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OBJECTIVE OF THE STUDY

The following objectives have been framed to the title of the report: -
a) To understand the concept of International business with respect to import and export
b) To understand the concept of Export Marketing
c) To gain the significance of export marketing in reference to Maruti Suzuki with the
present scenario of business
d) To know the implications of export marketing and its effects.
e) To know the successful measures to conduct the sphere of export marketing
f) To analyse the perception of the Indian consumer as well as foreign buyers over Indian
products to be sold in overseas markets at competitive prices.
g) To understand how much to an extent is export marketing successful in exchange of
goods and services for the exchange of foreign currency.
h) Is it suitable for exporters to market goods and services which are desired in within the
territories of India also?

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SCOPE OF THE STUDY:
The scope of the study is relevant from the point of view to the exporters and their
significant dealing with the overseas customers. How best they can present themselves
and their product value is a general idea of export marketing. Although from the Indian
prospective point of view, the scope has itself a wide era since an exporter is available
with the world at large except Indian market.
The exporter is available with the wide opportunities to market the product coupled
with the enormous challenges as he has to approach different countries with different
people, different languages and different customs of dealing. So, one has to be very
careful in dealing with the export market.
Export marketing also involves preparing an offering that will entice the foreign buyer
and customer. This offering comprises a product that is offered at a certain price and
that is made available distributed to the foreign customer. At the same time, the
offering is communicated or promoted to the buyer using certain communication or
promotion channels. These elements the product, price, distribution (also referred to
as the place) and promotion are called the marketing mix.


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LIMITATIONS OF THE STUDY
Limitations to the study have been stated as below: -
1. There was a limitation pertaining to the lack of knowledge and awareness of the title to
the report.
2. Also, the respondent size was not up to the desired level still care have been taken to
figure out the conclusive evidence suitable to the title of the report.
3. There was a limitation pertaining to the lack of time and place constraint.
4. Respondents were unwilling to reply for the questions being put forth for derivation of
necessary conclusive evidences in the fear of the disclosing some trade secrets.
5. Although people are involving in exports business for a fairly long period of time yet
they find difficulty in marketing and promoting their brand across the boundaries of
India.
6. Seldom they find the difficulties of cultural differences with language a biggest trouble
in communication and explaining their products and company profile nad achievements.

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INTRODUCTION TO INDUSTRY
AUTOMOBILE INDUSTRY IN INDIA
Introduction
With the increasing growth in demand on back of rising income, expanding middle
class and young population base, in addition to a large pool of skilled manpower and
growing technology, will propel India to be among the world's top five auto-producers
by 2015. India is also one of the key markets for hybrid and electric medium-heavy-
duty trucks and buses. India is an extremely important market for Hyundai. The Indian
automobile sector is poised for steady and strong growth in the future. The Indian
automobile industry holds good growth potential for the mid-term and long term
horizon, as per Mr Bo Shin Seo, MD and CEO, Hyundai Motor India Ltd (HMIL).
Moreover, Ford Motor Co plans to convert India into global production centre for
compact cars, once its Sanand plant in Gujarat comes on stream in 2014, under a project
codenamed B562 that may induce three different compact cars from the same platform.
Key Statistics
The Indian automobile industry produced a total 1.69 million vehicles including
passenger vehicles, commercial vehicles, three wheelers and two wheelers in August
2013 as against 1.56 million in August 2012, registering a growth of 8.18 % over the
same month last year. The cumulative foreign direct investment (FDI) inflow into the
Indian automobile industry during April 2000 to July 2013 was recorded at US$ 8,932
million, amounting to 4.5 % of the total FDI inflows (in terms of US$), as per data
published by Department of Industrial Policy and Promotion (DIPP), Ministry of
Commerce.
The overall automobile exports grew by 2.03 % during April-August 2013.
Furthermore, the production of passenger vehicles in India was recorded at 3.23 million
in 2012-13 and is expected to grow at a compound annual growth rate (CAGR) of 13 %
during 2012-2021, as per data published by Automotive Component Manufacturers'
Association of India (ACMA).

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Major Developments & Investments
Hero MotoCorp plans to establish 20 manufacturing and assembly facilities to expand
its presence across 50 countries by 2020. Nissan Motor India, the Indian unit of
Japanese auto maker Nissan Motor Co Ltd, has entered into an agreement with Ennore
Port Ltd (EPL), to export at least 60,000 cars a year through the port for the next 10
years. TVS Motor Co plans to launch two new motorcycle models in the Kenyan
market. These motorcycles will be specific to the Kenyan markets in terms of usability,
reliability and durability. Moreover, the firm also plans to set up a two-wheeler
assembly line in Uganda and will also launch two motorcycle models in the African
nation
HMIL has invested US$ 2 billion in two state-of-the-art passenger car manufacturing
facilities in India. Moreso, India contributes 25 % of the firms global sales. Mahindra
& Mahindra (M&M) plans capital expenditure and investments worth Rs 10,000 crore
(US$ 1.63 billion) over the next two years. Maruti Suzuki India Ltd (MSIL) is setting
up an operational integrated research & development (R&D) centre in Rohtak, Haryana.
The test tracks at the new facility would be longer and considerably enhanced in
technical capabilities than the ones at the Suzuki Motor Corp (SMC) facility in Japan.
Tech Mahindra has signed an agreement with Volvo Car Corporation. The IT company
will provide Volvo with a service to maintain and develop a range of applications that
can increase efficiency and reduce costs. Isuzu Motors India plans to start contract
manufacturing of its sports utility vehicles (SUV) and pick-up trucks at Hindustan
Motors' (HM) Chennai plant from December 2013. Daimler India Commercial Vehicles
(DICV) has expanded its network across the country. The company plans to establish
dealership facilities in over 100 identified locations across India by 2014
Government Initiatives
The Government of India plans to introduce fuel-efficiency ratings for automobiles to
encourage sale of cars that consume less petrol or diesel, as per Mr Veerappa Moily,
Union Minister for Petroleum and Natural Gas, Government of India.
The Union Budget 2013-14 added some incentives to the industry. The analysis by
Deloitte on the Union Budget highlighted the following points:
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The period of concession available for specified part of electric and hybrid vehicles till
April 2013 has been extended upto March 31, 2015. The basic customs duty (BCD) on
imported luxury goods such as high-end motor vehicles, motor cycles, yachts and
similar vessels was increased. The duty was raised from 75 % to 100 % on cars/ motor
vehicles (irrespective of engine capacity) with CIF value more than US$ 40,000; from
60 % to 75 % on motorcycles with engine capacity of 800 cc or more and on yachts and
similar vessels from 10 % to 25 %
In addition, an increase in excise duty from 27 to 30 % has been allowed for SUVs with
engine capacity exceeding 1,500 cc, while excise duty was decreased from 80 to 72 %,
in case of SUVs registered solely to be used for taxi purposes. An exemption from BCD
on lithium ion automotive battery for manufacture of lithium ion battery packs for
supply to manufacturers of hybrid and electric vehicles
The excise duty on chassis of diesel motor vehicles for transport of goods reduced from
14 % to 13 %. The Government of India allows 100 % FDI in the automotive industry
through automatic route. The Government also plans to accelerate the supply of electric
vehicles over the next eight years. It is expected that there will be a demand for 5-7
million electricity-operated vehicles by 2020. With special focus on exports of small
cars, MUVs, two & three wheelers and auto components; the automotive sectors
contribution to the gross domestic product (GDP) is expected to double reaching a
turnover worth US$ 145 billion in 2016, according to the Automotive Mission Plan
(AMP) 2006-2016.
Road Ahead
India is probably the most competitive country in the world for the automotive industry.
It does not cover 100 % of technology or components required to make a car but it is
giving a good 97 %, highlighted Mr Vicent Cobee, Corporate Vice-President, Nissan
Motors Datsun. The vision of AMP 2006-2016 sees India, to emerge as the
destination of choice in the world for design and manufacture of automobiles and auto
components with output reaching a level of US$ 145 billion; accounting for more than
10 % of the GDP and providing additional employment to 25 million people by 2016.

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INTRODUCTION TO ORGANISATION
MARUTI SUZUKI INDIA LIMITED
Maruti Suzuki India Limited, commonly referred to as Maruti and formerly known as
Maruti Udyog Limited, is an automobile manufacturer in India.It is a subsidiary of
Japanese automobile and motorcycle manufacturer Suzuki.As of November 2012, it had
a market share of 37% of the Indian passenger car market. Maruti Suzuki manufactures
and sells a complete range of cars from the entry level Alto, to hatchback Ritz, A-Star,
Swift, Wagon R, Zen and sedans DZire, Kizashi and SX4, in the 'C' segment Eeco,
Omni, Multi Purpose vehicle Suzuki Ertiga and Sports Utility vehicle Grand Vitara.The
company's headquarters are on Nelson Mandela Road, New Delhi. In February 2012,
the company sold its ten millionth vehicle in India.
Originally, 18.28% of the company was owned by the Indian government, and 54.2%
by Suzuki of Japan. The BJP-led government held an initial public offering of 25% of
the company in June 2003. As of May 2007, the government of India sold its complete
share to Indian financial institutions and no longer has any stake in Maruti Udyog.
Maruti Udyog Limited (MUL) was established in February 1981, though the actual
production commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei car
which at the time was the only modern car available in India, its only competitors - the
Hindustan Ambassador and Premier Padmini - were both around 25 years out of date at
that point. Through 2004, Maruti Suzuki has produced over 5 Million vehicles. Maruti
Suzukis are sold in India and various several other countries, depending upon export
orders. Models similar to those made by Maruti in India, albeit not assembled or fully
manufactured in India or Japan are sold by Pak Suzuki Motors in Pakistan. The
company exports more than 50,000 cars annually and has domestic sales of 730,000
cars annually. Its manufacturing facilities are located at two facilities Gurgaon and
Manesar in Haryana, south of Delhi. Maruti Suzukis Gurgaon facility has an installed
capacity of 900,000 units per annum. The Manesar facilities, launched in February 2007
comprise a vehicle assembly plant with a capacity of 550,000 units per year and a
Diesel Engine plant with an annual capacity of 100,000 engines and transmissions.
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Manesar and Gurgaon facilities have a combined capability to produce over 14,50,000
units annually. About 35% of all cars sold in India are made by Maruti. The company is
54.2% owned by the Japanese multinational Suzuki Motor Corporation % of Maruti
Suzuki. The rest is owned by public and financial institutions. It is listed on the Bombay
Stock Exchange and National Stock Exchange of India.
During 2007 and 2008, Maruti Suzuki sold 764,842 cars, of which 53,024 were
exported. In all, over six million Maruti Suzuki cars are on Indian roads since the first
car was rolled out on 14 December 1983. Maruti Suzuki offers 15 models, Maruti 800,
Alto, Maruti Alto 800, WagonR, Estilo, A-star, Ritz, Swift, Swift DZire, SX4, Omni,
Eeco, Gypsy, Grand Vitara, Kizashi and the newly launched Ertiga. Swift, Swift DZire,
A-star and SX4 are manufactured in Manesar, Grand Vitara and Kizashi are imported
from Japan as completely built units(CBU), all remaining models are manufactured in
Maruti Suzuki's Gurgaon Plant.
The company is believed to be moving towards the introduction of a new version of
Maruti 800 by November 2012, which will be more fuel efficient, though slightly
costlier than Alto and existing Maruti 800. The Suzuki Motor Corporation, Maruti's
main stakeholder, has been a global leader in mini and compact cars for three decades.
Suzukis strategy is to utilise light-weight, compact engines with stronger power, fuel-
efficiency and performance capabilities. Nearly 75,000 people are employed directly by
Maruti Suzuki and its partners.
It has been rated first in customer satisfaction among all car makers in India from 1999
to 2009 by J D Power Asia Pacific. Maruti Suzuki will be introducing new 800 cc
model by Diwali in 2012.The model is supposed to be fuel efficient, and therefore more
expensive.4] With increasing market competition in the small car segment, a new model
along with the upcoming WagonR Stingray will be the key fresh products for Maruti
Suzuki India (MSI) to defend its market share amid the ever increasing competition

