This webinar discusses key aspects of export/import marketing including researching individual country markets, using the marketing mix of product, price, place, and promotion, pricing strategies, distribution channels, finding suppliers and buyers, and responding to trade leads. The presentation covers factors to consider for target markets like regulations, competition, and infrastructure, and how to blend the four Ps of marketing to satisfy target markets. Pricing strategies like skimming, penetration, and competitive pricing are explained. Direct and indirect distribution channels for exporting are outlined.

1. Export/Import Marketing
Webinar
Tekle Sebhatu
11/5/2010
www.stcinternational.us

2. Researching Individual Country Markets
Government
regulations
Level of
competition
Socio-economic
factors
Market potential
Political climate
Similarities to
existing markets
Targeting
Individual
Country
Markets
Infrastructure

3. The Marketing Mix
Blending the four strategy
elements of marketing
decision-making
– Product
– Price
– Distribution
– Promotion
to satisfy chosen target
markets
Target
Market
ProductPrice
Place
(Distribution)
Promotion

4. The Four P’s

5. The Product Life Cycle
+
-
$ 0
Market
Introduction
Market
Growth
Market
Maturity
Sales
Decline
Time

6. Pricing
Strategy
Penetration/
Predatory
Pricing
Pricing Strategy
Skimming
Pricing Competitive
Pricing

7. Pricing Strategy
• Skimming Pricing Strategy (Market Plus)
• Allows to recover cost quickly
• Disadvantage– invite competition
• Penetration pricing strategy (Market Minus)
• Attract customer, consumer goodwill, secure market
acceptance
• Discourage competition
• Competitive pricing strategies
• At the general level of competitive offering

8. Landed Cost Major Elements
• Merchandise cost
• Product origin charges
• Packing, inland freight, terminal charges
• Transportation charges
• Ocean/inland to destination/ warehouse
• Destination charges
• Unloading, terminal, harbor maintenance fee
• Clearance
• Duty, bond fees
• Administrative
• Banking, insurance, warehouse

9. Common Pricing Mistakes
• Determine costs and take traditional industry
margins
• Failure to revise price to capitalize on market
changes
• Setting price independently of the rest of the
marketing mix
• Failure to vary price by product item, market
segment, distribution channels, and purchase
occasion

10. Strategy Planning for Distribution
Logistics
(Physical distribution)
Physical movement of goods
including transporting, storing,
and handling from the producer
to the channel or end-user of the
product.
Channels of
distribution
Firms or individuals who
participate in the flow of
products from producer to the
end-user of the product
Two different
perspectives

11. Channels of Distribution
Direct
Indirect
Distribution
Channels

12. Foreign
End-ser
Foreign
End-user
Producer (US)
Foreign Agent
Foreign Retailer
Foreign
Distributor
Producer (US)
Foreign Retailer
Foreign
End-user
Direct Channel

13. Indirect Channel
Producer (US)
Domestic
Distributor or Agent
Foreign Retailer/Dist/Agent
Foreign End-user

14. Indirect Exporting
• Export Management Companies (EMC)
• Export Trading Companies (ETC)
• Webb-Pomerene Associations
• Piggyback Marketing
• Export Merchants or Re-Marketers

15. Finding Suppliers and Buyers
• Trade shows/fairs
• Trade publications
• Foreign countries trade
offices/Embassies/Chambers
• Foreign travel
• The Internet

16. Trade Leads

19. Responding to Trade Leads
• Provide enough information for buying
decision to be made
• Do not fall into the sample trap
• Understand that foreign distributors do not
make fast decision
• Understand selling to end-user on one time
VS distributors for extended period of time

20. Responding to Trade Leads (Cont…)
• Identify and take time to know your buyer
• Be wary for letters to invite a potential buyer
• Invest some time and money to publicize
your company electronically
• Use some commonsense

21. Questions and Answer Session
Further questions e-mail
stcintL@q.com