INTRODUCTION TO EXPORT MARKETING

R.L.Kramer defines “export marketing involves export business with individual firms, organizations and or

govt entities in other countries”“A systematic process of designing and delivering

products to satisfy overseas customers and to achieve objectives of the firm”

FEATURES

• Large scale operations.• Diverse customs and traditions.• Subject to regulations.• Systematic process.• Customer focus.• Trade business.• Trading blocs.• Documentation.• Dominance of multinational corporations.• Marketing – mix.• Spreading of risks.

NEED / IMPORTANCE for developing countries

• Economic Growth.• Optimum use of resources.• Standard of living.• Foreign exchange.• International relations.• Balance of payments.• Reputation in the world.• Employment.• Research and development.• Regional development.

IMPORTANCE FOR A FIRM

• Optimum production.• Spreading of risks.• Reputation.• Economies of scale.• Keeping alive old products.• Higher prices.• Research and development.• Organizational efficiency.• Liberal incentives.• Liberal imports.

MOTIVATIONS

• Competition in domestic market.• Saturation of domestic market.• Economies of scale.• Economic growth.• Rate of profit.• Product development costs.• Product life considerations.• Sales and production stability.• Government policies.• Information and media production.• World trade organization.

PROBLEMS FACED BY INDIAN EXPORTS

• SEA PIRATES attacks.• Recession in world markets.• Competition from china.• Product standards.• Reduction in export incentives.• Problem of anti-dumping duties.• Foreign exchange regulation.• Subsidies by developed countries.• Documentation formalities.

TRENDS IN WORLD TRADE SINCE 2000

• The financial crisis resulted in full blown global recession which resulted in considerable fall in global trade.

• IMF estimates.• World bank estimates.

EXPORT GROWTH IMPORT GROWTH

India 18.2 -2.6

China -1.2 26.7

EU 11.4 5.2

USA -2.5 -3.8

Japan 1.5 -9.9

Hong-kong 1.3 6.5

Singapore 13.3 4.4

COMPOSITION SINCE 2000• Agriculture & allied products.• Ores and minerals.• Manufactured items.• Mineral fuels & lubricants.

products 2000-01 2008-09

Agro items 14.0 9.1

Ores 2.0 4.2

Manufacd 79.0 66.4

Fuel 4.3 14.9

Others 0.7 5.4

Total(%) 100 100.0

Total us $ 44.6 185.3

DIRECTIONS SINCE 2000

• Export to OECD countries.

• OPEC countries.• Eastern Europe.• Developing Countries.

Group 2000-01 2007-08

OECD 52.7 38.4

OPEC 10.9 16.3

E.Europe 3.0 2.1

Russia 2.0 0.6

Developing countries

29.2 42.6

Others 4.2 0.4

Total % 100 100

Us $ 44.6 163.1

Reasons for India's poor share in world trade

• High prices.• Inadequate promotion.• Poor follow up of sales.• Poor quality.• Poor negotiation skills.• Poor infrastructure.• Presence of good domestic market.• Documentation and formalities.• Negative attitude of overseas buyers.• Problem of trading blocs.

Sunrise export & service export• Sunrise products are those

products, which Indian exporters have lately begun to export in the overseas markets, & such products have a growing demand in the world markets.

• Some of the sunrise products include horticulture products such as fruits and vegetables, value added marine products, processed fruits and vegetable products, value added meat products.

• Software services.• Business services.• Transportation.• Travel.• Financial services.• Communication

services.• Insurance services.