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Market liberalization
In 1989 the Maruti 1000 is presented after having been shown earlier. This 970 cc,
three-box is Indias first contemporary sedan. By 1991 65 percent of the components,
for all vehicles produced, are indigenised. Meanwhile, the liberalisation of the Indian
economy opens new opportunities but also brings more competition to the segments in
which Maruti operates. In 1992 Suzuki increases its stake in Maruti to 50 percent,
making the company a 50-50 JV with the Government of India the other stake holder.
A flow of new models begin in the early nineties. In 1993 the Zen, a modern 993 cc,
hatchback which is later exported globally as the Suzuki Alto. In 1994 the 1298 cc
Esteem appears, a more luxurious redesigned Maruti 1000. This and other Marutis
begin appearing in a plethora of different equipment levels, to better suit India's
increasingly discerning consumers. A Zen Automatic arrives in 1996, as does the Gypsy
King, a 1.3 liter version of the compact off-roader, and a minibus version of the Omni
(the Omni E).
In 1994 Maruti Suzuki produces its 1 millionth vehicle since the commencement of
production, being the first company in India to do so. This is still not enough in a
booming market and the next year Maruti's second plant is opened, with annual capacity
reaching 200,000 units. Maruti also launches a 24-hour emergency on-road vehicle
service, the first of its kind in the country. In 1996 the United Front government is
formed, with Murasoli Maran new Industries Minister. On 27 August the following year
the government nominates Mr. S.S.L.N. Bhaskarudu as the Managing Director, as the
then current Managing director R.C. Bhargava, was completing his tenure. This creates
a conflict with Suzuki, discussed closer in the Joint venture related issues section.
In 1998 the new Maruti 800 is released, the first change in design since 1986. This is
simply a facelift of the existing model, to ensure steady sales. Also, the two millionth
vehicle is produced. Other news include the Zen D, a 1527 cc diesel hatchback and
Maruti's first diesel vehicle. The Omni van and microbus is also redesigned. The next
year the Omni bus arrives in a high roof version, the Omni XL. The 1.6 litre Maruti
Baleno three-box saloon, advertised as the 'Maruti Suzuki Baleno', also appears. This is
Maruti's biggest car yet. Finally, in what is a very busy year, the Wagon R is launched.
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Maruti Alto, introduced in 2000
In 2000 Maruti becomes the first car company in India to launch a Call Center for
internal and customer services. The new Alto model is also released, somewhat larger
and more modern than the 800. The estate Baleno Altura is also shown, while IDTR
(Institute of Driving Training and Research) is launched jointly with the Delhi
government to promote safe driving habits. In 2001 Maruti True Value, selling and
buying used Maruti Suzukis, is launched in Bangalore and Delhi, later in Mumbai and
elsewhere. In October of the same year the Maruti Versa sees the day, a bigger engined
and more luxurious microbus than the Omni. It never catches on in the market and is
discontinued by late 2009. Customer information centers are also launched in
Hyderabad, Bangalore and Chennai. In 2002 the Esteem Diesel appears, as does Maruti
Insurance. Two new subsidiaries are also started: Maruti Insurance Distributor Services
and Maruti Insurance Brokers Limited. Suzuki Motor Corporation increases its stake in
Maruti to 54.2 percent.
In 2003 the new Suzuki Grand Vitara XL-7 appears, while the Zen and the Wagon R
are upgraded and redesigned. The four millionth Maruti vehicle is built and they enter
into a partnership with the State Bank of India. Maruti Udyog Ltd is Listed on BSE and
NSE after a public issue, which is oversubscribed tenfold. In 2004 the Alto becomes
India's new best selling car, overtaking the Maruti 800 which had been number one for
nearly two decades. The five-seater Versa 5-seater, a new variant, is created while the
Esteem undergoes cosmetic changes and is re-launched with a price cut. Maruti Udyog
closed the financial year 2003-04 with an annual sale of 472,122 units, the highest ever
since the company began operations 20 years earlier, and the fiftieth lakh (5 millionth)
car rolls out in April, 2005, with overall sales growing by 15.8%. The 1.3 L Suzuki
Swift five-door hatchback also appears. 2004-05 marked another record year (487,402
domestic sales) and exports reached 48,899 cars to about fifty different countries. The
United Kingdom took the lion's share, with 10,623 deliveries.

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In 2006 Suzuki and Maruti set up another joint venture, "Maruti Suzuki Automobiles
India", to build two new manufacturing plants, one for vehicles and one for
engines.Cleaner cars were also introduced, with several new models meeting the new
"Bharat Stage III" standards.9] In February 2012, Maruti Suzuki sold its ten millionth
vehicle in India.
Exports
Maruti Exports Limited is the subsidiary of Maruti Suzuki with its major focus on
exports and it does not operate in the domestic Indian market. The first commercial
consignment of 480 cars were sent to Hungary. By sending a consignment of 571 cars
to the same country Maruti Suzuki crossed the benchmark of 300,000 cars. Since its
inception export was one of the aspects government was keen to encourage. Every
political party expected Maruti Suzuki to earn foreign currency. Angola, Benin,
Djibouti, Ethiopia, Europe, Kenya, Morocco, Nepal, Sri Lanka, Uganda, Chile,
Guatemala, Costa Rica and El Salvador are some of the markets served by Maruti
Exports.

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THEORETICAL PERSPECTIVE EXPORT MARKETING
Introduction
In this section, we highlight some of the export marketing issues one will need to deal
with. Marketing is defined as using all of the resources of the organization to satisfy
customer needs for a profit. The difference between export marketing and domestic
marketing is simply that it takes place across national borders. This means that One are
faced with barriers to trade that one will not have encountered before, such as differing
languages, politics, laws, governments and cultures. One may need to account for
getting the product half-way across the globe to distant markets and pay the import
duties imposed on these products by the importing country. One will also need to deal
with the logistical and documentation problems surrounding exports. These are just
some of the problems one will face.
Export marketing also involves preparing an offering that will entice the foreign buyer
and customer. This offering comprises a product that is offered at a certain price and
that is made available distributed to the foreign customer. At the same time, the
offering is communicated or promoted to the buyer using certain communication or
promotion channels. These elements the product, price, distribution (also referred to
as the place) and promotion are called the marketing mix.
We deal with the marketing task in promoting the firm and its products abroad, revising
one export costings and price, producing the goods and handling the export logistics
that is, distribution and in the export process is also important, as it deals with preparing
an export marketing plan and strategy. While one are welcome to visit any of these links
to learn more about the topic in question, we recommend that one browse through the
guide starting with, as the steps have been written to build on each other. For example,
the marketing environment and export marketing research are also important marketing
topics. In this section, however, we have highlighted a selection of marketing topics that
we believe most exporters will want to focus on. As one read through these topics,
please bear in mind that they should not be dealt with in isolation.
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Export marketing channels
A marketing channel is the route that a product follows from factory to customer and
incorporates all of the intermediaries middlemen (sorry, middlepersons) that help the
product reach the ultimate consumer. Another term for a marketing channel is a
distribution channel. Sometimes the term marketing channel is taken to mean an
advertising media channel, but this is an incorrect use of the term. As far as deciding on
one marketing channel is concerned, there are a number of decisions one need to make.
These are:
How will one enter the foreign market place?
How will one physically get the product from one factory to the end user?
Who will one turn to help one with one distribution?
Using export agents
Finding export agents
The role of trade fairs and exhibitions
Preparing to participate in a trade fair
Finding trade fairs
Inward bound missions
Outward bound missions
Create one own e-marketing campaign
Website internationalisation
Overseas trade offices
Embassies and consulates
Financial assistance for export marketing
ETO systems
Dealing with export environments
Trade agreements


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EXPORT EXPLAINED
The term "export" is derived from the conceptual meaning as to ship the goods and
services out of the port of a country. The seller of such goods and services is referred to
as an "exporter" who is based in the country of export whereas the overseas based buyer
is referred to as an "importer". In International Trade, "exports" refers to selling goods
and services produced in home country to other markets. Any good or commodity,
transported from one country to another country in a legitimate fashion, typically for
use in trade. Export goods or services are provided to foreign consumers by domestic
producers.
Export of commercial quantities of goods normally requires involvement of the customs
authorities in both the country of export and the country of import. The advent of small
trades over the internet such as through Amazon and e-Bay have largely bypassed the
involvement of Customs in many countries because of the low individual values of
these tradescitation needed. Nonetheless, these small exports are still subject to legal
restrictions applied by the country of export. An export's counterpart is an import.
Definition
The definition of "export" is when you trade something out of the country. In
economics, an export is any good or commodity, transported from one country to
another country in a legitimate fashion, typically for use in trade.
In national accounts "exports" consist of transactions in goods and services (sales,
barter, gifts or grants) from residents to non-residents. The exact definition of exports
includes and excludes specific "borderline" cases. A general delimitation of exports in
national accounts is given below:
An export of a good occurs when there is a change of ownership from a resident to a
non-resident; this does not necessarily imply that the good in question physically
crosses the frontier. However, in specific cases national accounts impute changes of
ownership even though in legal terms no change of ownership takes place (e.g. cross
border financial leasing, cross border deliveries between affiliates of the same
enterprise, goods crossing the border for significant processing to order or repair).
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Also smuggled goods must be included in the export measurement. Export of services
consists of all services rendered by residents to non-residents. In national accounts any
direct purchases by non-residents in the economic territory of a country are recorded as
exports of services; therefore all expenditure by foreign tourists in the economic
territory of a country is considered as part of the exports of services of that country.
Also international flows of illegal services must be included.
National accountants often need to make adjustments to the basic trade data in order to
comply with national accounts concepts; the concepts for basic trade statistics often
differ in terms of definition and coverage from the requirements in the national
accounts:
Data on international trade in goods are mostly obtained through declarations to custom
services. If a country applies the general trade system, all goods entering or leaving the
country are recorded. If the special trade system (e.g. extra-EU trade statistics) is
applied goods which are received into customs warehouses are not recorded in external
trade statistics unless they subsequently go into free circulation in the country of receipt.
A special case is the intra-EU trade statistics. Since goods move freely between the
member states of the EU without customs controls, statistics on trade in goods between
the member states must be obtained through surveys. To reduce the statistical burden on
the respondents small scale traders are excluded from the reporting obligation.
Statistical recording of trade in services is based on declarations by banks to their
central banks or by surveys of the main operators. In a globalized economy where
services can be rendered via electronic means (e.g. internet) the related international
flows of services are difficult to identify. Basic statistics on international trade normally
do not record smuggled goods or international flows of illegal services. A small fraction
of the smuggled goods and illegal services may nevertheless be included in official
trade statistics through dummy shipments or dummy declarations that serve to conceal
the illegal nature of the activities.


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BARRIERS TO EXPORT
Trade barriers are generally defined as government laws, regulations, policy, or
practices that either protect domestic products from foreign competition or artificially
stimulate exports of particular domestic products. While restrictive business practices
sometimes have a similar effect, they are not usually regarded as trade barriers. The
most common foreign trade barriers are government-imposed measures and policies that
restrict, prevent, or impede the international exchange of goods and services.
Strategic
International agreements limit trade in, and the transfer of, certain types of goods and
information e.g. goods associated with weapons of mass destruction, advanced
telecommunications, arms and torture, and also some art and archaeological artefacts.
Examples include Nuclear Suppliers Group - limiting trade in nuclear weapons and
associated goods (currently only 45 countries participate), The Australia Group -
limiting trade in chemical & biological weapons and associated goods (currently only
39 countries), Missile Technology Control Regime - limiting trade in the means of
delivering weapons of mass destruction (currently only 34 countries) and The
Wassenaar Arrangement - limiting trade in conventional arms and technological
developments (currently only 40 countries).
Tariffs
A tariff is a tax placed on a specific good or set of goods exported from or imported to a
country, creating an economic barrier to trade. Usually the tactic is used when a
country's domestic output of the good is falling and imports from foreign competitors
are rising, particularly if there exist strategic reasons for retaining a domestic production
capability.
Some failing industries receive a protection with an effect similar to a subsidies in that
by placing the tariff on the industry, the industry is less enticed to produce goods in a
quicker, cheaper, and more productive fashion. The third reason for a tariff involves
addressing the issue of dumping.

