Features of Export Marketing

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FEATURES OF EXPORT MARKETING
The main important features of export marketing are as follows.
1) Systematic Process –
Export marketing is a systematic process of developing and distributing goods and
services in overseas markets. The export marketing manager needs to undertake various
marketing activities, such as marketing research, product design, branding, packaging,
pricing, promotion etc. To undertake the various marketing activities, the export
marketing manager should collect the right information from the right source; analyze it
properly and then take systematic export marketing decisions.
2) Large Scale Operations –

Normally, export marketing is undertaken on a large scale. Emphasis is placed on large
orders in order to obtain economies in large sole production and distribution of goods.
The economies of large scale help the exporter to quote competitive prices in the overseas
markets. Exporting goods in small quantities is costly due to heavy transport cost and
other formalities.
3) Dominance of Multinational Corporations –

Export marketing is dominated by MNCs, from USA, Europe and Japan. They are in a
position to develop worldwide contacts through their network and conduct business
operations efficiently and economically. They produce quality goods at low cost and also
on massive scale.
4) Customer Focus –
The focus of export marketing is on the customer. The exporter needs to identify
customers‟ needs and wants and accordingly design and develop products to generate and
enhance customer satisfaction. The focus on customer will not only bring in higher sales
in the overseas markets, but it will also improve and enhance goodwill of the firm.
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5) Trade barriers –
Export marketing is not free like internal marketing. There are various trade barriers
because of the protective policies of different countries. Tariff and non-tariff barriers are
used by countries for restricting import. The export marketing manager must have a good
knowledge of trade barriers imposed by importing countries.
6) Trading Blocs –
Export trade is also affected by trading blocs, certain nations form trading bloc for their
mutual benefit and economic development. The non-members face problems in trading
with the members of a trading bloc due to common external barriers..
7) Three – faced competition –

In export markets, exporters have to face three-faced competition, i.e., competition from
the three angles – from the other suppliers of the exporter’s country, from the local
producers of importing country and from the exporters of competing nations.
8) Documentation –
Export marketing is subject to various documentation formalities. Exporters require
various documents to submit them to various authorities such as customs, port trust etc.
The documents include – Shipping Bill, Consular Invoice, Certificate of Origin etc.
9) Foreign exchange regulations –

Export trade is subject to foreign exchange regulations imposed by different countries.
These regulations relate to payments and collection of export proceeds. Such restrictions
affect free movement of goods among the countries of the world.
10) Marketing – mix

Export marketing requires the right marketing mix for the target markets, i.e., exporting
the right product, at the right price, at the right place and with the right promotion. The
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exporter can adopt different marketing – mixes for different export markets, so as to
maximize exports and earn higher returns.
11) International marketing Research –

Export marketing requires the support of marketing research in the form of market
survey, product survey, product research and development as it is highly competitive.
Various challenges, identification of needs and wants of foreign buyer in export
marketing can be dealt with through international marketing research.
12) Spreading of Risks –

Export marketing helps to spread risks of business. Normally export firms sell in a
number of overseas markets. If they are affected by risks (losses) in one market, they may
be able to spread business risks due to good return from some other markets.
13) Reputation –
Export marketing brings name and goodwill to the export firm. Also, the country of its
origin the gets reputation. The reputation enables the export firm to command good sales
in the domestic market as well as export market.

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FEATURES OF EXPORT MARKETING

The main important features of export marketing are as follows.

2) Large Scale Operations –

3) Dominance of Multinational Corporations –

7) Three – faced competition –

9) Foreign exchange regulations –

10) Marketing – mix

11) International marketing Research –

12) Spreading of Risks –

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