Exporting
Exporting refers to the process of selling goods or services produced in one country to another. It involves various activities such as market research, pricing, distribution, and promotion to reach international customers. Exporting allows businesses to expand their market reach, increase sales, and diversify their customer base.
8 Key excerpts on "Exporting"
eBook - ePub- Stanley Paliwoda, Michael Thomas(Authors)
- 2013(Publication Date)
- Routledge(Publisher)
...Exporting would require the use of only four Ps, whereas international marketing requires the six Ps, of megamarketing. To export means simply to send or carry abroad, especially for trade or sale. Marketing goes beyond that, introducing the concept of the end-user, moving the orientation away from finding sales for a company’s existing products to analysing the market and assessing whether the company is able to produce a product or service for which there is either current or potential demand, given that other factors can be controlled, such as price, promotion and distribution (Paliwoda, 1991). International marketing requires greater commitment, and that may mean executive time and resources, much more than does Exporting. Exporting may be simply a short-term solution to an immediate problem of under-capacity of production or over-capacity of stocks. Marketing identifies market needs, either current, potential or latent. Marketing helps to bridge the information gap between the company and the final consumer of its product. Exporting, on the other hand, is deemed to be successful whenever a sale is concluded. That sale will usually be with a trade intermediary. The company doing the Exporting has achieved a profitable sale, but knows little or nothing about the final market for his product, nor will he receive any ongoing communication about how his product is received and what customers think of it. It may be a very bad product or may simply not be selling through the distribution system to the final consumer,, but just gathering dust because trade margins are too low. In any event the final consequence will be known but not the reasons. International marketing offers then a reasoned management approach to international markets whereas Exporting is more of an adventure in realizing short-term gains. Root (1987) lists out a number of characteristics between what we may term an export sales approach and an international marketing approach...
eBook - ePub- Kenneth D. Weiss(Author)
- 2011(Publication Date)
- Wiley(Publisher)
...6 Marketing in the United States and Abroad However you start your business, with a buyer or with a product, your long-term success will depend very much on your skills in marketing. For import and export merchants the most critical business functions are purchasing and marketing, and the job of an import or export agent is almost entirely marketing. WHAT IS MARKETING? Traditionally, marketing is described as the group of activities required to move goods and services from producers to consumers in order to satisfy consumers’ needs and wants. Consumers can be either individuals or industrial organizations including wholesalers and retailers, manufacturing companies, hospitals, restaurants, government entities, and so on. The major functions of marketing—the famous four Ps—are product, price, promotion, and place. The word “product” refers to the product and all its characteristics including its package and label. The word “price” includes the intricacies of pricing at all levels in the channel of distribution. “Promotion” includes advertising, public relations, and other ways of enticing consumers to buy the product or service, and “place” refers to the distribution system, which ends in a place where the final buyer (consumer or industrial) can obtain the product. In this age of the Internet, the place is often virtual rather than physical. The way the four Ps are combined is referred to as the marketing mix. For example, your imported caviar might be very high in quality, which will obligate you to set a high price. Your exported razor blades might be distributed very widely, which will allow you to spend less money on promoting them. The idea is to blend the four elements in a way that will maximize your profit. In practice, you will probably find yourself rearranging the four Ps. First, you will probably improve your product on the basis of information from potential buyers...
- Nigel Piercy(Author)
- 2014(Publication Date)
- Routledge(Publisher)
...This said, it is also necessary to recognise the practical tools of export marketing. The purpose of this chapter is to provide an overview of the major market and marketing decisions in Exporting, and to emphasise the fundamental shaping impact on these factors of export market strategy and the firm’s competitive base. Export marketing decisions The objective of clarifying the essential link between the strategic and operational aspects of export marketing is met, firstly, by assessing the issues of market definition and selection, which lead almost inevitably to the question of export marketing information, and secondly, by an analysis of the export marketing mix, and particularly how it differs from the domestic marketing programme. Market Definition The commonest way of defining and describing export markets is in terms of countries, and while this is an improvement on dividing the world into two markets – the UK and export – it is far from satisfactory. Market definition remains a difficult marketing planning issue, and no easy answers are available. On the one hand, physical market measurements are concerned simply with market size, potential, trends and shares. These have value in giving attention to such factors which reveal opportunities and threats, but do nothing to tackle the question of what market the firm should be monitoring. While physical market measurements are important in assessing product-markets and country-markets, what is of deeper, strategic significance is answering the classic question, ‘What business are we in?’ (Levitt, 1960). The ‘marketing myopia’ arguments (Levitt, 1960) warn against the dangers in seeing markets just as products, which can quickly become obsolete, and instructs that markets should be defined in terms of customer needs, which tend to be more fundamental and stable. For example, offices do not need typewriters, they need ways of presenting and duplicating communications...
