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EXPORT MARKETING
© Deepak Kapure
EXPORT MARKETING
“Export marketing includes the
management of marketing activities
for products which cross the national
boundaries of a country”
- B. S. Rathor
© Deepak Kapure
FEATURES OF EXPORT MARKETING
Systematic Process
Large Scale Operations
Customer Focus
Marketing – mix
International marketing Research
Spreading of Risks
Large Scale Operations
Trade barriers
© Deepak Kapure
IMPORTANCE OF EXPORT MARKETING
Earning foreign exchange
Balance of payment
International Relations
Reputation in the world
Employment Opportunities
Promoting economic development
Optimum Utilization of Resources
Higher standard of Living
© Deepak Kapure
MOTIVATIONS FOR EXPORT MARKETING
Rate of profit
Sales and production stability
Inadequate domestic demand
Economic growth
Reducing business risks
Government policies
Trading Blocs
Benefit of bulk selling
© Deepak Kapure
FEATURES OF INTERNATIONAL MARKETING
There are large scale operations.
There is dominance of multinational
corporations.
It is subject to tariff and non-tariff barriers.
There is presence of Trading blocs.
It is subject to foreign exchange regulations.
There is stiff competition.
It is regulated by international forums such as
WTO.
© Deepak Kapure
TRADE BARRIERS
TARIFF BARRIERS
Specific duty, Ad-valorem duty, Compound
duty, Countervailing duty, Sliding scale
duty/Seasonal duties, Protective tariff
NON-TARIFF BARRIERS
Quota System, Prior Import Deposits,
Foreign Exchange Regulations, Consular
Formalities , State Trading , Export
Obligations, Preferential Arrangements
© Deepak Kapure
INTERNATIONAL ORGANIZATIONS
WTO
Result of Uruguay Round of negotiations
Free trade
Growth of less developed countries.
Protection and preservation of environment.
Optimum utilization of available world's
resources.
Raising living standard
Settlement of trade disputes
Generating employment
Enlargement of production and trade.
© Deepak Kapure
PRELIMINARIES FOR EXPORT BUSINESS
Overseas Market Research
Indentifying Foreign Markets
Product Planning Strategies Of Exports
New Product Development
Pricing Strategies
Distribution Strategies
Promotion Strategies
Implementation
© Deepak Kapure
PROMOTIONAL ORGANISATION
Manufacturer Exporter
Merchant Exporter
State Corporations
Export Houses
Trading House
Export Promotion Council
Federation Of Indian Export Organizations (FIEO)
Export Oriented Units (100%)
Special Economic Zones (SEZ)
© Deepak Kapure
SUNRISE EXPORTS
Export of services
Readymade garments
Handicrafts
Engineering goods
Green technology products such as wind
turbines, electric cars. etc.
Dairy products
Value added marine products
Processed fruits and vegetable products
© Deepak Kapure
INDIA’S FOREIGN TRADE POLICY 2009-14
Focus Product (Incentive 1.25% to 2% of FOB)
Focus Market Scheme (Incentive2.5% to 3% of
FOB)
Technological Up-gradation
EPCG Relaxations (Obligation on import of spares reduced
to 50%)
Green Products from North East
Special Focus Initiatives : Agriculture,
Handloom & handicraft, Leather, Tea,
Pharmaceutical, Automobile
© Deepak Kapure
EXPORT PRICING STRATEGIES
Penetration pricing strategy
Skimming pricing strategy
Marginal Cost Pricing
Follow the Leader Pricing Strategy
Differential pricing strategy
© Deepak Kapure
TYPES OF QUOTATIONS
FOB (Free On Board) Quotation:
FOB price = cost of production + profit margin +
expenses
up to on board the ship - export incentives
C&F Quotation (Cost and Freight):
C&F price = F.O.B. + freight
CIF (Cost Insurance and Freight)
Quotation:
CIF price = FOB price + Freight + Insurance
© Deepak Kapure
CAUSES FOR POOR SHARE OF INDIAN MARKET
Poor quality
High prices
Inadequate promotion
Poor follow-up of sale
Poor negotiation skills
© Deepak Kapure
DIFFICULTIES FACED BY INDIAN EXPORTERS
Recession in world market
Technological differences
Reduction in export Incentives
Several competitions in global marketing
Problem of product standards
Fluctuations in Exchange Rate
Problem in preparing Documents
Government restrictions and foreign exchange
regulations
© Deepak Kapure
THANK YOU
© Deepak Kapure

