Export Marketing

Strategies

Presented By:
Abimanyu Gupta
Deepika
Ganesh
BinduShree
Ceaser
 Export marketing is not just a process to find
buyers/importers and approach them with the expectation
of export orders but a well planned strategic marketing
process one should follow and performed well to get
success in International Market.
 Major export marketing efforts get failed due to lack
of implementing strategic marketing action plan.
 Exporting refers to the sale of goods or services
produced by a company based in one country to
customers that reside in a different country.
To Set-up Additional markets
To find sales opportunities not found here
To create sales stability.
Exposure to new ideas and concepts
Requires less expertise, time, and capital than other
modes of entry
Operational control
Helps companies expand and diversify sales as well
as achieve economies of scale
Micro Benefits Macro Benefits
Backward & forward Foreign exchange
linkages Opportunity to buy
Economies of scale abroad
and scope Employment creation
Improved knowledge Economic growth
Improved innovation Welfare
potential
 Companies typically consider the following questions in
evaluating the export option:

 What do we want to gain from exporting?

 Is exporting consistent with our goals?
 Will exporting put undue demands on our resources? If so, how will
we meet them?
 Does exporting leverage our core competency?
 Does exporting fit the current configuration of our value chain?
 Do our coordination systems support the needs posed by exporting?
 Are the projected benefits of exporting worth the costs?
 Would our resources be better used to develop new domestic
business?
 Although the largest companies are the
biggest exporters, small companies are also
expanding their export capability.
 Firm characteristics moderate its export
intensity. Size plays a role, but often
management commitment, efficiency, and cost
structure matter more.
• Setting promotional objectives.
• Deciding on the types of advertising &
promotional messages.
• Selecting media.
• Determining how much time, effort &
money to spend.
Assessment of size & extent of market
Customer behavior
Buying habits
Competitive circumstances
CHIPSY BMW P&G
Two views of export shape interpretation:
1. The slow, sequential dynamic of incremental
Internationalization:
As a company gains experience, resources, and
confidence, it progressively exports to increasingly distant and
dissimilar countries

2. The instant internationalization of the born global:

Rather than slowly learning about foreign markets, born-global
companies step straight onto the world stage, exporting from
day one of operations.
Adjusting Financial Management :
The currency and credit processes of export
require adept financial management. Companies often struggle
with the fact that completing an export sale requires them to
help foreign customers obtain credit.

Adjusting Customer Management :

Worldwide, customers demand a greater range
of services from their vendors. The fact that most products are
available from many vendors boosts the buyer’s negotiating
power.
(Contd.)
Adjusting for Information Technology :
Although information technologies reduce the cost of
communications, they often increase customer
expectations. Historically, exports were arm’s-length,
ship-it-and-forget-it transactions. Contact with customers
relied on hard-copy documents either faxed or posted
overnight. This situation created useful time lags with
which to deal with customers’ concerns. Now, the ease of
contacting vendors via e-mail or inexpensive voice-over-
Internet-protocol (VoIP) gives customers real-time access,
thereby increasing demands on the exporter.

(Contd.)
1. Assess the company’s export potential by
examining its opportunities and resources.
2. Obtain expert counseling on exporting.
3. Select a market or markets.
4. Formulate and implement an export strategy.
Principal types of exporting:

• Direct exports —products sold to an independent

party outside of the exporter’s home country.

• Indirect exports—products sold to an intermediary in

the domestic market, which then sells the goods in
the export market.
Export Intermediaries:

Export Management Companies: operate on a

contractual basis—usually as an agent of the exporter.

Export Trading Companies: operate based on

demand rather than supply. They identify suppliers
who can fill orders in overseas markets.
Direct selling involves sales representatives,
distributors, or retailers.

 Direct Selling to Foreign Retailers and End Users

 Direct Selling over the Internet

Export Buying Agents/Export Commission houses
 Representatives of foreign firms in exporting countries
Brokers
 link buyers and sellers, but do not handle goods
Export Management Company/Export Houses
 Serves as external export department for several firms
 May specialise in given regional markets
Trading Company
 Operate in widely diversified markets
Piggyback
 Help sell complementary products abroad
Advantages
Control over marketing strategy
Market knowledge
Disadvantages
Risky
Require substantial resources
Difficulties in changing distributors
Advantages
Convenient in selling surplus product abroad
Requires minimal resources
Permits gradual export business development
Disadvantages
No control over marketing activities
No coherent export market development
strategy
Limited access to foreign market information
Key export documents are:
Pro forma invoice
Commercial invoice
Bill of lading
Consular invoice
Certificate of origin
Shipper’s export declaration
Export packing list