Export marketing also involves preparing an offering that will entice the foreign buyer and customer. This offering comprises a product that is offered at a certain price and that is made available – distributed – to the foreign customer. At the same time, the offering is communicated – or promoted – to the buyer using certain communication or promotion channels. These elements – the product, price, distribution (also referred to as the place) and promotion – are called the marketing mix.
Features of Export Marketing
• It is a process -
Export marketing is a process of planning and implementing the production, and distributing of goods and services, it consists of various activities such as branding, packaging, advertising etc.
• Identification and satisfaction of consumer's needs & wants -
The heart of marketing is the identification of consumer needs and wants. The exporter must constantly try to find out the problems or needs and wants of the foreign buyer, so export marketing adopts a total consumer oriented approach in the foreign markets.
• Flow of goods and services –
Export marketing involves flow of goods and services across the national boundaries.
• Large scale operations –
Export marketing is carried in bulk quantities so as to derive the benefits of large scale selling such as in respect of transportation, handling etc.
• Prominence of multinational –
Export marketing in dominated by MNC'S. At present MNC'S from USA, EUROP and JAPAN play a dominant role in foreign trade. They are in a position of develop world wide contracts through their network of branches / offices / subsidiaries. These companies are in a position to carry on a large scale operation in foreign trade more efficiently and economically.
• Tariff and non –tariff barriers –
Export trade is subject to tariff and non tariff barriers , these are restrictions imposed mostly by importing countries , so as to restrict imports every export firm should have a close study of various trade barriers imposed by different countries , so as to carry on its export trade more efficiently .
• Presence of trading bloc's -
Certain nations of particular region come together to farm customs union or trading bloc's for their mutual benefit and economic development the main purpose of such bloc is to eliminate trade barriers among member nations and they may impose external tariff and non-tariff barrier on non member's .the exporter should have knowledge of the regulation of such trading blocs. The powerful trading blocs are NAFTA (north American free trade area) EC (European community) and ASEAN (association of south east Asian nation)
• International marketing research –
Knowing more about customer, dealer and competitor is a must not only in the domestic market but also in the export markets.
• International forum -
International trade is regulated to a great extent by international forum such a general agreement on tariff and trade (GATT). Now world trade organization (WTO).exporters from all over the world should have through knowledge of the rules regulation and principals of such forums.