Export markets are different from domestic markets. These markets have different socio-cultural environment; different legal system; different styles of negotiation; different requirements for buying; different regulations governing imports; owning and disposing of property; a different currency that might fluctuate in value; conditions of corruption or political favoritism and so on. It is thus, very important that the business firm should keep in view these special characteristics of export markets while taking decision to establish export business. An entrepreneur should consider the following useful tips while deciding to establish export business :
1. Select the product and the target market on the basis of desk research even before considering to export.
2. Once a market has been decided upon, the entrepreneur should carry out in-depth study of the target market.
3. The aim of the first visit to the foreign market should not be to do business or looking for orders. Rather, the first visit should be used to improve the preparation for entering the market.
4. Evaluate all the information collected and then formulate a marketing strategy and develop a marketing plan.
5. Gaining foothold in foreign markets can only be effective on a long term basis. Thus, the entrepreneur should have the strong financial base.
6. The foreign buyers cannot afford to lose face and credibility by deterioration in quality or alternatives to price and/ or late deliveries. It is important to understand the requirements of the foreign buyer before making commitments.
7. In exports, consumers are quality and price conscious in a market which enjoys large and varied supplies. Success or failure in business will depend upon understanding this sensitivity of the foreign buyer. The entrepreneur should adopt a consumer oriented approach to manufacturing and selling.
8. International markets are trend sensitive. Designs frequently change and the products may not remain in demand. It is therefore, necessary to be aware of this trend and effort should be made to keep up-to-date with the market trends.
9. Foreign markets, particularly in the developed countries, are often highly segmented into different age and income group. The exporter should select the right market segment and accordingly position the product in the market.