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.
L A R G E S C A L E P R O D U C T I O N :
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………)
D O M I N A N C E O F M N C s :
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.
t r a d e b a r r i e r s :
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
E a r n i n g f o r e i g n e x c h a n g e :
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 .
I n t e r n a t i o n a l R e l a t i o n :
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.
B a l a n c e o f p a y m e n t :
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
R e p u t a t i o n :
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.
O P T I M U M P R O D U C T I O N :
A company can export its excess production after meeting domestic demand .Thus , the
production can be carried on optimum product .
H I G H E R P R O F I T :
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. M A R K E T I N G O B J E C T I O N :
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
.
M A R K E T R e s e a r c h :
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. P R O D U C T C H A R A C T E R I S T I C S :
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 .
e x p o r t p r i c i n g :
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. E x t r a C o s t s :
It 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.
F i n a n c i a l R i s k :
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. E x p o r t L i c e n s e s a n d D o c u m e n t a t i o n : 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.
M a r k e t I n f o r m a t i o n : 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.
P r o d u c t M o d i f i c a t i o n : 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.