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Dumping involves a country producing highly excessive amounts of goods and
dumping the goods on another foreign country, producing the effect of prices that are
"too low". Too low can refer to either pricing the good from the foreign market at a
price lower than charged in the domestic market of the country of origin.
The other reference to dumping relates or refers to the producer selling the product at a
price in which there is no profit or a loss. The purpose (and expected outcome) of the
tariff is to encourage spending on domestic goods and services.
Protective tariffs sometimes protect what are known as infant industries that are in the
phase of expansive growth. A tariff is used temporarily to allow the industry to succeed
in spite of strong competition. Protective tariffs are considered valid if the resources are
more productive in their new use than they would be if the industry had not been
started. The infant industry eventually must incorporate itself into a market without the
protection of government subsidies.
Tariffs can create tension between countries. Examples include the United States steel
tariff of 2002 and when China placed a 14% tariff on imported auto parts. Such tariffs
usually lead to filing a complaint with the World Trade Organization (WTO) 10 and, if
that fails, could eventually head toward the country placing a tariff against the other
nation in spite, to impress pressure to remove the tariff.
Subsidies
To subsidize an industry or company refers to, in this instance, a governmental
providing supplemental financial support to manipulate the price below market value.
Subsidies are generally used for failing industries that need a boost in domestic
spending. Subsidizing encourages greater demand for a good or service because of the
slashed price. The effect of subsidies deters other countries that are able to produce a
specific product or service at a faster, cheaper, and more productive rate. With the
lowered price, these efficient producers cannot compete. The life of a subsidy is
generally short-lived, but sometimes can be implemented on a more permanent basis.
The agricultural industry is commonly subsidized, both in the United States, and in
other countries including Japan and nations located in the European Union (EU).
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Critics argue such subsidies cost developing nations $24 billion annually in lost income
according to a study by the International Food Policy Research Institute, a D.C. group
funded partly by the World Bank. However, other nations are not the only economic
'losers'. Subsidies in the U.S. heavily depend upon taxpayer dollars. In 2000, the U.S.
spent an all-time record $32.3 billion for the agricultural industry. The EU spends about
$50 billion annually, nearly half its annual budget on its common agricultural policy
and rural development.
Exports and free trade
The theory states that all parties maximize benefit in an environment of unrestricted
trade, even if absolute advantages in production exist between the parties. In contrast to
Mercantilism, the first systematic body of thought devoted to international trade,
emerged during the 17th and 18th centuries in Europe. While most views surfacing
from this school of thought differed, a commonly argued key objective of trade was to
promote a "favorable" balance of trade, referring to a time when the value of domestic
goods exported exceeds the value of foreign goods imported. The "favorable" balance in
turn created a balance of trade surplus.
EXPORT STRATEGY
Export strategy is to ship commodities to other places or countries for sale or exchange.
In economics, an export is any good or commodity, transported from one country to
another country in a legitimate fashion, typically for use in trade.
Advantages of exporting
Ownership advantages are the firm's specific assets, international experience, and the
ability to develop either low-cost or differentiated products within the contacts of its
value chain. The locational advantages of a particular market are a combination of
market potential and investment risk. Internationalization advantages are the benefits of
retaining a core competence within the company and threading it though the value chain
rather than obtain to license, outsource, or sell it. In relation to the Eclectic paradigm,
companies that have low levels of ownership advantages either do not enter foreign
markets.
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If the company and its products are equipped with ownership advantage and
internalization advantage, they enter through low-risk modes such as exporting.
Exporting requires significantly lower level of investment than other modes of
international expansion, such as FDI. As you might expect, the lower risk of export
typically results in a lower rate of return on sales than possible though other modes of
international business. In other words, the usual return on export sales may not be
tremendous, but neither is the risk. Exporting allows managers to exercise operation
control but does not provide them the option to exercise as much marketing control. An
exporter usually resides far from the end consumer and often enlists various
intermediaries to manage marketing activities.
Disadvantages of exporting
For Small-and-Medium Enterprises (SME) with less than 250 employees, selling goods
and services to foreign markets seems to be more difficult than serving the domestic
market. The lack of knowledge for trade regulations, cultural differences, different
languages and foreign-exchange situations as well as the strain of resources and staff
interact like a block for exporting. Indeed there are some SME's which are exporting,
but nearly two-third of them sell in only to one foreign market.
The following assumption shows the main disadvantages:
Financial management effort: To minimize the risk of exchange-rate fluctuation and
transactions processes of export activity the financial management needs more
capacity to cope the major effort
Customer demand: International customers demand more services from their vendor
like installation and startup of equipment, maintenance or more delivery services.
Communication technologies improvement: The improvement of communication
technologies in recent years enable the customer to interact with more suppliers
while receiving more information and cheaper communications cost at the same
time like 20 years ago. This leads to more transparency. The vendor is in duty to
follow the real-time demand and to submit all transaction details.
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Management mistakes: The management might tap in some of the organizational
pitfalls, like poor selection of oversea agents or distributors or chaotic global
organization.
Ways of exporting: The company can decide to export directly or indirectly to a
foreign country.
Direct selling in export strategy
Direct selling involves sales representatives, distributors, or retailers who are located
outside the exporter's home country. Direct exports are goods and services that are sold
to an independent party outside of the exporters home country. Mainly the companies
are pushed by core competencies and improving their performance of value chain.
Direct selling through distributors
It is considered to be the most popular option to companies, to develop their own
international marketing capability. This is achieved by charging personnel from the
company to give them greater control over their operations. Direct selling also give the
company greater control over the marketing function and the opportunity to earn more
profits. In other cases where network of sales representative, they company can transfer
them exclusive rights to sell in a particular geographic region.
A distributor in a foreign country is a merchant who purchases the product from the
manufacturer and sells them at profit. Distributors usually carry stock inventory and
service the product, and in most cases distributes deals with retailers rather than end
users.
Evaluating Distributors
The size and capabilities of its sales force.
Its sales record.
An analysis of its territory.
Its current product mix.
Its facilities and equipment.
Its marketing polices.
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Its customer profit.
Its promotional strategy.
Direct selling through foreign retailers and end users
Exporters can also sell directly to foreign retailers. Usually, products are limited to
consumer lines; it can also sell to direct end users. A good way to generate such sales is
by printing catalogs or attending trade shows.
Direct selling over the Internet
Electronic commerce is an important mean to small and big companies all over the
world, to trade internationally. We already can see how important E-commerce is for
marketing growth among exporters companies in emerging economies, in order to
overcome capital and infrastructure barriers. E-commerce eased engagements, provided
faster and cheaper delivery of information, generates quick feedback on new products,
improves customer service, accesses a global audience, levels the field of companies,
and support electronics data interchange with suppliers and customers.
Indirect selling
Indirect exports, is simply selling goods to or through an independent domestic
intermediary in their own home county. Then intermediaries export the products to
customers foreign markets.
Once a company determines it has exportable products, it must still consider factors
such as:
What does the company want to gain from exporting?
Is exporting consistent with other company goals?
What demands will exporting place on the company's key resources - management and
personnel, production capacity, and finance - and how will these demands be met?
Are the expected benefits worth the costs, or would company resources be better used
for developing new domestic business?


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THE GLOBAL MARKET SCENARIO
Globalization of Markets and Competition: Trade is increasingly global in scope
today. There are several reasons for this. One significant reason is technological
because of improved transportation and communication opportunities today, trade is
now more practical. Thus, consumers and businesses now have access to the very best
products from many different countries. Increasingly rapid technology lifecycles also
increases the competition among countries as to who can produce the newest in
technology. In part to accommodate these realities, countries in the last several decades
have taken increasing steps to promote global trade through agreements such as the
General Treaty on Trade and Tariffs, and trade organizations such as the World Trade
Organization (WTO), North American Free Trade Agreement (NAFTA), and the
European Union (EU).
Stages in the International Involvement of a Firm. We discussed several stages
through which a firm may go as it becomes increasingly involved across borders. A
purely domestic firm focuses only on its home market, has no current ambitions of
expanding abroad, and does not perceive any significant competitive threat from
abroad. Such a firm may eventually get some orders from abroad, which are seen either
as an irritation (for small orders, there may be a great deal of effort and cost involved in
obtaining relatively modest revenue) or as "icing on the cake." As the firm begins to
export more, it enters the export stage, where little effort is made to market the product
abroad, although an increasing number of foreign orders are filled.
In the international stage, as certain country markets begin to appear especially
attractive with more foreign orders originating there, the firm may go into countries on
an ad hoc basisthat is, each country may be entered sequentially, but with relatively
little learning and marketing efforts being shared across countries. In the multi-national
stage, some efficiency are pursued by standardizing across a region (e.g., Central
America, West Africa, or Northern Europe). Finally, in the global stage, the focus
centers on the entire World market, with decisions made optimize the products position
across marketsthe home country is no longer the center of the product. An example of
a truly global company is Coca Cola.
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Note that these stages represent points on a continuum from a purely domestic
orientation to a truly global one; companies may fall in between these discrete stages,
and different parts of the firm may have characteristics of various stagesfor example,
the pickup truck division of an auto-manufacturer may be largely domestically focused,
while the passenger car division is globally focused.
Although a global focus is generally appropriate for most large firms, note that it may
not be ideal for all companies to pursue the global stage. For example, manufacturers of
ice cubes may do well as domestic, or even locally centered, firms.
Some forces in international trade. The text contains a rather long-winded appendix
discussing some relatively simple ideas. Comparative advantage, discussed in more
detail in the economics notes, suggests trade between countries is beneficial because
these countries differ in their relative economic strengthssome have more advanced
technology and some have lower costs. The International Product Life Cycle suggests
that countries will differ in their timing of the demand for various products. Products
tend to be adopted more quickly in the United States and Japan, for example, so once
the demand for a product (say, VCRs) is in the decline in these markets, an increasing
market potential might exist in other countries (e.g., Europe and the rest of Asia).
Internalization/transaction costs refers to the fact that developing certain very large
scale projects, such as an automobile intended for the World market, may entail such
large costs that these must be spread over several countries.
Economics of International Trade: Exchange rates come in two forms:
Floatinghere, currencies are set on the open market based on the supply of and
demand for each currency. For example, all other things being equal, if the U.S.
imports more from India than it exports there, there will be less demand for U.S. dollars
(they are not desired for purchasing goods) and more demand for Indian Rupees yen
thus, the price of the yen, in dollars, will increase, so you will get fewer Rupee for a
dollar.

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Fixedcurrencies may be pegged to another currency (e.g., the Indian currency is
guaranteed in terms of a dollar value), to a composite of currencies (i.e., to avoid
making the currency dependent entirely on the U.S. dollar, or to some other valuable
such as gold. Note that it is very difficult to maintain these fixed exchange rates
governments must buy or sell currency on the open market when currencies go outside
the accepted ranges.
Fixed exchange rates, although they produce stability and predictability, tend to get in
the way of market forcesif a currency is kept artificially low, a country will tend to
export too much and import too little.
Trade balances and exchange rates. When exchange rates are allowed to fluctuate,
the currency of a country that tends to run a trade deficit will tend to decline over time,
since there will be less demand for that currency. This reduced exchange rate will then
tend to make exports more attractive in other countries, and imports less attractive at
home.
Measuring country wealth. There are two ways to measure the wealth of a country.
The nominal per capita gross domestic product (GDP) refers to the value of goods and
services produced per person in a country if this value in local currency were to be
exchanged into dollars. Suppose, for example, that the per capita GDP of Japan is
3,500,000 yen and the dollar exchanges for 100 yen, so that the per capita GDP is
(3,500,000/100)=$35,000. However, that $35,000 will not buy as much in Japanfood
and housing are much more expensive there.
Therefore, we introduce the idea of purchase parity adjusted per capita GDP, which
reflects what this money can buy in the country. This is typically based on the relative
costs of a weighted basket of goods in a country (e.g., 35% of the cost of housing,
40% the cost of food, 10% the cost of clothing, and 15% cost of other items). If it turns
out that this measure of cost of living is 30% higher in Japan, the purchase parity
adjusted GPD in Japan would then be ($35,000/(130%) = $26,923. GDP and GNP are
almost identical figures. The GNP, for example, includes income made by citizens
working abroad, and does not include the income of foreigners working in the country.

