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Assignment on International Marketing:

Assignment on International Marketing Submitted To Prof – Amruta Rege Faculty Of BIMS MBA Submitted By – Shivashankar v Patil Roll Num -45 BIMS MBA

The Procedure for export:

The Procedure for export Golden Rule Sell Experience Selling in Export On-time Deliveries Communication Testing Products Approach Golden Rule: In order to be successful in exporting one must fully research its markets. No one should ever try to tackle every market at once. Many enthusiastic persons bitten by the export bug, fail because they bite off more than they can chew. Overseas design and product requirements must be carefully considered . Always sell as close to the market as possible. The fewer intermediaries one has the better, because every intermediary needs some percentage for his share in his business, which means less profit for the exporter and higher prices for the customer. All goods for export must be efficiently produced. They must be produced with due regard to the needs of export markets. It is no use trying to sell windows which open outwards in a country where, traditionally, windows open inwards.

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Sell Experience: If a person cannot easily export his goods, may be he can sell his experience. Alternatively, he can concentrate on supplying goods and materials to exporters' who already have established an export trade. He can concentrate on making what are termed 'own brand' products, much demanded by buyers in overseas markets which have the manufacturing know-how or facilities . Selling in Export : In today's competitive world, everyone has to be sold. The customer always has a choice of suppliers. Selling is an honorable profession, and you have to be an expert salesman. On-Time Deliveries: Late deliveries are not always an exporters fault. Dock strikes, go-slows, etc. occur almost everywhere in the world. If one enters into export for the first time, he must ensure of fast and efficient delivery of the promised consignment. Communication: Communication internal and external must be comprehensive and immediate. Good communication is vital in export . Testing Product: The risk of failure in export markets can be minimized by intelligent use of research. Before committing to a large-scale operation overseas, try out on a small scale. Use the a sample test, and any mistakes can then be corrected without much harm having been done. While the test campaign may appear to cost more initially, remember that some of the cost will be repaid by sales, so that test marketing often turns out. Approach : If possible some indication of the attitudes towards the product should be established, like any sales operation. Even if the product is successful, to obtain reactions from the customer.

Preliminaries for Starting Export Business :

Preliminaries for Starting Export Business Setting up an appropriate business organization . Choosing appropriate mode of operations Naming the Business Selecting the company Making effective business correspondence Selecting the markets Selecting prospective buyers Selecting channels of distribution Negotiating with prospective buyers Processing an export order Entering into export contract Export pricing and costing Understanding risks in international trade

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Setting up an appropriate business organization. The first and the foremost question you as a prospective exporter has to decide is about the kind of business organisation needed for the purpose. You have to take a crucial decision as to whether a business will be run as a sole proprietary concern or a partnership firm or a company. The proper selection of organisation will depend upon Your ability to raise finance Your capacity to bear the risk Your desire to exercise control over the business Nature of regulatory framework applicable to you Exporters Manual and Documentation Company is another form of business organisation,which has the advantage of distinct legal identity and limited liability to the shareholders. It can be a private limited company or a public limited company. A private limited company can be formed by just two persons subscribing to its share capital. Choosing appropriate mode of operation You can chose any of the following modes of operations : Merchant Exporter i.e. buying the goods from the market or from a manufacturer and then selling them to foreign buyers . Manufacturer Exporter i.e. manufacturing the goods yourself for export Sales Agent/Commission Agent/Indenting Agent i.e. acting on behalf of the seller and charging commission Buying Agent i.e. acting on behalf of the buyer and charging commission

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Naming the Business Whatever form of business organisation has been finally decided, naming the business is an essential task for every exporter. The name and style should be attractive, short and meaningful. Simple and attractive name indicating the nature of business is ideal. The office should be located preferably in a commercial complex, in clean and workable surroundings. The letter head should be simple and superb providing information concerning H.O., branches, cable address, telephone number, fax number, banker's name and address etc. Pick up a beautiful trade name and logo which reinforces your organisation's name and image . Selecting the Company Carefully select the product to be exported. For proper selection of product, study the trends of export of different items from India. The selected product must be in demand in the countries where it is to be exported. It should be possible to procure or manufacture the selected product at most economic cost so that it can be competitively priced. It should also be available in sufficient quantity and it should be possible to supply it repeatedly and regularly. Besides, while selecting the product, it has to be ensured that you are conversant with government policy and regulations in respect of product selected for export. Making effective Business Correspondence You should recognise the importance of business correspondence as it is an introduction with the buyer in proxy which may clinch his response according to the impression created by the correspondence. For creating a very favorable and excellent impression, you must use a beautiful letter head on airmail paper and a good envelope, nicely printed, giving fully particulars of your firm's name, telephone, telex and fax number etc.

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Selecting the markets Target markets should be selected after careful consideration of various factors like political embargo, scope of exporter's selected product, demand stability, preferential treatment to products from developing countries, market penetration by competitive countries and products, distance of potential market, transport problems, language problems, tariff and non-tariff barriers, distribution infrastructure, size of demand in the market, expected life span of market and product requirements, sales and distribution channels. For this purpose you should collect adequate market information before selecting one or more target markets. Selecting prospective Buyers You can collect addresses of the prospective buyers of the commodity from the following sources: Enquiries from friends and relatives or other acquaintances residing in foreign countries . Visiting/ participating in International Trade Fairs and Exhibitions in India and abroad. Contact with the Export Promotion Councils, Commodity Boards and other Government Agencies. List given in Appendix 4 of this book ). Collecting information from International Trade Directories/ Journals/periodicals available in the libraries of Directorate General of Commercial Intelligenceand Statistics