Page 209 - DMGT547_INTERNATIONAL_MARKETING

International Marketing

Notes an exporter has to follow certain procedural routines while executing an export shipment and
therefore and he must be fully aware of the drill.

12.1 Procedure of Export

To Export means to sell in another country. This involves complex procedures, including filing
and exchange of documents, both in the country of Export (from where items are to be shipped/
dispatched) and in the country of Import (where these items are to be discharged/delivered).
The requirement of documentation arises due to the fact that the items that are exported are to
be sold to someone who is thousands of miles away, speaking a different language, having
different customs, preferences, currency and import regulations. In order to facilitate trade with
other countries, certain sets of rules have been developed by the trading nations over the
centuries, which are normally followed in foreign trade today. The International Trade is
governed by rules made by the World Trade Organization (WTO).
There are six steps in Export Procedure, these are following.
1. Evaluate Your Export Potential: First analyze your company’s possible competitive
advantages abroad and then decide if you have the financial resources to support exporting.
Analyze the pros and cons of market expansion: Identify success factors within your
domestic market and determine if the same factors, such as price or brand image,
can be replicated in foreign markets. Explore expansion possibilities in the domestic
market, whether or not to expand at all, or innovating new products for the domestic
market.
Research your competitive advantages abroad: Compare the product or service advantages
and disadvantages with those of likely competitors. Some questions you should ask
yourself in determining these advantages and disadvantages include: Can we sell
the product abroad without changing its form or the manner in which it is marketed?
Can we sell the same product but for a different use? Will we have to change product
to make it export worthy? Should we develop a new product for targeted foreign
markets?

Determine your financial resources: Once competitive advantages and the pros and
cons of market expansion are determined, determine financial resources to support
exporting.

2. Country/Market Research: Countries must be evaluated for their receptiveness to trade
and investment.
Evaluate the Demographic/Physical Environment: Look at population size, growth, and
density, urban and rural distribution, climate and weather variations, transportation
and communication networks, and the use of electricity. A country with a growing
population may be a suitable indicator, but you must also look at the ability of the
population to purchase imports. If the population’s ability is widely dispersed,
reaching consumers will be difficult. On the other hand, if the population is crowded
into cities, reaching it will be easy; however, the costs of warehouse space in congested
areas may be high.
Assess the Social/Cultural Environment: Research the literacy rate and education, health
of a population, existence of a middle class, language issues, and cultural issues.

Example: If people cannot read labels, then imported goods may have to rely on logos
and symbols to create brand recognition and communication with customers.

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