UNIT 1

EXPORT MARKETING
EXPORT MARKETING
R. L. Kramer Export marketing involves export
business with individuals, firms, organisations and/or
government entities in other countries
Export marketing involves marketing of goods and
services beyond national boundaries
FEATURES OF
EXPORT MARKETING
Systematic Process
Customer Focus
Large Scale Operations
Dominance of MNCs
Trade Barriers
Trading Blocs
Subject to Regulations
Marketing-Mix
International Marketing Research
Three-faced Competition
Spreading of Risks
Reputation
NEED & IMPORTANCE OF
EXPORT MARKETING
FROM THE POINT OF VIEW OF NATION
Foreign Exchange
International Relations
Balance of Payments
Reputation in the world
Employment Opportunities
Financing of Development Plans
Research and Development
Optimum Utilisation of Resources
Spread Effect
Higher Standard of Living
NEED & IMPORTANCE OF
EXPORT MARKETING
FROM THE POINT OF VIEW OF BUSINESS ORGANISATION
Reputation
Optimum Production
Spreading of Risk
Export Obligation
Keeping Alive Old Brands
Improvement in Organisational Efficiency
Improvement in Product Standards
Liberal Imports
Higher Prices
Financial and Non-financial Benefits
FUNCTIONS OF
EXPORT MARKETING
International Marketing Research
Product Research and Development
Export Financing
Export Production
Product Packaging
Pricing
Branding
Advertising
Sales Promotion
Export Risks Management
Other Functions

PROBLEMS IN
EXPORT MARKETING
Problems of Trading Blocs
Three-faced Competition
Trade Barriers
Different Currencies, Weights and Measures
Custom Formalities
Documentation Formalities
Difficulties of Distance
Diverse Languages, Customs and Traditions
High Risks and Uncertainties
Foreign Exchange Regulations
STRATEGY FOR
EXPORT MARKETING
Selection of local products suitable for overseas buyers
Development of product strategy in packaging
Intensive marketing strategy as heterogeneous overseas markets
Convenience of buyers while designing a product
Finding out established channels of distribution
STRATEGY FOR
EXPORT MARKETING
Selection of right sales promotional schemes
Emphasis on product quality
Availability of regular information flows
Developing suitable brand name
Developing personal relations with foreign buyers
PREPARATION FOR EXPORT
MARKETING
1. Selection of Product
2. Designing the Product
3. Product Positioning
4. Selection of Markets
5. Selection of Buyers
6. Negotiations with Overseas Buyers
7. Appointment of Overseas Agents
8. Methods of Exporting
SELECTION OF PRODUCT
Factors need to be considered
Demand for the Product
Nature of Consumers
Degree of Competition
Government Incentives
Attitude of Buyers
Production Capacity/Product Availability
SELECTION OF PRODUCT
Factors need to be considered
Import Restrictions
Export Restrictions
Future Potential
Product Adaptation Costs
Expected Returns
Servicing Facilities
DESIGNING THE PRODUCT
Options
Product Standardization
Product Adaptation
Product Innovation
DESIGNING THE PRODUCT
Product Standardization
Selling an identical product in all counties
One Product, One Message Worldwide
Coca Cola, Rayban Sunglasses, Rolex watches
Least expensive
Economies of scale both in production and marketing
Enables to earn good name
Possible if more or less same likes, dislikes, preferences, habits and tastes of buyers in
different countries
DESIGNING THE PRODUCT
Product Adaptation
Modification in product as per the needs of local conditions, tastes, likes, dislikes
May change brand name from market to market
Nestle 100 varieties of Nescafe
Greater costs both in production and marketing
May also result in greater profit
Suitable when product performs the same function but use conditions are different
DESIGNING THE PRODUCT
Product Innovation
New item introduced for foreign markets
Low cost item for developing countries; high cost item for developed nations
Backward invention or Forward invention
Backward invention reintroduction of earlier product forms
Forward invention developing a new product
PRODUCT POSITIONING
Perception of consumer for brand vis--vis competing brands
Consists two things
How we want the consumer to perceive the brand
How the brand will be perceived in relation to other brands
Importance
Develops brand image
Creates Demand
Helps to face competition
Facilitates Customers choice
Higher Sales
Goodwill
PRODUCT POSITIONING
Steps in product positioning
Identify competitive differences product, service, personnel, image
Analysis of differences benefits and costs
Short listing the differences more impact on consumers
Detailed Investigation customer survey
Selecting Important Differences
Developing Positioning Strategy
Communicating the Companys Positioning
Follow up of positioning
SELECTION OF MARKETS
Determine Export Marketing Objectives
Collection of Information
Analysis of Information
Short Listing of Markets
Detailed Investigation of Short Listed Mrkets
Selection of Markets
Entry in Overseas Markets
Follow-up
SELECTION OF BUYERS
Obtaining Buyers Addresses
Collection of Buyers Information
Analysis of Information
Short Listing the Buyers
Preliminary Contacts
Trade Discussions with Overseas Buyers
Obtaining Orders
Supply of Goods
Follow up
NEGOTIATIONS WITH
OVERSEAS BUYERS
Price of Goods
Credit Period
Delivery Schedule
Product Features
Product Warranties
After Sale Service
Contract Period
Additional Facilities
APPOINTMENT OF OVERSEAS AGENTS
Obtaining Agents Addresses
Collection of Agents Information
Analysis of Information
Short Listing the Agents
Preliminary Contact with Agents
Negotiations with Agents
Agency Contract
Follow up