The Role of Information in Export Marketing Programs: An Analysis by Ownership Structure

By Mohamad, Osman; Ahmed, Zafar U. et al. | Multinational Business Review, Fall 2001 | Go to article overview
Save to active project

The Role of Information in Export Marketing Programs: An Analysis by Ownership Structure


Mohamad, Osman, Ahmed, Zafar U., Honeycutt, Earl D., Jr., Multinational Business Review


This research examines the role of information considered important by manufacturing exporters. The study investigates the types of information used by different exporters, the sources consulted for gathering information, and the value of each information source. Manufacturers rated market information, provided by their trade group, as being most valuable. However, different perspectives were reported by ownership category. The findings of this study can assist manufacturing exporters improve the effectiveness of their export marketing efforts.

Many firms enter exporting by chance, rather than as part of a conscious export marketing strategy (Ohmae 1999). When a firm becomes export-oriented, decision making moves from being reactive and ad hoc to a more proactive and formal process. While the impact of planning and other contextual variables on firm export involvement and performance is imprecise, companies that systematically explore opportunities exhibit higher export performance (Craig and Douglas 2000).

An essential prerequisite for planning activity is the gathering of relevant information, which may be obtained from a variety of sources. Accurate information is considered crucial when preparing an export marketing plan, because a manager's business decisions depend upon the availability of reliable information about existing and future markets and the environmental forces that impact the demand for the company's products. The challenge increases when the company operates in both domestic and global markets. While managers can rely upon acquired knowledge and experience, few executives possess intimate knowledge and awareness of export markets. However, these limitations can be minimized by establishing an in-house export marketing intelligence department and/or by collecting information from other sources. The purpose of this study is to assess the importance of both the type and source of information employed by Malaysian Manufacturing firms in their export endeavors.

LITERATURE REVIEW

The competitive nature of today's business environment requires that foreign markets be systematically investigated (Craig and Douglas 2000). In this regard, accurate information is crucial for completing export marketing plans and for making strategic business decisions in dynamic environments. At the global level, the strategic importance of gathering information to support business decisions has been widely studied (Deshpande and Zaltman 1982; Johansson and Nonaka 1983,1987; Kohli and Jaworski 1990). The importance of information is confirmed by the fact that most export oriented nations have established special agencies to assist exporters in acquiring desired information about potential markets (Seringhaus 1987; Barrett and Wilkinson 1988; Wheeler 1990; Craig and Douglas 2000).

The users of export market research serve more global markets than non-users (Diamantopoulos, Schlegelmilch, and Allpress 1990; Hart, Webb and Jones 1992). One explanation for this practice is that firms pursuing global markets search for additional sources of information (Cavusgil 1984). However, due to the distinct characteristics of different countries, the extent and amount of information needed varies. As a result, firms employ a wide range of informational sources to improve the chance of success in their export efforts.

A firm's inclination to consult wider sources of information is also a function of its internationalisation stage (Cavusgil 1985). This information search increases in complexity as management commitment to exporting rises. Exporter information needs also vary according to their export destinations (Bodur and Cavusgil 1985).

U.S. exporters consult six broad types of information - politics (its nature and effect on trade); economic level (its effect on lifestyles); macroeconomic accomplishment (market potential); export restrictions (tariff, non-tariff, and transportation barriers); and legal issues.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

The Role of Information in Export Marketing Programs: An Analysis by Ownership Structure
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?