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Export Marketing

Need and Importance of Export


Marketing
Valuable source to earn foreign exchange.
Helps promote and accelerate the pace of
economic development.
Helps development of tertiary sector as well.Egtransport , communications , banking , finance ,
insurance , etc.
Leads to generation of employment
opportunities.
Foreign market entry strategy where other
strategies may not be feasible.

Importance for Small scale


industries
Enhances the competitive
abilities of the small scale
entrepreneur.
Diversification of risk ; risk of
recession and low demand in
domestic market.
Revival of old brands in foreign
markets which are on the decline
phase in domestic market.
Emphasis on high quality
products with higher prices which
bring in greater revenues.
Incentives and concessions from
the government

Significant role of small scale


industries
Small enterprises in the Indian Economy
accounts for 35% of the gross value of output in
the manufacturing sector, about 80% in industrial
employment and about 40% of the total exports
of the country.
Areas where the small scale sector can emerge
as strong global player are :

Food Processing Industries


Leather Goods
Electronic Goods
Plastic Goods
IT and software exports

Methods of Export Marketing


Direct Exporting Manufacturer himself
undertakes the responsibility of exporting the
product which includes developing network ,
appointing sales staff , agents and offices in
foreign countries , booking of orders, selling ,
after-sales service , etc.
Indirect Exporting - The entrepreneur exports
the products through the export houses ,
merchant exports , trading houses and export
consortia

Type of information required


To explore the extent to which a producer / exporter can
be competitive in selling its products , following
information is required:
(1) Market growth potential, consumer profiles, segments,
intermediaries, distribution networks etc.
(2) Existing competition and market share
(3) Prevailing pricing structure and market rates.
(4) Government policies; entry barriers
(5) production and selling costs
(6) Scope for revenues and profit margins.

Various costs that are


associated with export
marketing
(1) Production Costs: Fixed cost and variable cost or
factory costs.
(2) Selling and distribution costs, transporting, shipment
costs etc.
(3) Cost of marketing support and development-for
advertising, sales promotion etc.
(4) Administrative costs salaries, office expenses, audit,
legal fees etc.

Export Documents and Procedures


for Small Scale Industries
Types of Documents
Classified into four types
according to the functions
performed by them:
Commercial Documents
Regulatory Documents
Export Assistance
Documents
Documents required by
importing countries

Steps in processing of an export order


1.
2.
3.
4.
5.
6.
7.
8.
9.

Having an export order


Examination and confirmation of order
Manufacturing or procuring goods
Clearance from central excise
Pre-shipment Inspection
Appointment of Clearing and Forwarding Agents
Goods to Port of Shipment
Port Formalities and Custom Clearance
Despatch of documents by Forwarding Agent to the
exporter
10.Certificate of Origin
11.Despatch of Shipment Advice to the Importer
12.Submission of Documents to Bank
13.Claiming Export Incentives

Export Marketing Organisations in


India

Merchant exporters
Export houses
Trading houses
Star trading houses
Super star trading houses
Export Consortia
Export corporations
Service export house

Export Import Policy of India


The EXIM Policy of India provides the guidelines , rules and
regulations framed by the government towards exports
and imports.
It consists of :
Open general license items
Items restricted for exports and imports
Special import license items
Advance License Items
Duty Entitlement Pass Book Scheme
Export Promotion Capital Goods Scheme
Eligibility criteria for Export Houses and all forms of
Trading Houses
Benefits to Export- Oriented Units(EOUs), units in Export
Promotion Zones(EPZs) and other exporters
Schemes for exporters and importers and other details

Finance for exports


The government has established special financial
institutions and has introduced various financial schemes
to assist the exporters. They are :

Export Import Bank of India


( EXIM Bank)
Export Credit Guarantee
Corporation of India Ltd.
(ECGC)
Small Industries
Development Bank of India
(SIDBI)
Reserve Bank of India (RBI)
Commercial Banks

Export Promotion Organizations

State Trading Corporation of India (STC)


Export Promotion Council (EPC)
India Trade Promotion Organization (ITPO)
Indian Institute of Foreign Trade (IIFT)
Indian Council of Arbitration( ICA)
Federation of Indian Export Organizations ( FIEO)
Export Inspection Council
Department of Commercial Intelligence and Statistics
World Trade Organisation (WTO)

Problems related to exports


Unawareness about foreign market
Inadequate Knowledge of procedure, formalities
and legal requirements
Information Technology a barrier
Inconsistent Quality
Inconsistent production levels
Cost ineffectiveness
Frequent strikes
Composition of Exports
Government Machinery

Thank You