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INTRODUCTION TO EXPORT
                       MARKETING


R.L.Kramer defines “export marketing involves export
 business with individual firms, organizations and or
          govt entities in other countries”
  “A systematic process of designing and delivering
    products to satisfy overseas customers and to
           achieve objectives of the firm”
FEATURES
•   Large scale operations.
•   Diverse customs and traditions.
•   Subject to regulations.
•   Systematic process.
•   Customer focus.
•   Trade business.
•   Trading blocs.
•   Documentation.
•   Dominance of multinational corporations.
•   Marketing – mix.
•   Spreading of risks.
NEED / IMPORTANCE for developing
               countries
•   Economic Growth.
•   Optimum use of resources.
•   Standard of living.
•   Foreign exchange.
•   International relations.
•   Balance of payments.
•   Reputation in the world.
•   Employment.
•   Research and development.
•   Regional development.
IMPORTANCE FOR A FIRM
•   Optimum production.
•   Spreading of risks.
•   Reputation.
•   Economies of scale.
•   Keeping alive old products.
•   Higher prices.
•   Research and development.
•   Organizational efficiency.
•   Liberal incentives.
•   Liberal imports.
MOTIVATIONS
•   Competition in domestic market.
•   Saturation of domestic market.
•   Economies of scale.
•   Economic growth.
•   Rate of profit.
•   Product development costs.
•   Product life considerations.
•   Sales and production stability.
•   Government policies.
•   Information and media production.
•   World trade organization.
PROBLEMS FACED BY INDIAN EXPORTS
•   SEA PIRATES attacks.
•   Recession in world markets.
•   Competition from china.
•   Product standards.
•   Reduction in export incentives.
•   Problem of anti-dumping duties.
•   Foreign exchange regulation.
•   Subsidies by developed countries.
•   Documentation formalities.
TRENDS IN WORLD TRADE SINCE 2000
• The financial crisis resulted in full blown global recession which resulted in
  considerable fall in global trade.
• IMF estimates.
• World bank estimates.
                           EXPORT GROWTH        IMPORT GROWTH
             India                18.2                -2.6
             China                -1.2                26.7
              EU                  11.4                 5.2
              USA                 -2.5                -3.8
             Japan                1.5                 -9.9
          Hong-kong               1.3                  6.5
           Singapore              13.3                 4.4
COMPOSITION SINCE 2000
•   Agriculture & allied products.
•   Ores and minerals.
•   Manufactured items.
•   Mineral fuels & lubricants.

                                     products     2000-01   2008-09
                                     Agro items    14.0       9.1
                                       Ores         2.0       4.2
                                     Manufacd      79.0      66.4
                                        Fuel        4.3      14.9
                                      Others        0.7       5.4
                                      Total(%)     100       100.0
                                     Total us $    44.6      185.3
DIRECTIONS SINCE 2000
• Export to OECD
  countries.
• OPEC countries.
                            Group      2000-01   2007-08
• Eastern Europe.           OECD        52.7      38.4
• Developing Countries.     OPEC        10.9      16.3
                           E.Europe      3.0       2.1
                            Russia       2.0       0.6
                          Developing    29.2      42.6
                           countries
                           Others        4.2       0.4
                           Total %      100       100
                             Us $       44.6      163.1
Reasons for India's poor share in world
                 trade
•   High prices.
•   Inadequate promotion.
•   Poor follow up of sales.
•   Poor quality.
•   Poor negotiation skills.
•   Poor infrastructure.
•   Presence of good domestic market.
•   Documentation and formalities.
•   Negative attitude of overseas buyers.
•   Problem of trading blocs.
Sunrise export & service export
• Sunrise products are those           • Software services.
  products, which Indian exporters
  have lately begun to export in the   • Business services.
  overseas markets, & such
  products have a growing demand       • Transportation.
  in the world markets.                • Travel.
• Some of the sunrise products
  include horticulture products        • Financial services.
  such as fruits and vegetables,
  value added marine products,
                                       • Communication
  processed fruits and vegetable         services.
  products, value added meat
  products.                            • Insurance services.

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Chapter 1

  • 1. INTRODUCTION TO EXPORT MARKETING R.L.Kramer defines “export marketing involves export business with individual firms, organizations and or govt entities in other countries” “A systematic process of designing and delivering products to satisfy overseas customers and to achieve objectives of the firm”
  • 2. FEATURES • Large scale operations. • Diverse customs and traditions. • Subject to regulations. • Systematic process. • Customer focus. • Trade business. • Trading blocs. • Documentation. • Dominance of multinational corporations. • Marketing – mix. • Spreading of risks.
  • 3. NEED / IMPORTANCE for developing countries • Economic Growth. • Optimum use of resources. • Standard of living. • Foreign exchange. • International relations. • Balance of payments. • Reputation in the world. • Employment. • Research and development. • Regional development.
  • 4. IMPORTANCE FOR A FIRM • Optimum production. • Spreading of risks. • Reputation. • Economies of scale. • Keeping alive old products. • Higher prices. • Research and development. • Organizational efficiency. • Liberal incentives. • Liberal imports.
  • 5. MOTIVATIONS • Competition in domestic market. • Saturation of domestic market. • Economies of scale. • Economic growth. • Rate of profit. • Product development costs. • Product life considerations. • Sales and production stability. • Government policies. • Information and media production. • World trade organization.
  • 6. PROBLEMS FACED BY INDIAN EXPORTS • SEA PIRATES attacks. • Recession in world markets. • Competition from china. • Product standards. • Reduction in export incentives. • Problem of anti-dumping duties. • Foreign exchange regulation. • Subsidies by developed countries. • Documentation formalities.
  • 7. TRENDS IN WORLD TRADE SINCE 2000 • The financial crisis resulted in full blown global recession which resulted in considerable fall in global trade. • IMF estimates. • World bank estimates. EXPORT GROWTH IMPORT GROWTH India 18.2 -2.6 China -1.2 26.7 EU 11.4 5.2 USA -2.5 -3.8 Japan 1.5 -9.9 Hong-kong 1.3 6.5 Singapore 13.3 4.4
  • 8. COMPOSITION SINCE 2000 • Agriculture & allied products. • Ores and minerals. • Manufactured items. • Mineral fuels & lubricants. products 2000-01 2008-09 Agro items 14.0 9.1 Ores 2.0 4.2 Manufacd 79.0 66.4 Fuel 4.3 14.9 Others 0.7 5.4 Total(%) 100 100.0 Total us $ 44.6 185.3
  • 9. DIRECTIONS SINCE 2000 • Export to OECD countries. • OPEC countries. Group 2000-01 2007-08 • Eastern Europe. OECD 52.7 38.4 • Developing Countries. OPEC 10.9 16.3 E.Europe 3.0 2.1 Russia 2.0 0.6 Developing 29.2 42.6 countries Others 4.2 0.4 Total % 100 100 Us $ 44.6 163.1
  • 10. Reasons for India's poor share in world trade • High prices. • Inadequate promotion. • Poor follow up of sales. • Poor quality. • Poor negotiation skills. • Poor infrastructure. • Presence of good domestic market. • Documentation and formalities. • Negative attitude of overseas buyers. • Problem of trading blocs.
  • 11. Sunrise export & service export • Sunrise products are those • Software services. products, which Indian exporters have lately begun to export in the • Business services. overseas markets, & such products have a growing demand • Transportation. in the world markets. • Travel. • Some of the sunrise products include horticulture products • Financial services. such as fruits and vegetables, value added marine products, • Communication processed fruits and vegetable services. products, value added meat products. • Insurance services.