eBook - ePub- The Staff of Entrepreneur Media, Inc., Jason R. Rich(Authors)
- 2021(Publication Date)
- Entrepreneur Press(Publisher)
...CHAPTER 11 Advertising, Marketing, and Distribution A s an international trader, your mission is sales—in three different but overlapping arenas: 1. Knowing what your customers want and need so you can market to their needs and sell accordingly 2. Selling yourself and your company to clients as an import/export manager for their products 3. Selling the products themselves to representatives and distributors Success in any one of these arenas will ultimately contribute to your success in the others. Once you’ve established a favorable sales record with one client’s goods, you’ll have a track record with which to entice other clients. However, don’t fall into the trap of assuming that one size fits all. Each satisfied customer will contribute to your own self-confidence, which will lend that air of confidence to your negotiations with new prospects. So, which comes first, selling the product or yourself? The answer is: neither. Knowing the wants and needs of your customers (as well as potential customers and clients) comes first. You could have a great product or be a great salesman, but if your customers don’t want or need what you’re selling, you’re out of luck. Next, you’ll need to sell your company and yourself, because until you have a client’s trust, you’re not going to get very far. Marketing your import/export management company involves two main steps: 1. Convincing a prospective client that they have a product worth Exporting to customers who want what they’re selling 2. Persuading a potential client that you’re operating a company that they can trust to do the job Hunting for Exports A surprisingly small percentage of domestic producers export their wares. Your marketing goal is to convince the huge remainder that they can increase profits by Exporting—with your guidance—to specific target countries...
eBook - ePub- John Westwood(Author)
- 2012(Publication Date)
- Kogan Page(Publisher)
...CHAPTER FIVE DEVELOPING AN EXPORT STRATEGY AND PREPARING AN EXPORT PLAN A ny company that decides to start Exporting needs to develop its own export strategy. This should be easily understood by all company personnel and should provide a clear idea of why you are Exporting and what you expect to achieve. From your export strategy you can develop your export plan – that is, a marketing plan for export markets that will define how entry into export markets will be made. It needs to include your specific marketing objectives and the marketing strategies and tactics to achieve them. It should also include details of the resources that will be required – both personnel and financial resources as well as an adequate budget to cover the export start-up costs. A company that is already Exporting should prepare an export marketing plan every year as part of their planning and budgetary process. In addition to this, as companies expand their export sales they will normally prepare individual plans to support their strategies of developing sales in a particular existing export market. Developing your export strategy Successful exporters always know exactly why they are Exporting and the results and benefits that they expect to achieve. A sound export strategy: • shows that your company is developing its business in a professional way; • provides direction to your staff; • ensures that those who were involved in developing the strategy will buy into it and support it; • is a useful tool when dealing with your bank and with government support agencies. The starting point in developing your export strategy is to identify the key factors that influenced your decision to start Exporting. You need to make a list of all the issues that made you decide to export, discuss them with key members of staff and rank them in order of importance to the success of your business. Choose the five most important factors from this list and develop your export strategy around them...
