Page 88 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

Unit 4: Export Marketing – Going Global

Notes

Task Supposing you are a manufacturer of handicrafts in India, what schemes of the
office of the DC (H) will help you to explore export opportunities?
Visit the website of GAP Inc. at www.gapinc.com. Try to create a plan to approach them
for export orders assuming you are a fashion garments exporter from Delhi.

4.4 Approaches to Reach Buyers

The way company chooses to export its products can have a significant effect on export plan and
specific marketing strategies. There are at least four approaches, which may be used alone or in
combination:
Passively filling orders from domestic buyers who then export the product. These sales are
indistinguishable from other domestic sales as far as the original seller is concerned. Someone
else has decided that the product in question meets foreign demand. That party takes all the risk
and handles all of the exporting details, in some cases without even the awareness of the original
seller. (Many companies take a stronger interest in exporting when they discover that their
product is already being sold over-seas.)
Seeking out domestic buyers who represent foreign end users or customers. Many U.S. and foreign
corporations, general contractors, foreign trading companies, foreign government agencies,
foreign distributors and retailers, and others in the United States purchase for export. These
buyers are a large market for a wide variety of goods and services. In this case a company may
know its product is being exported, but it is still the buyer who assumes the risk and handles the
details of exporting.
Exporting indirectly through intermediaries. With this approach, a company engages the services
of an intermediary firm capable of finding foreign markets and buyers for its products. EMCs,
ETCs, international trade consultants, and other intermediaries can give the exporter access to
well-established expertise and trade contacts. Yet, the exporter can still retain considerable
control over the process and can realize some of the other benefits of exporting, such as learning
more about foreign competitors, new technologies, and other market opportunities.
Exporting directly. This approach is the most ambitious and difficult, since the exporter personally
handles every aspect of the exporting process from market research and planning to foreign
distribution and collections. Consequently, a significant commitment of management time and
attention is required to achieve good results. However, this approach may also be the best way
to achieve maximum profits and long-term growth.

Self Assessment

Fill in the blanks:

1. ....................... involves identifying customer needs and satisfying the same through goods
and services designed around those needs.
2. ............................ can be defined as identifying willing foreign buyers whose needs could
best be met using our products and delivering satisfaction through supply of goods in
their.

3. ............................................ provide opportunities to display one’s goods and capabilities
and also serve as an effective platform for personal interaction between buyers and sellers
4. Communicating with ............................ buyers effectively requires a thorough understanding
of their language, culture, and social etiquette.

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