"Unlocking Global Success: The Power of Export Marketing"

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Objectives

  • Understand what is Export Marketing ?

  • Key Components of Export Marketing

  • Barriers involved in Export Marketing

  • Domestic Marketing V/S Export Marketing

 

What is Export Marketing ?

Export marketing refers to the sale of goods and services outside countries, in this case marketers market their goods and services to a foreign country, which includes the consumer desires, culture, religion of that country. Marketers targeted more audiences, developing countries and potential customers.

Export marketing is a vast concept, it is very complex as compared to domestic marketing due to various international regulations, global competition and long procedures. It has great economic importance as it provides various benefits to the economy. It encourages business, economic, industry development to earn foreign exchange, so each country promotes its export market.

 

Definition 

R. L. Kramer defines “Export marketing involves export business with individuals, firms, organisations or government entities in other countries”. 

Export marketing can be defined as ‘It is a systematic process to deliver products abroad and achieve business goals’. 

 

Key Components of Export Marketing

Here are main key components of export marketing

1.  Systematic Process

2. Customer Focus

3. Customs Formalities

4. Customs and Traditions

5. Documentation

6. Dominance of MNCs

7. Trade barriers

8. Trading Blocks

9. Three Faced Competition

10.  Reputation

11.   Marketing Mix

12.   Global Marketing Research

13.  Risk Management

14.  Currency and payment Issue

Here the major components of export marketing are defined in depth 


  1. Systematic Process : 

Export marketing is a systematic process of designing and distributing goods and services in the market. Therefore exporters need to follow these process to undertake the market activities such as:

  • Marketing Research 

  • Product Designing

  • Product Branding

  • Product packaging

  • Pricing strategy

  • Promotion

  • Competitive Analysis

  • Product Adaptation

  • Proper Place

  • Market Entry Strategies etc.

It is essential to carry out all the above activities so that the exporters can sell the right products in the right target markets, thereby achieving the export market goals, higher sales, higher market share, creating a good corporate image. 


  1. Customer Focus : 

Export market is consumer oriented. Therefore Exporters need to discover the consumer requirement to satisfy their wants.

Therefore the exporters need to do research and survey from audiences and find their needs. A customer's focus takes time to deeply understand its consumer needs, desires and challenges. This understanding gets through survey, feedback and research. 

Customer focus is about the relationship with the customer which makes a strong bond between consumer and exporters. Accordingly follow these steps to achieve two main goals of the market.

  •    To generate maximum consumer satisfaction.

  •    To achieve higher returns to the export organisation.




  1. Customs Formalities : 

Customs formalities refers to procedure, documentation, and regulation that must be adhered to when goods are imported and exported across international borders. 

They have to follow such formalities before shipment 

  • Submission of various documents to the customs for verification.

  • Examination of goods at docks.

  • Obtaining ‘Let Export Order’.

  • Obtaining ‘Let Ship Order’.


  1. Customs and Traditions : 

Export markets differ in terms of custom traditions. The exporter must be experienced with the custom and traditions. 

Custom tradition guides how people interact with society. They detect the behaviour of the people and how they treat each other. 

Each country has a different mindset for festivals like Holi is a colourful festival for Hindu majority countries like India and Nepal, whereas, it is haram in Muslim majority countries like Pakistan and Afghanistan. 


  1. Documentation : 

Documentation is a critical aspect of export marketing and international trade. Proper documentation shows clear communication between exporter and importer and also shows that goods and services are smoothly transported internationally.

Here are some key document related to export marketing 

  • Commercial Invoice 

  • Packing List

  • Bill of Lading (B/L)

  • Certificate of Origin

  • Export License or Permit

  • Consular Invoice

  • Insurance Certificate

  • Import License or permit

  • Certificate of Inspection

  • Consular Invoice

  • Certificate of Conformity

  • Documentary letter of Credit


  1. Dominance of MNCs : 

Export Marketing is dominated by multinational corporations, especially from China, USA, Germany, Japan ( the top five leading exporting Countries in the world). The MNCs play a major role in international trade  and export activities. 

