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Aggressive Exporter - Meaning, Importance & Example

Published by MBA Skool Team in Marketing and Strategy Terms Last Updated: April 19, 2023Read time:

What is Aggressive Exporter?

Aggressive exporter are those companies which sell their products & services aggressively in international markets. The company or marketer can be said to be using an aggressive marketing before it introduces its products in foreign markets. This is the concept of an aggressive exporter.

Companies begin with the motive of business. The objective is to earn profits by solving the need of the society through products or services. But soon the companies realize that they need to continuously grow In order to sustain. They expand their business territories and diversify their product portfolio. They find newer untapped markets to acquire newer customer base. When the company establishes itself completely in the home country, it takes the business to the next level i.e uses international strategy. It may set up a division outside or simply export its products to other countries. For doing so, it needs to chart out unique strategies for the endeavor. It all starts with a proper analysis of the company resources and then finalizing the location where the company expects a major untapped market. Once the decision is made to become an aggressive exporter, it goes all out in developing the marketing strategies starting from designing appropriate and pertinent advertisements to developing customized taglines, hoardings, theme, celebrity endorsement and launch events.

Importance of Aggressive Exporter

Export can be aggressive or passive. Passive export is when a company simply sells its products outside, without any targeted marketing strategy. The company might be producing or acquiring products from other companies to sell it outside. The strategy though depends on several factors.

It will depend on the product type- whether we are exporting a typical ready-to-use consumer goods product or a more essential product like oil and energy. It will also depend on the market features- size, composition and competition. The concept of aggressive exporter is important because it gives a fair idea of when to go for aggressive exporting. Before going for expansion, marketers do a competitive analysis of the market, understand sales management challenges and also look at the political, social, economic and legal factors of the region. It gives an idea as to how the marketing strategy be developed. In a country with highly competitive market, aggressive exporting is the only way to reach to the masses.

Aggressive Exporter

Advantages of Aggressive Exporter

Some of the advantages of being an aggressive exporter are:

1. A customize marketing strategy for products in foreign markets is all about designing the product and associated brand complements like taglines, ads, logo etc so as to make it relatable to the customers abroad. Doing so reduces a significant amount of risk that the export bears. Through surveys, you conduct market research to know the penetration of your ad. Once you are confirmed that your product has made grounds, you then actually release it.

2. Aggressive export catches public attention and gives the company the initial thrust to compete.

3. If the Company is listed in the country’s Stock Exchange, the share prices would immediately go up as investors feel confident. This may well draw good amount of investment in the form of Forex.

Disadvantages of Aggressive Exporter

Some disadvantages of being an aggressive exporter are:

1. Aggressive exporting requires cost. For small companies, it is a tough job a develop a separate strategy for the export markets. Resources and cost are two important factors.

2. This is a time-taking process. Companies may decide on export at the earliest but developing a strategy may delay the process and the subsequent revenue generation. The opportunity cost is high so to say.

Example of Aggressive Exporter

When Xiaomi launched its product online in India, it aggravated its concept of Black Friday offering massive discounts on all its products. The concept goes like this. After releasing a few products, it cuts off the demand for some time before it again releases the products into the market. The customers are waiting for so long to avail the discounted products. So Xiaomi is basically inducing demand for its products in the Indian market. The move is country-specific as Xiaomi realizes that the Indian market is price-conscious and higher the discount offered, higher the brand awareness.

Hence, this concludes the definition of Aggressive Exporter along with its overview.

This article has been researched & authored by the Business Concepts Team which comprises of MBA students, management professionals, and industry experts. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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