Chapter 3. preliminaries for starting export business

PRELIMINARIES FOR STARTING EXPORT BUSINESS

OVERSEAS MARKET RESEARCH

IMPORTANCE • Competitive

Advantage• Consumer Needs• Effectiveness Of

Channels Of Distribution

• Effectiveness Of Promotional Measures

• Packaging Design • Forecasting Sales• Pricing Decisions

PROCEDURE• Identify & Define Problem• Conduct a Preliminary

Investigation• Determine Data Needs• Determine Data Sources• Create the Research Design• Design a Questionnaire• Designing a sample of

respondents• Selection & Training of field staff• Collection of Data• Organization of Data• Analysis & Interpretation of Data• Preparation of research report• Follow up of Report

FOREIGN MARKETS

PROCEDURE • Determine Export

Marketing Objectives• Collection Of

Information• Analysis of

Information• Short Listing of

Markets• Detailed Investigation

of short listed markets

• Selection of Markets• Entry in overseas

Markets• Follow - up

FACTORS• Customers• Competition • Import Regulations• Size of Markets• Economic Stability• Political Stability• Distribution Network• Availability of after-

sale-service personnel• Business Community• Location

PRODUCT PLANNING STRATERGIES FOR EXPORTS

• Product planning strategies

Product Innovation Product design Production Adaptation Product

standardization • Pricing Strategies Skimming pricing penetration pricing Differential pricing

• Distribution Strategies Direct Exporting Indirect Exporting• Promotion Strategies Standard Differential • After sale service Strategy• Product positioning

Strategy• Product mix / line

Strategy• Branding Decision

NEW PRODUCT DEVELOPMENT PROCESS

• Idea Generation• Analysing The Idea• Short listing of Idea• Investigation • Selection Of best Idea• Product development• Test marketing• Commercialization • Review of product performance• Changes in Marketing Mix

INTERNATIONAL PRODUCT LIFE CYCLE

IPLC

• Introduction stage• Growth stage• Maturity stage• Decline stage

METHODS OF ENTRY IN FOREIGN MARKETS

• Direct Exporting• Indirect Exporting• Joint Ventures• Franchising Strategy• One country production

Base• Licensing• Production Sharing• Acquisitions• Green field development• Turnkey Operations

EXPORT MARKETING

CHANNELS OF DISTRIBUTION

• ROLES : Balancing demand & supply, financing, Information, Create Utilities, Improve distribution efficiency, Provide Assortment of goods,

• PROCEDURE : Formulating channels obj Identification of channel functions Analyze product characteristics Analysis of distribution environment Analysis of competitors channel

design Evaluating firm’s resources Identification of alternative channels Selecting the most appropriate

channel

WAREHOUSING

• Break Bulk Operations

• Re – assembly Operations

• Just in time Supplies

• After sale service Requirements

• Quota Restrictions

PROMOTION MIX IN EXPORT MARKETING

IMPORTANCE• Product Awareness• Persuasion • Reputation • Information to

Intermediaries• Developing Brand Loyalty• Developing Brand Image• Education• Expansion of Markets• Overcoming Negative

Attitude• Economic Growth of Nations

ELEMENTS• Sales Promotion• Advertising • Public Relations• Personal Selling• Publicity • Trade Fair &

Exhibitions• Internet