MNCs have a global network as they produce and distribute goods overseas which is a good advantage for export marketing to create a stronger economic scale and make exports more competitive.


  1. Trade Barriers : 

Trade barriers are obstacles for export marketing they can hinder while export goods and services abroad. These barriers can be imposed by importing countries for specific reasons. 

There are some common trade barriers that can be imposed while exporting.

  • Tariffs

  • Import Quotas

  • Licensing Regulatory Requirements

  • Technical Standards and Regulations

  • Customs Procedures and delays

  • Currency Fluctuation

  • Intellectual Property Protection

  • Local Content requirements

  • Discriminatory Procurement Policies

  • Embargoes and Sanctions

  • Unfair Competition Practices

  • Anti - Dumping Duties

  • Export Subsidy restrictions

  • Local Distribution Sales Restrictions

It is essential for exporters to be aware of trade barriers to avoid such restrictions for trading smoothly. 


  1. Trading Blocks : 

Trading block, also known as trade block. It is a group of countries that they form among themselves, such as NAFTA, APEC, CIS, ASEAN and many others. Trade blocs simplify trade and also reduce tariffs, customs duties and many other trade barriers which make trade easier and faster between countries.


  1. Three Faced Competition : 

Three faced competition also called triangular competition in export marketing they follow as 

  • Producers : Many producers produce products for export which creates strong competition, therefore  producer's produce cheap but quality products for reducing competition, which is an advantage in terms of resources, technology.

  • Exporters :  There are many exporters where they want to export more products abroad. These exporters are from inside or outside both countries. 

  • Importers : It is the country which imports products from the exporting country. There may be demand for the product but it may not be produced domestically or domestic production may be limited.


  1. Reputation : 

Reputation refers to the cognition and image that a company or a country has in the eyes of international customers, partners, and stakeholders. A positive reputation is a valuable asset in the global marketplace and can significantly impact a company's success in exporting its products or services. 

Here are the main key aspects of reputation in export marketing.

  • Quality and Reliability

  • Customer services

  • Brand Recognition

  • Market Feedback etc.


  1. Marketing Mix : 

Like domestic marketing, export marketing includes several elements in the marketing mix that exporters need to understand and manage in order to successfully promote their products or services in international markets. However, export marketing often involves additional complexities due to different cultural, economic and regulatory environments in the target countries. 

The marketing mix in export marketing includes:

  • Product

  • Price

  • Place

  • Promotion etc.


  1. Global Marketing Research : 

Global marketing research in export marketing is the process of gathering, analysing, and interpreting information about international markets and customers to make informed decisions regarding the export of products or services to foreign countries. It is an important component of export marketing as it provides information to exporters about the dynamics of foreign markets, customer preferences, competition and regulatory requirements.

Here are the main key aspects of global marketing research in export marketing:

  • Market Analysis

  • Competitor Analysis

  • Customer Analysis

  • Culture and Environment Analysis etc.


  1. Risk Management : 

Risk management in export marketing refers to the systematic process of identifying, evaluating, mitigating, and monitoring the risks associated with exporting products or services to international markets. Exporting inherently involves a variety of risks due to the complexities of operating in a foreign environment. Effective risk management is essential for exporters to minimise potential negative impacts on their business operations and financial performance. 

Here are the main key aspects of risk management in export marketing:

  • Risk Identification

  • Risk Assessment

  • Risk Monitoring etc.


  1. Currency and Payment Issue : 

Currency and payment issues are significant challenges in export marketing because of the complexities and risks associated with conducting international transactions. These issues can have a substantial impact on an exporter's financial stability and success in foreign markets. 

Here are some key issues in export marketing related to currency and payments and why they are important.

  • Currency exchange rate fluctuations 

  • Payment Method

  • Currency Conversion Cost

  • Payment Documentation




Conclusion 

In conclusion, distribution and designing of goods abroad generate more foreign reserves for exporting countries that are very friendly to partner strategy for the two nations in the finance sector. This article has Explore into the subtleties of navigating international markets, Emphasising the market research, understanding the culture, religion.


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