Published on Sep 03, 2023
Marketing is defined as using all of the resources of the organization to satisfy customer needs for a profit. The difference between export marketing and domestic marketing is simply that it takes place across national borders. This means that you are faced with barriers to trade that you will not have encountered before, such as differing languages, politics, laws, governments and cultures.
You may need to account for getting the product half-way across the globe to distant markets and pay the import duties imposed on these products by the importing country. You will also need to deal with the logistical and documentation problems surrounding exports. These are just some of the problems you will face.
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. 20 Steps of Export Marketing
Those who are interested in export- import business need to apply to the director general foreign trade regional office for getting importer-exporter code number. This is true for any individual or company willing to undertake export or import from India.
One has to register with the concerned export promotion council for example- in the case of garments, it is essential to obtain registration cum-membership certificate (RCMC) from the apparel export promotion council, registration is essential for obtaining various permissible benefits given by the government.
With the completion of these formalities. The exporters can go in for procuring their export order.
With export order in hand they start manufacturing or buy the goods from manufacturing
Once manufacturing is over , the exporter make arrangements for quality control and obtain a certificate from the inspector of quality control confirming their quality.
Exportable are then dispatched to parts, airports for transit.
With dispatch of goods, the export firm has to apply an insurance company for marine lair insurance cover.
After completion of these formalities, the contract the clearing and forwarding agent for storing the goods in warehouse, uses . The forwarding agent comes out with a document called shipping bill, required for allowing shipment by the custom authority.
Step 9 :
The clearing and forwarding (c and f ) agent submits the shipping bill in the customs house for verification .the customs appraised examines the documentation.
The C and F agent also submits a copy of the verified shipping bill to the shed superintendent and obtains certain order for exports.
There after for loading exports into ships or aircraft ,the C and F agent . Present the shipping bill to the preventive officers who oversee the transit procedure
After loading goods in to the ship the captain of the ship issuer a receipt know as ' mate's receipt' to the ship superintendent of the port . The ship superintendent calculates port charges and bills the C and F agents for it.
When port payments are made the C and F agent takes delivery of mates receipt and requests port or airport authority to prepare bill of loading or airway bill.
After obtaining bill of loading, the C and F agent sends these documents to the respective exporters.
On receipt of the documents, the exporter makes an application to the relevant chamber for getting certificates of origin, stating that the goods originated from India.
Exporters also send shipping documents to the importers stating date of shipment, name of vessel etc. Moreover, it is essential to send certain other documents like bill of loading ,custom invoice and packing list, to their foreign counterparts.
The exporter now presents all important documents at bank. The bank scrutinizes this document against the original letter of credit / purchase order. The bank has to follow UCPDC/URC guidelines.
The exporters' bank sends all important documents to the foreign importers bank. This presents the documents to the importer. Then the importer accepts , the bill if it is a usance bill and pay before the due date.
After receiving the requisite document , the importer makes the payments through .the bank, the money then gets credited in the name of the exporter here. Simultaneously, a document called the GR form is sent to Reserve Bank of India.
As a last step exporters apply for benefit from various duty drawback schemes which subsequently get credited in their account