EXPORT MANAGEMENT

AIM

• To gain the knowledge about the international trade

• To get familiar with process of import and export

INTRODUCTION

• This term export derives from the conceptual meaning as to ship the goods and services out of the port of a country.

• The seller of such goods and services is referred to as an "exporter" who is based in the country of export whereas the overseas based buyer is referred to as an "importer".

• In International Trade, "exports" refers to selling goods and services produced in the home country to other markets.

MEANING

• Expansion of market• Looking new customer• Looking new town, next state or next country• Cross the national boarders• Involving international accounts and

currencies

SCOPE

• Improving the standard of living• Improving the quality of life• Opportunity for economic growth• Production will be more• More turnover and profit• Growing stability• No need of depend on particular market

FUNCTIONS

• Making more modernization• Competitive production• Applying effective marketing• Developing key resource for export for export

related tasks• Availability of physical financial managerial

resources associated with firm

ROLE OF EXPORT IN ECONOMIC DEVELOPMENT

• To sell out the surplus• To achieve sales and production stability• To contribute for national goals• To get growth and development• To improve company image• To get more profit• To win competition

PLANNING FOR EXPORT

• It is a guidelines for the development for the international business

• Identification of markets• Setting goal in international standard• Arranging the activities • Procuring the required resources

EXPORT MARKETING

• Marketing activities for products which cross the national boundaries of a country.

DEVELOPING AN EXPORT PLAN

• Conducting market research• Creating marketing plan• Deciding about market entry• Methods for delivery and service• Planning day-to- day operations• Addressing the issues –finance and insurance• Setting target and timelines

FACTOR INFLUENCING IN EXPORT MARKETING

CONTROLLABLE FACTORS

• Company goals and policy• Human Resources• Financial Resources• Capacity

UNCONTROLLABLE FACTORS

• Political system• Culture• Foreign trade policy• Tariffs• Quotas• Exchange rates

MARKET ANALYSIS

• the separation of a whole market into its constituent parts in order to study the parts and their relations.

• i.e making division of entire market

MARKET INTELLIGENCE

Collection, processing, analysis and interpretation of all types of information from all available sources to aid business management in making international marketing decisions.

INFORMATION REQUIREMENTS

MARKETING RELATED

• Prospectus of the foreign market• Competition• Domestic market prospects

MARKET RELATED

• Political• Economic Stability• Currency Stability• Government policy• Restriction

PRODUCT RELATED

• Size• Quantity• Shape• Colour• Packaging• Frequency

PRICE RELATED

• Price range• Price trends• Margins• Government polices

PROMOTION RELATED

• Discounts• Offer• Exchange

DISTRIBUTION RELATED

• Mode• Alternatives• Cost• Frequency

COMPETITION

• Volume• Strength• Weakness• Strategy

SOURCE OF INFORMATION

• Internal- Sales data, Past records, Experience

• External- Primary data, Secondary data

MARKET RESEARCH

• The collection and analysis of information about consumers, competitors and the effectiveness of marketing programs.

• Marketing Research is systematic problem analysis, model building and fact finding for the purpose of important decision making and control in the marketing of goods and services.

DEFINITION

• According to American Marketing Association, “Marketing Research is the function that links the consumer, customer and public to the marketer through information-information used to identify and define marketing opportunities and problems, generate, refine and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process.”

DEFINITION

• Marketing Research is a well-planned, systematic process which implies that it needs planning at all the stages. It uses scientific method. It is an objective process as it attempts to provide accurate authentic information. Marketing Research is sometimes defined as the application of scientific method in the solution of marketing problems.

SCOPE OF MARKET RESEARCH

• (i) product and service research• (ii) market research• (iii) promotion research• (iv) distribution research• (v) pricing research• (vi) corporate responsibility research• (vii) miscellaneous research

TYPICAL APPLICATION OF MARKETING RESEARCH

RESEARCH ON MARKETS

• Analysing market potentials for existing products and

• Estimating demand for new products.• Sales forecasting• Characteristics of product markets.• Analysing sales potentials• Studying trends in markets.

RESEARCH ON PRODUCTS

• Customer acceptance of proposed new products.• Comparative studies of competitive products.• Determining new uses of present products• Market testing of proposed products.• Studying customer dissatisfaction with products.• Product-line research• Packaging and design research

RESEARCH ON PROMOTION

• Evaluating advertising effectiveness.• Analysing advertising and selling practices.• Selecting advertising media.• Motivational studies.• Establishing sales territories.• Evaluating present and proposed sales methods.• Studying competitive pricing.• Analysing salesmen's effectiveness• Establishing sales quotas.

RESEARCH ON DISTRIBUTION

• Location and design of distribution centres.• Handing and packing of merchandise.• Cost analysis of transportation methods• Dealer supply and storage requirements

RESEARCH ON PRICING

• Demand elasticity• Perceived prices• Cost analysis• Margin analysis

TYPES OF RESEARCH 

Exploratory research• Conducted for a problem that has not been clearly defined. • Conducted by –study of secondary data, survey of knowledge

person

Conclusive research • Provide information that is useful in reaching conclusions or

decision-making. • Types-(i).Descriptive-design

(ii).Experimental-laboratory situation

PROCESS OF MARKETING RESEARCH

• Situation analysis• Framing hypothesis• Determining the specific information needed• Determining the sources of marketing

information• Finalizing the research design

Cont…

• Deciding methods for collecting data• Framing the questionnaire• Tabulating the data and preparing the report• Follow up the recommendation

Sampling

• A survey with few selected representative which possess the same character of the whole unit.

• Example-when a patient is required to take blood test, the clinical laboratory takes few drops

• Here whole blood is universe and taking few is sample

METHODS OF SAMPLING

• Random sampling or probability sampling-every element of the population enjoys equal chance of being selected

• Non-random sampling or non-probability sampling-selection will be based on some basis, no equal chance to all elements

MARKET SELECTION

Market selection is based on a thorough evaluation of the different markets with reference to certain well defined criteria, given the company resources and objectives

MARKET SELECTION PROCESS- STEPS

• Determine international marketing objectives• Determine parameters for market selection• Preliminary screening• Detailed investigation and short listing• Evaluation and selection

DETERMINANTS OF MARKET SELECTION

• Firm related factors- inventory, financial strength, man power etc.,

• Market related factors-

General factors-economic, regulations, political

Specific factors-trends, customs, culture

MARKET PROFILE

• To help formulate appropriate marketing strategies.

• It may refer to the overall profile of a market- i.e the general characteristics of a nation like demo, economic, political.

• In other case, the market profile is a description of relevant characteristics of the market for a specific product in a country.

Market profile contain following things

• Trends, demand, forecast• Competitive characteristics• Market segment characteristics• Customers characteristics• Channel characteristics• Promotion characteristics• Laws related to product, price, promotion,

distribution and imports

ENTRY STRATEGIES FOR EXPORT

On the one extreme, a company may do the complete manufacturing of the product domestically and export it to the foreign market.

On the other extreme, a company may do by itself, manufacturing of the product to be marketed in the foreign market there itself.

ENTRY STRATEGIES

• Exporting• Licensing/ franchising• Contract manufacturing• Management contact • Assembly operations• Fully owned manufacturing facilities

Cont.…

• Joint ventures• Countertrade• Mergers and acquisitions• Strategic alliance• Third country location