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20 Cards in this Set
- Front
- Back
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Export selling |
Involves selling the same product,at the same price, with the same promotionaltools in a different place |
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Export marketing |
Tailors the marketing mix tointernational customers |
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Requirements forExport Marketing |
- An understanding of the target marketenvironment - The use of market research and identificationof market potential - Decisions concerning product design, pricing,distribution and channels, advertising, andcommunications |
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OrganizationalExport Activities |
1. The firm is unwilling to export; it will not evenfill an unsolicited export order. 2. The firm fills unsolicited export orders butdoes not pursue unsolicited orders. Such a firmis an export seller. 3. The firm explores the feasibility of exporting(this stage may bypass Stage 2). 4. The firm exports to one or more markets on atrial basis. 5. The firm is an experienced exporter toone or more markets. 6. After this success, the firm pursuescountry- or region-focused marketingon certain criteria. based 7. The firm evaluates global marketpotential before screening for the “best” targetmarkets to include in its marketing strategyand plan. |
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Potential Export Problems |
- Logistics - Legal Procedure - Servicing Exports - Sales Promotion - Foreign Market Intelligence |
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National Policies GoverningExports and Imports |
Most nationsencourage exportsand restrict imports |
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Government Programs thatSupport Exports |
• Tax incentives • Subsidies • Governmentalassistance • Free trade zone |
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Governmental Actions to DiscourageImports and Block Market Access |
• Tariffs • Importcontrols • Nontariffbarriers – Quotas – Discriminatoryprocurement policies – Restrictive customsprocedures – Arbitrary monetarypolicies – Restrictive regulations |
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Tariff Systems |
• Single-column tariff – Simplest type of tariff – Schedule of duties in which rate applies to importsfrom all countries on the same basis • Two-column tariff – General duties plus special duties apply |
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Preferential Tariff |
• Reduced tariff rate applied to imports fromcertain countries • GATT prohibits the use, with three exceptions: – Historical preference arrangements already existed – Preference is part of formal economic integrationtreaty – Industrial countries are permitted to grantpreferential market access to LDCs |
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Customs Duties |
• Ad valorem duty – Expressed as percentage of value of goods • Specific duty – Expressed as specific amount of currency per unitof weight, volume, length, or other unit ofmeasurement • Compound or mixed duties – Apply |
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Other Duties andImport Charges |
• Anti-dumping Duties – Dumping is the sale of merchandise in export markets at unfair prices – Special import charges equal to the dumpingmargin • Countervailing Duties • Variable Import Levies • Temporary Surcharges |
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Key Export Participants |
• Foreign purchasingagents • Export brokers • Export merchants • Export managementcompanies • Export distributor • Export commission representative • Cooperative exporter • Freight forwarders • Manufacturer’sexport representatives |
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Organizing for Exporting in theManufacturer’s 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 aninternational division – For multi-divisional companies; each possibilityexists for each division |
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Organizing for Exportingin the Market Country |
• Direct market representation – Advantages: control and communications
• Representation by independentintermediaries – Advantages: best for situations with small salesvolume |
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Export Financing andMethods of Payment |
• Documentary credits (letter of credit) • Documentary collections (bill of exchange) • Cash in advance • Sales on open account • Sales on consignment basis |
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Customs Trade PartnershipAgainst Terrorism |
- The U.S. Customs andBorder Patrol inspectscargo - C-TPAT aims to havebusinesses certify theirsecurity and that oftheir partners - They get inspectionpriority |
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Duty Drawback |
- Refunds of duties paid on imports that areprocessed or incorporated into other goodsAND re-exported - Reduce the price of imported productioninputs - 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 tojoin the WTO |
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Sourcing |
• Must emphasize benefits of sourcing fromcountry other than home country • Must assess vision and values of companyleadership • Advantage can be gained by – Concentrating some of the marketing activities in a single location – Leveraging company’s know-how – Tapping opportunities for product development andR&D |
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Factors that Affect Sourcing |
- Management vision - Factor costs and conditions - Customer needs - Logistics - Country infrastructure - Political risk - Exchange rate, availability,and convertibility of localmoney |
