Export Marketing Assignment 2

Aleena Amir
Sec G
15 Marks

Q1. What is the relationship between importing and exporting for an individual company?
(5)

Companies small as well as large, international sales provide additional profits, and are all that
enable some companies to make a profit at all. Research and development costs for many
products simply cannot be recovered unless they can be sold internationally. For most nations
and regions, economic health and growth have become increasingly dependent upon export sales
as an engine of growth, and as a source of the foreign exchange necessary for the import of
goods and services. Exporting is an effective entry strategy for companies that are just beginning
to enter a new foreign market. It’s a low-cost, low-risk option compared to the other strategies.
These same reasons make exporting a good strategy for small and midsize companies that can’t
or won’t make significant financial investment in the international market.

Q2. What are the three distinct components of export planning and strategy development
and how are they related? (5)

The three components are: Goal, program and organization. These three are in accordance and
relation to each other as the first component, Goal; is about identifying and measuring
opportunity and thus creating an achievable goal by market research and segmentation. The
second component refers to developing a marketing strategy through setting objectives and
planning the relevant marketing mix. The third refers to the creation of the marketing strategy
and how they will operate, allocation of resources and determining how they will be used.
This represents a closed system of operation, the development and achievement of the goal
depends on the program and the organization, that if they are suited to each other and the
completion of the goal.

Q3. Identify the potential barriers (or obstacles) that face companies considering – or
expanding – international marketing operations. Which are the most important and which
are less important? Explain. (5)

The potential barriers can be identified as Higher level of operation needed for foreign markets,
Lack of market information and research, Lack of proper export training and facilities, trade
barriers and potential risk factors (terrorism, robbery, counterfeited goods)
Market information and research, trade barriers are the most important as they give out necessary
information that determines the success of expanding or entering the export market