Export marketing

Submitted by- Subhasish lenka

Regd no-1571091003
DDM
What Is Export marketing?
 The term Marketing is defined as utilizing all of the resources of the
organization/management to satisfy customer needs and maximizing profit.
Export marketing is a process of planning and implementing the production,
and distributing of goods to the overseas market and services, it consists of
various activities such as branding, packaging, advertising, delivering etc.
 The most important aspect of implementing an export plan is determining the
amount of demand for a product or service offering in a foreign country. The
organizers need to adopt few strategies for exporting the products like pricing
(check wheatear you have competitor in other country or not), selling your
products directly the customers like online marketing (to satisfy customer),
advertising etc.
Features of export marketing
 1)It is a Process
Export marketing is a process of planning and implementing the production, and distributing of
goods and services, it consists of various activities such as branding, packaging, marketing
research, advertising etc.
 2)Large scale operation
Export marketing is usually undertaken under large scale and orders to obtain economies in
large scale production and distribution of good.
 3)Flow of goods and services
Export marketing involves flow of goods and services across the national boundaries .
 4) Dominance on MNC`s
Export marketing is dominated by MNCs from USA, Japan, Europe. They are in apposition to
develop worldwide contact through their network and conduct business operations efficiently
and economically
 5) Trade barriers
There are various trade barriers because of the protective policies of different
countries. Tariff and non-tariff barriers are used by countries for restricting
import.
 6) Identification and satisfaction of consumer’s needs & wants 

The heart of marketing is the identification of consumer needs and wants. The
exporter must constantly try to find out the problems or needs and wants of the
foreign buyer, so export marketing adopts a total consumer oriented approach in
the foreign markets.
 7) Documentation
Export marketing is subject to various documentation formalities. Exporters
required various document to submit to various authorities like bill of landing.
NEED AND IMPORTANCE OF EXPORT MARKET
Review point of nation
 Foreign exchange
 International relations
 Balance of payments
 Reputation in the world
 Employment opportunities
 Financing of developing plans
 Research and development
efficiency
 Optimum utilization of
resources
 Spread effect
 Higher standard of living
From the point of Business
organization
 Reputation
 Optimum production
 Spreading of risk
 Export obligation
 Keeping alive old brand
 Improvement in organization
efficiency
 Improvement in product
standards
 Liberals imports
 Higher prices
 Financial and non-financial
benefits
Need and importance of export marketing for nation level
 1) Earning of foreign exchange
Export bring valuable foreign exchange to the exporting country which is mainly required
to pay for import of capital goods, raw material, spares and components, also foreign
exchange is required to pay for the importing advance technical knowledge.
 2) International relations
All countries of the world want to proposer in a peace full environment, one way to
maintain political and cultural .it make relation with other countries better is through
international trade.

 4) Balance of payment

A country external economic strength depends upon its balance of payments position.
Since export brings foreign exchange, it helps a country to solve and improve its balance of
payments position.
 4) Employment opportunities
Export trade calls for more production more production opens the doors for more
employment opportunities not only in the export sectors but also in allied sectors like
banking, insurance etc.

 5) Research and development

There is a continuous pressure on the export industry to improve technology and

production system to retain its competitive edge in foreign markets.

 6) Reputation in the world

A country which Is fore most in the fields of export, commands a lot of respect, goodwill
and reputation from other countries.
Need and importance of export marketing for business
organization

 1) Reputation
Business organization which undertakes export business can became famous not only
from export markets, but also in their home market.
 2) Optimum Production
A company can export its excess production after meeting the domestic demand. Thus,
the production can be carried on to a optimum product.
 3)Spreading of risk:
A firm engaged in a domestic as well as export marketing can spread its marketing risk in
two parts. The loss is one part(i.e. in one area of marketing) can be compensated by the
profit earned by the other part/sector.
 4) Higher profits
Exports enable a business enterprise to earn higher prices for goods. If the exporters offer
quality products, they can charge higher prices than those charger in the home market
and thereby raise the profit margin.

 5) Improvement in product standards:

An export firm has to maintain and improve standards in quality unable to international
standards as a result of which consumer in the home market as well as in the international
market can get better quality of goods.

 6) Keeping alive old brand

A product brand may have reached the stage of declined in the home market but the same
product may have good demand in the foreign market so in that case the exporters would
benefits by exports.
Strategy
 Marketing objective
The first step in developing and export marketing plan is to establish export marketing
objectives. These objectives should be attainable, realistic and should be communicated
throughout he business firm.
 Market segmentation
An export marketing plan Is not complete until the business firm has identified its target
segment in the export market. Any large market would have different market segment that
differ sustainably from each other.
 Market research
To succeed in export trade, a business firm must identify attractive export markets and
estimate the export potential for its product in them. Market research and forecasting are
therefore, of great importance.
 Product characteristics
The business firm should next consider the product that it has to offer. An analysis should
be any modifications required in the product, packaging changes needed, labelling
requirement, brand name and after sales service are expected.

 Export pricing
In setting an export price, the business firm should consider additional cost that do not
enter into pricing for domestic market such as international freight and insurance charges,
product adaptation cast, import duties, commissions for exports agents and foreign risk
coverage.
Challenges to export marketing
 1) Difficulties of distance
 2) High risk and uncertainties
 3) Diverse languages, customs and traditions
 4) Different currencies, weights and measures
 5) Customs formalities
 6) Trade Barriers
 7) Foreign exchange regulation
 8) Documentation formation
 9) Technological factors
Importance of export marketing

 Increased sales and profits

Selling goods and service to a market the company never had before boost sales and
increase revenues. Additional foreign sales over the ling tern, once export development
cost have been covered, increase overall profitability.
 Enhance domestic competition
Most companies become competitive in domestic market before they venture in the
international arena. Being competitive in the domestic market helps companies to acquire
some strategies that can help them in the international arena.
 Gain global market shares
By going international companies will participate in the global market and gain a pieces of
their share the huge international marketplace
 Diversification
Selling multiple markets allows companies to diversify their business and spread
their risk. Companies will not be tied to changes of the business cycle of domestic
market or of one specific country.
 Lower per unit cost
Capturing an additional foreign market will usually expand production to meet
foreign demand. Increased production can often lower per unit costs and lead to
greater use of existing capacities.
Conclusion
 Marketing is defined as using all of the resources of the organization to satisfy
customer need for a profit. The difference is simply that it takes the exporter
and domestic marketing is that it takes places across national borders. This
means that the exporters have to face with barriers of trade. They may need
to account for getting the product half-way across the globe to distant
markets and pay the import duties imposed on these products by the
importing country. Export marketing also involves preparing an offering that
will entice the foreign buyer and customer. This offering comprises a product
that is offered at a certain price and that is made available or distributed to
the foreign customer. At the same time, the offering is communicated or
promoted to the buyer using certain communication or promotion channels.
These elements the product, price, distribution and promotion are called the
marketing mix.