1/24/2020

Faizan Khalid
(M.A) Management- University of Nottingham
Lahore School of Economics (BBA) Honors – Lahore School of Economics
BBA IV
Spring 2020
Saturday 11th January 2020 – Sunday 10th May 2020
- Entrepreneurship & SME Management - Human Resource Management
- Principles of Marketing - Business Policy
- Promotions & Brand Management - Industrial Marketing
- Consumer Behavior - OB & HRM
- Marketing Management
Course Name: Export Marketing Instructor Name: Faizan Khalid
- Export Marketing
- Retail Management

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Course Instructor Core Reading List

Text Book:
• Gerald Albaum, and Edwin Duerr. 2011. International Marketing and Export
Management. 7th Edition. Prentice Hall.
Faizan Khalid
Other recommended Books:
• Thomas E. Johnsonand Donna L. Bade. 2010. Export Import Procedures and
E-mail: [email protected] Documentation. 4th Edition. AMACOM.
• Warren J. Keegan and Mark Green. 2010. Global Marketing. 6th Edition. Prentice
Hall.
Office: Block FH - 9 • Joris Leeman.2010. Export planning , Pearson education.
• Johny Johansson. 2008. Global Marketing: Foreign Entry, Local Marketing, and
Global Management. 5th Edition. McGraw-Hill/Irwin.
• Alan E. Branch. 2005. Export Practice and Management. 5th Edition. Thomson
Learning.
• Thomas A. Cook, Rennie Alston, and Kelly Raia. 2004. Import and Export
Management. Hardcover Edition. AMACOM.
• Philip Cateora, Mary Gilly, and John Graham. 2010. International Marketing. 15th
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Edition. McGraw-Hill/Irwin.

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Readings Final Assessment Criteria

• Applicable Web Resources

• Journal of International Marketing and Exporting • Final Exam 30%
• Harvard Business Review
• Mid Term 25%
• Business Week
• Class Presentations/Assign 15%
• Export Trends
• Economist • Quizzes 10%
• Fortune • Class Participation & Attendance 5%
• Investment and Marketing • Term Project 15%

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Rules

• You will not be allowed to attend the class if you come to the class after 10
minutes of the class starting time. Lahore School of Economics
• Please refrain from leaving the class or coming back during the lecture
session or discussion session

• Absolutely no excuses will be tolerated for assignment submissions or quiz.

• Standard rules will be applied for everyone in the class.

Export Marketing
• NAME PLATES are absolute necessary from Week 2 1st Class.
• Example: Bilal Ahmed - Bilal A.

• We start deducting 1% every time you miss a class after 5 classes. Your
name can be struck off for missing more than 8 classes

• All course material discussed in class is part of syllabus for Finals e.g.
• Articles, Case Study & other simulation exercises.

• Final exam consists of pre mid + post mid.

• A grade is at 85% & subsequent grades after every 5%. 7

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What is Export Marketing? The growing importance of international marketing

• 2008 recession
• First drop in international trade and investment in 50 years
“Export marketing means marketing of goods and services
beyond the national boundaries” • It demonstrated importance to:
B.S Rathor 1. national and regional economies
2. companies of all sizes
3. workers and consumers

• Shift in Global Trade

• PAKISTAN

Increasing importance of international markets and

Path to Success in Export Marketing
exporting due to:

a) greater opportunities for enterprises of all sizes,  customer focus

b) most companies selling to, buying from, competing against, and/or working with
companies overseas  Innovations in products and services

c) consumers have a wider range of choices, often at lower prices and/or better
quality
 Increased efficiency with lower costs or improved services

d) importance of international sales in spreading risk, increasing profits, covering

R&D costs, understanding emerging challenges
 Identifying and exploiting appropriate market segments
e) increasing dependence of national and regional economic health on exports sales

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Responding to increasing opportunities and threats International Marketing: A definition and unique requirements

Domestic Foreign International marketing is the marketing of goods, services and information across
Companies Markets political boundaries.

Domestic Foreign Planning Promoting Distributing Pricing

Markets Companies

Support of goods/services Information to consumers

• Failure to be proactive in exploring foreign markets leads to missed opportunities and
lack of information about potential new threats

• Exporting is the most common market entry mode for small and medium-size Consumer Economic Market
companies. It is widely used by all large international companies. Culture
Tastes Levels Structures
• Exporting is no longer just an option for most companies; it is now an imperative.
Ways of doing business Laws & Regulations

Excelling in International Markets Problems with International Trade

• Analysis of markets and potential markets • Piracy on high seas

• Planning, development and packaging of products, services and information • Piracy of goods by making unauthorized copies
to best meet
• Contaminated Food Products
• Selection of distribution channels that are most effective and efficient in the
• Terrorism – Wars & Threat of Wars
foreign market
• Prohibition of exports of certain products
• Promotion, including advertising and personal selling
• Embargos on all or certain imports
• Setting of prices
• Diseases leading to prohibition of imports
• Technical and non-technical support given to customers, both before and after
sales • Kidnapping of people for ransom

