- Selection of Markets is the first step in international marketing, it is important that the right product is marketed in right markets. After carefully selecting the market the exporter has to decide the method of entry in the market. There are eventually two ways to enter a foreign market, namely indirect and direct, in the indirect method the exports are almost equivalent to domestic sale and it is done in two ways namely (a) selling to a merchant exporter or export house in India and (b) selling to visiting/resident buyers. However, in direct exporting, the manufacturers takes upon himself the task of managing the export sale.
Participation in Trade Fair
- The exporter may also participate in the trade fairs organised in india and abroad in order to explore the possibilities/opportunities offered by them.
- Another important tool before entering into export market is market research as it helps the exporters in decision making. The need for market research, arises to provide a sound database which help the management in taking decisions regarding new product launching, product adaptation and in developing comprehensive and strategic marketing plans
- The pace of export expansion is an important determinant of economic growth in developing countries. And for achieving the desired rate of growth in export, effective pricing policing for exports constitutes an essential elements. Export pricing assumes strategic significance especially because of the relatively lower technological base of developing economics resulting in higher cost of production. Pricing is like a tripod, the three legs being costs, demand and competition.
Selection of Agent
- Many exporters who have a marketable, appropriately priced, good product and who are able to develop and finance a marketing support plan encounter export difficulty in spite of all these advantages, because they select an overseas agent haphazardly. An exporters need to take four basic steps to solve this problem. He may (a) determine his marketing requirements (b) established contacts with prospective agents (c) evaluate the list of agents and select a suitable one (d) appoint agent.
- There are various modes through which an exporter can promote its merchandise namely advertisments in foriegn publications/trade journals in the identified markets and also in the reputed Indan publications. The exporters may also create a CD ROM catolog of it products along with a website providing an insight into its activities/products.
Terms of Payment<
- The nature of credit terms offered by the suppliers is very decisive in obtaining order.
- In the contract of sale, it is important that the principle parties to the contact viz. seller and buyer do know clearly, and without any ambiguities, their respective rights and obligations. What is it that each of them is supposed to do under the contract and what does one get in consideration for the fulfillment of the obligations set out in the contract? The International Chamber of Commerce (ICC) has spelled out clear cut rules of international trade in order to avoid ambiguities.
- Financing the exports is an important aspect which the exporters need to plan in advance. There are two different stages of finance for the exporters namely (a) pre-shipment and (b) post shipment. During pre-shipment the finance is needed for purchase/procure, for processing, for manufacturing, for assembling, for packaging and for shipping. During post shipment the finance is needed for providing facilities to overseas customers till such time as the proceeds are realized.
- The other mandatory documentations required for exports also need to be taken care of by the exporters. For this he may take the assistance of Director General Foreign Trade (DGFT), Indian Institute of Foreign Trade (IIFT), India Trade Promotion Organization (ITPO), respective Export Promotion Councils (EPCs), Foreign Embassies in India, Buying Agents, Freight Forwarding Agents etc.
The publications of the following export promotion organisations / Agencies and institutions can also be used for additional information
Federation of Indian Export Organisation (FIEO)
Rao Tula Ram Marg,
Opp Army Hospital R & R
Indian Institute of Foreign Trade (IIFT)
B-31, Mehrauli Institutional Area,
Tel: 91-11-26965124, 26965051, 26965300.
Fax: 91-11-26853956, 26857851.
India Trade Promotion Organisation (ITPO)
Pragati Bhawan, Pragati Maidan,
New Delhi - 110001.
Tel: 91-11-23371540, 23318143.
Fax: 91-11-23371492, 23371493.
National Centre for Trade Information (NCTI)
NCTI Complex, Pragati Maidan,
New Delhi - 110001.
Tel: 91-11-23371948, 23371950, 23371953.