Export Marketing

Concept of Export Marketing

1. CONCEPT OF EXPORT MARKETING PREPARED BY: SANJAY

2. EXPORT MARKETING Export marketing means exporting goods to other countries of the world as per the procedures framed by the exporting country as well as by the importing country. Export marketing has wider economic significance as it offers various advantages to the national economy. " Export marketing is the practice by which a company sells products or services to a foreign country. Products are produced or distributed from the company’s home country to buyers in international locations. "

3. FEATURES OF EXPORT MARKETING

4. FEATURES SYSTEMATIC PROCESS : Export marketing is a systematic process of developing and distributing goods and services in overseas markets. The export marketing manager needs to undertake various marketing activities such as marketing research, product design, branding, packaging, pricing, promotion, etc . LARGE SCALE PRODUCTION: Normally , export marketing is undertaken on a large scale. Emphasis is placed on large orders in order to obtain economies in large scale production and distribution of goods.

5. FEATURES(count………) DOMINANCE OF MNCs: Export marketing is dominated by MNCs or large corporations. At present MNCs from USA, Europe and Japan play a dominant role in foreign trade. They are in a position to develop world wide contacts through their network of branches/offices/ subsidiaries . trade barriers: Export trade is subject to trade barriers – tariff and non-tariff barriers. The trade barriers are the restrictions on free movement of goods between countries.

6. ROLE OF EXPORT MARKETING

7. Need /Importance of export marketing at the National level Earning foreign exchange: Exports bring valuable foreign exchange to the exporting country, which is mainly required to pay for import of capital goods ,raw material ,spare and component as well as importing advance technical knowledge . International Relation: Almost all countries of the world want to prosper in a peaceful environment. One way to maintain political and cultural ties and peace with other countries is through international trade . Balance of payment: Large -scale export solve BOP problem and enable countries to have favorable BOP position .The deficit in the Balance of trade and balance of payment can be removed through large scale exports .

8. Need / Importance of export marketing at Business Level Reputation: An organization which undertake exports can become famous not only in the export market, but also in the home market . for example , firms like Philips , Sony , Coca Cola enjoy the international reputation . OPTIMUM PRODUCTION: A company can export its excess production after meeting domestic demand .Thus , the production can be carried on optimum product .  HIGHER PROFIT: Export enable a business enterprise to earn higher prices for good . If the exporter offer quality products, they can charge higher prices than those charged in the home market and there by raise the profit margin .

9. STRATEGY

10. MARKETING OBJECTION: The first step in developing an export marketing plan is to establish export marketing objectives. These objective should be attainable ,realistic and should be communicated through out the business firm .Since they will determine the business firm’s direction and its activities ,management will have to devote considerable time and effort to setting them . MARKET Research: To succeed in export trade ,a business firm must identify attractive export potential for its product. Market research and forecasting are therefore, of great importance .

11. PRODUCT CHARACTERISTICS : The business firm should next consider the products that it has to offer . An analysis should be done . If, any modifications required in the products packaging, changes needed labeling requirements , brand name and after sales services are expected .  export pricing: In setting an export price, the business firm should consider additional costs that do not enter into pricing for the domestic market such as international freight and insurance charges ,product adaptation costs ,import duties ,commissions for import agents and foreign exchange risk coverage.

12. CHALLENGES TO EXPORT MARKETING

13. Extra Costs: I t takes more time to develop extra markets, and the pay back periods are longer, the up-front costs for developing new promotional materials, allocating personnel to travel and other administrative costs associated to market the product can strain the meager financial resources of small size companies . Financial Risk: Collections of payments using the methods that are available (open-account, prepayment, consignment, documentary collection and letter of credit) are not only more time-consuming than for domestic sales, but also more complicated. Thus, companies must carefully weigh the financial risk involved in doing international transactions.

14. Export Licenses and Documentation: Though the trend is toward less export licensing requirements, the fact that some companies have to obtain an export license to export their goods make them less competitive. In many instances, the documentation required to export is more involved than for domestic sales. Market Information: Finding information on foreign markets is unquestionably more difficult and time-consuming than finding information and analyzing domestic markets. In less developed countries, for example, reliable information on business practices, market characteristics, cultural barriers may be unavailable . Product Modification: When exporting, companies may need to modify their products to meet foreign country safety and security codes, and other import restrictions. At a minimum, modification is often necessary to satisfy the importing country's labeling or packaging requirements.