KAPOL COLLEGERabina Yesmin

SYBMS2002

Preliminaries For Starting Export

Business

What is Export ?

According to section 2(e) of foreign trade exchange act, 1992, the term export means,

“taking out of India any goods by land, sea, or air”.

Export Marketing Strategy -Determinati

on.

Selecting the product.

Identifying target market.

Quality and Standards.

Product capacity.

Understanding foreign

environment.

Pricing strategy.

Deciding method of exporting.

Selection of export personnel.

Timely deliveries.

Financial resources.

Export promotion.

Proper servicing of goods.

Features of Export Marketing:

Organized Process.Time consuming .Continuous activity.Needs, experience and preparation.Large scale operations.Customer focus.Advanced technology.Long term investment.

Need of export marketing:1.Foreign Exchange.

3.International Relations.

4.Employment Opportunities.

5.Economic Development.

2.Balance of payment.

Methods Of Exporting

1.DIRECT EXPORTING:Advantages: DISADVANTAGES:

Less time consuming. Cost benefits. First hand

information. Control. Reputation &

goodwill. No dependence on

middleman. Higher profits.

Higher risk. Higher Investment. Lack of specialization. Higher overheads. Not suitable for small

manufacturers. Vast knowledge.

Advantages:Less risk.Less investment.Specialization.Less overheads.Suitable to small

organization.Technical guidance.

Lower prices.Less or no

incentives.Second hand

information.Lack of direct

control.

2.INDIRECT EXPORTING:Disadvantages:

Internal Structure Of An Export Organization-

In-built export

department.

Independen-t export

department.

Export subsidiary in

importer’s country.

Export subsidiary in

exporter’s country

(Divided into 2 departments:

i)Domestic marketing.ii)Export

marketing.)

(Separate export

department and have

trained staff.)

(Undertaken when the

exports are on the large scale.)

(The branch is setup in the importer’s country.)

TYPES OF EXPORT MARKETING ORGANISATION IN INDIA-

1-Manufacturer Exporters: Undertake export

directly. Not dependent on

middleman. (eg:TATA group &

Birla.)

2-Merchant Exporter:

Do not manufacture the goods on their own.

Buys goods from manufacturer & exports them

3-Canalising Agencies:Done through specific government agencies such as – STC-(State Trading Corporation of India.) MMTC-(Metals & Minerals Corporation.) NAFED-(National Agricultural Co-operative Marketing Federation, etc.

4-Status Holder- They have been given a special status in the foreign trade policy, 2004-09. Given certain benefits & concessions by the government.

Functions of Export Marketing Organisation-

• Promote exports of small-scale industries.

• Product research.• Market research.• Product introduction.• Marketing functions.• Training facilities.