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PROBLEMS FACING POTENTIAL EXPORTERSMany firms fail because when they begin exporting, they have not researched the target markets or have not developed an international marketing plan to be successful. A firm must clearly define goals objectives and potential problems. Secondly it must develop a definitive plan to accomplish it's objective regardless of problems involved. Unless the firm is fortunate enough to possess a staff with considerable expertise, it may not be able to take this crucial first step without qualified outside guidance.Often top management is not committed enough to overcome the initial difficulties and financial requirements of exporting. It can often take more time and effort to establish a firm in a foreign market than in domestic one. Although the early delays and costs involved in exporting may seem difficult to justify when compared to established domestic trade the exporter should take a more objective view of this process and carefully monitor international marketing efforts through these early difficulties. If a good foundation is laid for export business the benefits derived should eventually out-weigh the investment.Another problem area is in the selection of foreign distributor. The complications involved in overseas communications and transportation require international distributors to act with greater independence than their domestic counterparts also since a new exporter's trademarks and reputation is usually unknown in the foreign market. Foreign customers may buy on the strength of distributing agent's reputation. A firm should therefore conduct a thorough evaluation of the distributor's facilities, the personnel handling its account and managements methods employed.Another common difficultly for new exporter is the neglect of the export market once the domestic one booms: too many companies only concentrate on exporting when there is recession. Others may refuse to modify products to meet the regulations or cultural preferences of other countries. Local safety regulations cannot be ignored by exporters. If necessary modifications are not made at the factory the distributor must make them, this is usually at a greater cost and probably not as satisfactory as it should be. It should also be noted that the resulting smaller profit margin makes the account less attractive.If exporters expect distributing agents to actively promote their accounts they must be trained and their performance must be continually monitored. This requires a company's marketing executive to be located permanently in the distributor's geographical areas until there is sufficient business to support the representative. The distributor should also be treated on an equal basis with domestic counterparts for e.g. special discount offers, sales incentive programmes and special credit terms should be available.Considering a joint venture or licensing agreement is another option for new exporters. However, many companies still dismiss international marketing as unviable. There are a number of reasons for this. There may be import restrictions in the target market. The company may lack sufficient financial resources or its product line may be too limited. Yet many products that can compete on a national basis can be successful in the majority of world markets. In general, all that is needed for success is flexibility in using the proper combinations of marketing techniques.Q.The writer believes that if sufficient preparation is undertakena)initial difficulties can be easily avoided b)the costs can be recovered quite quickly c)management will become more committed d)the exporter will be successful in the long termCorrect answer is option 'B'. Can you explain this answer? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about PROBLEMS FACING POTENTIAL EXPORTERSMany firms fail because when they begin exporting, they have not researched the target markets or have not developed an international marketing plan to be successful. A firm must clearly define goals objectives and potential problems. Secondly it must develop a definitive plan to accomplish it's objective regardless of problems involved. Unless the firm is fortunate enough to possess a staff with considerable expertise, it may not be able to take this crucial first step without qualified outside guidance.Often top management is not committed enough to overcome the initial difficulties and financial requirements of exporting. It can often take more time and effort to establish a firm in a foreign market than in domestic one. Although the early delays and costs involved in exporting may seem difficult to justify when compared to established domestic trade the exporter should take a more objective view of this process and carefully monitor international marketing efforts through these early difficulties. If a good foundation is laid for export business the benefits derived should eventually out-weigh the investment.Another problem area is in the selection of foreign distributor. The complications involved in overseas communications and transportation require international distributors to act with greater independence than their domestic counterparts also since a new exporter's trademarks and reputation is usually unknown in the foreign market. Foreign customers may buy on the strength of distributing agent's reputation. A firm should therefore conduct a thorough evaluation of the distributor's facilities, the personnel handling its account and managements methods employed.Another common difficultly for new exporter is the neglect of the export market once the domestic one booms: too many companies only concentrate on exporting when there is recession. Others may refuse to modify products to meet the regulations or cultural preferences of other countries. Local safety regulations cannot be ignored by exporters. If necessary modifications are not made at the factory the distributor must make them, this is usually at a greater cost and probably not as satisfactory as it should be. It should also be noted that the resulting smaller profit margin makes the account less attractive.If exporters expect distributing agents to actively promote their accounts they must be trained and their performance must be continually monitored. This requires a company's marketing executive to be located permanently in the distributor's geographical areas until there is sufficient business to support the representative. The distributor should also be treated on an equal basis with domestic counterparts for e.g. special discount offers, sales incentive programmes and special credit terms should be available.Considering a joint venture or licensing agreement is another option for new exporters. However, many companies still dismiss international marketing as unviable. There are a number of reasons for this. There may be import restrictions in the target market. The company may lack sufficient financial resources or its product line may be too limited. Yet many products that can compete on a national basis can be successful in the majority of world markets. In general, all that is needed for success is flexibility in using the proper combinations of marketing techniques.Q.The writer believes that if sufficient preparation is undertakena)initial difficulties can be easily avoided b)the costs can be recovered quite quickly c)management will become more committed d)the exporter will be successful in the long termCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for PROBLEMS