Elements of Export Marketing Plan

An export marketing plan typically consists of the following elements, arranged in this order:

1. Market Facts to Be Collected and Evaluated
2. Assessment of Marketing Problems and Opportunities
3. Specific Export Marketing Objectives
4. Plan of Action to Achieve Objectives
5. Budget to Cover Necessary Expenditure
6. Control Mechanisms to Measure Progress Against Set Standards

Let’s dig into each of these elements in detail: 

1. Market Facts : 

The initial phase of preparing an export marketing plan involves gathering comprehensive information about the market, product, distribution, and consumers. It’s essential to prioritize collecting decisive information, as acquiring all data may be impractical in terms of cost and time. Verify and cross-check the data to ensure reliability. 

Key points to consider when fact-finding include:

1. Product: Characteristics, benefits, quality compared to competitors, packaging, alternatives, and substitutes, as well as new technical developments.
2. Total Market: Market size, trends, seasonal variations, regional differences, market shares of different brands, manufacturers, and significant changes in these.
3. Distribution and Distribution Channels: Types of retail outlets, turnover rates, stock levels, importance of wholesalers, brokers, buying associations, etc., and transport costs.
4. Consumers: Demographics, buying habits, product usage, reasons for purchase, brand familiarity, advertising recall.
5. Competitors: Identifying competitors, their products, strengths, and any recent introductions.
6. Import Rules and Regulations: Customs duties, taxes, quotas, licenses, product standards, packaging requirements, trademarks, and labeling.

2. Assessment of the Market Problems and opportunities

After collecting and verifying the relevant facts, they need to be assessed in the context of their importance. Weigh these factors to create a realistic assessment of the market potential for your product. Additionally, evaluate price levels, distribution challenges, advertising possibilities, and budget requirements. Objectively identify both favorable and unfavorable aspects and regularly reassess market opportunities and challenges. Ensure your assumptions about future developments are realistic.

3. Specific Export Marketing Objectives 

This is the heart of your plan. Clearly define what your marketing efforts, including product design, pricing, distribution, advertising, and sales promotion, aim to achieve. Distinguish between long-term and short-term objectives, with long-term objectives being broader and short-term objectives being specific and time-bound. Ensure your objectives are realistic, prioritize them, be specific, and focus on end-results.

4. Plan of Action

To align your objectives with your plan of action, dedicate a separate section for each objective in your export marketing plan document. Adhere to these principles:

1. Concentration: Avoid spreading resources too thin; focus on a select few activities.
2. Direction: Direct efforts where they yield the best results.
3. Magnitude: Allocate sufficient resources for an activity to be effective.
4. Multiplier Effect: Seek activities that enhance the effectiveness of other efforts.
5. Testing and Pilot Plans: Experiment on a small scale before full implementation.
6. Comparison of Alternatives: Weigh all options based on importance and expected results.

 5. Budget

Prepare a detailed budget covering all expenditure required for your plan’s execution. Focus primarily on advertising and sales promotion costs. Determine your budget either through the Task Method (estimating individual activity costs and aggregating them) or the Result Method (relating the budget to past sales or sales forecasts). Ensure your budget section refers to objectives, includes cost details, and considers value analysis.

6. Control Procedures

Implement a mechanism for ongoing comparison between actual performance and planned performance throughout the planning period. Regular and proper controls allow for adjustments and changes at a lower cost. Include a control procedure for each activity in the plan, facilitating future assessments and guiding the next year’s plan.

Plan control and reviews serve a dual purpose: correcting efforts during the planning period and providing insights for future plans.