Page 159 - DMGT310_ENTREPRENEURSHIP_AND_SMALL_BUSINESS_MANAGEMENT

Entrepreneurship and Small Business Management

Notes Variability

In the production and marketing of physical products, companies have increasingly paid special
attention to ensuring consistency in quality, feature, packaging, and so on. More often than not
all customers can be sure that every bottle of Coke he/she buys, even in a life-time of purchases,
will not vary. The provision of services, however, invariably includes a large measure of the
“human element”.
Indeed, with many services, we are purchasing nothing else but the skills of the suppliers.
Because of this, it is often very difficult for both supplier and consumer to ensure a consistent
“product” or quality of service.

Inseparability

A key distinguishing feature of service marketing is that the service provision and provider are
inseparable from the service consumption and consumer. For example, we cannot take a hotel
room home for consumption; we must “consume” this service at the point of provision. Similarly,
the hairdresser needs to be physically present for this service to be consumed.

This has implications both for channels of distribution and scale of operations.

Self Assessment

Fill in the blanks:
9. Pricing is an important ……………. of marketing.
10. …………… is the exchange of products for other products.

11. ………………….. -oriented pricing is common where firms submit sealed bids for jobs.
12. Blue-ray and videogames are often sold using the ……………. approach once they reach
the end of their product life cycle.

10.4 Export Marketing

Export marketing means exporting goods to other countries of the world. It involves lengthy
procedure and formalities. In export marketing, goods are sent abroad as per the procedures
framed by the exporting country as well as by the importing country. Export marketing is more
complicated to domestic marketing due to international restrictions, global competition, lengthy
procedures and formalities and so on. Moreover, when a business crossed the borders of a
nation, it becomes infinitely more complex. Along with this, export marketing offers ample
opportunities for earning huge profits and valuable foreign exchange.
According to B. S. Rathor, “Export marketing includes the management of marketing activities
for products which cross the national boundaries of a country”.

Export marketing has wider economic significance as it offers various advantages to the national
economy. It promotes economic/business/industrial development, to earn foreign exchange
and ensures optimum utilization of available resources. Every country takes various policy
initiatives for promoting exports and for meaningful participation in global marketing. Global
business is a reality and every country has to participate in it for mutual benefits.
Every country has to open up its markets to other countries and also try to enter in the markets
of other countries in the best possible manner. This is a normal rule which every country has to
follow under the present global marketing environment. In the absence of such participation in
global marketing, the process of economic development of the country comes in danger.

154 LOVELY PROFESSIONAL UNIVERSITY