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Topic 3 Inter Man

Exporting provides several advantages for companies entering international markets according to the document. It allows companies to manufacture goods at home which is less risky than overseas production. Exporting also gives companies an opportunity to learn overseas markets before making large investments abroad. Additionally, exporting reduces the potential risks of fully operating overseas. However, exporting does mean companies are reliant on overseas agents and lack some control, which must be weighed against the advantages. The document distinguishes between passive exporters who wait for orders versus aggressive exporters who develop broad marketing strategies in foreign markets.

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21 views

Topic 3 Inter Man

Exporting provides several advantages for companies entering international markets according to the document. It allows companies to manufacture goods at home which is less risky than overseas production. Exporting also gives companies an opportunity to learn overseas markets before making large investments abroad. Additionally, exporting reduces the potential risks of fully operating overseas. However, exporting does mean companies are reliant on overseas agents and lack some control, which must be weighed against the advantages. The document distinguishes between passive exporters who wait for orders versus aggressive exporters who develop broad marketing strategies in foreign markets.

Uploaded by

ramosolaarni0
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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INTERNATIONAL MARKETING- TOPIC 3 Advantages of exporting are:

International Marketing 1. manufacturing is home-based thus; it is less


risky than overseas-based
- making one or more marketing mix 2. gives an opportunity to "learn" overseas
decisions across national boundaries markets before investing in bricks-and-
(simplest form) mortar
- manufacturing/processing facilities around 3. reduces the potential risks of operating
the world and coordinating marketing overseas.
strategies across the globe (most complex)
Disadvantage:
Marketing- identifying, anticipating, and satisfying
customer requirements profitably (Chartered 1. one can be at the "mercy" of overseas agents
Institute of Marketing) and so the lack of control has to be weighed
against the advantages
Entry strategies:
A distinction has to be drawn between passive and
1. Exporting aggressive exporting
- the most traditional and well-established
form of operating in foreign markets Passive exporter- awaits orders or comes
- marketing of goods produced in one country across them by chance
into another Aggressive exporter- develops marketing
strategies that provide a broad and clear
Exports in the Philippines account for nearly a third picture
of GDP 2. Piggybacking
Major exports: - organizations with little exporting skill may
use the services of one that has
• electronic products (42 percent) - these would be geographically adjacent or
• other manufactures (10 percent) able to be served, say, on an air route
• woodcrafts and furniture (6 percent) 3. Countertrade
- largest indirect method of exporting is
The Philippines is also the world’s largest producer
countertrade
of coconut, pineapple and abaca
- organization may expand operations by
The Philippines's main export partners are: operating in markets where competition is
less intense
• Japan (21 percent) - used to stimulate home industries
• the United States (15 percent) - modem form of barter; not covered by
• China (12 percent) General Agreement on Tariffs and Trade
• Hong Kong (8 percent) (GATT)
Countertrade’s two separate contracts:

• one for the delivery of and payment for the


goods supplied
• the other for the purchase of and payment
for the goods imported
Various forms of exchange like:

• Barter
• Counter purchase
• Switch trading
• Compensation (buyback)
Competitive intensity- more and more investment
in marketing

Barter
- the direct exchange of one good for another
- direct exchange of goods and services
between two parties
Simple barter
- least complex and oldest form of bilateral,
non-monetarized trade
- "straight", "classical" or "pure" barter
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BENEFITS OF INTERNATIONAL BUSINESS
Benefits to countries:
✓ Earning of Foreign exchange
✓ More efficient use of resources
✓ Improving growth prospects and
employment potential
✓ Increased standard of living
Benefits to the firm:
✓ Prospects for higher profits
✓ Increased capacity utilization
✓ Prospects for growth
✓ Way out to intense competition in domestic
market
✓ Improved business vision

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