eBook - ePubGlobal Business
Positioning Ventures Ahead
- Michael R. Czinkota, Ilkka A. Ronkainen(Authors)
- 2010(Publication Date)
- Routledge(Publisher)
...The process does become more flexible and market-driven as the company gains global marketing experience. Exporters often differ in pricing approaches according to nationality. For example, Korean companies price more competitively in international markets than they do domestically, while U.S. businesses seem to consider costs and profits more when setting export prices. Exports costs include the typical domestic expenses plus those involved in: Modifying the product for additional markets Running the export operation, including personnel, market research, additional shipping and insurance costs, communications with overseas customers, and promotions Entering global markets, including tariffs and taxes, those associated with commercial credit and political risks, and foreign exchange risks When marketers factor in these expenses, export prices far exceed domestic rates. Complicating price escalation is the fact that price increases can be in different amounts in different regions or markets. When customers are willing to shop around before purchasing, the price differentials create problems for distributors and can lead to companies abandoning markets. Overcoming Price Escalation Global marketers often overcome price escalation by developing creative strategies based on the market situation. Typical methods focus on cost cutting. Some include: Reorganizing and shortening the distribution channel, often by cutting out intermediaries Adapting the product by using less expensive ingredients, removing features, or changing packaging Using new or more economical tariff or tax classifications, sometimes by looking for alternative categories or by lobbying Assembling or producing overseas. SETTING PRICES FOR FOREIGN OPERATIONS The process involved with price setting for products or services manufactured in nondomestic locations and sold to customers outside the corporation is similar to that used when setting export prices...
eBook - ePub- Robert H. Scarlett, Lawrence E. Koslow, J.D., Ph.D.(Authors)
- 2009(Publication Date)
- Routledge(Publisher)
...Exporting DOI: 10.4324/9780080507415-6 Exporting products and services goes to the very heart of global business and for most companies it might be all they choose to do. Not all Exporting is the direct sale to a purchaser in another country. Some businesses sell to customers in their domestic markets who in turn export the product. In this case, the seller should still be interested in how its products are sold, used, and warranted as poor initial presentation might increase the difficulties for future sales. Exporting, whether direct or indirect, raises a whole host of issues, such as product modification, packaging, pricing, and inventory. These and other issues will be discussed in this section. 71 Exporting—Pros and Cons Making the decision to export requires that you examine the advantages and disadvantages of entering the international marketplace. Advantages Sales and income through new markets are increased. Customer base is diversified and dependence on your home market is reduced. Increased income is available to become more competitive in the home market. Research and development expenditures are more affordable. Existing jobs are saved and more are created. Seasonal sales and other fluctuations are stabilized. Disadvantages Existing products and/or packaging may need to be altered. New promotional materials need to be developed. Initial start-up costs must be budgeted. Additional administrative staff is required. Difficulty in currency conversions and/or collections may occur. Additional capacity may be required. Higher travel costs will be incurred. 72 Avoiding Surprises When Exporting Once you have determined that your product definitely has a place in a particular overseas market, it's important to “stop, look and listen,” before stepping onto the export track...
eBook - ePubExport & Expand
8 essential steps to take your business global
- Rupert Sutton(Author)
- 2018(Publication Date)
- Weben Partners(Publisher)
...Sales The job of export sales staff is to find, manage and work with customers in order to achieve defined commercial goals. The skills required include the ability to communicate; they need to actively listen, question, and understand customer needs. Sales personnel also need to be persuasive and have the ability to negotiate. Capable export sales staffs typically have broad industry experience plus many trade contacts. 3. Marketing Export Marketing’s role is to grow market share and profit by building a strong, unique brand and product range that meets consumer and shopper needs. Strong marketers are typically inquisitive, enjoy learning, understanding and can extract powerful insights from a wide variety of information. Strong marketers are also creative, culturally sensitive, team players. They usually have deep product and competitor knowledge and are flexible and adaptable to changing market trends. 4. Logistics The role of logistics is to build and manage a time and cost-efficient supply chain system. It typically involves working with many third parties. Logistics staffs are strong project managers with well honed planning, organisational, analytical, as well as, sales forecasting skills. They usually have experience in a variety of procurement, logistical, freight forwarding or warehousing roles. 5. Finance The task of finance is to establish, report and manage the key financial drivers of the export business. This role includes analysis, auditing, cash flow, as well as, trade financing and currency management. Their experience will be in finance or product costing or possibly banking, often with a professional financial qualification. 6. Administration Administration’s role is to efficiently manage and keep records of export business transactions and processes. Their skills include planning, organising, record keeping and filing...
