VISIONARY COMMERNCE ACADEMY LLP

EXPORT MARKETING (SEM-V)

MODULE-1 INTRODUCTION TO EXPORT MARKETING

DEFINITION IMPORTANCE OF EXPORTS FOR A IMPORTANCE OF EXPORTS FOR

“Export Marketing involves export NATION A FIRM
business with individuals, firms, 1) Foreign Exchange 1) Reputation
Organisations and/or government entities 2) Balance of Payment 2) Higher Prices
in other countries”. – R. L. Kramer 3) Reputation in the world 3) Economies of Scale
4) Employment 4) Optimum Production
FEATURES OF EXPORT MARKETING 5) Standard of Living 5) Spreading of Risks
1) Systematic Process 6) Economic Growth 6) Organisation Efficiency
2) Customer Focus 7) Spread Effect 7) Liberal Incentives
3) Customs Formalities 8) Regional Development 8) Liberal Imports
4) large Scale Operations
5) Trading Blocs DOMESTIC MARKETING V/S EXPORT MARKETING
6) Trade Barriers Export Marketing Domestic Marketing
7) Reputation Meaning: It refers to planning It refers to planning
8) Marketing – Mix Organisation directing and Organising directing and
controlling activities relating controlling Activity relating
i. Software Services to export business domestic Marketing
ii. Business services Currencies It Involves Multiple Currencies There is a Use Single
iii. Travel Currencies
iv. Transportation Procedures complex procedures and Simple procedures and
v. Financial Services documentation work limited documentation
vi. Other services work
Taxes and It is Subject to tariff and non- It is Subject to local taxes
Levies tariff barriers and duties

Monetary Different Monetary Economic One Monetary Economic

System System System

FACTORS INFLUENCING EXPORT MARKETING

I. FIRM – SPECIFIC II.EXTERNAL ENVIRONMENTAL FACTORS PROBLEMS OF INDIA’S EXPORT SECTOR
FACTORS
• Rate of profit • Economic Growth • Competition from China
• Recovery of R&D • Free Trade Agreements • Negative Attitude
Expenses
• Strategic Vision • Government Incentives • Documentation
• Extension of product • Domestic Market • Foreign Exchange Regulation
life cycle
• Advantage of • Competition • Problem of product Standards
Monopolistic
INDIA’S SERVICE EXPORTS SINCE 2015
Sector 2015 – 2016 2021 - 2022
US $ Billion Percent US $ Billion Percent
1. Software Services 74.2 48.1 125.8 49.4
2. Business services 29.0 18.8 58.9 23.1
3. Travel 21.3 13.8 58.9 23.1
4. Transportation 14.0 9.1 32.2 12.6
5. Financial Services 4.9 3.2 5.2 2.2
6. Other Services 10.8 7.0 23.2 9.1

MODULE-2 GLOBAL FRAMEWORK FOR EXPORTS

TYPE OF TRADE BARRIERS NEEDS FOR OVERSEAS MARKET RESEARCH
Trade Barriers American Marketing Association defines
marketing research as “The Systematic Gathering,
recording and Analysing of data about problems
relating to the marketing of goods and services.”
Tariff Barriers Non – Tariff Barriers 1) Consumer Needs and wants
2) Competitive Advantage
• Specific Duty • Product Standard 3) Pricing Decisions
• Ad Valorem Duty • quotas 4) Forecasting sales
• Seasonal Duty • Regulations 5) Effectiveness channels of Distribution
• Anti – dumping • State Trading 6) Packaging Design
Duty 7) Other Objectives
• Countervailing • Trading Blocs 8) Effectiveness of Promotional Measures
Duty

IMPACT OF TRADE BARRIERS

I. POSITIVE IMPACT II. NEGATIVE IMPACT
• Protection to Domestic Industries • Effect of World Trade
• Revenue to the Government • Effect of Consumer Welfare
• Economic Growth • Effect on Economic Growth
• Stability in Prices • Breeds Inefficiency

