EXIM - Unit I

8/4/2019 EXIM - Unit I

1/17

EXIM MANAGEMENT

UNIT I


2/17

WHAT IS TRADE?

The act or process of buying, selling, or exchanging commodities, ateither wholesale or retail, within a country or between countries is

called trade.

Trade is the transfer of ownership of goods and services from oneperson or entity to another.

This is also called barter.

This is same as commerce.

Trade is conducted not only for the sake of earning profit; it also providesservice to the consumers.

Trade is an important social activity because the society needsuninterru ted su l of oods forever increasin and ever chan in


3/17


4/17

PLANNING FOR EXPORT

An export plan is the guideline fordevelopment of internationalbusiness.

It consists of the identification ofmarkets, goals, activities, and

proposed ways of achievingobjectives, required resources andexpected results.


5/17


6/17

APPROACHES TO DEVELOPING AN EXPORT PLAN

1 State Objectives, Plan Approach and AssignResponsibility

2

ii) Conduct Situation Analysis

a. Background

b. Mission Statement

c. Market Opportunities and Threats

Analysisd. Strengths and Weaknesses Review

iii) Rank Critical Success Factors and Issues


7/17

MARKET ANALYSIS

A market analysis studies the attractiveness and the dynamicsof a special market within a special industry.

It is part of the industry analysis and this in turn of the globalenvironmental analysis.

Strengths, weaknesses and risks of a company can beidentified.

SWOT analysis provides adequate business strategies of acompany.

The market analysis is used to inform a firm's planningactivities, such as decisions of inventory, purchase, workforce, facility expansion, purchases of capital equipment, etc


8/17

MARKET INTELLIGENCE(MARKINT)

It is a relatively new intelligence discipline that exploitsopen-source information gathered from globalmarkets.

It relies solely on publicly available information such asmarket prices and ancillary economic andfinancial data.

Market Intelligence refers to the acquisition andaggregation of data from the global markets forpurposes of sensemaking.


9/17

MARKETING INTELLIGENCE

Market Intelligence is not to be confused withMarketing Intelligence

It is concerned with assessing the marketplace forconsumer products, nor with Financialintelligence (FININT), which is primarilyconcerned with investigations that "follow the

money" using information not available to thepublic.


10/17

MARKET RESEARCH

Market research is any organized effort to gatherinformation about markets or customers.

It is a very important component of business

strategy.

Market Research is a key factor to get advantageovercompetitors.

Market research provides important information toidentify and analyze the market need, market sizeand competition.


11/17

MARKETING RESEARCH

Marketing research is about marketingprocesses, while marketresearch is concerned specifically with markets.

Marketing research is "the function that links the consumer,customer, and public to the marketer through information.

Information used to identify and define marketingopportunities and problems.

Generate, refine, monitor, evaluate and improve marketingactions performance.

Marketing research specifies the information required to addressthese issues.


12/17

MARKET SELECTION

Two important factors to consider when selecting atarget market segment are

i. The attractiveness of the segment and

ii.

iii. The fit between the segment and the firm's objectives,

resources, and capabilities.


13/17

ATTRACTIVENESS OF A MARKET SEGMENT

Size of the segment

Growthrate of the segment

Competition in the segment

Brand loyalty of existing customers in the

segment. Attainable market share given promotional

budget and competitors' expenditures

Required market share to break even

Sales potential for the firm in the segment

Expected profit margins in the segment


14/17

TARGET MARKET STRATEGIES

Single-segment strategy

Selective specialization

Product specialization

Market specialization

Full market coverage


15/17

S- Segments

P- Products


16/17

EXPORTING AS AN ENTERPRENEUR

1.Right Name

2.Registration3.Bank Account4.PAN

5.Sales Tax Registration6.IEC Number7.EPC Registration8.ECG Registration

9.Central Excise10.Registration with Chamber of commerce,

productivity council etc11.BIN

12.Export License (optional)


17/17

IMPORTING AS AN ENTERPRENEUR

1.IEC Number from DGFT

2.EPC & AEPC3.Agree on terms & Conditions

4.Starts Manufacturing

5.Quality control certification

6.Dispatch7.Insurance Cover

8.C&F clearance

9.Mates Receipt

10.Bills of Landing or Airway bill11.Certification of Origin

12.Documents

13.Foreign Bank scrutiny (LC , PO)

14.Local Bank scrutiny (LC , PO)