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Internationalization and the global marketer Internationalization and the global marketer

Internationalization may be viewed as: a process, an a. Multinational marketing:

end-result or a way of thinking. It implies a strong commitment to international marketing, and may be
taken to mean that the marketer develops differentiated products and
• It is most effective when a carefully planned process for increasing marketing strategies for each of its markets. It is associated with
penetration has been prepared in advance. adjusting products and practices in each country, with relatively higher
attendant costs.
• A firm should consider advantages and disadvantages of exporting,
licensing, establishing sales subsidiaries, producing abroad, forming
strategic alliances. b) Global Marketing:
It implies that the company tries to standardize products and marketing
• The terms international, multinational and global are sometimes used practices worldwide in order to achieve economies of scale and lower
interchangeably, but imply differences in approaches. prices.

‘Think globally, Act locally’ International Marketing Management

a. Evaluate and enter markets worldwide based on individual 3 basic steps before pushing your firm in international market:
potential and worldwide strategy. 1. whether to engage in international marketing activities;
2. markets to be served;
b. Procure capital and invest funds on a worldwide basis according 3. methods or systems to be used.
to costs and opportunities.

c. Purchase raw materials, components, equipment and supplies

from sources worldwide. Controllable versus uncontrollable elements in determining marketing mix
• The effectiveness of marketing activities used by the firm is directly affected by
d. Staff organizations with best qualified managers and employees the uncontrollable elements in the environment, so the profitability of any
without regard to national origin. marketing programme is situation specific.

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Schematic model of the export marketing mix

Export marketing planning and strategy

• Strategic issues: choice of countries, product markets, target

segments; methods of operation, timing.

• Tactical issues: product positioning, adaptation, advertising,

pricing and distributing.

Export marketing planning process Obstacles to exporting

Barriers affecting many companies, particularly smaller ones,

include:
1. Higher operational efforts required for foreign market,
2. Lack of information,
3. Lack of knowledge and skills,
4. Trade barriers,
5. Risk factor

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Dimensions of export barriers How can a company cope?

1. Look to existing customers

2. Make a commitment with seasoned managers
3. Seek advice externally
4. Use Trade shows
5. Pick markets carefully
6. Manage growth
7. Be patient & focus on networking
8. Choose partners carefully e.g. freight forwarder

The Internet, the World Wide Web and E-business E-business

the sale, purchase, or exchange of goods, services or information over the Internet or other
• All aspects of domestic and international business operations telecommunications networks.
have been impacted by the Internet, the World Wide Web and E-
• Business-to-consumer sales (B2C) growing rapidly than overall retail sales
business.
• A combination of traditional marketing and Web-based marketing appears to be most
successful
• The Internet provides greatly increased speed and lowered costs
in communications. • Many traditional retailers find using the Internet to build an overseas presence is faster and
cheaper than building stores. Some major retailers have set up distribution centres in
selected countries abroad.
• Inexpensive in most countries
• Business-to-business (B2B) spending continues to be of great importance.
• Very wide and rapidly expanding use. • B2B transactions involve many activities in addition to buying and selling, including
support of supply-chain and distribution-chain management, and provision of information
for overall systems coordination.

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The impact of technology The impact of technology

• Resulted in new products, the creation of additional international markets and • Improvements in shipping equipment and the applications of information
lowered costs of doing business. technology in scheduling and control have reduced costs.

• Information technology related trade now accounts for 16% of total world trade.

• Development and marketing of software to support e-business has become a • Expanding use of radio-frequency identification systems (RFID) is making supply
major international industry. Importance of China and India in IT-related trade has chain management more effective and efficient.
been phenomenal.

• New products have resulted from major advances in communications technology,

medical research, traditional products and manufacturing processes. • Licensing of new and improved technology has become increasingly important
for both large and small companies.

Entrepreneurial approaches to international

marketing
The virtual company

• New approaches to international marketing have been made feasible by • Advances in communications allow formation of virtual companies
technological advances and by recognition of emerging opportunities. based on the owner’s ideas/vision/knowledge/abilities to organize and
coordinate.

• E-business software allows companies to handle key functions in a coherent

on-line system: supply chain and distribution chain management; ordering,
billing, and inventory management; analyses of sales and trends; etc. • Have little in the way of physical facilities; have few or no employees.

• Specific software is available to support specialized functions such as

• Often, there are contracts with outsiders to perform most business
Customer Relations Management (CRM) programs, and many other
individual and integrated programs. functions.

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The growth of non-traditional exports: Exporting services

of knowledge-industry workers Importing customers

• Greatly increased capabilities and lowered costs in communications have • Many companies (and nations) rely to some extent on getting
enabled cross-border export of information services income from foreign visitors.

• Companies in lower-wage nations employ well-educated people to provide • For a number of countries, tourism is a major source of income.
services ranging from call centres and back-office support to advanced
technical support, software development and design services.

• In addition to seeking tourists, students and people attending

• India is a major exporter of services, with other Asian countries and Eastern
meetings, more are now attracting people wanting medical
European nations expanding similar activities. procedures.

THE END