences, especially in the younger generation. The globalization of markets leads to the standardization, standardization and production of standard goods and brands at lower costs on a global scale, rather than market segmentation, local brands and small-scale production. Technological developments have facilitated the marketing of the products of the enterprises to the domestic markets as well as to the foreign markets. Initiatives for entry into the foreign market encourage new product development, while promoting better, cheaper products to the market in a more competitive environment. . The incentives given to export and other foreign opening forms also make it attractive to foreign markets. Another factor that positively affects the penetration of enterprises into international markets is the globalization phenomenon in these markets.
The rapid developments in communication and transportation technologies, especially in the younger generation, lead to the similarity of tastes and preferences. The globalization of markets also leads to standardization, standardization and production of standard goods and brands on a global scale at lower costs, rather than market segmentation, local brands and small scale production. One of the decisions that should be made by the Company in international markets is whether production will be made in the market or entered into the market. They must decide on the appropriate market entry method. In order to be successful in today’s global markets where there is intense competition, all people or organizations that want to open up to these markets must first of all recognize the competitive environment and adopt a modern marketing approach.
- Demographic environment
- Economic environment
- Socio-cultural environment
- Legal environment
- Political environment
- Technological environment
- Financial Environment
- Ecological environment
- Competitive environment
The decisions that the company has to make in international marketing are divided into six headings.
- Analysis of International Marketing Environment
- The Decision To Enter International Markets
- Decide on Which Markets to Enter
- Decision to Enter into the Market with Which Method
- Marketing Program Decision
- Marketing Organization Decision
Analysis of International Marketing Environment:
A company looking for new markets should first start by studying the international marketing environment.
The Decision To Enter International Markets:
Factors that encourage companies to enter international markets can be listed as follows::
- Global companies to enter the local market to offer better quality and cheaper products to consumers,
- Foreign markets create more opportunities for the company,
- The need to find more customers in order to create economies of scale in production,
- The desire to not be dependent on a single market,
Consumers wanting to go abroad and find products there
The factor that determines which method to use when entering the international markets is the degree of ownership and control that the firm desires. Where ownership and control are required to be found in the firm itself; where direct investment or strategic merger is required to have the lowest amount of ownership and control; In cases where it is required to have a degree of ownership and control between the two, a franchising, management contract or joint venture methods are selected. Among the strategies to be applied to international markets that can be applied by companies, export, license agreements, franchising, contract production, management contracts, turnkey projects, assembly operations, joint ventures, mergers and acquisitions and foreign direct investments. After the companies decide to enter the international markets, the first action to be taken is to analyze the international market environment and to enter the most suitable country market as a result of this analysis.
Decision to Enter into the Market with Which Method
The following factors are taken into account when deciding on international entry strategies:
- Market size, characteristics, competition status and opportunities
- Political and economic situation
- Transport costs and taxes
- Physical and cultural affinities
- Financial requirements
- State restrictions, laws and legal obligations
- Risk, profit potential