The approach and development of a strategy that specifies the objectives and scope of the international operation is of great importance, otherwise the chances of success of the company are uncertain.

Strategic factors to achieve international success

Nowadays, international marketing is important because we live in a globalized world. Not participating in the international market entails less economic development for the country and results in a living standard decrease for the population, since the purpose of international marketing promises a greater quality of life, a better society, and more efficient business transactions. To be a successful exporter it is necessary to possess several elements that must be complemented with shares (Lerma and Marquez, 2020).

According to Lerma and Marquez (2020), the four-step model for exports features the following strategic factors to be successful. The diagram shows the sequence and meaning of each step.

Source: Lerma, A., and Marquez, E. (2020). International Trade and Marketing (5th ed.). Mexico: Cengage Learning.

1. Having a product or service that can be sold in the international market

A product can be either tangible or intangible. Tangible products are physical items that can be touched, such as electronics, clothing, and food products. Intangible products include services, experiences, or digital goods, such as software, consulting services, and online courses. Both types of products need to be developed and marketed according to the needs and preferences of the target market.

The first step involves an analysis on competitiveness, which means the company is supposed to have a competitive advantage in terms of product differentiation when offering a product or service that has certain attributes or characteristics when compared to other companies', making the client perceive it as unique. As a result, consumers will be willing to pay more to obtain a product from one company rather than another.

In this stage it is important to have a good product development and update strategy for the international market. Among the main strategies and advantages of product development, the following can be found:

• Satisfying the needs and demands of the client.
• Satisfying the needs and likings by understanding the target market.
• Having products that are desirable for the audience.
• Performing improvements on a product to reduce costs.
• Creating or improving a product to address certain business trends.
• Developing a product to adapt to new technologies.

According to Czinkota and Ronkainen (2019), the essence of a company's international operations are goods or services. These can be defined as the complex combination of tangible and intangible elements that distinguish them from other entities in the market. The success of a company depends on the quality of its goods or services and how much they can be differentiated from the competitor's offers.

A company has four basic alternatives to approach international markets:

• Sell the product as it is on the international market.
• Modify or innovate the products for different countries or regions.
• Design or create new products for foreign markets.
• Include all differences in a flexible product design and introduce a global product.

The importance of companies proposing correct marketing strategies and the relationship with export logistics cannot be overstated, especially in the context of international trade. Correct marketing strategies enable companies to effectively penetrate new markets and expand their presence internationally.

Marketing strategies involve gathering market intelligence and insights to understand market dynamics, consumer behavior, and competitive landscapes in international markets. The relationship between marketing strategies and export logistics is essential for ensuring the efficient and timely delivery of products or services to international customers. Seamless coordination between marketing and logistics functions enables companies to meet customer expectations, fulfill orders accurately, and minimize delivery lead times. Streamlining export logistics processes, such as transportation, customs clearance, and inventory management, enhances customer satisfaction and strengthens competitive advantage.

Let's consider the example of a software development company, TechSolutions, Inc., which specializes in providing custom software solutions for businesses. Here's how the company can follow the steps to start exporting its services internationally:

Step 1. Product or service analysis:

TechSolutions, Inc. offers a range of software development services, including custom application development, website design, cloud computing solutions, and mobile app development. The company's expertise lies in creating tailored software solutions to meet the unique needs of clients across various industries.

Step 2. Market identification and research:

TechSolutions, Inc. conducts market research to identify potential target markets for its software development services. The company considers factors such as market demand for software solutions, technological infrastructure, business environment, and regulatory frameworks in each target market. After thorough research, TechSolutions, Inc. selects target markets with high demand for software services and favorable business conditions, such as the United States, Canada, and Western Europe.

Step 3. Promotion and sales management:

TechSolutions, Inc. develops a promotion and sales management plan to market its software development services to international clients. The company utilizes various marketing channels, including its website, social media platforms, email campaigns, and online advertising, to showcase its expertise and attract potential clients. TechSolutions, Inc. also participates in industry events, such as tech conferences and trade shows, to network with prospective clients and demonstrate its capabilities.

Step 4. Negotiation and contractual agreements:

TechSolutions, Inc. engages in negotiations with international clients to discuss project requirements, scope, timelines, and pricing. The company ensures that all agreements and contracts are documented in writing, detailing project deliverables, milestones, payment terms, and intellectual property rights. TechSolutions, Inc. adheres to internationally recognized trade terms (Incoterms) to define the rights and obligations of both parties.

