As a guideline, the exporter could establish an initial export promotion budget between 10% to 20% of expected sales.
This budget could be divided in one of the following suggested ways:
1. For consumer goods
45% advertising
35% selling
10% other promotion
2. For industrial goods
55% selling
25% advertising
10% other promotion (including trade fairs)
In the introduction stage of the exporter's product, emphasis must be on informing consumers, making the product easily available, and encouraging the foreign consumer to try it.
In the market growth stage, the firm should concentrate on promoting brand loyalty.
Later, in the market maturity stage, promotion can be placed on product differentiation - trying to make the product as unique and differential as possible from competitive ones.
Sales decline stage, if and when sales begin to slip, special promotion efforts will be required.
The type of customers - Is the promotion aim at Industrial user or middlemen. Advertising and samples are often the most efficient way of persuading middlemen to try a new food product.
Whereas, personal selling is essential in reaching wholesalers. Trade fairs and trade journals is an excellent way of reaching industrial users.
Looking for sales leads, there should be some systematic way e.g. advertising in trade journals, direct mail to prospective buyers, participation in trade shows, etc., or aware of buyer's guides and trade directories for source of prospective agents, buyers, etc.
Finally, in the area of export promotion, you should consider a systematic way to keep track of the company's promotional activities in that foreign market, customers, other contacts made and decide how often to follow-up and visit to the foreign market to develop personal contacts.
Conclusion, an analysis of the promotion blend should help the exporter decide in spreading its promotional effort in an optimum combination of advertising, selling, and other promotional activities such as credit, product warranties, training, special introductory offers, samples, contests, displays, sales aids and after-sales service etc.
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Role of the Agent,
Role of the Exporter
"Agents are always tempted to neglect one product for another....."