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Traditionally, the GNP was more prevalent; today the GPD is more commonly usedin
practice, the two measures fall within a few percent of each other.) In general, the
nominal per capita GPD is more useful for determining local consumers ability to buy
imported goods, the cost of which are determined in large measure by the costs in the
home market, while the purchase parity adjusted measure is more useful when products
are produced, at local costs, in the country of purchase. For example, the ability of
Indians to purchase micro computer chips, which are produced mostly in the U.S. and
Japan, is better predicted by nominal income, while the ability to purchase toothpaste
made by a U.S. firm in a factory in Argentina is better predicted by purchase parity
adjusted income.
It should be noted that, in some countries, income is quite unevenly distributed so that
these average measures may not be very meaningful. In Brazil, for example, there is a
very large underclass making significantly less than the national average, and thus, the
national figure is not a good indicator of the purchase power of the mass market.
Similarly, great regional differences exist within some countriesincome is much
higher in northern Germany than it is in the former East Germany, and income in
southern Italy is much lower than in northern Italy.
Political and Legal Influences
The political situation. The political relations between a firms country of
headquarters (or other significant operations) and another one may, through no fault of
the firms, become a major issue. For example, oil companies which invested in Iraq or
Libya became victims of these countries misconduct that led to bans on trade. Certain
issues in the political environment are particularly significant. Some countries, such as
Russia, have relatively unstable governments, whose policies may change dramatically
if new leaders come to power by democratic or other means. Some countries have little
tradition of democracy, and thus it may be difficult to implement.
Laws across borders. When laws of two countries differ, it may be possible in a
contract to specify in advance which laws will apply, although this agreement may not
be consistently enforceable. Alternatively, jurisdiction may be settled by treaties, and
some governments, such as that of the U.S., often apply their laws to actions, such as
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anti-competitive behavior, perpetrated outside their borders (extra-territorial
application). By the doctrine known as compulsion, a firm that violates U.S. law abroad
may be able to claim as a defense that it was forced to do so by the local government;
such violations must, however, be compelledthat they are merely legal or accepted in
the host country is not sufficient.
The reality of legal systems. Some legal systems, such as that of the U.S., are
relatively transparentthat is, the law tends to be what its plain meaning would
suggest. In some countries, however, there are laws on the books which are not
enforced (e.g., although Japan has antitrust laws similar to those of the U.S., collusion is
openly tolerated). Further, the amount of discretion left to government officials tends to
vary. In Japan, through the doctrine of administrative guidance, great latitude is left to
government officials, who effectively make up the laws. One serious problem in some
countries is a limited access to the legal systems as a means to redress grievances
against other parties. While the U.S. may rely excessively on lawsuits, the inability to
effectively hold contractual partners to their agreement tends to inhibit business deals.
In many jurisdictions, pre-trial discovery is limited, making it difficult to make a case
against a firm whose internal documents would reveal guilt.
Legal systems of the World. There are four main approaches to law across the World,
with some differences within each:
Common law, the system in effect in the U.S., is based on a legal tradition of precedent.
Each case that raises new issues is considered on its own merits, and then becomes a
precedent for future decisions on that same issue. Although the legislature can override
judicial decisions by changing the law or passing specific standards through legislation,
reasonable court decisions tend to stand by default.
Code law, which is common in Europe, gives considerably shorter leeway to judges,
who are charged with matching specific laws to situationsthey cannot come up with
innovative solutions when new issues such as patentability of biotechnology come up.
There are also certain differences in standards. For example, in the U.S. a supplier
whose factory is hit with a strike is expected to deliver on provisions of a contract,
while in code law this responsibility may be nullified by such an act of God.
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Islamic law is based on the teachings of the Koran, which puts forward mandates such
as a prohibition of usury, or excessive interest rates. This has led some Islamic
countries to ban interest entirely; in others, it may be tolerated within reason. Islamic
law is ultimately based on the need to please God, so getting around the law is
generally not acceptable. Attorneys may be consulted about what might please God
rather than what is an explicit requirements of the government.
Socialist law is based on the premise that the government is always right and typically
has not developed a sophisticated framework of contracts (you do what the governments
tells you to do) or intellectual property protection (royalties are unwarranted since the
government ultimately owns everything). Former communist countries such as those of
Eastern Europe and Russia are trying to advance their legal systems to accommodate
issues in a free market.
U.S. laws of particular interest to firms doing business abroad.
Anti-trust. U.S. antitrust laws are generally enforced in U.S. courts even if the alleged
transgression occurred outside U.S. jurisdiction. For example, if two Japanese firms
collude to limit the World supply of VCRs, they may be sued by the U.S. government
(or injured third parties) in U.S. courts, and may have their U.S. assets seized.
The Foreign Corrupt Influences Act came about as Congress was upset with U.S. firms
bribery of foreign officials. Although most if not all countries ban the payment of
bribes, such laws are widely flaunted in many countries, and it is often useful to pay a
bribe to get foreign government officials to act favorably. Firms engaging in this
behavior, even if it takes place entirely outside the U.S., can be prosecuted in U.S.
courts, and many executives have served long prison sentences for giving in to
temptation. In contrast, in the past some European firms could actually deduct the cost
of foreign bribes from their taxes! For example, it may be acceptable to give a
reasonable (not large) facilitating payment to get customs workers to process a shipment
faster, but it would not be legal to pay these individuals to change the classification of a
product into one that carries a lower tariff.

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Anti-boycott laws. Many Arab countries maintain a boycott of Israel, and foreigners
that want to do business with them may be asked to join in this boycott by stopping any
deals they do with Israel and certifying that they do not trade with that country. It is
illegal for U.S. firms to make this certification even if they have not dropped any actual
deals with Israel to get a deal with boycotters.
Trading With the Enemy. It is illegal for U.S. firms to trade with certain countries that
are viewed to be hostile to the U.S.e.g., Libya and Iraq.
Culture
Culture is part of the external influences that impact the consumer. That is, culture
represents influences that are imposed on the consumer by other individuals.
The definition of culture offered one text is That complex whole which includes
knowledge, belief, art, morals, custom, and any other capabilities and habits acquired by
man person as a member of society. From this definition, we make the following
observations:
Culture, as a complex whole, is a system of interdependent components.
Knowledge and beliefs are important parts. In the U.S., we know and believe that a
person who is skilled and works hard will get ahead. In other countries, it may be
believed that differences in outcome result more from luck. Chunking, the name for
China in Chinese, literally means The Middle Kingdom. The belief among ancient
Chinese that they were in the center of the universe greatly influenced their thinking.
Other issues are relevant. Art, for example, may be reflected in the rather arbitrary
practice of wearing ties in some countries and wearing turbans in others. Morality may
be exhibited in the view in the United States that one should not be naked in public. In
Japan, on the other hand, groups of men and women may take steam baths together
without perceived as improper. On the other extreme, women in some Arab countries
are not even allowed to reveal their faces. Notice, by the way, that what at least some
countries view as moral may in fact be highly immoral by the standards of another
country.
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Culture has several important characteristics: (1) Culture is comprehensive. This
means that all parts must fit together in some logical fashion. For example, bowing and
a strong desire to avoid the loss of face are unified in their manifestation of the
importance of respect. (2) Culture is learned rather than being something we are born
with. We will consider the mechanics of learning later in the course. (3) Culture is
manifested within boundaries of acceptable behavior. For example, in American
society, one cannot show up to class naked, but wearing anything from a suit and tie to
shorts and a T-shirt would usually be acceptable. Failure to behave within the
prescribed norms may lead to sanctions, ranging from being hauled off by the police for
indecent exposure to being laughed at by others for wearing a suit at the beach. (4)
Conscious awareness of cultural standards is limited. One American spy was
intercepted by the Germans during World War II simply because of the way he held his
knife and fork while eating. (5) Cultures fall somewhere on a continuum between
static and dynamic depending on how quickly they accept change. For example,
American culture has changed a great deal since the 1950s, while the culture of Saudi
Arabia has changed much less.
Dealing with culture. Culture is a problematic issue for many marketers since it is
inherently nebulous and often difficult to understand. One may violate the cultural
norms of another country without being informed of this, and people from different
cultures may feel uncomfortable in each others presence without knowing exactly why
(for example, two speakers may unconsciously continue to attempt to adjust to reach an
incompatible preferred interpersonal distance).
Warning about stereotyping. When observing a culture, one must be careful not to
over-generalize about traits that one sees. Research in social psychology has suggested
a strong tendency for people to perceive an outgroup as more homogenous than an
ingroup, even when they knew what members had been assigned to each group purely
by chance. When there is often a grain of truth to some of the perceived differences,
the temptation to over-generalize is often strong. Note that there are often significant
individual differences within cultures.
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Cultural lessons. We considered several cultural lessons in class; the important thing
here is the big picture. For example, within the Muslim tradition, the dog is considered
a dirty animal, so portraying it as mans best friend in an advertisement is counter-
productive. Packaging, seen as a reflection of the quality of the real product, is
considerably more important in Asia than in the U.S., where there is a tendency to focus
on the contents which really count. Many cultures observe significantly greater levels
of formality than that typical in the U.S., and Japanese negotiator tend to observe long
silent pauses as a speakers point is considered.
Cultural characteristics as a continuum. There is a tendency to stereotype cultures as
being one way or another (e.g., individualistic rather than collectivistic). Note,
however, countries fall on a continuum of cultural traits. Hofstedes research
demonstrates a wide range between the most individualistic and collectivistic countries,
for examplesome fall in the middle.
Hofstedes Dimensions. Gert Hofstede, a Dutch researcher, was able to interview a
large number of IBM executives in various countries, and found that cultural
differences tended to center around four key dimensions:
Individualism vs. collectivism: To what extent do people believe in individual
responsibility and reward rather than having these measures aimed at the larger group?
Contrary to the stereotype, Japan actually ranks in the middle of this dimension, while
Indonesia and West Africa rank toward the collectivistic side. The U.S., Britain, and
the Netherlands rate toward individualism.
Power distance: To what extent is there a strong separation of individuals based on
rank? Power distance tends to be particularly high in Arab countries and some Latin
American ones, while it is more modest in Northern Europe and the U.S.
Masculinity vs. femininity involves a somewhat more nebulous concept. Masculine
values involve competition and conquering nature by means such as large
construction projects, while feminine values involve harmony and environmental
protection. Japan is one of the more masculine countries, while the Netherlands rank
relatively low. The U.S. is close to the middle, slightly toward the masculine side.
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(The fact that these values are thought of as masculine or feminine does not mean
that they are consistently held by members of each respective genderthere are very
large within-group differences. There is, however, often a large correlation of these
cultural values with the status of women.)
Uncertainty avoidance involves the extent to which a structured situation with clear
rules is preferred to a more ambiguous one; in general, countries with lower uncertainty
avoidance tend to be more tolerant of risk. Japan ranks very high. Few countries are
very low in any absolute sense, but relatively speaking, Britain and Hong Kong are
lower, and the U.S. is in the lower range of the distribution.
Although Hofstedes original work did not address this, a fifth dimension of long term
vs. short term orientation has been proposed. In the U.S., managers like to see quick
results, while Japanese managers are known for take a long term view, often accepting
long periods before profitability is obtained.
High vs. low context cultures: In some cultures, what you see is what you getthe
speaker is expected to make his or her points clear and limit ambiguity. This is the case
in the U.S.if you have something on your mind, you are expected to say it directly,
subject to some reasonable standards of diplomacy. In Japan, in contrast, facial
expressions and what is not said may be an important clue to understanding a speakers
meaning. Thus, it may be very difficult for Japanese speakers to understand anothers
written communication. The nature of languages may exacerbate this phenomenon
while the German language is very precise, Chinese lacks many grammatical features,
and the meaning of words may be somewhat less precise. English ranks somewhere in
the middle of this continuum.
Ethnocentrism and the self-reference criterion. The self-reference criterion refers to
the tendency of individuals, often unconsciously, to use the standards of ones own
culture to evaluate others. For example, Americans may perceive more traditional
societies to be backward and unmotivated because they fail to adopt new
technologies or social customs, seeking instead to preserve traditional values. In the
1960s, a supposedly well read American psychology professor referred to Indias
culture of sick because, despite severe food shortages, the Hindu religion did not
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allow the eating of cows. The psychologist expressed disgust that the cows were
allowed to roam free in villages, although it turns out that they provided valuable
functions by offering milk and fertilizing fields.
Ethnocentrism is the tendency to view ones culture to be superior to others. The
important thing here is to consider how these biases may come in the way in dealing
with members of other cultures. It should be noted that there is a tendency of outsiders
to a culture to overstate the similarity of members of that culture to each other. In the
United States, we are well aware that there is a great deal of heterogeneity within our
culture; however, we often underestimate the diversity within other cultures.
Language issues. Language is an important element of culture. It should be realized
that regional differences may be subtle. For example, one word may mean one thing in
one Latin American country, but something off-color in another. It should also be kept
in mind that much information is carried in non-verbal communication. In some
cultures, we nod to signify yes and shake our heads to signify no; in other cultures,
the practice is reversed. Within the context of language:
There are often large variations in regional dialects of a given language. The
differences between U.S., Australian, and British English are actually modest compared
to differences between dialects of Spanish and German.
Idioms involve figures of speech that may not be used, literally translated, in other
languages. For example, baseball is a predominantly North and South American sport,
so the notion of in the ball park makes sense here, but the term does not carry the
same meaning in cultures where the sport is less popular.
Neologisms involve terms that have come into language relatively recently as
technology or society involved. With the proliferation of computer technology, for
example, the idea of an add-on became widely known. It may take longer for such
terms to diffuse into other regions of the world. In parts of the World where English
is heavily studied in schools, the emphasis is often on grammar and traditional language
rather than on current terminology, so neologisms have a wide potential not to be
understood.
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Slang exists within most languages. Again, regional variations are common and not all
people in a region where slang is used will necessarily understand this. There are often
significant generation gaps in the use of slang. Writing patterns, or the socially accepted
ways of writing, will differs significantly between cultures. Differences in cultural
values result in different preferred methods of speech. In American English, where the
individual is assumed to be more in control of his or her destiny than is the case in many
other cultures, there is a preference for the active tense (e.g., I wrote the marketing
plan) as opposed to the passive (e.g., The marketing plan was written by me.)
Different perspectives exist in different cultures on several issues; e.g.:
Monochronic cultures tend to value precise scheduling and doing one thing at a time; in
polychronic cultures, in contrast, promptness is valued less, and multiple tasks may be
performed simultaneously. (See text for more detail).
Space is perceived differently. Americans will feel crowded where people from more
densely populated countries will be comfortable.
Symbols differ in meaning. For example, while white symbols purity in the U.S., it is a
symbol of death in China. Colors that are considered masculine and feminine also
differ by culture.
Americans have a lot of quite shallow friends toward whom little obligation is felt;
people in European and some Asian cultures have fewer, but more significant friends.
For example, one Ph.D. student from India, with limited income, felt obligated to try
buy an airline ticket for a friend to go back to India when a relative had died.
In the U.S. and much of Europe, agreements are typically rather precise and contractual
in nature; in Asia, there is a greater tendency to settle issues as they come up. As a
result, building a relationship of trust is more important in Asia, since you must be able
to count on your partner being reasonable.
In terms of etiquette, some cultures have more rigid procedures than others. In some
countries, for example, there are explicit standards as to how a gift should be presented.
In some cultures, gifts should be presented in private to avoid embarrassing the
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recipient; in others, the gift should be made publicly to ensure that no perception of
secret bribery could be made.