TARIFFF BARRIERS V/S NON – TARIFF BARRIERS

Tariff Barriers Non – tariff Barriers
Meaning TB refers too duties and levies imposed mostly on NTB refer to Quantitative restrictions on Foreign
imports Trade.
Price/Quantity Affect the price of the imported items Affect the Quantity to imported goods
Production Planning for domestic production is difficult as Since the import quantity is fixed domestic
Planning import quantity is not fixed producers can easily plan their production
targets
Types Specific duties ad valorem duties, anti-dumping Quotas, Import Licensing, Consular formalities,
duties, countervailing duties etc.. Foreign exchange restrictions etc
Time Required Charging Import duties requires Less Time as Import Licensing and other Formalities under
Compared to NTB quotas is time consuming

NEGATIVE IMPLICATIONS OF REGIONAL ECONOMIC GROUPING

1) Common External Barriers 2) Collection Bargaining by member Nations 3) Trade Diversion
4) Lack of Interest in Multilateralism
 MARKET SELECTION PROCESS
1) Determine Export Marketing Objectives 2) Collection of Information 3) Analysis of Information
4) Short Listing of Markets 5) Detailed Investigation of Short-Listed Markets
6) Selection of Markets 7) Entry in Overseas markets 8) Follow-up

TRIPs TRIMs GATs AOA

(Trade related Intellectual (Trade related Investment (General Agreement on
Property Rights measures) Trade in service) (Agreement on Agriculture)

POSITIVE NEGATIVE POSITIVE NEGATIVE POSITIVE NEGATIVE POSITIVE NEGATIVE

Patents Developed Foreign Interference Exports of Problem of Reduction in Reduction in
nations Direct in domestic Services Competition tariff Duties tariff Duties
Investment affairs
Public health Agriculture Consumer Effect on Expansion Outflow of Increase in Increase in
Welfare small firms of Service Foreign Market Market
sector Exchange Access Access
Geographic Micro- Competition Outdated Customer Reduction in Reduction in
Indication Organisms benefits Technology Service export export
status subsidies subsidies
Reduction in Reduction in

IMPLICATIONS OF WTO domestic

Support
domestic
Support

MODULE-3 INDIA’S FOREIGN TRADE POLICY

FOREIGN TRADE POLICY (FTP) 2015-20 DEEMED FOREIGN
1) Merchandise Exports from India 1) Supply of goods against duty free licences issued under the duty
Scheme (MEIS) exemption scheme.
2) Services Exports from (SEIS) 2) Supply of goods to units located in SEZs, or EHTPs, or STPs, or to 100%
3) EPCG Scheme (Export EOUs.
Promotion Capital Goods) 3) Supply of Capital goods to holders of licences under EPCG scheme.
4) EOUs/STPs Scheme (Export 4) Multilateral or bilateral agencies/funds as notified by the Dept. of
Oriented Units/ Software Economic Affairs Ministry of Finance.
technology Park) 5) Fertiliser Plants if the supply is made under the procedure of
5) Status Holders international competitive bidding.
6) Approved Exporter Scheme 6) Project in the Power, oil and gas sectors notified by ministry of Finance
(Self-Certification) 7) Marine Freight containers
7) Online Filing Documents 8) Supply to Projects Funded by UN agencies
8) E- Commerce Exports 9) Nuclear Power projects Through Competitive bidding
9) Quality Complaints and Trade 10) Any other Category notified by Government of India
Dispute
10) Duty Exemption
11) Export of Defence Items EOUs BENEFITS TO EXPORT ORIENTED UNITS
EOUs may be engaged in manufacture, services, repair, re-
engineering, agriculture, horticulture, etc. No Trading units are
BENEFITS TO STATUS HOLDERS permitted
➢ Eligibility 1) Foreign Direct Investment
➢ Status Category 2) Finance on Priority Basis
➢ Privileges and Benefits 3) Excise Exemption
1) Incentive scrip for Import of Capital 4) Duty Drawback
Goods 5) Domestic Tariff Area sale
2) Foreign Exchange retention 6) Incentives Under MAI
3) Longer Credit Period 7) Tax Holidays
4) Approved Exporter Scheme 8) Duty Free Imports
5) Fixation of Input-Output Norms
NEGATIVE LIST OF EXPORTS Negative List of Exports

