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INTRODUCTION TO EXPORT, , MARKETING —|, (Meaning and importance of Exports), , Unit Structure, , 1.0 Objectives, , 1.1 Introduction, , 1.2 Definitions of Export Marketing, 1.3 Features of Export Marketing, 1.4 Importance of Export Marketing, , 1.5 Distinguish between Domestic Marketing and Export, Marketing., , 1.6 Motivations for Export Marketing, , 1.7 Present Problems / Difficulties faced by Indian Exporters., 1.8 Summary, , 1.9 Questions for Self-Assessment, , , , 1.0 OBJECTIVES, , The main purpose of this chapter is —, , To provide you with an overview of export marketing., , To understand the meaning of export marketing, , To explain the features of export marketing, , To know the importance of export marketing at national level, , and firm level., , e To distinguish between domestic marketing and export, marketing., To elaborate the motivations for export marketing., To find out the present problems / Difficulties faced by Indian, exporters., , , , 1.1 INTRODUCTION, , Export marketing means exporting goods to other countries, of the world. It involves lengthy procedure and formalities. In export, marketing, goods are sent abroad as per the procedures framed by, the exporting country as well as by the importing country. Export
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2, , marketing is more complicated to domestic marketing due to, international restrictions, global competition, lengthy procedures, and formalities and so on. Moreover, when a business crossed the, borders of a nation, it becomes infinitely more complex. Along with, this, export marketing offers ample opportunities for earning huge, profits and valuable foreign exchange., , Export marketing has wider economic significance as it, offers various advantages to the national economy. It promotes, economic / business / industrial development, to earn foreign, exchange and ensures optimum utilization of available resources., Every country takes various policy initiatives for promoting exports, and for meaningful participation in global marketing. Global, business is a reality and every country has to participate in it for, mutual benefits. Every country has to open up its markets to other, countries and also try to enter in the markets of other countries in, the best possible manner. This is a normal rule which every country, has to follow under the present global marketing environment. In, the absence of such participation in global marketing, the process, of economic development of the country comes in danger., , , , 1.2 DEFINITIONS OF EXPORT MARKETING, , 1) According to B. S. Rathor, , “Export marketing includes the management of marketing, activities for products which cross the national boundaries of a, country”., , 2) “Export marketing means marketing of goods and services, beyond the national boundaries”., , , , 1.3 FEATURES OF EXPORT MARKETING, , , , The main important features of export marketing are as, follows., , 1) Systematic Process , Export marketing is a systematic process of developing and, distributing goods and services in overseas markets. The export, marketing manager needs to undertake various marketing, activities, such as marketing research, product design, branding,, packaging, pricing, promotion etc. To undertake the various, marketing activities, the export marketing manager should collect, the right information from the right source; analyze it properly and, then take systematic export marketing decisions.
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2) Large Scale Operations , Normally, export marketing is undertaken on a large scale., Emphasis is placed on large orders in order to obtain economies in, large sole production and distribution of goods. The economies of, large scale help the exporter to quote competitive prices in the, overseas markets. Exporting goods in small quantities is costly due, to heavy transport cost and other formalities., , 3) Dominance of Multinational Corporations — ., , Export marketing is dominated by MNCs, from USA, Europe, and Japan. They are in a position to develop world wide contacts, through their network and conduct business operations efficiently, and economically. They produce quality goods at low cost and also, on massive scale., , 4) Customer Focus —, , The focus of export marketing is on the customer. The, exporter needs to identify customers’ needs and wants and, accordingly design and develop products to generate and enhance, customer satisfaction. The focus on customer will not only bring in, higher sales in the overseas markets, but it will also improve and, enhance goodwill of the firm., , 5) Trade barriers —, , Export marketing is not free like internal marketing. 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. The export marketing manager must, have a good knowledge of trade barriers imposed by importing, countries., , 6) Trading Blocs , Export trade is also affected by trading blocs, certain nations, form trading bloc for their mutual benefit and economic, development. The non-members face problems in trading with the, members of a trading bloc due to common external barriers. Indian, exporters should have a good knowledge of important trading blocs, such as NAFTA, European Union and ASEAN., , 7) Three — faced competition , In export markets, exporters have to face three-faced, competition, i.e., competition from the three angles — from the other, suppliers of the exporter’s country, from the local producers of, importing country and from the exporters of competing nations., , 8) Documentation —, Export marketing is subject to various documentation, formalities. Exporters require various documents to submit them to
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4, , a various authorities such as customs, port trust etc. The documents, include — Shipping Bill, Consular Invoice, Certificate of Origin etc., , 9) Foreign exchange regulations —, , ~~, Export trade is subject to foreign exchange regulations, imposed by different countries. These regulations relate to, payments and collection of export proceeds. Such restrictions affect, free movement of goods among the countries of the world., , 10) Marketing — mix, Export marketing requires the right marketing mix for the, SY target markets, i.e. exporting the right product, at the right price, at, the right place and with the right promotion. The exporter can adopt, different marketing — mixes for different export markets, so as to, maximize exports and earn higher returns., , 11) International marketing Research —, Export marketing requires the support of marketing research, in the form of market survey, product survey, soroduct research and, , development as it is highly competitive. War allenges,, identification of needs and wants of forel rye Ber, marketing can be dealt with through international marketing, research. NS, , 5 Spreading of Risks Export marketing helps to spread risks of business. Normally, , export firms sell in a number of overseas markets. If they are, affected by risks (losses) in one market, they may be able to spread, business risks due to good return from some other markets., , 13) Reputation , Export marketing brings name and goodwill to the export, firm. Also, the country of its origin the gets reputation. The, reputation enables the export firm to command good sales in the, domestic market as well as export market., , 1.4 IMPORTANCE OF EXPORT MARKETING, , , , Exports are important for all countries whether developed or, underdeveloped. The need / importance / advantages of export, marketing can be explained from the viewpoint of a country and, that of business organization., , 1.4.1 Need / Importance / Advantages of Export Marketing at, the National Level:, , 1) Earning foreign exchange —, Exports bring valuable foreign exchange to the exporting, country, which is mainly required to pay for import of capital goods,
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5, , faw materials, spares and components as well as importing, advance technical knowledge., , 2) International Relations —, , Almost all countries of the world want to prosper in a, peaceful environment. One way to maintain political and cultural, ties with other countries is through international trade., , 3) Balance of payment , Large — scale exports solve balance of payments problem, and enable countries to have favourable balance of payment, position. The deficit in the balance of trade and balance of, payments can be removed through large-scale exports., , 4) Reputation in the world —, , A country which is foremost in the field of exports,, commands a lot of respect, goodwill and reputation from other, countries. For example, Japan commands international reputation, due to its high quality products in the export markets., , 5) Employment Opportunities —, , Export trade calls for more production. More production, opens the doors for more employment. Opportunities, not only in, export sector but also in allied sector like banking, insurance etc., , 6) Promoting economic development , Exports are needed for promoting economic and industrial, development. The business grows rapidly if it has access to, international markets. Large-sole exports bring rapid economic, development of a nation., , 7) Optimum Utilization of Resources —, , There can be optimum use of resources. For example, the, supply of oil and petroleum products in Gulf countries is in excess, of home demand. So the excess production is exported, thereby, making optimum use of available resources., , 8) Spread Effect -—, , Because of the export industry, other sectors also expand, such as banking, transport, insurance etc. and at the same time, number of ancillary industries comes into existence to suppoOrt the, export sector., , 9) Higher standard of Living , Export trade calls for more productions, which in turn, increase employment opportunities. More employment means more, purchasing power, as a result of which people can enjoy new and, better goods, which in turn improves standard of living of the, people.
