This document provides an overview of export marketing. It discusses the differences between domestic and international marketing, and highlights key considerations for marketing products in other countries. These include researching individual country markets in terms of regulations, competition, infrastructure and more. The marketing mix of product, price, place and promotion is also reviewed. Additional topics covered are pricing strategies, product life cycles, distribution channels, logistics, and responding to trade leads. The overall summary is that export marketing requires in-depth research of target country markets and consideration of various factors like regulations, distribution, pricing to successfully market and sell products abroad.

1. Export Marketing TekleSebahtu Ph.D. March 25, 2011 http://www.stcinternational.us stcintL@q.com

2. Export Marketing Agenda Domestic versus international marketing Researching individual country Marketing mix Finding buyers (trade leads) Help available!

3. Domestic Versus Global Marketing Is international marketing different from domestic? “Is good marketing always good marketing?” 1. Countries are different. 2. Problems are more complex. 3. Must work within government regulations. 4. Different infrastructure

4. Researching Individual Country Markets Government regulations Political climate Socio-economic factors Targeting Individual Country Markets Level of competition Market potential Similarities to existing markets Infrastructure

5. Promotion Marketing Mix Product Price Marketing Mix Place

6. Landed Cost Major Elements Merchandise cost Product origin charges Packing, inland freight, terminal charges Transportation charges Ocean/inland to destination/ warehouse Destination charges Unloading, terminal, harbor maintenance fee Clearance Duty, bond fees Administrative Banking, insurance, warehouse

7. Pricing Strategy Predatory pricing: Reducing price below market value Advantage – discourages competition Multipoint pricing strategy: A firm’s pricing strategy in one market may different from another market. Skimming pricing strategy Use of high price Allows firm to recover R&D Disadvantage – invite competition

8. Most Common Product Pricing Cost Plus Pricing Method Marginal Cost Pricing Method

9. The Product Life Cycle Market Introduction Market Growth Market Maturity Sales Decline + $ 0 Time -

10. Distribution Consideration Which entry mode will be used? Which channel of distribution will be used? What type of intermediary will be used? What criteria will you use to select your intermediary? Is an EMC or ETC an option?

11. Logistics (Physical distribution) Strategy Planning for Distribution Firms or individuals who participate in the flow of products from producer to the end-user of the product Channels of distribution Two different perspectives Physical movement of goods including transporting, storing, and handling from the producer to the channel or end-user of the product.

12. Selection of Channel Direct Exporting vs. Indirect Exporting

13. Direct Channel Producer (US) Producer (US) Foreign Distributor Foreign Agent Foreign Retailer Foreign Retailer Foreign End-user Foreign End-ser Foreign End-user

14. Direct Exporting Overseas sales representative Agent or representative Distributor Foreign retailer End user

15. Producer (US) Indirect Channel Domestic Distributor or Agent Foreign Retailer/Dist/Agent Foreign End-user

16. Indirect Exporting Export Management Companies (EMC) Export Trading Companies (ETC) Buying agent (Confirming houses) Piggyback Marketing Export agents??? Merchants or Re-Marketers???

20. Responding to Trade Leads Provide enough information for buying decision to be made Do not fall into the sample trap Understand that foreign distributors do not make fast decision Take time to know your buyer Understand Process selling to end-users versus distributors Use commonsense

21. Responding to Trade Leads (Cont…) Identify and take time to know your buyer Be wary for letters to invite a potential buyer Invest some time and money to publicize your company electronically Use some commonsense

22. Questions?