Export marketing in the internet: the case of the Floriculture industry in Kenya

Abstract

The floriculture industry is increasingly becoming an important exchange earner for Kenya. As at 1989, Kenya was the world's fourth largest flower exporter, currently exporting approximately fifty two flower varieties. Export marketing is geared more on the international market with the main flower markets being Holland, Switzerland, and United Kingdom. African and Asian countries account for the least export sales. The use of the Internet as a vehicle for promotion, information and export revenue enhancement is key to the industry. The literature reviewed showed that the Internet and the World Wide Web are in their infancy. In this regard, Internet could be seen as an innovation hereby referring to any good, service, or idea that is perceived by someone as new. The Internet has facilitated electronic trade and possesses the fundamental characteristics of openness, informality, and interactivity. It is an information and promotion tool that enhances the automation of firms' exporting functions. The study's objectives were: firstly, to identify demographic factors that explain who among the flower exporters was likely to market through the Internet; secondly, to-find out whether flower exporters were satisfied with the Internet as a marketing tool; thirdly, to identify the aspects of the Internet that contributed to the satisfaction or dissatisfaction with the Internet as a marketing tool; and fourthly, to determine factors that were hindering flower exporters from using the Internet as a marketing tool. Many flower firms adopted the Internet with various reasons with the major one being for information dissemination purposes. Flower exporters identified with the benefits of the Internet as a marketing tool, majority stating it creates a firms competitive edge. Widening customer reach, penetrating new markets, and enhancing communication between firms and customers were other key perceived benefits. The findings reveal that respondents were satisfied with the Internet as a marketing tool. They were very satisfied with the Internet linking them with business partners, and also as an efficient information dissemination tool. However, they were apprehensive about online payments options, security issues, and consumer protection. Export marketing through the Internet has enhanced sales. All respondents recognized that the Internet enhanced export marketing as an information dissemination tool. Important is that none of the firms used the Internet for finance and billing matters. The research findings show that the Internet is yet to be fully adopted and exploited by the flower exporters. Computer illiteracy, lack of facilities like computers, fear of change by top managers, and negative attitude towards new technology are key factors that have contributed to this.