Cross-Cultural Market Research
Primary vs. secondary research. There are two kinds of market research: Primary
research refers to the research that a firm conducts for its own needs (e.g., focus groups,
surveys, interviews, or observation) while secondary research involves finding
information compiled by someone else. In general, secondary research is less expensive
and is faster to conduct, but it may not answer the specific questions the firm seeks to
have answered (e.g., how do consumers perceive our product?), and its reliability may
be in question.
Secondary sources. A number of secondary sources of country information are
available. One of the most convenient sources is an almanac, containing a great deal of
country information. Several experts may be available. Anthropologists and
economists in universities may have built up a great deal of knowledge and may be
available for consulting. Consultants specializing in various regions or industries are
typically considerably more expensive. One should be careful about relying on the
opinions of expatriates (whose views may be biased or outdated) or ones own
experience (which may relate to only part of a country or a certain subsegment) and
may also suffer from the limitation of being a sample of size 1.
Hard vs. soft data. Hard data refers to relatively quantifiable measures such as a
countrys GDP, number of telephones per thousand residents, and birth rates (although
even these supposedly objective factors may be subject to some controversy due to
differing definitions and measurement approaches across countries). In contrast, soft
data refers to more subjective issues such as country history or culture. It should be
noted that while the hard data is often more convenient and seemingly objective, the
soft data is frequently as important, if not more so, in understanding a market.

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Data reliability. The accuracy and objectivity of data depend on several factors. One
significant one is the motivation of the entity that releases it. For example, some
countries may want to exaggerate their citizens literacy rates owing to national pride,
and an organization promoting economic development may paint an overly rosy picture
in order to attract investment. Some data may be dated (e.g., a census may be
conducted rarely in some regions), and some countries may lack the ability to collect
data (it is difficult to reach people in the interior regions of Latin America, for
example).
Differences in how constructs are defined in different countries (e.g., is military
personnel counted in people who are employed?) may make figures of different
jurisdictions non-comparable.
Cost of data. Much government data, or data released by organizations such as the
World Bank or the United Nations, is free or inexpensive, while consultants may charge
very high rates.
Issues in primary research. Cultural factors often influence how people respond to
research. While Americans are used to market research and tend to find this relatively
un-threatening, consumers in other countries may fear that the data will be reported to
the government, and may thus not give accurate responses. In some cultures, criticism
or confrontation are considered rude, so consumers may not respond honestly when
they dislike a product. Technology such as scanner data is not as widely available
outside the United States. Local customs and geography may make it difficult to
interview desired respondents; for example, in some countries, women may not be
allowed to talk to strangers.
Country Entry: Decisions and Strategies
Segmentation, Targeting, and Positioning. Segmentation, in marketing, is usually
done at the customer level. However, in international marketing, it may sometimes be
useful to see countries as segments. This allows the decision maker to focus on
common aspects of countries and avoid information overload. It should be noted that
variations within some countries (e.g., Brazil) are very large and therefore, averages
may not be meaningful.
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Country level segmentation may be done on levels such as geographybased on the
belief that neighboring countries and countries with a particular type of climate or
terrain tend to share similarities, demographics (e.g., population growth, educational
attainment, population age distribution), or income. Segmenting on income is tricky
since the relative prices between countries may differ significantly (based, in part, on
purchasing power parity measures that greatly affect the relative cost of imported and
domestically produced products).
The importance of STP. Segmentation is the cornerstone of marketingalmost all
marketing efforts in some way relate to decisions on who to serve or how to implement
positioning through the different parts of the marketing mix. For example, ones
distribution strategy should consider where ones target market is most likely to buy the
product, and a promotional strategy should consider the targets media habits and which
kinds of messages will be most persuasive. Although it is often tempting, when
observing large markets, to try to be "all things to all people," this is a dangerous
strategy because the firm may lose its distinctive appeal to its chosen segments.
In terms of the "big picture," members of a segment should generally be as similar as
possible to each other on a relevant dimension (e.g., preference for quality vs. low
price) and as different as possible from members of other segments. That is, members
should respond in similar ways to various treatments (such as discounts or high service)
so that common campaigns can be aimed at segment members, but in order to justify a
different treatment of other segments, their members should have their own unique
response behavior.
Approaches to global segmentation. There are two main approaches to global
segmentation. At the macro level, countries are seen as segments, given that country
aggregate characteristics and statistics tend to differ significantly. For example, there
will only be a large market for expensive pharmaceuticals in countries with certain
income levels, and entry opportunities into infant clothing will be significantly greater
in countries with large and growing birthrates (in countries with smaller birthrates or
stable to declining birthrates, entrenched competitors will fight hard to keep the market
share).
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There are, however, significant differences within countries. For example, although it
was thought that the Italian market would demand "no frills" inexpensive washing
machines while German consumers would insist on high quality, very reliable ones, it
was found that more units of the inexpensive kind were sold in Germany than in Italy
although many German consumers fit the predicted profile, there were large segment
differences within that country. At the micro level, where one looks at segments within
countries. Two approaches exist, and their use often parallels the firms stage of
international involvement. Intra market segmentation involves segmenting each
countrys markets from scratchi.e., an American firm going into the Brazilian market
would do research to segment Brazilian consumers without incorporating knowledge of
U.S. buyers.
In contrast, intermarket segmentation involves the detection of segments that exist
across borders. Note that not all segments that exist in one country will exist in another
and that the sizes of the segments may differ significantly. For example, there is a huge
small car segment in Europe, while it is considerably smaller in the U.S.
Intermarket segmentation entails several benefits. The fact that products and
promotional campaigns may be used across markets introduces economies of scale, and
learning that has been acquired in one market may be used in anothere.g., a firm that
has been serving a segment of premium quality cellular phone buyers in one country
can put its experience to use in another country that features that same segment. (Even
though segments may be similar across the cultures, it should be noted that it is still
necessary to learn about the local market. For example, although a segment common
across two countries may seek the same benefits, the cultures of each country may
cause people to respond differently to the "hard sell" advertising that has been
successful in one). The international product life cycle suggests that product adoption
and spread in some markets may lag significantly behind those of others. Often, then, a
segment that has existed for some time in an "early adopter" country such as the U.S. or
Japan will emerge after several years (or even decades) in a "late adopter" country such
as Britain or most developing countries. (We will discuss this issue in more detail when
we cover the product mix in the second half of the term).
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Positioning across markets. Firms often have to make a tradeoff between adapting
their products to the unique demands of a country market or gaining benefits of
standardization such as cost savings and the maintenance of a consistent global brand
image. There are no easy answers here. On the one hand, McDonalds has spent a great
deal of resources to promote its global image; on the other hand, significant
accommodations are made to local tastes and preferencesfor example, while serving
alcohol in U.S. restaurants would go against the family image of the restaurant carefully
nurtured over several decades, McDonalds has accommodated this demand of
European patrons.
The Japanese Keiretsu Structure. In Japan, many firms are part of a keiretsu, or a
conglomerate that ties together businesses that can aid each other. For example, a
keiretsu might contain an auto division that buys from a steel division. Both of these
might then buy from a iron mining division, which in turns buys from a chemical
division that also sells to an agricultural division. The agricultural division then sells to
the restaurant division, and an electronics division sells to all others, including the auto
division. Since the steel division may not have opportunities for reinvestment, it puts its
profits in a bank in the center, which in turns lends it out to the electronics division that
is experiencing rapid growth.
This practice insulates the businesses to some extent against the business cycle,
guaranteeing an outlet for at least some product in bad times, but this structure has
caused problems in Japan as it has failed to "root out" inefficient keiretsu members
which have not had to "shape up" to the rigors of the market.
Methods of entry. With rare exceptions, products just dont emerge in foreign markets
overnighta firm has to build up a market over time. Several strategies, which differ in
aggressiveness, risk, and the amount of control that the firm is able to maintain, are
available:
Exporting is a relatively low risk strategy in which few investments are made in the new
country. A drawback is that, because the firm makes few if any marketing investments
in the new country, market share may be below potential. Further, the firm, by not
operating in the country, learns less about the market (What do consumers really want?
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Which kinds of advertising campaigns are most successful? What are the most effective
methods of distribution?) If an importer is willing to do a good job of marketing, this
arrangement may represent a "win-win" situation, but it may be more difficult for the
firm to enter on its own later if it decides that larger profits can be made within the
country.
Licensing and franchising are also low exposure methods of entryyou allow someone
else to use your trademarks and accumulated expertise. Your partner puts up the money
and assumes the risk. Problems here involve the fact that you are training a potential
competitor and that you have little control over how the business is operated. For
example, American fast food restaurants have found that foreign franchisers often fail to
maintain American standards of cleanliness. Similarly, a foreign manufacturer may use
lower quality ingredients in manufacturing a brand based on premium contents in the
home country.
Contract manufacturing involves having someone else manufacture products while you
take on some of the marketing efforts yourself. This saves investment, but again you
may be training a competitor.
Direct entry strategies, where the firm either acquires a firm or builds operations "from
scratch" involve the highest exposure, but also the greatest opportunities for profits. The
firm gains more knowledge about the local market and maintains greater control, but
now has a huge investment. In some countries, the government may expropriate assets
without compensation, so direct investment entails an additional risk. A variation
involves a joint venture, where a local firm puts up some of the money and knowledge
about the local market.
Entry Strategies
Methods of entry. With rare exceptions, products just dont emerge in foreign markets
overnighta firm has to build up a market over time. Several strategies, which differ in
aggressiveness, risk, and the amount of control that the firm is able to maintain, are
available:
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Exporting is a relatively low risk strategy in which few investments are made in the new
country. A drawback is that, because the firm makes few if any marketing investments
in the new country, market share may be below potential. Further, the firm, by not
operating in the country, learns less about the market (What do consumers really want?
Which kinds of advertising campaigns are most successful? What are the most effective
methods of distribution?) If an importer is willing to do a good job of marketing, this
arrangement may represent a "win-win" situation, but it may be more difficult for the
firm to enter on its own later if it decides that larger profits can be made within the
country.
Licensing and franchising are also low exposure methods of entryyou allow someone
else to use your trademarks and accumulated expertise. Your partner puts up the money
and assumes the risk. Problems here involve the fact that you are training a potential
competitor and that you have little control over how the business is operated. For
example, American fast food restaurants have found that foreign franchisers often fail to
maintain American standards of cleanliness. Similarly, a foreign manufacturer may use
lower quality ingredients in manufacturing a brand based on premium contents in the
home country.
Turnkey Projects. A firm uses knowledge and expertise it has gained in one or more
markets to provide a working projecte.g., a factory, building, bridge, or other
structureto a buyer in a new country. The firm can take advantage of investments
already made in technology and/or development and may be able to receive greater
profits since these investments do not have to be started from scratch again. However,
getting the technology to work in a new country may be challenging for a firm that does
not have experience with the infrastructure, culture, and legal environment.
Management Contracts. A firm agrees to manage a facilitye.g., a factory, port, or
airportin a foreign country, using knowledge gained in other markets. Again, one
thing is to be able to transfer technologyanother is to be able to work in a new
country with a different infrastructure, culture, and political/legal environment.
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Contract manufacturing involves having someone else manufacture products while you
take on some of the marketing efforts yourself. This saves investment, but again you
may be training a competitor.
Direct entry strategies, where the firm either acquires a firm or builds operations "from
scratch" involve the highest exposure, but also the greatest opportunities for profits. The
firm gains more knowledge about the local market and maintains greater control, but
now has a huge investment. In some countries, the government may expropriate assets
without compensation, so direct investment entails an additional risk. A variation
involves a joint venture, where a local firm puts up some of the money and knowledge
about the local market.

