For each serious export plan the assignment of a budget with regard to the activities planned is an undisputed prerequisite.
From the perspective of marketing, project budgeting is a standard item if a product is to be introduced on the market, no matter which market you are talking about.
When you plan to develop activities on a foreign market, you've already set specific objectives or targets for that market to achieve. These objectives are laid down in your export plan or export policy plan.
In order to realise these objectives, you'll need certain resources. The amount of necessary resources, as expressed in money terms, must be estimated at a certain instant on the basis of earlier experiences, for example by comparing the estimate with the activities on the domestic market or an earlier export market.
In this way one comes to the assignment of a budget with regard to certain export activities or broader internationalisation activities.
When the aim is to realise sales, you'll need reliable buyers, agents, importers, etc. At the same time you need to know how to reach your specific target group with a product for which a certain demand is already present. You'll need to know as well whether your product in that particular form will be successful or not.
In short, you'll be tied up with a whole range of activities in the field of marketing: starting from performing market research, to searching for partners, up to various promotional actions. A marketing programme like this, depending on its objectives, requires a substantial investment.
Still, many companies do not consider it that self-evident to set aside a budget for their export plans and usually do not proceed in a very systematical way. They would rather try it at a venture. Just searching for that rare golden opportunity. Hoping for a lucky strike.
Without a budget though, one may expect a commensurate result for the project that is to be set up. After all, the old saying goes: you must throw out a sprat first in order to catch a mackerel. Anyway, isn't budgeting already a natural thing with regard to your marketing activities on the domestic market?
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