Export Marketing Jibran Khan

MBA Program

Welcome and Introduction Other administrative matters Class timings 6 – 9 Class members introduce themselves Occupation/desired occupation

Agenda for today

International Marketing and Export Management by Edwin Duerr | 6th edition

Export Marketing by Dr. B.S. Rathor | 8th edition

22 Immutable Laws of Marketing | Reference book

Reading Material

What is this course all about

International Marketing

Pricing Decision

Export Market Selection

Market Entry Strategies

Product Decisions

Basis of International

Marketing

Promotion & Marketing Communication

Distribution

Organization of International

Marketing activities

Market A market is anywhere where buyers and sellers come together to

transact with each other.

Domestic marketing Selling of a company products within a local market. It deals with only one set of competition and economic issues which make it more convenient to do.

There are no language barriers in domestic marketing and obtaining and interpreting data on local marketing trends and consumer demands is easier and faster to do.

It helps the company make decisions and develop marketing strategies that are more effective and efficient. The risks are also lesser with domestic marketing and it needs lesser financial resources.

Local markets are not as broad as the international market though and most companies are aiming at doing business globally.

Promotion and sale of company products to consumers in different countries. It is very complex and requires a huge amount of financial resources.

Marketing of goods, services and information across political boundaries.

Includes same element as of domestic marketing like: Planning Promoting Distributing Pricing

Every country has its own laws on business and a company that aims at entering into business in another country must first know about them.

Consumer tastes and preferences may also differ so marketing strategies must be formulated to cater to the needs of different consumers.

International marketing requires more time and effort, not to mention its being very risky too. The international market is very uncertain and a company must always be ready for changes that may suddenly occur. It requires a higher level of commitment to succeed in an international market.

International Marketing

International Marketing

Differences in Foreign

Environment

Consumer Taste

Economic Level

Laws and Regulation

Market Structur

e

Way of doing

business

International Marketing Management

STRATEGIC DECISION TACTICAL DECISION

Choice of country Product market Target segment Modes of operation Timing of market

entry

Product Positioning Product Adaptation Advertising Media selection Promotion Pricing Distribution

Export Marketing Planning & Strategy

Competitive capability in the domestic market

Motivation for going international

Commitment of owners and top management

Product readiness for foreign markets

Skill, Knowledge and Resources

Experience and Training

Is company ready to enter foreign market?

Component of export planning and Strategy

Goal

Program

Organization

Export Marketing Planning process

Export Market

s

Identifying and Measuri

ng Opportunity:

1. Prilimin

ary Screeni

ng2.

Estimating

market potenti

al3.

Estimating

Sales Potenti

al4.

Segmenting the market

Developing an export marketi

ng strateg

y

1. Setting export

objectives2.

Planning the

marketing mix. Product, Price, Placement and Promoti

on

Making export strateg

y operati

onalSales

forecasts

Sales BudgetSales

quotasProduct

ion schedul

esInvento

ry controlLbour

requirement

Promotional

budgetfinancia

l budgetProfit

budget

Adaptation of export Strategic

Plan

Negative DemandThe market is in a state of negative demand if; a major part of the market dislikes the product and may even pay a price to avoid it | for example Alcohol

No DemandTarget consumers may be uninterested in the product.Eg: Farmers may not be interested in new farming methods. College students may not be interested in a foreign language course. The marketing task is to find ways to connect the benefits of the products to the person’s natural needs and interests.

Demand Management

Latent DemandMany consumers may share a strong need that cannot be satisfied by any existing products.

Eg: Latent demand for harmless cigarettes. More fuel efficient cars.

The marketing task is to measure the size of the potential market and develop effective goods and services that would satisfy the demand.

Demand Management

Declining Demand A substantial drop in the demand for products.

Eg: Boy scout enrolment among Singapore students. The marketing task is to:

Analyze the cause of market decline.

Determine whether the demand can be restimulated by changing target markets, changing product features and developing more effective goods.

To reverse the declining demand through creative remarketing of the product.

Demand Management

Irregular DemandOrganizations face demand that varies on a seasonal, daily or even hourly basis, causing problems of idle capacity or overcrowded capacity.

Eg: Markets:- Visited on weekends, not on Weekdays. Hospitals:- OT’s booked for early weak.

Demand Management

Full DemandOrganizations face full demand when they are pleased with there volume of business.

The marketing task is to: Maintain the current level of demand in the face

of changing consumer preferences and increasing competition.

Quality should be improved. Continuously measure consumer satisfaction. Eg: Maruti at the time of bookings made open.

Demand Management

Overfull Demand Some organizations face a demand level that is

higher then they can or want to handle.

Marketing task is De-marketing which requires finding ways to reduce the demand temporarily or permanently.

Steps involved in de-marketing Raising prices. Reducing promotion and service.

Demand Management

Unwholesome Demand Unwholesome products will attract organized

effort to discourage their consumption.

Un-selling campaigns have been conducted against cigarettes, alcohols, hard drugs, handguns and pirated movies.

Demand Management

Communication with foreign unit Lack of Export Training & Experience Lack of Market Information Controlling International Activities Documentation requirements Arranging transportation and packaging Providing services Higher than domestic risk Financing Sales

Obstacle of Exporting | Internal controllable dimensions

Foreign Government attitude Foreign public attitude Trade barriers (quotas & tariffs)

Local non controllable dimensions Financing Sales Non assistance from home government

Obstacle of Exporting | Foreign non controllable dimensions

Look to existing customers Make a commitment Seek advice Use trade shows Pick market carefully Manage growth Use letters of credits (LC) Be Patient Choose partners carefully

How can a company cope up?

Why there has been such an increase in interest by business firms in international and export marketing?

Will this interest continue to increase?

Why or why not?

Class Exercise