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MARUTI SUZUKI AND EXPORT MARKETING
Maruti Suzuki, Indias biggest car maker, is seeking to sell more cars overseas to offset
slowing demand at home, where it expects sales volumes to grow between zero and 5 %
in the current financial year.
The company warned that it expected discounts on car prices to increase in the current
quarter because of weak demand, especially as diesel-powered cars lose their popularity
after the government allowed monthly increases in the prices of the fuel.
Maruti is Indias leader in the small car market and accounts for 40 % of all passenger
vehicles sold in the country. It faces increased competition as global auto makers step
up launches in a market that has endured falling sales for eight months in a row
down from double-digit growth just two years ago.
Exports are high on our agenda particularly when the domestic markets are not
growing, a Maruti executive said on a conference call with analysts, adding that the
firm wants to expand in existing markets with more products.
However, Maruti expects export volumes to be flat for the current financial year.
Exports accounted for 8 % of total sales of 266,434 vehicles during the quarter.
Profit jumps 49%
Marutis first-quarter profit jumped 49 % to Rs 631.6 crore, driven by foreign exchange
gain. Exports have given Maruti higher earnings, said company executives. Maruti had
posted a net profit of Rs 423.77 crore in the April-June quarter of last fiscal.
Sales were down 9.98 % to 2.66 lakh units, from 2.95 lakh units in the year-ago period.
In value terms, Maruti said first-quarter net sales were Rs 9,995.12 crore against Rs
10,529.24 crore in the same period a year ago, down 5 %. Favourable foreign
exchange rates during the quarter helped improve export realisation and limit the impact
on net sales, it said.
Besides, Maruti said the increase in net profit was also due to focused cost reduction
efforts undertaken by it and the benefit from the merger of Suzuki Powertrain India Ltd
with the company in 2012-13.
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Undaunted by the dramatic slowdown in demand for cars, India's largest carmaker
Maruti Suzuki is going ahead with its expansion plans. The carmaker has plans to foray
into the light commercial vehicles market, while the Japanese parent wants it to develop
the export markets in the Middle East, Africa and Southeast Asia, which requires
capacity addition, chairman of Maruti Suzuki, RC Bhargava, told ET last week.
The company's third manufacturing line at Manesar plant, with a capacity to roll out 2.5
lakh vehicles, will be ready by September this year. Maruti's Gujarat plant is expected
to go on stream only by 2015 end or early 2016. "We will certainly need more capacity
than 1.5 million units, because three years is a long time. To believe that the market will
virtually remain at this level for three years is highly impossible," said Bhargava.
ET had first reported about Maruti Suzuki's planned foray into light commercial
vehicles in December of 2012. Maruti sold 1.13 million units in FY13, posting a
volume growth of 3.3%. Many expect the market to be depressed in FY14, but bounce
back in FY15. The company wants to be ready when demand picks up in India.
"Suzuki has already said that we are responsible for exports to ASEAN, Africa, Middle
East and some of the neighboring countries. Plus our LCV too has export potential, to
Indonesia and Thailand, etc; so we would need more capacity," added Bhargava. The
LCV, codenamed Y9T, is likely to be ready by FY16. Maruti is expected to set up a
separate assembly line in Gujarat plant for LCVs. Apart from the LCV, Maruti has lined
up a slew of new models including a small car YL7 and a series of big cars including an
SUV. Abdul Majeed, leader of automotive practice at global consultancy and audit firm
PricewaterhouseCoopers (PwC), says there is a huge potential for companies like
Maruti Suzuki to diversify its products and markets. "Most of the emerging markets are
very similar to India, and the product portfolio of Maruti Suzuki is very apt for these
markets," he said.
PRODUCT ISSUES IN INTERNATIONAL MARKETING
Products and Services. Some marketing scholars and professionals tend to draw a
strong distinction between conventional products and services, emphasizing service
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characteristics such as heterogeneity (variation in standards among providers, frequently
even among different locations of the same firm), inseperability from consumption,
intangibility, and, in some cases, perishabilitythe idea that a service cannot generally
be created during times of slack and be stored for use later.
However, almost all products have at least some service componente.g., a warranty,
documentation, and distributionand this service component is an integral part of the
product and its positioning. Thus, it may be more useful to look at the product-service
continuum as one between very low and very high levels of tangibility of the service.
Income tax preparation, for example, is almost entirely intangiblethe client may
receive a few printouts, but most of the value is in the service. On the other hand, a
customer who picks up rocks for construction from a landowner gets a tangible product
with very little value added for service. Firms that offer highly tangible products often
seek to add an intangible component to improve perception. Conversely, adding a
tangible element to a servicee.g., a binder with informationmay address many
consumers psychological need to get something to show for their money.
On the topic of services, cultural issues may be even more prominent than they are for
tangible goods. There are large variations in willingness to pay for quality, and often
very large differences in expectations. In some countries, it may be more difficult to
entice employees to embrace a firms customer service philosophy. Labor regulations
in some countries make it difficult to terminate employees whose treatment of
customers is substandard. Speed of service is typically important in the U.S. and
western countries but personal interaction may seem more important in other countries.
Product Need Satisfaction. We often take for granted the obvious need that
products seem to fill in our own culture; however, functions served may be very
different in othersfor example, while cars have a large transportation role in the U.S.,
they are impractical to drive in Japan, and thus cars there serve more of a role of being a
status symbol or providing for individual indulgence.
Approaches to Product Introduction. Firms face a choice of alternatives in
marketing their products across markets. An extreme strategy involves customization,
whereby the firm introduces a unique product in each country, usually with the belief
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tastes differ so much between countries that it is necessary more or less to start from
scratch in creating a product for each market. On the other extreme, standardization
involves making one global product in the belief the same product can be sold across
markets without significant modificatione.g., Intel microprocessors are the same
regardless of the country in which they are sold.
Finally, in most cases firms will resort to some kind of adaptation, whereby a common
product is modified to some extent when moved between some marketse.g., in the
United States, where fuel is relatively less expensive, many cars have larger engines
than their comparable models in Europe and Asia; however, much of the design is
similar or identical, so some economies are achieved. Similarly, while Kentucky Fried
Chicken serves much the same chicken with the eleven herbs and spices in Japan, a
lesser amount of sugar is used in the potato salad, and fries are substituted for mashed
potatoes.
There are certain benefits to standardization. Firms that produce a global product can
obtain economies of scale in manufacturing, and higher quantities produced also lead to
a faster advancement along the experience curve. Further, it is more feasible to
establish a global brand as less confusion will occur when consumers travel across
countries and see the same product. On the down side, there may be significant
differences in desires between cultures and physical environmentse.g., software sold
in the U.S. and Europe will often utter a beep to alert the user when a mistake has
been made; however, in Asia, where office workers are often seated closely together,
this could cause embarrassment.
Adaptations come in several forms. Mandatory adaptations involve changes that have
to be made before the product can be usede.g., appliances made for the U.S. and
Europe must run on different voltages, and a major problem was experienced in the
European Union when hoses for restaurant frying machines could not simultaneously
meet the legal requirements of different countries. Discretionary changes are
changes that do not have to be made before a product can be introduced (e.g., there is
nothing to prevent an American firm from introducing an overly sweet soft drink into
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the Japanese market), although products may face poor sales if such changes are not
made.
Discretionary changes may also involve cultural adaptationse.g., in Sesame Street, the
Big Bird became the Big Camel in Saudi Arabia. Another distinction involves physical
product vs. communication adaptations. In order for gasoline to be effective in high
altitude regions, its octane must be higher, but it can be promoted much the same way.
On the other hand, while the same bicycle might be sold in China and the U.S., it might
be positioned as a serious means of transportation in the former and as a recreational
tool in the latter. In some cases, products may not need to be adapted in either way
(e.g., industrial equipment), while in other cases, it might have to be adapted in both
(e.g., greeting cards, where the both occasions, language, and motivations for sending
differ). Finally, a market may exist abroad for a product which has no analogue at
homee.g., hand-powered washing machines.
Branding. While Americans seem to be comfortable with category specific brands, this
is not the case for Asian consumers. American firms observed that their products would
be closely examined by Japanese consumers who could not find a major brand name on
the packages, which was required as a sign of quality. Note that Japanese keiretsus
span and use their brand name across multiple industriese.g., Mitsubishi, among other
things, sells food, automobiles, electronics, and heavy construction equipment.
The International Product Life Cycle (PLC). Consumers in different countries differ
in the speed with which they adopt new products, in part for economic reasons (fewer
Malaysian than American consumers can afford to buy VCRs) and in part because of
attitudes toward new products (pharmaceuticals upset the power afforded to traditional
faith healers, for example). Thus, it may be possible, when one market has been
saturated, to continue growth in another markete.g., while somewhere between one
third and one half of American homes now contain a computer, the corresponding
figures for even Europe and Japan are much lower and thus, many computer
manufacturers see greater growth potential there.
-Note that expensive capital equipment may also cycle between countriese.g., airlines
in economically developed countries will often buy the newest and most desired aircraft
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and sell off older ones to their counterparts in developing countries. While in
developed countries, three part canning machines that solder on the bottom with lead
are unacceptable for health reasons, they have found a market in developing countries.
Diffusion of innovation. Good new innovations often do not spread as quickly as one
might expecte.g., although the technology for microwave ovens has existed since the
1950s, they really did not take off in the United States until the late seventies or early
eighties, and their penetration is much lower in most other countries. The typewriter,
telephone answering machines, and cellular phones also existed for a long time before
they were widely adopted.
Certain characteristics of products make them more or less likely to spread. One factor
is relative advantage. While a computer offers a huge advantage over a typewriter, for
example, the added gain from having an electric typewriter over a manual one was
much smaller. Another issue is compatibility, both in the social and physical sense.
A major problem with the personal computer was that it could not read the manual files
that firms had maintained, and birth control programs are resisted in many countries due
to conflicts with religious values. Complexity refers to how difficult a new product is to
usee.g., some people have resisted getting computers because learning to use them
takes time. Trialability refers to the extent to which one can examine the merits of a
new product without having to commit a huge financial or personal investmente.g., it
is relatively easy to try a restaurant with a new ethnic cuisine, but investing in a global
positioning navigation system is riskier since this has to be bought and installed in ones
car before the consumer can determine whether it is worthwhile in practice. Finally,
observability refers to the extent to which consumers can readily see others using the
producte.g., people who do not have ATM cards or cellular phones can easily see the
convenience that other people experience using them; on the other hand, VCRs are
mostly used in peoples homes, and thus only an owners close friends would be likely
to see it.

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At the societal level, several factors influence the spread of an innovation. Not
surprisingly, cosmopolitanism, the extent to which a country is connected to other
cultures, is useful. Innovations are more likely to spread where there is a higher
percentage of women in the work force; these women both have more economic power
and are able to see other people use the products and/or discuss them. Modernity refers
to the extent to which a culture values progress.

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INTERNATIONAL PROMOTION
Promotional tools. Numerous tools can be used to influence consumer purchases:
Advertisingin or on newspapers, radio, television, billboards, busses, taxis, or the
Internet.
Price promotionsproducts are being made available temporarily as at a lower price,
or some premium (e.g., toothbrush with a package of toothpaste) is being offered for
free.
Sponsorships
Point-of-purchasethe manufacturer pays for extra display space in the store or puts a
coupon right by the product
Other method of getting the consumers attentionall the Gap stores in France may
benefit from the prominence of the new store located on the Champs-Elysees
Promotional objectives. Promotional objectives involve the question of what the firm
hopes to achieve with a campaignincreasing profits is too vague an objective, since
this has to be achieved through some intermediate outcome (such as increasing market
share, which in turn is achieved by some change in consumers which cause them to buy
more). Some common objectives that firms may hold:
Awareness. Many French consumers do not know that the Gap even exists, so they
cannot decide to go shopping there. This objective is often achieved through
advertising, but could also be achieved through favorable point-of-purchase displays.
Note that since advertising and promotional stimuli are often afforded very little
attention by consumers, potential buyers may have to be exposed to the promotional
stimulus numerous times before it registers.
Trial. Even when consumers know that a product exists and could possibly satisfy
some of their desires, it may take a while before they get around to trying the product
especially when there are so many other products that compete for their attention and
wallets. Coupons are often an effective way of achieving trial, but these are illegal in
some countries and in some others, the infrastructure to readily accept coupons (e.g.,
clearing houses) does not exist. Continued advertising and point-of-purchase displays
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may be effective. Although Coca Cola is widely known in China, a large part of the
population has not yet tried the product.
Attitude toward the product. A high percentage of people in the U.S. and Europe has
tried Coca Cola, so a more reasonable objective is to get people to believe positive
things about the producte.g., that it has a superior taste and is better than generics or
store brands. This is often achieved through advertising.
Temporary sales increases. For mature products and categories, attitudes may be fairly
well established and not subject to cost-effective change. Thus, it may be more useful
to work on getting temporary increases in sales (which are likely to go away the
incentives are removed). In the U.S. and Japan, for example, fast food restaurants may
run temporary price promotions to get people to eat out more or switch from
competitors, but when these promotions end, sales are likely to move back down again.

