The Importance of Market Intelligence in Spanish Firms’ Exporting Activity

Abstract

This research aims to respond to a research gap in the literature concerning the role of market intelligence in export activity. In particular, we examine the effects of market intelligence on the interrelationships between market distances (domestic vs. foreign) perceived by export managers, strategic marketing mix decisions (standardisation vs. adaptation) and export performance (growth in foreign sales and satisfaction). The results of an empirical study using data from a sample of 212 Spanish exporters reveal that: (a) strategic decisions aimed at adapting the marketing mix to foreign markets have a positive effect on export performance, (b) market distances associated with economic, legal, social, and cultural differences between Spain and overseas markets encourage conservative decision making, embodied in a standardised international marketing mix (similar to that used in Spain), (c) however, when export managers have relevant foreign market information and analyses, market intelligence processes reduce perceived market distances and encourage more proactive strategic behaviour (adaptation of the marketing mix), resulting in improved export performance.

Keywords: Market Intelligence, Perceived Market Distances, Marketing Mix Adaptation, Export Performance.

JEL Classification: F20, M16, M31