The Impact of the Creation and Application of Market Intelligence on Performance Through Strategy of Segmentation, Prioritization, and Sales Models

Document Type : مقاله مستخرج از پایان نامه

Authors

1 Master's student, business management, Faculty of Humanities, Shahid University,

2 Associate Professor, Department of Business Management, Faculty of Humanities, Shahid University

Abstract

 
Aim & Introduction
In recent years, there has been increased attention on the significance of export companies, particularly small and medium-sized enterprises (SMEs), in the economies of various countries. These companies play a crucial role in driving economic growth, fostering development, creating employment opportunities, and serving as platforms for innovation, especially in less developed countries. This role will become increasingly prominent as these companies enter the global trade arena. By developing foreign target markets, they can boost exports and foreign exchange, thereby improving the country's economic situation. Exporting serves as a key strategy for entering foreign markets, particularly for small and medium-sized enterprises. The success of small and medium-sized exporters relies on their ability to establish and maintain long-term relationships with international customers. Determinants of export performance are a significant concern for international marketing researchers. Therefore, the primary objective of this research is to enhance export performance in Iran's turbulent and evolving export environment. This will be achieved by developing and implementing market intelligence strategies, segmenting the export market, prioritizing opportunities, and utilizing various sales models. Agricultural products were exported to companies.
Methodology
In terms of its purpose, this research is classified as applied research. Regarding the nature of data collection, it employs a descriptive-survey methodology. Additionally, concerning the relationships between research variables, it utilizes correlation analysis. For this purpose, 201 companies in the field of agricultural product exports in Tehran were selected using the Cochran formula for determining sample size. The data for this research was collected using a random sampling method and a researcher-developed questionnaire based on the indicators and research questions established by Katsika et al. The opinions of professors and experts were utilized to validate this questionnaire. Cronbach's alpha was utilized to assess reliability, yielding a value of 0.922. To evaluate the hypotheses of this research, SPSS and SmartPLS software were employed.
Findings
The research results show that the creation and application of export market intelligence positively influence performance through segmentation strategies, prioritization, and sales models. All hypotheses were confirmed except for one. In other words, in alignment with the primary objective of this research—investigating the creation and application of export market intelligence on performance through segmentation strategies, prioritization, and sales models in companies exporting agricultural products in Tehran province—all hypotheses were confirmed, with the exception of the fifth hypothesis, which was not supported by the path coefficients and relevant statistics. The fifth hypothesis of this research was rejected because its statistic was less than 1.96. According to the statistical tests, the strongest correlation exists between "creating export market intelligence" and "export target market segmentation".
Discussion & Conclusion
Exporting goods, particularly agricultural products, is a complex process. While all goods require export standards, agricultural products have unique challenges. Unlike other goods, which can often be standardized in the country of origin, exporting agricultural products necessitates compliance with additional standards beyond those of the originating country. From the perspective of origin standards, manufactured goods must comply with the regulations of both the destination country and the consumer. Based on the materials presented in this research, the export of agricultural products follows a specific formula, similar to other business sectors. To successfully penetrate the target markets for agricultural exports, an appropriate strategy must be employed. According to the conclusions drawn from this research, the implementation of segmentation strategies, prioritization, and sales models in the target export market significantly influences the export performance of companies that export agricultural products. These companies must accurately segment their target export markets, prioritize these segments, and enhance their export performance by employing various sales models within these markets. Based on the review and validation of the research hypotheses, the following recommendations should be prioritized by agricultural product exporting companies in Tehran Province:

Developing an effective strategy to enhance export performance, such as an appropriate packaging strategy, and its influence on the export success of companies that export agricultural products.
Help enhance their export performance by employing diverse sales strategies in international markets.
In prioritizing their target export markets, it is essential to consider export capabilities and facilities, such as packaging capabilities.
To enhance sales and improve performance, utilize various sales models. For instance, exporters of agricultural products can distribute their goods through local retail stores.
Companies' performance is significantly influenced by their ability and budget to invest in the development of intelligence and improvements.

According to the fifth hypothesis, the application of export market intelligence affects performance through the segmentation of the export target market. However, this hypothesis was not confirmed; therefore, the following suggestions are made:

In this context, exporters from small and medium-sized industrial companies seeking to enter foreign markets should effectively utilize their marketing intelligence capabilities. Successful exporting necessitates a comprehensive understanding of business activities, cultural nuances, competition, and other factors specific to each market or country. The application of export market intelligence involves the skills and expertise of managers and executive agents.
Utilize intelligence and information gathered from the target export market to enhance export performance as much as possible.
To enhance the utilization of export market intelligence by employees and marketers within these companies, it is essential to incorporate the opinions and suggestions of the employees themselves. This approach will ultimately improve the overall performance of the companies.
In formulating the company's strategies, it is essential to consider the information requirements for developing and implementing export market intelligence.

 

Keywords

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Commercial Strategies
Volume 20, Issue 22
June 2023
Pages 65-82

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