Marketing is the process of managing and utilization of firm’s resources to meet the opportunities and threats in a dynamic environment to the satisfaction of consumer needs and wants so that the objectives of the enterprise, the consumer and society are achieved.
Exporting Marketing is basically a storage that allows a company or a business to increase market share. In other words, export marketing means exporting goods to other countries of the world as per the procedures framed by the exporting country as well as the importing country. Export marketing offers various advantages to the national economy. It includes the management of marketing activities for products which cross the national boundaries of a country.
The most important factor in export marketing is the government assistance needed to access foreign markets. According to a survey, small businesses account 97% of all United States exports.
Strategy for Export marketing
Major steps which should be following to build a strategy in a business for export marketing are:
- Objectives: The first step in export marketing is to define objectives. These objectives should be realistic, attainable and should be communicated through the business firm. Objectives are necessary, because they determine the direction, activities, and management of the business firm.
- Research: For complete success in a business, a business firm must identify attractive export markets and find out all the potential for the products. So, market research and forecasting are therefore have great importance.
- Characteristics: A business firm should next analyze the products that it has to offer. An analysis should be any modifications required in the products, packaging changes needed labeling required in the products.
- Trade Barriers: There are various trade barriers because of some protective policies of different countries. Export marketing is not free like internal marketing. Tariff and non-tariff barriers are used by countries for restricting import.
- Documentation: Export marketing includes some documentation formalities. It requires various documents to submit them to various authorities like bill of lading.
- Dominance of multinational Corporations: Export marketing is dominated by MNCs, from USA, Japan and Europe. They are in a position to develop worldwide contacts through their network and conduct business operations efficiently and economically.
Challenges in Export Marketing
- Problems in Products standards: The countries which are already developed insist high product standards from developing countries in India. These products of developing countries are subject to product tests in the importing countries.
- Problem in preparing documents: Exporting products involving a large number of documents. The exporter will have to arrange export documents required in his country. In India, there are 25 documents for exporting purposes.
Importance of Export marketing
- It gives the opportunity to great profits in bigger markets.
- All the products and services of your business might suit foreign markets better than your home market.
- Product in different conditions may take on innovations that may result in a better article.
- There is a prestige value in selling abroad, and it will help you advertising, promotion and goodwill.
- Additional foreign sales over the long term, once export development costs have been covered, increased overall profitability.
- Being competitive in the domestic market helps companies to acquire some strategies that can help them in foreign trade.
- Selling to multiple markets allows companies to spread their risk.
- To capture an additional foreign market will usually expand production to meet foreign demand. Because increase production can often lower per unit costs and lead to greater use of existing capacities.
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