Exporting, Importing, and Sourcing

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19.03.2012
Export Selling vs. Export Marketing
Exporting, Importing, and Sourcing
Assist. Prof. Dr. Özge Özgen
International Marketing Management
 Export selling does not involve tailoring the product, price,
or the promotinal material to suit the requirements of global
markets
 The only marketing mix element that differs is the PLACE
 It may work well
 For unique products with little or no international competition
 For companies which are new to exporting (Initial experience
are gathered from export selling)
Export Selling vs. Export Marketing
 Export marketing does not simply take the domestic product “as is”
 It is modified as needed to meet preferences of international target
markets
 Export marketing requires
 An understanding of the target environment
 The use of marketing research and identification of market potential
 Decisions about marketing strategies
 It is necessary if
 Companies mature in the global marketplace
 New competitors enter the market
3.
4.
5.
6.
The firm is unwilling to export
The firm explores the feasibility
of exporting
The firm exports to one or
more markets on a trial basis
(Export selling)
The firm is an experienced
exporter to one or more
markets
The firm pursues country-or
region focused marketing
The firm evaluates global market
potential
 Market potential estimation are conducted by economists or
marketers
 Size and concentration of customer segments
 Projected consumption statistics
 Competitive pressures
 Analysis of foreign trade statistics is extremely important for
identification of suitable markets for your products
 Personal visits
 Partner search
 Expectations of local distributors/agents
 Trade shows
Organizational Export Activities
1.
2.
Understanding The Market Potential
Potential Export Problems
Yazgan Wine
Winery, which HüseyinYazgan had
established in a rental, self storage in
Karşıyaka, Izmir, in 1943
HüseyinYazgan launched into the
construction of a new manufacturing
plant in 1953
Production was gradually increasing and
reached at 2000 tons in 1969.
Today their production level is 5.5
millon litre
In 2012 their plan to export 3%
of their production
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19.03.2012
Key Export Participants

Foreign purchasing agents
 Seeking out the manufacturer whose price and quality match the specifications of their principal

Export sales specialist
 Responsible from international sales

Export broker
 Receives a fee for bringing together the seller and the overseas buyer

Export merchants
 Importer who buys directly from foreign producers for re-packaging and re-selling under its own brand
(with or without any additional processing).

Export management company (EMC)
 The services of an EMC may include foreign market research, marketing strategies, foreign distribution,
establishing a logistics system, managing and training a foreign sales force, shipping and export information
and details, and arranging financial aid and foreign language translation services.

Piggyback marketing
 Piggyback marketing occurs when a manufacturer distributes another firm‘s product(s).

Freight forwarder
 A freight forwarder is a "travel agent for freight." An independent agent that aids and facilitates the
shipments of exported goods, freight forwarders are familiar with the procedures and regulations for
shipping products overseas.
Export Sales Specialist

Company / Job Description
 Planning and implementing sales and marketing activities in line with the






company sales strategies
Preparing and submitting regular sales and forecast reports
Reporting periodically the export sales activities to Manager
Achieving his / her sales goals
Developing customer portfolio
Giving sales support to customers
Required Skills








Degree from a reputable university
Minimum 3 years of working experience in automotive sector
Understanding of inventory flow and supply chain as well as Import and Export rules
A strong sales planning experience in coordination with the sales team
Fluency in both written and spoken English is a must,
Good knowledge of MS Office programs
Available for international and domestic travels
Good communicational skills
Direct Representation in a Market
Sourcing
 +++ Control
 Outsourcing means
 Program development
 Resource allocation
 +++ Communication
 !!! Need more effort
 !!! In smaller markets, it is usually not feasible because low
sales volume does not justify the costs
 Small manufacturers face with the same problem
 Shifting production jobs or work assignments to another
company o cut costs
 Management vision
 Factor costs and conditions
 Customer needs
 Logistics
 Country infrastructure
 Political factors
 Foreign exchange rates
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19.03.2012
Global Market Entry Strategies
Licensing, Investment and
Strategic Alliances
High involvement / High Costs
Exporting
Licencing
Contract
Manufacturing
Joint Venture
Acquisition
Low involvement / Low Costs
UPS agrees to buy TNT Express for $6.8B
Starbucks Türkiye
Associated Press – 7 hrs ago 
 UPS is already the world's largest international package shipper by revenue, above
 Shaya Group
FedEx Corp. and the DHL.
 From 2002
 Buying TNT will be UPS’s biggest purchase since the company was founded in
 More than 10 international brand
1907 as a bicycle-messenger service
 200 stores and 1600 employees
 TNT Express reported revenue of €7.25 billion last year—two-thirds of it
 They don’t have any franchising or dealership contracts
 Licensing agreement between Starbucks Türkiye and Shaya
Group
from European business
 UPS and TNT combined will generate annual revenues of more than €45 billion.
Around 36% of the combined company's revenues will be generated outside the
U.S
 TNT Express is the smallest of the big four global package shippers, the merger
will give UPS
 a market-leading position in Europe to round out its big domestic U.S.
presence and
 expanding Asian business
Market Expansion Strategies
MARKET
COUNTRY
Concentration
Diversification
Concentration
Narrow focus
Country focus
Diversification
Country
Diversification
Global
Diversification
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