Lahore School of Economics

Export Marketing


BBA IV with Major in Marketing Minors in Media Studies
Section: H


Course Instructor

Faizan Khalid

E-mail: faizankhalid@hotmail.com


Core Reading List
Gerald Albaum, and Edwin Duerr. 2011. International Marketing and
Export Management. 7th Edition. Prentice Hall.

Alan E. Branch. 2005. Export Practice and Management. 5th Edition.
Thomson Learning.
Thomas A. Cook, Rennie Alston, and Kelly Raia. 2004. Import and
Export Management Hardcover Edition. AMACOM.
Philip Cateora, Mary Gilly, and John Graham. 2010. International
Marketing. 15th Edition. McGraw-Hill/Irwin.

Final Assessment Criteria
Final Exam 25%
Mid Term 20%
Project Report 20%
Quizzes 10%
Assignment, Class Participation 10%
Case presentations 15%

Lecture Sessions

Monday 8:00 AM- 9:45 AM


Saturday 10:00 AM-11:45 AM

What is Export Marketing?

Export marketing means marketing of goods and services
beyond the national boundaries
B.S Rathor

The growing importance of international marketing
2008 recession
First drop in international trade and investment in 50 years
It demonstrated importance to:
1. national and regional economies
2. companies of all sizes
3. workers and consumers

Increasing importance of international markets and
exporting due to:

a) greater opportunities for enterprises of all sizes,

b) most companies selling to, buying from, competing against, and/or working with
companies overseas

c) consumers have a wider range of choices, often at lower prices and/or better
quality

d) importance of international sales in spreading risk, increasing profits, covering
R&D costs, understanding emerging challenges

e) increasing dependence of national and regional economic health on exports sales
Path to Success in Export Marketing
customer focus

Innovations in products and services

Increased efficiency with lower costs or improved services

Identifying and exploiting appropriate market segments

Responding to increasing opportunities and threats

Failure to be proactive in exploring foreign markets leads to missed opportunities and
lack of information about potential new threats
Exporting is the most common market entry mode for small and medium-size
companies. It is widely used by all large international companies.
Exporting is no longer just an option for most companies; it is now an imperative.

Domestic
Companies
Foreign
Markets
Domestic
Markets
Foreign
Companies
International Marketing: A definition and unique requirements
International marketing is the marketing of goods, services and information across
political boundaries.

Planning Promoting Distributing Pricing
Support of goods/services
Information to consumers
Culture
Consumer
Tastes
Economic
Levels
Market
Structures
Ways of doing business
Laws & Regulations
Excelling in International Markets
Analysis of markets and potential markets
Planning, development and packaging of products, services and information
to best meet
Selection of distribution channels that are most effective and efficient in the
foreign market
Promotion, including advertising and personal selling
Setting of prices
Technical and non-technical support given to customers, both before and after
sales

Problems with International Trade
Piracy on high seas
Piracy of goods by making unauthorized copies
Contaminated Food Products
Terrorism Wars & Threat of Wars
Prohibition of exports of certain products e.g. Cotton
Embargos on all or certain imports
Diseases leading to prohibition of imports
Kidnapping of people for ransom

Internationalization and the global marketer
Internationalization may be viewed as: a process, an
end-result or a way of thinking.
It is most effective when a carefully planned process for increasing
penetration has been prepared in advance.
A firm should consider advantages and disadvantages of exporting, licensing,
establishing sales subsidiaries, producing abroad, forming strategic alliances.
The terms international, multinational and global are sometimes used
interchangeably, but imply differences in approaches.






Internationalization and the global marketer
a. Multinational marketing:
It implies a strong commitment to international marketing, and may be
taken to mean that the marketer develops differentiated products and
marketing strategies for each of its markets. It is associated with
adjusting products and practices in each country, with relatively higher
attendant costs.

b) Global Marketing:
It implies that the company tries to standardize products and marketing
practices worldwide in order to achieve economies of scale and lower
prices.

Think globally, Act locally
a. Evaluate and enter markets worldwide based on individual
potential and worldwide strategy.
b. Procure capital and invest funds on a worldwide basis according
to costs and opportunities.
c. Purchase raw materials, components, equipment and supplies
from sources worldwide.
d. Staff organizations with best qualified managers and employees
without regard to national origin.