Prohibited Items Restricted items Canalised Items

Prohibited items restricted items canalised items

✓ Exotic Birds ✓ Cattle Items Canalising Agency
✓ Human Skeletons ✓ Camel Petroleum Product Indian Oil Corporation Ltd.
✓ All Items of Plants ✓ Beche-de-Mer of sizes Gum karaya The Tribal Cooperative
below 3 inches Marketing Federation of India
Ltd. (TRIFED)
✓ Chemical as ✓ Deoiled groundnut cakes. Mica waste and Scrap MMTC and MITCO
notified by DGFT
✓ Red Sanders Wood ✓ Fodder, Including wheat Mineral Ores and Indian Rare Earths Limited,
in any form and rice straw. Concentrates Kerala Mineral & Metals Ltd,
MMTC & MOIL
✓ All forms of wild ✓ Hides & Skins as Onions 13 State trading Enterprises
animals mentioned in the policy which include NAFED, Spices
Trading Corporation, and so
on.

SOFTWARE TECHNOLOGY PARKS ROLE OF DGFT

ADVANTAGES/ BENEFITS FOR STP UNITS DGFT assists the Ministry of Commerce in the Formulation and implementation
1) Duty free imports of the Foreign Trade Policy, with the main objective of promoting India’s
2) Duty Free DTA Purchases exports.
3) NFE Benefits 1) Implementation of foreign Policy
4) Tax Holiday 2) Granting of IEC Number
5) Data sale 3) Publications
6) Deemed export Benefit 4) Coordination with Trade and Industry
7) Foreign Capital Investment 5) Regulates Transit of Goods
8) Sale of Unutilized materials 6) Trade Facilitator
7) Regulates Transit of Goods

MODULE-4 FINANCIAL INCENTIVES AND ASSISTANCE

MARKETING DEVELOPMENT ASSISTANCE ASIDE SCHEME EXTENDED TO THE INDIAN EXPORTERS
IMPORTANCE OF MDA TO EXPORTERS ✓ Purpose
✓ The exporters can expand their export ✓ Criteria for Allocation of funds
markets. ✓ Special Emphasis on NER
✓ It helps them to develop goodwill through ✓ Private Participation
advertising, publicity, etc. ✓ State Level Export Promotion Committee (SLEPC)
✓ It enables to earn valuable foreign exchange ✓ Activities
to the country.
✓ The Market research helps to develop and
design the products for export markets. DUTY DRAWBACK SCHEME
✓ It helps the Indian exporters to face ✓ Drawback is available on the following items:
competition in the overseas Markets. ✓ DBK is not admissible if the:
✓ Rates of Drawback:
▪ All industry Rates
▪ Special Brand Rates
EXPORT ADVANCE AUTHORISATION SCHEME ✓ Procedure to Claim DBK:
Entitlement ▪ Whom to Apply
Exemption from Duties ▪ When to Apply
Value Addition ▪ What Documents Required
IMRC BENEFITS OF INDUSTRIAL RAW INDIA TRADE PROMOTION ORGANISATION (ITPO)
MAERIALS ASSISTANCE SCHEME ITPO acts as a publicity wing of Govt. of India for organising and for
1) Lower price Participating in trade fairs and exhibitions in India and abroad.
2) Credit period 1) Organises Trade Fairs and Exhibitions
3) Quality Raw Materials 2) Collection of Information
4) Focus On Production 3) Supply of Information
5) Timely Availability of Materials 4) Publicity
5) Delegations
6) Overseas Trade Fairs
7) Consultancy Services
8) Seminars

EXPORT PROMOTION CAPITAL GOODS (EPCG) SCHEME

BENEFITS
A. The exporter can import quality Capital goods at low or no import duty.
B. The quality of output can improve due to good quality capital goods.
C. Imported Capital goods help to speed up the production and also reduces costs.
D. The exporter can get more export orders due to quality goods at lower prices.
E. Indian exporter can effectively face competition in the overseas market.
F. The overall efficiency of the export firm improves due to use of better quality of imported capital goods.

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