Page 76 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

Unit 4: Export Marketing – Going Global

Notes
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Caution Usually, initial export marketing results are obtained from having to fulfil
unsolicited export orders. Once the exporter has experienced the success of the game, he
feels more confident of exploring more. He becomes interested and works actively towards
getting more work from foreign buyers.

The success of one exporter might inspire his local competitors to venture into exports as well.
There could be a host of reasons that force or motivate a firm to enter export business.
Figure 4.1: Evolution of Export Marketing

Source: Managing Chaturvedi, Mukesh and Kumar, Aseem, Global Business: A Strategic Perspective,
Excel Books, 2005.
The different stages depicted in Figure 4.1 are explained below:
1. Totally Uninterested firm: A firm that is fully occupied with domestic business and is not
at all interested in exports.
2. Partially Interested firm: A firm that has partial interest in exports but not willing to
make conscious efforts.
3. Exploring firm: A business that is interested and is backing up this interest by exploring
various opportunities.

4. Experimental firm: A firm that has done some export and therefore, is willing to experiment
to get regular export business.
5. Small Exporter: A firm that is regularly exporting small quantities.

6. Large Exporter: A firm that is doing regular large orders for buyers abroad.
7. International firm: A firm that has oriented itself fully with international markets and is
actively pursues newer markets with different strategies.

The table 4.1 given below highlights the shifts from domestic business to export business on
various counts:
Table 4.1 : Shifts from Domestic Business to Export Business
Management emphasis Stage: Domestic Stage: International
Focus Domestic Ethnocentric
Marketing Strategy Domestic International
Structure Domestic International
Management Style Domestic Centralized Top Down
Manufacturing Stance Domestic Mainly Domestic
Investment Policy Domestic Domestic used Worldwide
Performance Evaluation Domestic Market Share Against Home country
Market Share

Source: http://www.fao.org; Global Agricultural Marketing Management (Marketing and Agri-business Texts - 3) by S. Carter
(Food and Agriculture Organization of the United Nations, Rome, 1997)

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