FACING POTENTIAL EXPORTERSMany firms fail because when they begin exporting, they have not researched the target markets or have not developed an international marketing plan to be successful. A firm must clearly define goals objectives and potential problems. Secondly it must develop a definitive plan to accomplish it's objective regardless of problems involved. Unless the firm is fortunate enough to possess a staff with considerable expertise, it may not be able to take this crucial first step without qualified outside guidance.Often top management is not committed enough to overcome the initial difficulties and financial requirements of exporting. It can often take more time and effort to establish a firm in a foreign market than in domestic one. Although the early delays and costs involved in exporting may seem difficult to justify when compared to established domestic trade the exporter should take a more objective view of this process and carefully monitor international marketing efforts through these early difficulties. If a good foundation is laid for export business the benefits derived should eventually out-weigh the investment.Another problem area is in the selection of foreign distributor. The complications involved in overseas communications and transportation require international distributors to act with greater independence than their domestic counterparts also since a new exporter's trademarks and reputation is usually unknown in the foreign market. Foreign customers may buy on the strength of distributing agent's reputation. A firm should therefore conduct a thorough evaluation of the distributor's facilities, the personnel handling its account and managements methods employed.Another common difficultly for new exporter is the neglect of the export market once the domestic one booms: too many companies only concentrate on exporting when there is recession. Others may refuse to modify products to meet the regulations or cultural preferences of other countries. Local safety regulations cannot be ignored by exporters. If necessary modifications are not made at the factory the distributor must make them, this is usually at a greater cost and probably not as satisfactory as it should be. It should also be noted that the resulting smaller profit margin makes the account less attractive.If exporters expect distributing agents to actively promote their accounts they must be trained and their performance must be continually monitored. This requires a company's marketing executive to be located permanently in the distributor's geographical areas until there is sufficient business to support the representative. The distributor should also be treated on an equal basis with domestic counterparts for e.g. special discount offers, sales incentive programmes and special credit terms should be available.Considering a joint venture or licensing agreement is another option for new exporters. However, many companies still dismiss international marketing as unviable. There are a number of reasons for this. There may be import restrictions in the target market. The company may lack sufficient financial resources or its product line may be too limited. Yet many products that can compete on a national basis can be successful in the majority of world markets. In general, all that is needed for success is flexibility in using the proper combinations of marketing techniques.Q.The writer believes that if sufficient preparation is undertakena)initial difficulties can be easily avoided b)the costs can be recovered quite quickly c)management will become more committed d)the exporter will be successful in the long termCorrect answer is option 'B'. Can you explain this answer?.

Solutions for PROBLEMS FACING POTENTIAL EXPORTERSMany firms fail because when they begin exporting, they have not researched the target markets or have not developed an international marketing plan to be successful. A firm must clearly define goals objectives and potential problems. Secondly it must develop a definitive plan to accomplish it's objective regardless of problems involved. Unless the firm is fortunate enough to possess a staff with considerable expertise, it may not be able to take this crucial first step without qualified outside guidance.Often top management is not committed enough to overcome the initial difficulties and financial requirements of exporting. It can often take more time and effort to establish a firm in a foreign market than in domestic one. Although the early delays and costs involved in exporting may seem difficult to justify when compared to established domestic trade the exporter should take a more objective view of this process and carefully monitor international marketing efforts through these early difficulties. If a good foundation is laid for export business the benefits derived should eventually out-weigh the investment.Another problem area is in the selection of foreign distributor. The complications involved in overseas communications and transportation require international distributors to act with greater independence than their domestic counterparts also since a new exporter's trademarks and reputation is usually unknown in the foreign market. Foreign customers may buy on the strength of distributing agent's reputation. A firm should therefore conduct a thorough evaluation of the distributor's facilities, the personnel handling its account and managements methods employed.Another common difficultly for new exporter is the neglect of the export market once the domestic one booms: too many companies only concentrate on exporting when there is recession. Others may refuse to modify products to meet the regulations or cultural preferences of other countries. Local safety regulations cannot be ignored by exporters. If necessary modifications are not made at the factory the distributor must make them, this is usually at a greater cost and probably not as satisfactory as it should be. It should also be noted that the resulting smaller profit margin makes the account less attractive.If exporters expect distributing agents to actively promote their accounts they must be trained and their performance must be continually monitored. This requires a company's marketing executive to be located permanently in the distributor's geographical areas until there is sufficient business to support the representative. The distributor should also be treated on an equal basis with domestic counterparts for e.g. special discount offers, sales incentive programmes and special credit terms should be available.Considering a joint venture or licensing agreement is another option for new exporters. However, many companies still dismiss international marketing as unviable. There are a number of reasons for this. There may be import restrictions in the target market. The company may lack sufficient financial resources or its product line may be too limited. Yet many products that can compete on a national basis can be successful in the majority of world markets. In general, all that is needed for success is flexibility in using the proper combinations of marketing techniques.Q.The writer believes that if sufficient preparation is undertakena)initial difficulties can be easily avoided b)the costs can be recovered quite quickly c)management will become more committed d)the exporter will be successful in the long termCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CAT. Download more important topics, notes, lectures and mock test series for CAT Exam by signing up for free.