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Export marketing by Deepak

  • 2. EXPORT MARKETING “Export marketing includes the management of marketing activities for products which cross the national boundaries of a country” - B. S. Rathor © Deepak Kapure
  • 3. FEATURES OF EXPORT MARKETING Systematic Process Large Scale Operations Customer Focus Marketing – mix International marketing Research Spreading of Risks Large Scale Operations Trade barriers © Deepak Kapure
  • 4. IMPORTANCE OF EXPORT MARKETING Earning foreign exchange Balance of payment International Relations Reputation in the world Employment Opportunities Promoting economic development Optimum Utilization of Resources Higher standard of Living © Deepak Kapure
  • 5. MOTIVATIONS FOR EXPORT MARKETING Rate of profit Sales and production stability Inadequate domestic demand Economic growth Reducing business risks Government policies Trading Blocs Benefit of bulk selling © Deepak Kapure
  • 6. FEATURES OF INTERNATIONAL MARKETING There are large scale operations. There is dominance of multinational corporations. It is subject to tariff and non-tariff barriers. There is presence of Trading blocs. It is subject to foreign exchange regulations. There is stiff competition. It is regulated by international forums such as WTO. © Deepak Kapure
  • 7. TRADE BARRIERS TARIFF BARRIERS Specific duty, Ad-valorem duty, Compound duty, Countervailing duty, Sliding scale duty/Seasonal duties, Protective tariff NON-TARIFF BARRIERS Quota System, Prior Import Deposits, Foreign Exchange Regulations, Consular Formalities , State Trading , Export Obligations, Preferential Arrangements © Deepak Kapure
  • 8. INTERNATIONAL ORGANIZATIONS WTO Result of Uruguay Round of negotiations Free trade Growth of less developed countries. Protection and preservation of environment. Optimum utilization of available world's resources. Raising living standard Settlement of trade disputes Generating employment Enlargement of production and trade. © Deepak Kapure
  • 9. PRELIMINARIES FOR EXPORT BUSINESS Overseas Market Research Indentifying Foreign Markets Product Planning Strategies Of Exports New Product Development Pricing Strategies Distribution Strategies Promotion Strategies Implementation © Deepak Kapure
  • 10. PROMOTIONAL ORGANISATION Manufacturer Exporter Merchant Exporter State Corporations Export Houses Trading House Export Promotion Council Federation Of Indian Export Organizations (FIEO) Export Oriented Units (100%) Special Economic Zones (SEZ) © Deepak Kapure
  • 11. SUNRISE EXPORTS Export of services Readymade garments Handicrafts Engineering goods Green technology products such as wind turbines, electric cars. etc. Dairy products Value added marine products Processed fruits and vegetable products © Deepak Kapure
  • 12. INDIA’S FOREIGN TRADE POLICY 2009-14 Focus Product (Incentive 1.25% to 2% of FOB) Focus Market Scheme (Incentive2.5% to 3% of FOB) Technological Up-gradation EPCG Relaxations (Obligation on import of spares reduced to 50%) Green Products from North East Special Focus Initiatives : Agriculture, Handloom & handicraft, Leather, Tea, Pharmaceutical, Automobile © Deepak Kapure
  • 13. EXPORT PRICING STRATEGIES Penetration pricing strategy Skimming pricing strategy Marginal Cost Pricing Follow the Leader Pricing Strategy Differential pricing strategy © Deepak Kapure
  • 14. TYPES OF QUOTATIONS FOB (Free On Board) Quotation: FOB price = cost of production + profit margin + expenses up to on board the ship - export incentives C&F Quotation (Cost and Freight): C&F price = F.O.B. + freight CIF (Cost Insurance and Freight) Quotation: CIF price = FOB price + Freight + Insurance © Deepak Kapure
  • 15. CAUSES FOR POOR SHARE OF INDIAN MARKET Poor quality High prices Inadequate promotion Poor follow-up of sale Poor negotiation skills © Deepak Kapure
  • 16. DIFFICULTIES FACED BY INDIAN EXPORTERS Recession in world market Technological differences Reduction in export Incentives Several competitions in global marketing Problem of product standards Fluctuations in Exchange Rate Problem in preparing Documents Government restrictions and foreign exchange regulations © Deepak Kapure

Editor's Notes

  1. Market: 16 new markets in Latin America and 10 in Asia-Oceania. EPCG Exprt promo capital goods