CONCEPT OF EXPORT MARKETING

BY : MOHD.SHAFER KHAN & HUZEFA ALI

Trade Trade involves the transfer of the ownership of goods or services from one person or entity to another in exchange for other goods or services or for money. Possible synonyms of "trade" include "commerce" and "financial transaction".

International tradeInternational trade is the exchange of

capital, goods, and services across international borders or territories.

EXPORT MARKETING

Export MarketingExporting market means exporting good to other

country of the world as per the procedure framed by the exporting country as well as by the importing country .

Export marketing has a wider economic signifcance as it offer various advantage to the national economy .

According to B.S Rathor . " Export marketing include the management of

marketing activities for product which cross the national boundaries of a country ".

 

FEATURES

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.

1. Systematic Process:

  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.

2. Large Scale Operations:

3. Dominance of Multinational Corporations:

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.

4. 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. Normally, countries impose trade barriers on imports, in order to restrict imports.

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. Normally, countries impose trade barriers on imports, in order to restrict imports.

ROLE OF EXPORT MARKETING

Need /Importance of export marketing at the National level :1.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 .2.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.3. Balance of payment –Large -scale export solve BOP problem and enable countries to have favourable BOP position .The deficit in the Balance of trade and balance of payment can be removed through large scale exports .

Need / Importance of export marketing at Business Level:

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.

1. Reputation –

2. Optimum Production - A company can export its excess production after meeting domestic demand .Thus , the production can be carried on optimum product . 3. 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 .

STRATEGY

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 .

• MARKETING OBJECTION –

• MARKET RESEARCH – To succeed in export trade ,A business firm must identify attractive export potential for its product in them .Market research and forecasting are therefore,of great importance .

• Product characterstics -

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.

CHALLENGES TO EXPORT MARKETING

The developed countries are equipped with sophisticated technologies less developed countries , on the other hand,lack technical knowledge and latest equipment .

• Technological differences-

• Reduction in export incentives -

Over the years, the govt .of india has reduced export incentives such as withdrawal of income tax benefits for majority of exporters .The reduction in export incentives de – motivates exporters .

• Several competitions in global marketing -Export marketing is highly competitive . Indian exporter has to face global competition while exporting. Quality of product ,quantity of production should be of good amount to build the reputation of country exports .

• Problem of product standard –

Developed countries insist on high product standard from developing countries like India. The products from developing countries are subject to product tests in the importing countries .

CONCLUSION

Marketing is defined as using all of the resources of the organization to satisfy customer need for a profit .The difference between export marketing and domestic marketing is simply that it takes place across national borders .This means that he exporters have to face with barriers to trade .they may need to account for getting the product half way across the globe to distant markets and pay the import duties imposed on these product by the importing country . Export marketing also involves preparing an offering that will entice the foreign buyer and customer . this offering comprises a product that is offered at a certain price and that is made available or distributed to the foreign customer .At the same time ,the offering is communicated or promoted to the buyer using certain communication or promotion channels. These element the product ,price , distribution (place) and promotion are called the marketing mix .

THANK YOU !!