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Chapter 1


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Chapter 1

  1. 1. INTRODUCTION TO EXPORT MARKETINGR.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”
  2. 2. 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.
  3. 3. 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.
  4. 4. 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.
  5. 5. 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.
  6. 6. 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.
  7. 7. 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
  8. 8. 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
  9. 9. DIRECTIONS SINCE 2000• Export to OECD countries.• OPEC countries. Group 2000-01 2007-08• Eastern Europe. OECD 52.7 38.4• Developing Countries. OPEC 10.9 16.3 E.Europe 3.0 2.1 Russia 2.0 0.6 Developing 29.2 42.6 countries Others 4.2 0.4 Total % 100 100 Us $ 44.6 163.1
  10. 10. Reasons for Indias 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.
  11. 11. Sunrise export & service export• Sunrise products are those • Software services. products, which Indian exporters have lately begun to export in the • Business services. overseas markets, & such products have a growing demand • Transportation. in the world markets. • Travel.• Some of the sunrise products include horticulture products • Financial services. such as fruits and vegetables, value added marine products, • Communication processed fruits and vegetable services. products, value added meat products. • Insurance services.