Introduction to Export Marketing: Key Features and Importance
Export marketing involves marketing goods and services beyond national borders, with lengthy processes, global competition, and various regulations. It plays a significant role in earning foreign exchange, promoting economic growth, and enhancing a company's reputation in the global market. Contrasting domestic marketing, export marketing requires dealing with trading blocs, trade barriers, different payment methods, and cultural considerations.
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MODULE 1- INTRODUCTION TO EXPORT MARKETING
DEFINITION OF EXPORT MARKETING International Interdependence is the base of export Marketing Export promotion is our National priority Growth oriented and dynamic in nature Definition Export Marketing means marketing of goods and services beyond national borders
FEATURES OF EXPORT MARKETING 1. Lengthy and time consuming process 2. It involves large scale production of goods and services 3. Domination of MNCs, TNCs and developed countries 4. Presence of Trade barriers and Trading blocs 5. Subject to foreign exchange and other regulations 6. Extensive documentation 7. Significance of global Marketing Research activities 8. Importance of Advanced Technology
9. Highly competitive with three faced competition A. Competition from other exporters of the exporter s country e.g. An exporter from Mumbai(India) exports shoes to Norway. There may be other exporters from India also exporting shoes to Norway B. Competition from local producers of importing country e.g. Tamilnadu exports Silk Sarees to the USA. There may be other domestic manufacturers of silk sarees in USA C. Competition from exporters of other competing countries e.g. Gujarat exports diamonds to Canada. There may be other countries in the world too exporting diamonds to Canada.
IMPORTANCE OF EXPORT MARKETING To a nation/ country 1. Earning valuable foreign exchange 2. Solving Balance of Payments position 3. Promoting economic and industrial development 4. Raising production and employment 5. Helping the tertiary sector 6. Debt servicing 7. Meeting the import needs 8. Reputation and goodwill in the world markets
Importance to a firm/ company 1. Higher profits 2. Goodwill and reputation 3. Improvement in organizational efficiency 4. Optimum use of production capacity 5. Spreading of market risks 6. Profitable Marketing of old products with declining demand 7. Honouring export obligations 8. Benefit of higher prices for export items 9. Benefit of Government incentives
DISTINGUISH BETWEEN DOMESTIC MARKETING AND EXPORT MARKETING POINTS OF DISTINCTION 1. Meaning 2. Trading Blocs and Trade Barriers 3. Licencing and Procedures 4. Environmental changes 5. Risks in Trade 6. Government Interference 7. Competition 8. Methods of payment 9. Cultural involvement
FACTORS INFLUENCING EXPORT MARKETING (INTERNAL AND EXTERNAL FACTORS) INTERNAL FACTORS Favorable foreign Trade policy High profitability in exporting Huge spending on Research and Development activities Desire for global growth Product life cycle extension
EXTERNAL FACTORS Domestic Marketing situation Trade agreements between friendly countries Benefits/ concession for export promotion Removal of import trade restrictions
RISKS INVOLVED IN EXPORT MARKETING 1. Credit risk 2. Political risk 3. Commercial risks 4. Cargo risks 5. Legal risks 6. Foreign Exchange Fluctuation risks- Currency risks 7. Transportation and Logistics risk 8. Natural calamities risks- Force Majeure
PROBLEMS OF INDIAS EXPORT SECTOR 1. Recession in Global markets 2. Trade wars 3. Payment difficulty 4. Long distances and risk in transportation 5. Government restrictions and foreign exchange regulations 6. Difficulty in communication 7. Time difficulty 8. Custom formalities and documentation 9. Severe competition in global marketing 10. Trade Barriers and Trade Blocs 11. Misc. problems
INDIA S TRADE SCENARIO India s exports cover over 7500 commodities to about 240 countries in the world USA, UAE, China, Hong Kong, Singapore, UK, Germany, Bangladesh, Netherland and Nepal are our top 10 countries where we export Petroleum products, pearl and stones, drugs, Gold, Iron and Steel, Organic chemicals, Electric machinery and equipment, motor vehicles and cars etc.
INDIAS EXPORT OF SERVICES SEIS- SERVICES EXPORTS FROM INDIA SCHEME Main India s services exports Transport Travel Telecommunication services Computer services- Software services R&D services Professional and management consulting services