Constraints on Global Communications Strategies. Although firms that seek
standardized positions may seek globally unified campaigns, there are several
constraints:
Language barriers: The advertising will have to be translated, not just into the generic
language category (e.g., Portuguese) but also into the specific version spoken in the
region (e.g., Brazilian Portuguese). (Occasionally, foreign language ads are deliberately
run to add mystique to a product, but this is the exception rather than the rule).
Cultural barriers. Subtle cultural differences may make an ad that tested well in one
country unsuitable in anothere.g., an ad that featured a man walking in to join his
wife in the bathroom was considered an inappropriate invasion in Japan. Symbolism
often differs between cultures, and humor, which is based on the contrast to peoples
experiences, tends not to travel well. Values also tend to differ between culturesin
the U.S. and Australia, excelling above the group is often desirable, while in Japan,
The nail that sticks out gets hammered down. In the U.S., The early bird gets the
worm while in China The first bird in the flock gets shot down.
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Local attitudes toward advertising. People in some countries are more receptive to
advertising than others. While advertising is accepted as a fact of life in the U.S., some
Europeans find it too crass and commercial.
Media infrastructure. Cable TV is not well developed in some countries and regions,
and not all media in all countries accept advertising. Consumer media habits also differ
dramatically; newspapers appear to have a higher reach than television and radio in
parts of Latin America.
Advertising regulations. Countries often have arbitrary rules on what can be advertised
and what can be claimed. Comparative advertising is banned almost everywhere
outside the U.S. Holland requires that a toothbrush be displayed in advertisements for
sweets, and some countries require that advertising to be shown there be produced in
the country.
Some cultural dimensions:
Directness vs. indirectness: U.S. advertising tends to emphasize directly why someone
would benefit from buying the product. This, however, is considered too pushy for
Japanese consumers, where it is felt to be arrogant of the seller to presume to know
what the consumer would like.
Comparison: Comparative advertising is banned in most countries and would probably
be very counterproductive, as an insulting instance of confrontation and bragging, in
Asia even if it were allowed. In the U.S., comparison advertising has proven somewhat
effective (although its implementation is tricky) as a way to persuade consumers what
to buy.
Humor. Although humor is a relatively universal phenomenon, what is considered
funny between countries differs greatly, so pre-testing is essential.
Gender roles. A study found that women in U.S. advertising tended to be shown in
more traditional roles in the U.S. than in Europe or Australia. On the other hand, some
countries are even more traditionale.g., a Japanese ad that claimed a camera to be so
simple that even a woman can use it was not found to be unusually insulting.
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Explicitness. Europeans tend to allow for considerably more explicit advertisements,
often with sexual overtones, than Americans.
Sophistication. Europeans, particularly the French, demand considerably more
sophistication than Americans who may react more favorably to emotional appeals
e.g., an ad showing a mentally retarded young man succeeding in a job at McDonalds
was very favorably received in the U.S. but was booed at the Cannes film festival in
France.
Popular vs. traditional culture. U.S. ads tend to employ contemporary, popular culture,
often including current music while those in more traditional cultures tend to refer more
to classical culture.
Information content vs. fluff. American ads contain a great deal of puffery, which
was found to be very ineffective in Eastern European countries because it resembled
communist propaganda too much. The Eastern European consumers instead wanted
hard, cold facts.

Advertising standardization. Issues surrounding advertising standardization tend to
parallel issues surrounding product and positioning standardization. On the plus side,
economies of scale are achieved, a consistent image can be established across markets,
creative talent can be utilized across markets, and good ideas can be transplanted from
one market to others. On the down side, cultural differences, peculiar country
regulations, and differences in product life cycle stages make this approach difficult.
Further, local advertising professionals may resist campaigns imposed from the
outsidesometimes with good reasons and sometimes merely to preserve their own
creative autonomy.
Legal issues. Countries differ in their regulations of advertising, and some products are
banned from advertising on certain media (large supermarket chains are not allowed to
advertise on TV in France, for example). Other forms of promotion may also be banned
or regulated.

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PRICING ISSUES IN INTERNATIONAL MARKETING
It implies that there are several ways that the price can be changed:
"Sticker" price changesthe most obvious way to change the price is the price tag
you get the same thing, but for a different (usually larger) amount of money.
Change quantity. Often, consumers respond unfavorably to an increased sticker price,
and changes in quantity are sometimes noticed lesse.g., in the 1970s, the wholesale
cost of chocolate increased dramatically, and candy manufacturers responded by
making smaller candy bars. Note that, for cash flow reasons, consumers in less affluent
countries may need to buy smaller packages at any one time (e.g., forking out the
money for a large tube of toothpaste is no big deal for most American families, but it
introduces a greater strain on the budget of a family closer to the subsistence level).
Change quality. Another way candy manufacturers have effectively increased prices is
through a reduction in quality. In a candy bar, the "gooey" stuff is much cheaper than
chocolate. It is frequently tempting for foreign licensees of a major brand name to use
inferior ingredients.
Change terms. In the old days, most software manufacturers provided free support for
their programsit used to be possible to call the WordPerfect Corporation on an 800
number to get free help. Nowadays, you either have to call a 900 number or have a
credit card handy to get help from many software makers. Another way to change terms
is to do away with favorable financing terms.
Reference Prices. Consumers often develop internal reference prices, or expectations
about what something should cost, based mostly on their experience. Most drivers with
long commutes develop a good feeling of what gasoline should cost, and can tell a
bargain or a ripoff.
Reference prices are more likely to be more precise for frequently purchased and highly
visible products.
Therefore, retailers very often promote soft drinks, since consumers tend to have a good
idea of prices and these products are quite visible. The trick, then, is to be more
expensive on products where price expectations are muddier.
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Marketers often try to influence people's price perceptions through the use of external
reference pricesindicators given to the consumer as to how much something should
cost. Examples include:
Manufacturer's Suggested Retail Price (MSRP). This is often pure fiction. The
suggested retail prices in certain categories are deliberately set so high that even full
service retailers can sell at a "discount." Thus, although the consumer may contrast the
offering price against the MSRP, this latter figure is quite misleading.
"SALE! Now $2.99; Regular Price $5.00." For this strategy to be used legally in most
countries, the claim must be true (consistency of enforcement in some countries is, of
course, another matter). However, certain products are put on sale so frequently that the
"regular" price is meaningless. In the early 1990s, Sears was reported to sell some 55%
of its merchandise on sale.
"WAS $10.00, now $6.99."
"Sold elsewhere for $150.00; our price: $99.99."
Reference prices have significant international implications. While marketers may
choose to introduce a product at a low price in order to induce trial, which is useful in a
new market where the penetration of a product is low, this may have serious
repercussions as consumers may develop a low reference price and may thus resist
paying higher prices in the future.
Selected International Pricing Issues. In some cultures, particularly where retail stores
are smaller and the buyer has the opportunity to interact with the owner, bargaining may
be more common, and it may thus be more difficult for the manufacturer to influence
retail level pricing.
Two phenomena may occur when products are sold in disparate markets. When a
product is exported, price escalation, whereby the product dramatically increases in
price in the export market, is likely to take place. This usually occurs because a longer
distribution chain is necessary and because smaller quantities sold through this route
will usually not allow for economies of scale. "Gray" markets occur when products are
diverted from one market in which they are cheaper to another one where prices are
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higher. The manufacturer therefore imposed quantity limits on buyers. Since these
quantity limits were circumvented by enterprising exchange students who were
recruited to buy their quota on a daily basis, prices eventually had to be lowered in
Japan to make the practice of diversion unattractive. Where the local government
imposes price controls, a firm may find the market profitable to enter nevertheless since
revenues from the new market only have to cover marginal costs. However, products
may then be attractive to divert to countries without such controls.
Transfer pricing involves what one subsidiary will charge another for products or
components supplied for use in another country. Firms will often try to charge high
prices to subsidiaries in countries with high taxes so that the income earned there will
be minimized.
Antitrust laws are relevant in pricing decisions, and anti-dumping regulations are
especially noteworthy. In general, it is illegal to sell a product below your cost of
production, which may make a penetration pricing entry strategy infeasible. Japan has
actively lobbied the World Trade Organization (WTO) to relax its regulations, which
generally require firms to price no lower than their average fully absorbed cost (which
incorporates both variable and fixed costs).
Alternatives to "hard" currency deals. Buyers in some countries do not have ready
access to convertible currency, and governments will often try limit firms ability to
spend money abroad. Thus, some firms have been forced into non-cash deals. In barter,
the seller takes payment in some product produced in the buying countrye.g.,
Lockheed (back when it was an independent firm) took Spanish wine in return for
aircraft, and sellers to Eastern Europe have taken their payment in ham.
An offset contract is somewhat more flexible in that the buyer can get paid but instead
has to buy, or cause others to buy, products for a certain value within a specified period
of time. Psychological issues: Most pricing research has been done on North
Americans, and this raises serious problems of generalizability. Americans are used to
sales, for example, while consumers in countries where goods are more scarce may
attribute a sale to low quality rather than a desire to gain market share.
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There is some evidence that perceived price quality relationships are quite high in
Britain and Japan (thus, discount stores have had difficulty there), while in developing
countries, there is less trust in the market. Cultural differences may influence the extent
of effort put into evaluating deals (potentially impacting the effectiveness of odd-even
pricing and promotion signaling). The fact that consumers in some economies are
usually paid weekly, as opposed to biweekly or monthly, may influence the
effectiveness of framing attempts"a dollar a day" is a much bigger chunk from a
weekly than a monthly paycheck.


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10 STEPS TO SUCCESSFUL EXPORTING
Anyone with a product or service can export, or at least attempt to export. But success is
far from guaranteed. At the best of times exporting can be a complex and challenging
process. Yet, when it is approached with careful deliberation, exporting can be a
rewarding growth strategy for any business. Here are ten key steps to take one export
efforts from start to success:
1. Make a commitment to exporting.
Whether one own a sole proprietorship offering consulting services or manage a 1500-
person manufacturing facility, exporting offers one opportunities for growth, increased
sales and diversified markets. But a marketable product or service is only the beginning.
Exporting takes time and effort. It also takes resources and a strong commitment to
compete beyond one current borders. If one are focused and have assessed one
readiness to enter the global marketplace, one are ready for the next step. The Export
Diagnostic help exporters to assess their strengths, weaknesses, objectives and possible
strategies as they explore opportunities in foreign markets. It also helps exporters
identify their priorities as they prepare to export.
2. Plan, plan, plan.
The secret to export success is preparation and a carefully researched export plan. This
is one source of direction as one embark on one journey into foreign markets. An export
plan helps one to act rather than react to the challenges and risks encountered in
international business. And in addition to helping one implement one export strategy, it
can help one obtain financial assistance, investors or other strategic partners required to
make one export venture a success.
An export plan comprises many elements a description of one company, its market
and industry, and one business objectives; information on one products or services; an
analysis of the target market and industry, including trends and forecasts; an
examination of the competition and their strengths and weaknesses in contrast to one
own; international marketing strategies, including customer profiling and the
development of sales and distribution channels; employment and training issues;
financial requirements and forecasts; and much more.

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3. Conduct research to find the right market.
Thorough market research helps one make sound export marketing decisions by giving
one a clear picture of the economic, political and cultural factors that affect one ability
to sell one product or service. Ultimately, market research saves one time, money and
effort by reducing one exposure to unknowns.
There are two main types of market research. Secondary market research consists of
information collection from published sources (books, newspapers, market reports,
studies, and periodicals) and the Internet. For example, the Exporters section of the is
one of the best sources of secondary information for exporters. It serves as a one-stop
shop, linking to all major market information web sites. Researchers will find trade
statistics, market and industry information, even potential partners and trade leads.
Secondary research helps one fine-tune one information needs. Primary market research
helps one fill in the critical gaps through direct contact with key experts, customers or
other sources of information. Primary research frequently involves personal contact
techniques such as interviews and consultations and is best attempted after one have
familiarized oneself with the potential market through one secondary research efforts.
Contacting a Trade Commissione at an embassy or consulate is an example of effective
primary research.
4. Devise marketing strategies for one target market.
International marketing is not the same as domestic marketing. Those who ignore this
fact do so at their own peril. As successful as one may be at reaching one customers or
clients, one must be aware that one international audience will frequently have different
tastes, needs and customs. Good marketing strategies help the exporter understand and
address these potential differences.
These strategies are captured in the international marketing plan, a flexible document
that will likely be reviewed, revised and modified throughout one exporting activities.
Marketing is a continuous activity and so is marketing planning because one can never
know enough about one customers and how to meet their needs. The basic marketing
formula the four Ps of product, price, promotion and place is just the beginning
when it comes to international marketing. One plan will need to address many other
factors, such as payment (international transactions and currency exchanges),
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paperwork (increased documentation), practices (different cultural, social and business
styles), partnerships (strategic alliances to strengthen one market presence) and
protection (increased risks relating to payment, intellectual property or travel) and many
more. Understanding all these facets of international business will transform one
marketing plan into marketing action.
5. Enter the market.
The research is complete and the export and marketing plans have been devised. One
feel ready to enter the market and are seeking the best strategy to reach potential
customers. There are as many market entry strategies as there are markets; however,
these strategies can be loosely grouped into three categories. Direct exports, as the name
implies, involve direct marketing and selling to the client. In a reasonably accessible
market such as the United States, direct exporting of products or services may be a
viable option. But in less familiar markets, with different legal and regulatory
environments, business practices, customs and preferences, direct exporting may not be
an option. A local partner, for example, may be better able to manage these
complexities and serve one potential clients better. Indirect exporting is frequently used
to enter new markets. Businesses selling products enter into an agreement with an
agent, distributor or a trading house for the purpose of selling (or marketing and selling)
the products in the target market. Due diligence is critical when selecting an agent or
distributor for indirect exporting. The third market entry strategy involves strategic
partnerships with other companies or individuals with complementary skills and
capabilities.
A partner can often provide the insight, contacts and expertise that fills the gap in one
export readiness. A strategic alliance with a company selling a complementary product
or service can provide more effective market access, resulting in more foreign sales in
less time. As with indirect exporting relationships, contractual agreements with partners
must be stated in clear terms and, whenever possible, refer to country laws for the
protection of the company.


