Identifying successful marketing strategies by export regional destination

This study develops a model that explains export sales volume by destination based on a company's export marketing strategy. A seemingly unrelated regression model (SURE) simultaneously estimates the explanatory value of the different elements of the marketing strategy, as well as company characteristics, such as experience, size and motivation to export, on entry decisions to six different regional markets made by exporting companies in a southern European country. The data were collected from a sample size of 2,264 exporting companies. Findings confirm the importance of exporting experience and proactiveness in determining high export sales volumes in every regional market except for those psychologically close. Nevertheless, different marketing strategies depending on the region lead to high export sales volumes. For example, low price strategies in the case of Latin America or differentiation strategies based on the augmented product in the case of the USA generate high export sales. Promotional expenditures are of higher importance for distant markets, but for closer markets channel development is the key.