export tybcom

1. INTRODUCTION TO EXPORT
MARKETING
R.L.Kramer defines “export marketing involves export
business with individual firms, organizations and or
govt entities in other countries”
“A systematic process of designing and delivering
products to satisfy overseas customers and to
achieve objectives of the firm”

2. FEATURES
• Large scale operations.
• Diverse customs and traditions.
• Subject to regulations.
• Systematic process.
• Customer focus.
• Trade business.
• Trading blocs.
• Documentation.
• Dominance of multinational corporations.
• Marketing – mix.
• Spreading of risks.

3. NEED / IMPORTANCE for developing
countries
• Economic Growth.
• Optimum use of resources.
• Standard of living.
• Foreign exchange.
• International relations.
• Balance of payments.
• Reputation in the world.
• Employment.
• Research and development.
• Regional development.

4. IMPORTANCE FOR A FIRM
• Optimum production.
• Spreading of risks.
• Reputation.
• Economies of scale.
• Keeping alive old products.
• Higher prices.
• Research and development.
• Organizational efficiency.
• Liberal incentives.
• Liberal imports.

5. MOTIVATIONS
• Competition in domestic market.
• Saturation of domestic market.
• Economies of scale.
• Economic growth.
• Rate of profit.
• Product development costs.
• Product life considerations.
• Sales and production stability.
• Government policies.
• Information and media production.
• World trade organization.

6. PROBLEMS FACED BY INDIAN EXPORTS
• SEA PIRATES attacks.
• Recession in world markets.
• Competition from china.
• Product standards.
• Reduction in export incentives.
• Problem of anti-dumping duties.
• Foreign exchange regulation.
• Subsidies by developed countries.
• Documentation formalities.

7. TRENDS IN WORLD TRADE SINCE 2000
• The financial crisis resulted in full blown global recession which resulted in
considerable fall in global trade.
• IMF estimates.
• World bank estimates.
EXPORT GROWTH IMPORT GROWTH
India 18.2 -2.6
China -1.2 26.7
EU 11.4 5.2
USA -2.5 -3.8
Japan 1.5 -9.9
Hong-kong 1.3 6.5
Singapore 13.3 4.4

8. COMPOSITION SINCE 2000
• Agriculture & allied products.
• Ores and minerals.
• Manufactured items.
• Mineral fuels & lubricants.
products 2000-01 2008-09
Agro items 14.0 9.1
Ores 2.0 4.2
Manufacd 79.0 66.4
Fuel 4.3 14.9
Others 0.7 5.4
Total(%) 100 100.0
Total us $ 44.6 185.3

9. DIRECTIONS SINCE 2000
• Export to OECD
countries.
• OPEC countries.
Group 2000-01 2007-08
• Eastern Europe. OECD 52.7 38.4
• Developing Countries. OPEC 10.9 16.3
E.Europe 3.0 2.1
Russia 2.0 0.6
Developing 29.2 42.6
countries
Others 4.2 0.4
Total % 100 100
Us $ 44.6 163.1

10. Reasons for India's poor share in world
trade
• High prices.
• Inadequate promotion.
• Poor follow up of sales.
• Poor quality.
• Poor negotiation skills.
• Poor infrastructure.
• Presence of good domestic market.
• Documentation and formalities.
• Negative attitude of overseas buyers.
• Problem of trading blocs.

11. Sunrise export & service export
• Sunrise products are those • Software services.
products, which Indian exporters
have lately begun to export in the • Business services.
overseas markets, & such
products have a growing demand • Transportation.
in the world markets. • Travel.
• Some of the sunrise products
include horticulture products • Financial services.
such as fruits and vegetables,
value added marine products,
• Communication
processed fruits and vegetable services.
products, value added meat
products. • Insurance services.