Market Maintenance

An Expert's View about Consumer Spending in Australia

Posted on: 19 Apr 2010

These may be troubled times, but that’s no reason to shy away from doing everything you can to maintain your market share, writes Ian Murray

EXPORt opinion MaRkEt MaintEnancE These may be troubled times, but that?s no reason to shy away from doing everything you can to maintain your market share, writes ian Murray eople who know that I have a of the most recent study confirms that In saying that, it?s in times like these that background in marketing with major manufacturing exports are being hit the require sound business thinking and far Pinternational companies often ask hardest followed by agriculture. Across greater emphasis on minimising risk. me, ?Why do you have to have to advertise the board, forward orders are down by as Australian exporters have at their disposal that product, when everyone knows about much as 30 percent, and companies seem some very effective agencies and private it?? The fact is, brands need constant to be avoiding the Americas and Africa. sector organisations that can provide sound promotion to maintain market share. On a positive note, most sales continue advice on market risk, market dynamics, When one considers for a moment to go to Asia and there appears little and finance and business risk. Austrade, how much it costs to develop and launch interest in avoiding these markets. While with representative offices in all major a new product, how long it takes to turn some companies are pulling back their export destinations, can provide valuable a profit, and the investment made to gain marketing spend, many seem to be market and market sector information; the market leadership, it?s not hard to see why continuing marketing pressure despite the Export Finance and Insurance Corporation large marketers rarely pull back from the shortfall in the Export Market Development (EFIC) and credit insurance providers are advertising and promotion roundabout. Grants scheme. regularly updating country risk data. It?s simply part of the game: maintain market Also important is the impact of any Banks too can assist with information share at any cost and, if you are market dampening of local demand, which in many and products designed to assist exporters leader, stay there and beat competition cases funds international sales. Significant with managing risk. into the ground. export sales are driven by participation It?s probably not a bad time to make Interestingly enough, it remains much in international supply chains that are sure that you fully understand the export the same even when things get tough. rapidly declining, and there has been a process and take more control over the Markets might decline, but share and reduction in demand in the not highly management of your export business. market leadership must be maintained in publicised, but very important intercompany When times are good, outsourcing is very good times and bad. export business. attractive and things like credit insurance seem to be less important. When times are tough, control?like cash?is king. WhilE sOME cOMPaniEs aRE And, as we saw in the Asian crisis, Pulling back thEiR MaRkEting opportunities come alive too when things are tough. Australian companies are good sPEnd, Many sEEM tO bE niche players and have wide experience in managing business in a soundly regulated cOntinuing MaRkEting PREssuRE market?and more regulation is on its way. But can the same be said for export At the same time, our markets are very In short, don?t run from hard-earned markets? The sheer cost of getting into heavily driven by Asian demand, our dollar markets. Sound hands-on risk management, overseas markets is horrendous and makes Australia very competitive in many good planning and advice strong marketing servicing them is costly, so maintaining your markets, and we have a very professional and an effective knowledge of the process position even in a declining market is just as well regulated export finance and insurance will always see you through. important. The questions are: how tough is industry. So what does one do when the it? And: what should I do? going gets tough? ? IAN MURRAY Two recent studies undertaken by the First and foremost, don?t give up. Major Executive Director Australian Institute of Export reconfirms it marketers don?t give hard earned market Australian Institute of Export is getting tougher, and financing exports share away easily even in declining markets, is becoming harder. The preliminary results and nor should we in export markets. 10 march.09
Posted: 19 April 2010

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