Here you can find the meaning of PROBLEMS FACING POTENTIAL EXPORTERSMany firms fail because when they begin exporting, they have not researched the target markets or have not developed an international marketing plan to be successful. A firm must clearly define goals objectives and potential problems. Secondly it must develop a definitive plan to accomplish it's objective regardless of problems involved. Unless the firm is fortunate enough to possess a staff with considerable expertise, it may not be able to take this crucial first step without qualified outside guidance.Often top management is not committed enough to overcome the initial difficulties and financial requirements of exporting. It can often take more time and effort to establish a firm in a foreign market than in domestic one. Although the early delays and costs involved in exporting may seem difficult to justify when compared to established domestic trade the exporter should take a more objective view of this process and carefully monitor international marketing efforts through these early difficulties. If a good foundation is laid for export business the benefits derived should eventually out-weigh the investment.Another problem area is in the selection of foreign distributor. The complications involved in overseas communications and transportation require international distributors to act with greater independence than their domestic counterparts also since a new exporter's trademarks and reputation is usually unknown in the foreign market. Foreign customers may buy on the strength of distributing agent's reputation. A firm should therefore conduct a thorough evaluation of the distributor's facilities, the personnel handling its account and managements methods employed.Another common difficultly for new exporter is the neglect of the export market once the domestic one booms: too many companies only concentrate on exporting when there is recession. Others may refuse to modify products to meet the regulations or cultural preferences of other countries. Local safety regulations cannot be ignored by exporters. If necessary modifications are not made at the factory the distributor must make them, this is usually at a greater cost and probably not as satisfactory as it should be. It should also be noted that the resulting smaller profit margin makes the account less attractive.If exporters expect distributing agents to actively promote their accounts they must be trained and their performance must be continually monitored. This requires a company's marketing executive to be located permanently in the distributor's geographical areas until there is sufficient business to support the representative. The distributor should also be treated on an equal basis with domestic counterparts for e.g. special discount offers, sales incentive programmes and special credit terms should be available.Considering a joint venture or licensing agreement is another option for new exporters. However, many companies still dismiss international marketing as unviable. There are a number of reasons for this. There may be import restrictions in the target market. The company may lack sufficient financial resources or its product line may be too limited. Yet many products that can compete on a national basis can be successful in the majority of world markets. In general, all that is needed for success is flexibility in using the proper combinations of marketing techniques.Q.The writer believes that if sufficient preparation is undertakena)initial difficulties can be easily avoided b)the costs can be recovered quite quickly c)management will become more committed d)the exporter will be successful in the long termCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of PROBLEMS FACING POTENTIAL EXPORTERSMany firms fail because when they begin exporting, they have not researched the target markets or have not developed an international marketing plan to be successful. A firm must clearly define goals objectives and potential problems. Secondly it must develop a definitive plan to accomplish it's objective regardless of problems involved. Unless the firm is fortunate enough to possess a staff with considerable expertise, it may not be able to take this crucial first step without qualified outside guidance.Often top management is not committed enough to overcome the initial difficulties and financial requirements of exporting. It can often take more time and effort to establish a firm in a foreign market than in domestic one. Although the early delays and costs involved in exporting may seem difficult to justify when compared to established domestic trade the exporter should take a more objective view of this process and carefully monitor international marketing efforts through these early difficulties. If a good foundation is laid for export business the benefits derived should eventually out-weigh the investment.Another problem area is in the selection of foreign distributor. The complications involved in overseas communications and transportation require international distributors to act with greater independence than their domestic counterparts also since a new exporter's trademarks and reputation is usually unknown in the foreign market. Foreign customers may buy on the strength of distributing agent's reputation. A firm should therefore conduct a thorough evaluation of the distributor's facilities, the personnel handling its account and managements methods employed.Another common difficultly for new exporter is the neglect of the export market once the domestic one booms: too many companies only concentrate on exporting when there is recession. Others may refuse to modify products to meet the regulations or cultural preferences of other countries. Local safety regulations cannot be ignored by exporters. If necessary modifications are not made at the factory the distributor must make them, this is usually at a greater cost and probably not as satisfactory as it should be. It should also be noted that the resulting smaller profit margin makes the account less attractive.If exporters expect distributing agents to actively promote their accounts they must be trained and their performance must be