ENTRY TO OVERSEAS
MARKETS
One of the most important and critical decisions in
international marketing is the mode of entering the
foreign market. No country can easily accepts other
country easily. An exporter can’t enter all markets with
same strategies. He has to apply different strategies for
different markets.
EXPORTING
 Exporting means company exports the product from
its home base, without any marketing or production in
foreign countries.
Direct
Exporting
Expo
rting
Indirect
Exporting
DIRECT EXPORTING
Direct Exporting is the method in which whole
activity is done by the exporter himself. He himself
undertakes all the activities instead of any help from
any agent.
ADVANTAGES
 Better knowledge of customers’ requirements
 Goodwill
 Full Control
 Full returns on exports
 Permanancy
 Full knowledge of market conditions
 Short Chain of Distribution
 Proper choice for certain products
 Dedicated staff
DISADVANTAGES
 More capital needed
 Managerial ability essential
 Increased distribution cost
 More risky
 Other limitation
WHY INDIAN EXPORTERS
TAKE RECOURSE TO DIRECT
EXPORTING
DIRECT EXPORTING BY
INDIAN EXPORTERS
IMPROVE EXPORTERS
IMAGE IN DOMESTIC
MARKET
EXPORT INCENTIVES
FORMS OF DIRECT
EXPORTING
 Establishment of Branches Abroad
 Establishment of plants
 Licensing Arrangement
 Joint Venture
 Appointment of exclusive Agent
 Distributor
 Strategic Alliance
 Mergers and Acquisitions
 Contract Manufacturing
 Assembly
INDIRECT EXPORTING
 Indirect export means export of product or services
through middlemen. Firm sells its products to some
other firm or person in the country which further sells
them in foreign country.
ADVANTAGES
 Free from botheration
 No Need of export organisation
 Economy
 A boon to new entrants
 Valuable market information
DISADVANTAGES
 Ignorance about foreign trade
 No scope for product development
 Inappropriate in certain cases
 Availability of middlemen
 Commission to middlemen
 No obligation to any manufacturer
 No efforts to promote exporter’s product
 No permanency of business
FORMS OF INDIRECT
EXPORTING
MIDDLEMEN IN
INDIRECT
EXPORTING
EXPORT
MARKETING
MIDDLEMEN
CO-OPERATIVE
EXPORT TRADING
ORGANISATION
MIDDLEMEN
1.
2.
3.
4.
5.
6.
7.
8.
Merchant Exporter or Export Houses
Export Commission Houses
Visiting or resident buyers
Manufacturer’s export agent
Export Broker
Buying govt agency in exporting country
Govt Buying agency for export
Piggy-backing
THANKYOU