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Export Selling vs. Export Marketing

The document discusses the differences between export selling and export marketing. Export selling involves selling the same product at the same price internationally, while export marketing tailors the marketing mix to international customers. Export marketing requires an understanding of the target market, use of market research, and decisions around product, pricing, distribution, advertising, and communications. The document also outlines various government programs and trade barriers involved in international trade.

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373 views22 pages

Export Selling vs. Export Marketing

The document discusses the differences between export selling and export marketing. Export selling involves selling the same product at the same price internationally, while export marketing tailors the marketing mix to international customers. Export marketing requires an understanding of the target market, use of market research, and decisions around product, pricing, distribution, advertising, and communications. The document also outlines various government programs and trade barriers involved in international trade.

Uploaded by

audityaeros
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Export Selling vs.

Export
Marketing

Export selling involves selling the same product,
at the same price, with the same promotional
tools in a different place

Export marketing tailors the marketing mix to
international customers

2015 by Pearson Education 8-1
Requirements for
Export Marketing
An understanding of the target market
environment
The use of market research and identification
of market potential
Decisions concerning product design, pricing,
distribution and channels, advertising, and
communications

2015 by Pearson Education 8-2
Potential Export Problems
2015 by Pearson Education 8-3
National Policies Governing
Exports and Imports
Most nations
encourage exports
and restrict imports
In 2011, the total was
$2.7 trillion
European Union trade,
domestic and foreign,
is $3 trillion +

2015 by Pearson Education 8-4
Top 10 Clothing Exporters
2011 ($ billions)
2015 by Pearson Education 8-5
Government Programs that
Support Exports
Tax incentives
Subsidies
Governmental
assistance
Free trade zones

The Miami Free Trade Zone, near the airport
and port of Miami, manages transactions of
over $1 billion of trade a year.
2015 by Pearson Education 8-6
Governmental Actions to Discourage
Imports and Block Market Access
Tariffs
Import controls
Nontariff barriers
Quotas
Discriminatory
procurement policies
Restrictive customs
procedures
Arbitrary monetary
policies
Restrictive regulations

Portland, Oregon Customs Center
2015 by Pearson Education 8-7
Examples of Trade Barriers
2015 by Pearson Education 8-8
Tariff Systems
Single-column tariff
Simplest type of tariff
Schedule of duties in which rate applies to imports
from all countries on the same basis

Two-column tariff
General duties plus special duties apply

2015 by Pearson Education 8-9
Preferential Tariff
Reduced tariff rate applied to imports from
certain countries
GATT prohibits the use, with three exceptions:
Historical preference arrangements already
existed
Preference is part of formal economic integration
treaty
Industrial countries are permitted to grant
preferential market access to LDCs

2015 by Pearson Education 8-10
Customs Duties
Ad valorem duty
Expressed as percentage of value of goods
Specific duty
Expressed as specific amount of currency per unit
of weight, volume, length, or other unit of
measurement
Compound or mixed duties
Apply
2015 by Pearson Education 8-11
Other Duties and
Import Charges
Anti-dumping Duties
Dumping is the sale of merchandise in export
markets at unfair prices
Special import charges equal to the dumping
margin
Countervailing Duties
Variable Import Levies
Temporary Surcharges

2015 by Pearson Education 8-12
Key Export Participants
Foreign purchasing
agents
Export brokers
Export merchants
Export management
companies

Export distributor
Export commission
representative
Cooperative exporter
Freight forwarders
Manufacturers export
representatives

2015 by Pearson Education 8-13
Organizing for Exporting in
the Manufacturers Country
Exports can be handled
As a part-time activity performed by domestic
employees
Through an export partner
Through an export department
Through an export department within an
international division
For multi-divisional companies; each possibility
exists for each division

2015 by Pearson Education 8-14
Organizing for Exporting
in the Market Country
Direct market representation
Advantages: control and communications

Representation by independent
intermediaries
Advantages: best for situations with small sales
volume

2015 by Pearson Education 8-15
Trade Financing and
Methods of Payment

Documentary credits (letter of credit)
Documentary collections (bill of exchange)
Cash in advance
Sales on open account
Sales on consignment basis

2015 by Pearson Education 8-16
Documentary Credit
2015 by Pearson Education 8-17
Documentary Credit (Cont)
2015 by Pearson Education 8-18
Duty Drawback
Refunds of duties paid on imports that are
processed or incorporated into other goods
AND re-exported
Reduce the price of imported production
inputs
Used in the U.S. to encourage exports
After NAFTA, U.S. reduced drawbacks on
exports to Canada and Mexico
China had to reduce drawbacks in order to
join the WTO

2015 by Pearson Education 8-19
Sourcing
Must emphasize benefits of sourcing from
country other than home country
Must assess vision and values of company
leadership
Advantage can be gained by
Concentrating some of the marketing activities in a
single location
Leveraging companys know-how
Tapping opportunities for product development and
R&D

2015 by Pearson Education 8-20
Factors that Affect Sourcing
Management vision
Factor costs and conditions
Customer needs
Logistics
Country infrastructure
Political risk
Exchange rate, availability,
and convertibility of local
money

2015 by Pearson Education 8-21
End of part 1

2015 by Pearson Education 22

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