continually monitored. This requires a company's marketing executive to be located permanently in the distributor's geographical areas until there is sufficient business to support the representative. The distributor should also be treated on an equal basis with domestic counterparts for e.g. special discount offers, sales incentive programmes and special credit terms should be available.Considering a joint venture or licensing agreement is another option for new exporters. However, many companies still dismiss international marketing as unviable. There are a number of reasons for this. There may be import restrictions in the target market. The company may lack sufficient financial resources or its product line may be too limited. Yet many products that can compete on a national basis can be successful in the majority of world markets. In general, all that is needed for success is flexibility in using the proper combinations of marketing techniques.Q.The writer believes that if sufficient preparation is undertakena)initial difficulties can be easily avoided b)the costs can be recovered quite quickly c)management will become more committed d)the exporter will be successful in the long termCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for PROBLEMS FACING POTENTIAL EXPORTERSMany firms fail because when they begin exporting, they have not researched the target markets or have not developed an international marketing plan to be successful. A firm must clearly define goals objectives and potential problems. Secondly it must develop a definitive plan to accomplish it's objective regardless of problems involved. Unless the firm is fortunate enough to possess a staff with considerable expertise, it may not be able to take this crucial first step without qualified outside guidance.Often top management is not committed enough to overcome the initial difficulties and financial requirements of exporting. It can often take more time and effort to establish a firm in a foreign market than in domestic one. Although the early delays and costs involved in exporting may seem difficult to justify when compared to established domestic trade the exporter should take a more objective view of this process and carefully monitor international marketing efforts through these early difficulties. If a good foundation is laid for export business the benefits derived should eventually out-weigh the investment.Another problem area is in the selection of foreign distributor. The complications involved in overseas communications and transportation require international distributors to act with greater independence than their domestic counterparts also since a new exporter's trademarks and reputation is usually unknown in the foreign market. Foreign customers may buy on the strength of distributing agent's reputation. A firm should therefore conduct a thorough evaluation of the distributor's facilities, the personnel handling its account and managements methods employed.Another common difficultly for new exporter is the neglect of the export market once the domestic one booms: too many companies only concentrate on exporting when there is recession. Others may refuse to modify products to meet the regulations or cultural preferences of other countries. Local safety regulations cannot be ignored by exporters. If necessary modifications are not made at the factory the distributor must make them, this is usually at a greater cost and probably not as satisfactory as it should be. It should also be noted that the resulting smaller profit margin makes the account less attractive.If exporters expect distributing agents to actively promote their accounts they must be trained and their performance must be continually monitored. This requires a company's marketing executive to be located permanently in the distributor's geographical areas until there is sufficient business to support the representative. The distributor should also be treated on an equal basis with domestic counterparts for e.g. special discount offers, sales incentive programmes and special credit terms should be available.Considering a joint venture or licensing agreement is another option for new exporters. However, many companies still dismiss international marketing as unviable. There are a number of reasons for this. There may be import restrictions in the target market. The company may lack sufficient financial resources or its product line may be too limited. Yet many products that can compete on a national basis can be successful in the majority of world markets. In general, all that is needed for success is flexibility in using the proper combinations of marketing techniques.Q.The writer believes that if sufficient preparation is undertakena)initial difficulties can be easily avoided b)the costs can be recovered quite quickly c)management will become more committed d)the exporter will be successful in the long termCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of PROBLEMS FACING POTENTIAL EXPORTERSMany firms fail because when they begin exporting, they have not researched the target markets or have not developed an international marketing plan to be successful. A firm must clearly define goals objectives and potential problems. Secondly it must develop a definitive plan to accomplish it's objective regardless of problems involved. Unless the firm is fortunate enough to possess a staff with considerable expertise, it may not be able to take this crucial first step without qualified outside guidance.Often top management is not committed enough to overcome the initial difficulties and financial requirements of exporting. It can often take more time and effort to establish a firm in a foreign market than in domestic one. Although the early delays and costs involved in exporting may seem difficult to justify when compared to established domestic trade the exporter should take a more objective view of this process and carefully monitor international marketing efforts through these early difficulties. If a good foundation is laid for export business the benefits derived should eventually out-weigh the investment.Another problem area is in the selection of foreign distributor. The complications