International Marketing Management
3 basic steps before pushing your firm in international market:
1. whether to engage in international marketing activities;
2. markets to be served;
3. methods or systems to be used.

Controllable versus uncontrollable elements in determining marketing mix
The effectiveness of marketing activities used by the firm is directly affected by
the uncontrollable elements in the environment, so the profitability of any
marketing programme is situation specific.





Schematic model of the export marketing mix
Export marketing planning and strategy

Strategic issues: choice of countries, product markets, target
segments; methods of operation, timing.

Tactical issues: product positioning, adaptation, advertising,
pricing and distributing.
Export marketing planning process
Obstacles to exporting
Barriers affecting many companies, particularly smaller ones,
include:
1. Higher operational efforts required for foreign market,
2. Lack of information,
3. Lack of knowledge and skills,
4. Trade barriers,
5. Risk factor

Dimensions of export barriers
How can a company cope?
1. Look to existing customers
2. Make a commitment with seasoned managers
3. Seek advice externally
4. Use Trade shows
5. Pick markets carefully
6. Manage growth
7. Be patient & focus on networking
8. Choose partners carefully e.g. freight forwarder

The Internet, the World Wide Web and E-business
All aspects of domestic and international business operations have
been impacted by the Internet, the World Wide Web and E-business.
The Internet provides greatly increased speed and lowered costs in
communications.
Inexpensive in most countries
Very wide and rapidly expanding use.
Electronic data interchange systems (EDI) have been set up by some
specific sets of companies for their exclusive use.





E-business
the sale, purchase, or exchange of goods, services or information over the Internet or other
telecommunications networks.
Business-to-consumer sales (B2C) growing rapidly than overall retail sales
A combination of traditional marketing and Web-based marketing appears to be most
successful
Many traditional retailers find using the Internet to build an overseas presence is faster and
cheaper than building stores. Some major retailers have set up distribution centres in
selected countries abroad.
Business-to-business (B2B) spending continues to be of great importance.
B2B transactions involve many activities in addition to buying and selling, including
support of supply-chain and distribution-chain management, and provision of information
for overall systems coordination.

The impact of technology
Resulted in new products, the creation of additional international markets and
lowered costs of doing business.
Information technology related trade now accounts for 16% of total world trade.
Development and marketing of software to support e-business has become a
major international industry. Importance of China and India in IT-related trade has
been phenomenal.
New products have resulted from major advances in communications technology,
medical research, traditional products and manufacturing processes.

The impact of technology
Improvements in shipping equipment and the applications of information
technology in scheduling and control have reduced costs.

Expanding use of radio-frequency identification systems (RFID) is making supply
chain management more effective and efficient.

Licensing of new and improved technology has become increasingly important
for both large and small companies.

Entrepreneurial approaches to international
marketing
New approaches to international marketing have been made feasible by
technological advances and by recognition of emerging opportunities.

E-business software allows companies to handle key functions in a coherent
on-line system: supply chain and distribution chain management; ordering,
billing, and inventory management; analyses of sales and trends; etc.

Specific software is available to support specialized functions such as
Customer Relations Management (CRM) programs, and many other
individual and integrated programs.

The virtual company
Advances in communications allow formation of virtual companies
based on the owners ideas/vision/knowledge/abilities to organize and
coordinate.

Have little in the way of physical facilities; have few or no employees.

Often, there are contracts with outsiders to perform most business
functions.

The growth of non-traditional exports: Exporting services
of knowledge-industry workers

Greatly increased capabilities and lowered costs in communications have
enabled cross-border export of information services

Companies in lower-wage nations employ well-educated people to provide
services ranging from call centres and back-office support to advanced
technical support, software development and design services.

India is a major exporter of services, with other Asian countries and Eastern
European nations expanding similar activities.

Importing customers
Many companies (and nations) rely to some extent on getting
income from foreign visitors.

For a number of countries, tourism is a major source of income.

In addition to seeking tourists, students and people attending
meetings, more are now attracting people wanting medical
procedures.

THE END