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6. Get one product or service to market
Every market has its own set of rules and regulations covering safety, health, security,
packaging and labeling, customs and duties among other things. Additionally, these
rules and regulations may vary depending on the product or service one are exporting. It
is critical that one understand the rules and regulations that apply to one before one ship
one goods or open one foreign business location. Product-based businesses with
shipping requirements will benefit from developing a relationship with a freight
forwarding company and a customs broker.
Whether one are shipping by truck, rail, sea or air, the documentation will likely be
extensive and potentially confusing. The services provided by these businesses will
assist one in determining the most efficient and least risky options for shipping one
goods across borders.
7. Explore financing options
While there are overnight export success stories, most companies must be prepared to
invest both time and financial resources to see the return on their investment and the
subsequent success. Consequently, financial stability and a secure cash flow are
important during this period. In some cases, businesses can rely on their domestic sales
to sustain their early export efforts. If this is not possible, it is a good idea to know what
financing options are available. Exporters must develop a financial plan to understand
and address the diverse costs associated with exporting, complete with a two- to three-
year cash budget to cover expenses and a capital budget. A capital budget is a cost-
benefit assessment of one export objectives and serves as one operating plan for
measuring expenditures and revenues.
8. Understand the legal and regulatory issues.
Exporting exposes businesses to unfamiliar laws and regulations. There are numerous
international conventions, treaties and national, regional and municipal rules that can
affect one ability to operate successfully in foreign markets. Exporters may also
encounter disputes with agents or distributors, clients or creditors. It is important to
understand one rights and obligations when resolving disputes, selling goods or services
and protecting intellectual property.

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9. Put it into practice.
One have committed oneself to exporting. One have the skills and the resources to
undertake the challenge. One have researched the market and prepared one export plan,
international marketing plan and financial plan. One market entry strategy is clear and
the support system (i.e. freight forwarder, customs broker, financial lenders, legal
advisors) is in place. One have gone through the export process step-by-step and feel
confident that one have covered all the bases. Now, it is time to put all this skill and
knowledge to use. The world is waiting for one product or service!
10. Let Team help one along the way.
The Team is committed to helping businesses across the country thrive in global
markets by offering comprehensive export information and services. These tools are
designed to help both experienced exporters and potential exporters plan and implement
their international business ventures from start to success.


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EXPORT MARKETING PLAN
With the help of our consultant during and after his visit to your premises a SWOT
analysis was made. With that in hand you have worked your way through all aspects of
export preparation and this enabled you to estimate the feasibility on the basis of which
you have made your decisions. Numerous aspects of planning all your managerial
instruments have been analysed and redesigned into effective tools for selling your
products abroad. We had initiated you to think about your strategy. Put it on paper in a
Market Entry Strategy (MES) and now it is time to bring them all together in an Export
Marketing Plan (EMP).
That activity means fine-tuning to the market needs and to the capacity of your
company. In this process of planning, the combining of marketing tools into the export
marketing mix will shape your selling power. Your export performance will improve
by systematically planning your activities before you embark on implementing them.
You will put the planned activities on paper, assuring that all people involved in the
implementation will know what to do and by which standards their performance will be
judged. Your final document will facilitate a smooth internal communication. As for the
chronological sequence of the export preparation process, we use the step by step
method.
Purpose, function and form of the EMP
Basically the Export Marketing Plan (EMP) should show everything you have to
consider for your commercial operations abroad. Its purpose and function makes it one
of the most important strategic and tactical documents in your company.
The purpose of the EMP is:
To bring all relevant marketing instruments together in a mix;
To give direction to your planned activities reaching an optimal effect as outlined in
the objectives;
To estimate the very moment results can be expected. To facilitate sound decision-
making in a planned logical time sequence;
To estimate the costs involved in order to make money available on time.

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The function of the EMP is:
To guide you through the different chronological activities;
To inform all people internally involved about the objectives of the export operation;
To give them specific directions to contribute to the export activities;
To provide justification for the money that will be spent in the process, convincing the
directors/owners of the company.
The form of the EMP is:
The Export Marketing Plan should be made in a written form and be part of your
corporate mission and strategy;
It should be in line and conforming to your quality, social and environmental policy.
The EMP should be short, but complete, and maximum 4 pages DIN A4. It is not a
manual but a set of instructions backed up by logical analysis and considerations.
Export Marketing Plan (EMP) Elements to be addressed:
1. Background information
Description of the present corporate situation and performance projected to export
ambitions, opportunities, threats, commercial and financial situation and ownership.
Main activities in relation to quality, health/safety and environmental policy.
Vision, mission statement derived from MES. (based on the Export Audit and SWOT
analyses).
Level of knowledge and information
2. Market research:
Apply niche marketing (application marketing);
Market size and characteristics definition;
Identification of sales patterns, trends and developments;
Connecting to the right sources continuously.
1 Customers;
Numbers and locations;
Value and volume
Derived and hypothetical demand
Customer profile, motivation for use and buying behaviour.

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2 Competition;
Competitive suppliers, product range/prices
Possible product substitutes
Comparison Strengths and Weaknesses vs. own products and performance.
3. Segmentation:
Product selection as demanded from the market;
Argumentation for targeting particular markets or segments.
1. Product selection;
Specifications and qualifications;
Technical details and standards;
Quality assurance;
Unique selling proposition / competitive advantage.
2. Market selection;
Criteria for target markets;
Criteria for market sector selection;
Defining the distribution channels.
4. Objectives
To enter into export marketing you should follow well-balanced decisions.
Capacity has to be made available for a longer period of time.
4.1. Marketing objectives;
Targeting a certain percentage of the total sales volume of the company;
Working on an increase of the market share;
Product improvement, adaptation and innovation;
Develop pricing policy;
4.2. Financial objectives:
Production costs, lean manufacturing;
Transport and distribution costs;
Promotion costs relation
Maintaining sufficient profit;
Operational results, break even point detection;
Profit contribution.
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4.3. Organizational objectives:
Operational feasibility projection; after one and after three years;
Organizational measures, function descriptions;
Professionalising the export department;
Set up communication plan;
Organise continuous training.
5. Means
Marketing mix implementation to achieve the EMPs objectives;
Which instruments to use, and how;
Organisational support required;
Availability of financial means (export budget)
5.1. Export product;
Technical aspects, standardisation, regulations
Quality standards and control procedures
Performance standard to maintain;
Packaging requirements;
Terms of delivery;
Pre and after sales services (design, stocking, repairs, training etc.)
5.2. Pricing;
Bottom-up price calculation;
Terms of payment acceptance;
Insurance coverage;
Currency aspects;
Trade credit and discount policy.
5.3. Distribution:
Trade partner selection criteria;
Trade partner contract;
Distribution and logistics;
5.4. Promotion;
Exporters reputation;
Selection of instruments;
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6. Action plan
For the first operational year:
What specific activity from this EMP has to be carried out; when, by which member of
the organisation and what costs. (What, when, by whom, how much) This is an Export
Marketing Plan you are going to compose. Any such plan should be written in a way so
that it can easily be adapted to changing circumstances
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METHODOLOGY AND PROCEDURE OF WORK
Research:
A research is a basic framework, which provides guidelines for the rest of research
process. Keeping the objective of the recruitment in mind it was decided to carry out a
survey among educated and professional people in Jaipur. It was done with the help of
Questionnaire. This process was carried and About 75 people were contacted.
Object of the project EXPORT MARKETING
Process: Methodology or process involving in the Research followed during the course
of summer training is as follows: -
a) Collection of data: - This is an important aspect in formulating the objective of research
process where the data is collected via two process: - i) Primary Sources and ii)
Secondary sources
i) Secondary sources: -Where the data is obtained from some published and printed
sources such as newspaper, magazines, websites and so on.
b) Analyzing of collected data: - The data collected through market survey and published
sources is then processed to obtained necessary inferences and findings for the purpose
of achieving the objective as well as to derive necessary conclusion. A considerable
skill and knowledge is involved in analyzing the data for the purpose of interpreting
thereof.
c) Interpreting of data: - it is the significant step where the data collected and analyzed is
interpreted in the forms of graphs and figures is depicted in the report called Project
report.
d) Summarizing of data: - Thereby necessary summary is prepared which is essential in
the project report of the summer training being done under an organization.
Sampling Plan: - In this research we used Random sampling.
Research instrument: A questionnaire is designed which comprises questions to
be asked from the concerned individuals called as Respondents.
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Data Source: - Primary data is the main source of information as the direct question
to the respondents. Secondary data has been used where direct collection possible.
Information Sources
Secondary Data
Secondary data: The documents by me in secondary data are as followed:
Published sources like Business Today and India Today
Newspapers, Journals and Retail Magazines
Web Portals like www.atkearney.com, www.smallbiz.nws.gov.au, www.ibef.org,
www.ciionline.org and soon



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ANALYSIS AND INTERPRETATION
1. It was inferred that the export in the recent scenario is highly progressing and the
exporters are leaving no stone unturned to market their organizations and their valuable
products in the foreign market.
2. Indeed, India has a great scope and opportunities in export in the years to come since
respondents favored due to rising skills and awareness pertaining to the lobal market
and its growth prospects.
3. Since scope is left for all sectors for export yet jewellery sector stands prime position
for its magnificent contribution towards export and consist of all types of gems and
jewels inclusive of emerald, diamond and platinum.
4. The essentials for an organization which is marketing its product overseas is High Class
& Wide Variety of goods, World Class Ambience, Customer Support & prompt serving
staff, Computerised Billing, Exciting offers and Effective pricing.
5. Factors you consider suitable for marketing export as a highly prospective are
Knowledge of taste and preferences is essential, Significant contribution of leading
organizations, Opening of company based Retail outlets overseas, Most exciting offers
and concessions in an international class manner, Quality of product to be high and
stands fresh, Eye catching marketing strategies and sales promotion activities to be
planned and implemented
6. An exporter to better market his product in the foreign markets keeping their taste and
custom in mind needs to undertake the following pre-requisites such as To market the
products suitable to the climate of foreign market To market the products with the most
competitive prices prevailing Export marketing to be done keeping the regulations of
the foreign country in mind.
7. Precautions to be undertaken for the careful export marketing desirable for the exporter
has been summarized as A market survey is essential, also distribution centres/outlets
must be located at the ease and comfort of the customers. Further amicable behaviour
and regular feedbacks are essential and products need to fresh and high qualitative and
also great discount and attractive schemes


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8. It was also inferred from the analysis of data that the problems and the obstacles you
consider in export marketing has been categorized s High cost prevailing in marketing
of goods overseas together with a lot of awareness and knowledge training to the
executives undertaking export marketing is pre-essential, fluctuation in foreign
exchange currency system, every time a new project and planning is necessary for every
other country
9. Export marketing benefited from the present period of slack by expanding the global
market and spreading channels of distribution, offering genuine products at the most
reasonable prices to the people at large, advertising systematically to the ultimate taste
of the foreign buyers.
10. The future prospects of export industry as inferred from the responses generated from
the concerned respondents has been depicted as highly prospective and highly
progressing.



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RECOMMENDATIONS
Following are the recommendations being made for the export marketing:
1. Careful planning and projection is desired
2. Cost effective measures should be kept in mind while marketing of export.
3. A thorough and comprehensive training and development programme is desired for the
development of the export market plan and its promotion.
4. Regular check and update must be maintained on the foreign currency exchange.
5. There should be recruitment and placement of qualified management professionals
streaming and specializing in international business who may be able to better handle
the tasks and assignments of export marketing.
6. Before distribution of the products, it is highly recommended that the products should
suit the climate as well as the taste and preferences of the foreign buyers.
7. Also it is recommended that the products must not be marketed in such a fashion as it
may violate the custom or religion of the foreign country.

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CONCLUSION
At the conclusion of the report, I would like to end up the conclusion of the report with
the following furnishings. The export industry is being considered as the prestigious
industry since every big industrial house from every sector is entering on their own way
to lure overseas customers to attract them by channelizing and increasing their stream of
products and outlets in overseas markets in various respective countries so that
customers may find it more convenient to locate the products and obtain their preferred
branded products for consumption. The exporter is available with the wide opportunities
to market the product coupled with the enormous challenges as he has to approach
different countries with different people, different languages and different customs of
dealing. So, one has to be very careful in dealing with the export market. Although from
the Indian prospective point of view, the scope has itself a wide era since an exporter is
available with the world at large except Indian market.