involved in overseas communications and transportation require international distributors to act with greater independence than their domestic counterparts also since a new exporter's trademarks and reputation is usually unknown in the foreign market. Foreign customers may buy on the strength of distributing agent's reputation. A firm should therefore conduct a thorough evaluation of the distributor's facilities, the personnel handling its account and managements methods employed.Another common difficultly for new exporter is the neglect of the export market once the domestic one booms: too many companies only concentrate on exporting when there is recession. Others may refuse to modify products to meet the regulations or cultural preferences of other countries. Local safety regulations cannot be ignored by exporters. If necessary modifications are not made at the factory the distributor must make them, this is usually at a greater cost and probably not as satisfactory as it should be. It should also be noted that the resulting smaller profit margin makes the account less attractive.If exporters expect distributing agents to actively promote their accounts they must be trained and their performance must be continually monitored. This requires a company's marketing executive to be located permanently in the distributor's geographical areas until there is sufficient business to support the representative. The distributor should also be treated on an equal basis with domestic counterparts for e.g. special discount offers, sales incentive programmes and special credit terms should be available.Considering a joint venture or licensing agreement is another option for new exporters. However, many companies still dismiss international marketing as unviable. There are a number of reasons for this. There may be import restrictions in the target market. The company may lack sufficient financial resources or its product line may be too limited. Yet many products that can compete on a national basis can be successful in the majority of world markets. In general, all that is needed for success is flexibility in using the proper combinations of marketing techniques.Q.The writer believes that if sufficient preparation is undertakena)initial difficulties can be easily avoided b)the costs can be recovered quite quickly c)management will become more committed d)the exporter will be successful in the long termCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice PROBLEMS FACING POTENTIAL EXPORTERSMany firms fail because when they begin exporting, they have not researched the target markets or have not developed an international marketing plan to be successful. A firm must clearly define goals objectives and potential problems. Secondly it must develop a definitive plan to accomplish it's objective regardless of problems involved. Unless the firm is fortunate enough to possess a staff with considerable expertise, it may not be able to take this crucial first step without qualified outside guidance.Often top management is not committed enough to overcome the initial difficulties and financial requirements of exporting. It can often take more time and effort to establish a firm in a foreign market than in domestic one. Although the early delays and costs involved in exporting may seem difficult to justify when compared to established domestic trade the exporter should take a more objective view of this process and carefully monitor international marketing efforts through these early difficulties. If a good foundation is laid for export business the benefits derived should eventually out-weigh the investment.Another problem area is in the selection of foreign distributor. The complications involved in overseas communications and transportation require international distributors to act with greater independence than their domestic counterparts also since a new exporter's trademarks and reputation is usually unknown in the foreign market. Foreign customers may buy on the strength of distributing agent's reputation. A firm should therefore conduct a thorough evaluation of the distributor's facilities, the personnel handling its account and managements methods employed.Another common difficultly for new exporter is the neglect of the export market once the domestic one booms: too many companies only concentrate on exporting when there is recession. Others may refuse to modify products to meet the regulations or cultural preferences of other countries. Local safety regulations cannot be ignored by exporters. If necessary modifications are not made at the factory the distributor must make them, this is usually at a greater cost and probably not as satisfactory as it should be. It should also be noted that the resulting smaller profit margin makes the account less attractive.If exporters expect distributing agents to actively promote their accounts they must be trained and their performance must be continually monitored. This requires a company's marketing executive to be located permanently in the distributor's geographical areas until there is sufficient business to support the representative. The distributor should also be treated on an equal basis with domestic counterparts for e.g. special discount offers, sales incentive programmes and special credit terms should be available.Considering a joint venture or licensing agreement is another option for new exporters. However, many companies still dismiss international marketing as unviable. There are a number of reasons for this. There may be import restrictions in the target market. The company may lack sufficient financial resources or its product line may be too limited. Yet many products that can compete on a national basis can be successful in the majority of world markets. In general, all that is needed for success is flexibility in using the proper combinations of marketing techniques.Q.The writer believes that if sufficient preparation is undertakena)initial difficulties can be easily avoided b)the costs can be recovered quite quickly c)management will become more committed d)the exporter will be successful in the long termCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice CAT tests.