INTRODUCTION One of the most important and critical decisions in international marketing is the mode of entering the foreign market No country can easily accepts other country easily An exporter cant enter all markets with same strategies He has to apply different strategies for different ma ID: 342183
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ENTRY TO OVERSEAS MARKETSSlide2
INTRODUCTION
One of the most important and critical decisions in international marketing is the mode of entering the foreign market. No country can easily accepts other country easily. An exporter can’t enter all markets with same strategies. He has to apply different strategies for different markets.Slide3
EXPORTING
Exporting means company exports the product from its home base, without any marketing or production in foreign countries.Slide4
DIRECT EXPORTING
Direct Exporting is the method in which whole activity is done by the exporter himself. He himself undertakes all the activities instead of any help from any agent.Slide5
ADVANTAGES
Better knowledge of customers’ requirements
Goodwill
Full Control
Full returns on exports
Permanancy
Full knowledge of market conditions
Short Chain of Distribution
Proper choice for certain products
Dedicated staffSlide6
DISADVANTAGES
More capital needed
Managerial ability essential
Increased distribution cost
More risky
Other limitationSlide7
WHY INDIAN EXPORTERS TAKE RECOURSE TO DIRECT EXPORTINGSlide8
FORMS OF DIRECT EXPORTING
Establishment of Branches Abroad
Establishment of plants
Licensing Arrangement
Joint Venture
Appointment of exclusive Agent
Distributor
Strategic Alliance
Mergers and Acquisitions
Contract Manufacturing
AssemblySlide9
INDIRECT EXPORTING
Indirect export means export of product or services through middlemen. Firm sells its products to some other firm or person in the country which further sells them in foreign country.Slide10
ADVANTAGES
Free from botheration
No Need of export
organisation
Economy
A boon to new entrants
Valuable market informationSlide11
DISADVANTAGES
Ignorance about foreign trade
No scope for product development
Inappropriate in certain cases
Availability of middlemen
Commission to middlemen
No obligation to any manufacturer
No efforts to promote exporter’s product
No permanency of businessSlide12
FORMS OF INDIRECT EXPORTINGSlide13
EXPORT MARKETING MIDDLEMEN
Merchant Exporter or Export Houses
Export Commission Houses
Visiting or resident buyers
Manufacturer’s export agent
Export Broker
Buying
govt
agency in exporting country
Govt
Buying agency for export
Piggy-backingSlide14
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