Export Marketing

Assignment No. 14
Umar Farooq 17U00609

Q1. Why is the decision regarding foreign market entry mode a particularly important
decision for international marketing managers to make?
Ans. The decision regarding foreign market entry is important for several reasons, given below:
 It can affect the final price that consumers will pay for the product. This is not only
because each participant requires a profit margin that is added to the price but also
because efficiencies can be created or destroyed.
 A proper channel can help reduce fluctuations in production demand. This can reduce
problems related to inventory cost and control and unstable employment.
 A channel can be slow and expensive to set up. This may hinder the profitability of
foreign market entry by reducing margins or missing opportunity windows.
 The entry mode decision may affect the other factors in the marketing mix. These include
the final price, the attributes, and the promotion of the product.
 Poor relations between producers and channel members can cause problems that may
reduce the effectiveness of the system.

Q2. Discuss the nature of the whole channel concept.

Ans. The whole channel concept, views the entire channel of distribution as one integrated
system with the producer on one end and the final consumer or industrial user on the other. The
significance of this is that the system is only as strong as its weakest link. Therefore, great care
should be given to the selection of all channel members. The channel members and the producer
can have a great effect on each other's operations and profitability in the future. Students can be
expected to discuss the roles of the headquarters’ organization, the channels between nations and
the channels within nations – the three components of the integrated system.

Q3. Evaluate the use of Internet for export and other international marketing entry modes.
Ans. The Internet has become an important means of informing potential customers and potential
marketing channel participants about a company’s products/services and its competitive strength.
It is open to all types of companies – manufacturers, retailers, and service companies. It is also
being used increasingly for direct sales to businesses and consumers. Its use in B2C marketing
activities is growing, but is much smaller in size than B2B activities in sales, procurement, and
overall supply chain management. It facilitates both intra- and intercompany information
exchange and control of operations.