Export

Fundementals
101
ŞEFİK ERGÖNÜL

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 EXPORT
FUNDEMENTALS

What Shall We Learn

• Is your company ready for export?

• Are your products ready for export?
• Basic concepts
• Basic definitions
• Common mistakes
• Facts neglected
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 Is your company
Export Ready?
 Has market entry strategy been prepared?
• What are you doing for whom?
 Have you prepared promotion program?
• İnternet, Fairs, Visits, Leaflets etc.
 Have you built an in company export team?
• Who is responsible? Production, Marketing, Finance...
 Dou you resources?
Finance, human, information, network?
• Who, with how much finance, information, network,what?
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 Is your company
Export Ready?
 Have you determined target market/s?
• Global export, import / Countries / Facts
 Did you do product/market match?
• Any need for the product, is product fit the market?
 Is Pricing (Ex-Works / FCA) completed?
• What additional costs export will bring?
 Is there turnover projection for next 3 years?
• Calculate, don’t guess?

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 Is your product
Export Ready?

 Any alteration required in the product?

 Positive/negative features of product/s?

 Positive/negative features of competitors?

 Is after sales service required?

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 Is your product
Export Ready?

 Consumer’s profile purchasing frequency?

 Effect of the climate on consumption?

 Effect of geography on consumption?

(Transport?)

 Restrictions, quotas, non-tariff barriers?

 Traditions, habbits, believes !

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 Is your product
Export Ready?

 Brand? Local / International / Private?

 Label? Color, Design, Local tastes?
language, content?
 Product content on the label,
 nutritional values, origin?
 Weight with local values, sizes on label?
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 Are we
Export Ready?

Restrictions to comply with

 Quality related
 Environmental
 Regulatory
 Health and safety

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 Are we
Export Ready?
 Geography
 Demography
 Life styles  Other businesses(b2b)
 Traditions  Final users(b2c)
 Culture
 Economy...

 Your customers
 Needs,
 Competitors customers
 expectations
 Non-users  Use & purchasing habbits
potantional customers...

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OFFER>< PRICE

• What is offer?
• Components of offer?
• What is price?
• Components of price?

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 OFFER
What is offer?
• In a Buy / Sell transaction,
• It is a bunch of suggestions
• Suggested by the seller tobe agreed on
• Presented to the buyer which includes
• All the datails such as
• Product specifications, packaging, price, delivery,
• Payment terms & dates, shipments etc.

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COMPONENTS
Of an OFFER
• Product specifications
• Packaging
• Delivery
• Payment terms and dates
• Delivery terms and dates
• Technical Guarantees
• Financial guarantees
• PRICE etc.
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 PRICE
What is PRICE?

• It is the value that

• The seller desires to get
• against the product offered
• To the buyer

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 OFFER><PRICE
According to which criteria
price is accepted?

• If what the seller deliver is

product or service
• Wha is the seller gets?
• How the buyer evalutes
the value of what is got?
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 COMPONENTS
of the PRICE
1. Product: Raw material, intermediate
goods, materials
2. Labour: Direct, indirect
3. Energy : Direct, indirect
4. Overheads: Direct, indirect
5. Finance
6. Profit etc.

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 EXPORT
CONCEPTS

What is INCOTERMS?
Risk & Costs
Upto where, From where
Who bears?

Differences of
INCOTERMS 2000 / 2010

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 EXPORT
CONCEPTS

Domestic Basic Documents

• Local Invoice
For export customs clearance
• Packing List
If variety of goods or packaging is high
• Customs Export Declaration
In order to clear the goods for export (GÇB)

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 EXPORT
CONCEPTS

International Basic Documents

• INVOICE
Proforma, Commercial
• Certificate of Origin
ATR, Form A, Euro1
• Packing List
Quantity of packages and contents
• Bill of Lading B/L
Overland, Sea, Air, railway

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 EXPORT
CONCEPTS

OTHER DOCUMENTS

1- Phytosanitary Certificate 2- Animal Health Certificate

3- Analyses Certificate 4- Insurance Certificate
5- Khosher documet, 6- Halal document
7- Control document 8- Inspection report
9- Others...

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 COMMON
EXPORT MISTAKES

• Try to gain without spending

• Actions with word of mouth
• Ignoring the value of the ınformation
• Not to assign an export responsible
• Not built an export consciousness
• Not look for solutions but the guilty

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 COMMON
EXPORT MISTAKES

• Starting with several markets

• Erroneous selection of
Agents/Distributors
• Considering exports a side business
• Same product &strategy> All Markets
• Ignoring cultural differences
• Disregarding
language and communication barriers
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 COMMON
EXPORT MISTAKES

• Let’s start, plan will follow

• Disregarding technical differences
• Ignorance in legal requirements
• Since they came, they accept what offered
• Not to take risk & unable managing the risk
• Logic of this is best that can be done
this also suits the required
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 NEGLECTED
ISSUES

• Not to get training (Boss & Personel)

• Not to attend informative meetings
• State incentives
• Eximbank incentives
• Bilateral trade agreements
• Visiting potential clients
• Promotional material
with target markets language
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