Step 5. Export logistics and delivery:

TechSolutions, Inc. develops a comprehensive export logistics plan to facilitate the delivery of software services to international clients. The company utilizes secure digital platforms and communication tools to collaborate with clients remotely, ensuring smooth project management and communication throughout the development process. TechSolutions, Inc. complies with export regulations and customs requirements in each target market to facilitate the seamless delivery of its services.

Integration with marketing strategy:

TechSolutions, Inc. integrates its international marketing strategy with its overall business goals and objectives. The company leverages its marketing efforts to strengthen its brand presence, showcase its technical expertise, and highlight the value proposition of its software services to international clients. By aligning its marketing strategy with its export efforts, TechSolutions, Inc. aims to expand its reach, acquire new clients, and drive growth in international markets.

2. Identifying compelling markets

This step consists in locating the target market, which is found through research.

Market research is very important because it creates the possibility to select markets and products by performing an evaluation of the potential each of them has before reaching a final decision. In addition, research is useful for analyzing how to raise interest in the product, attract clients, and draw the company closer to the market it is aiming for.

According to Lerma and Marquez (2020), once a "suitable market" is defined in terms of possibility of access, volume, and export value, we go on to a second target market research phase that is deeper and more developed. Its objective is to obtain current and direct information of the market and its opportunities, advantages, risks, and limitations.

In words of Lerma and Marquez (2020), to select a promising target market the following factors should be considered:

• There is a need, desire, liking or interest for our kind of product.
• There is enough purchasing power.
• There is an absence of insurmountable business barriers.
• There is a trade treaty or agreement that facilitates our entry.
• There is logistics ease for merchandise and payment.
• Trade culture and business access are friendly to the market.
• Business volume and value are appealing.

When knowing what will be sold and to whom, it is timely to promote and manage sales though mechanisms and tools for each situation until proposals are fulfilled and export contracts achieved. Then, the right means of communication must be identified to promote the product. The ideal media will be those with which the target market has permanent contact.

3. Manage product or service sales in the target market

According to Lerma and Marquez (2020), managing sales consists in correlating the results of the two previous steps, which involves promoting and selling the goods or services in the promising target market. This includes three substantial tasks:

• Export promotion
• International negotiation
• International recruitment

It is important to have in mind that it is decisive to plan, establish goals, and have a qualified team to achieve success. Do not forget that managing encompasses several stages as well. According to Lerma and Marquez (2020), there are several tools to make the product known, such as business fairs, door-to-door sales, mailing or e-mailing, sample delivery, and international advertising.

Once interest for the products or services has been attained, we proceed to reach a business agreement that must be stated in writing (contract), in which crucial details like pricing, delivery times, payment conditions, transportation, insurance, etcetera, must be stipulated. This way, rights and obligations are established between both parties while using international commerce terms (incoterms).

4. Delivering and charging for merchandise

Export logistics consists of a comprehensive process which merchandise goes through to be exported to another city or country, complying with important stages that go from transportation to payments and merchandise packaging and shipment.

Export logistics ensure that everything is done in the best possible way without failures. For every export effort and for effective arrival to succeed, these steps must be followed:

To efficiently reach international markets, specifically target markets, it is important to have a good international marketing strategy that defines processes to follow in accordance with the product or service that is promoted. Its relevance is found in the help it provides to strengthen sales and show the benefits of the brand or product to possible clients.

In conclusion, a correct marketing strategy empowers companies to gather market intelligence, anticipate trends, and adapt their approaches to changing market conditions. Flexibility and agility in responding to evolving consumer preferences and competitive landscapes are essential for maintaining relevance and staying ahead in global markets.

Moreover, the relationship between marketing strategies and export logistics is fundamental for ensuring seamless operations and customer satisfaction in international trade. Efficient coordination between marketing and logistics functions enables companies to meet customer expectations, optimize distribution channels, and streamline export processes, ultimately contributing to cost efficiency, profitability, and long-term competitiveness.

Make sure that you:

• Understand the four-step model for exports outlined by Lerma and Márquez (2020), which includes having a sellable product, identifying target markets, managing sales, and handling export logistics.
• Analyze the competitive advantage of your product or service, ensuring it has unique attributes that differentiate it from competitors and make it attractive to international customers.
• Conduct thorough market research to identify and evaluate potential target markets, considering factors such as demand, regulatory environment, and logistics ease.

• Czinkota, M., and Ronkainen, I. (2019). International Marketing (11th ed.). Mexico: Cengage Learning.
  ISBN: 9786075268415
• Lerma, A., and Márquez, E. (2020). International Trade and Marketing (5th ed.). Mexico: Cengage Learning.
  ISBN: 9786075269153