Marketing Valuable source to earn foreign exchange. Helps promote and accelerate the pace of economic development. Helps development of tertiary sector as well.Egtransport , communications , banking , finance , insurance , etc. Leads to generation of employment opportunities. Foreign market entry strategy where other strategies may not be feasible.
Importance for Small scale
industries Enhances the competitive abilities of the small scale entrepreneur. Diversification of risk ; risk of recession and low demand in domestic market. Revival of old brands in foreign markets which are on the decline phase in domestic market. Emphasis on high quality products with higher prices which bring in greater revenues. Incentives and concessions from the government
Significant role of small scale
industries Small enterprises in the Indian Economy accounts for 35% of the gross value of output in the manufacturing sector, about 80% in industrial employment and about 40% of the total exports of the country. Areas where the small scale sector can emerge as strong global player are :
Food Processing Industries
Leather Goods Electronic Goods Plastic Goods IT and software exports
Methods of Export Marketing
Direct Exporting Manufacturer himself undertakes the responsibility of exporting the product which includes developing network , appointing sales staff , agents and offices in foreign countries , booking of orders, selling , after-sales service , etc. Indirect Exporting - The entrepreneur exports the products through the export houses , merchant exports , trading houses and export consortia
Type of information required
To explore the extent to which a producer / exporter can be competitive in selling its products , following information is required: (1) Market growth potential, consumer profiles, segments, intermediaries, distribution networks etc. (2) Existing competition and market share (3) Prevailing pricing structure and market rates. (4) Government policies; entry barriers (5) production and selling costs (6) Scope for revenues and profit margins.
Various costs that are
associated with export marketing (1) Production Costs: Fixed cost and variable cost or factory costs. (2) Selling and distribution costs, transporting, shipment costs etc. (3) Cost of marketing support and development-for advertising, sales promotion etc. (4) Administrative costs salaries, office expenses, audit, legal fees etc.
Export Documents and Procedures
for Small Scale Industries Types of Documents Classified into four types according to the functions performed by them: Commercial Documents Regulatory Documents Export Assistance Documents Documents required by importing countries
Steps in processing of an export order
1. 2. 3. 4. 5. 6. 7. 8. 9.
Having an export order
Examination and confirmation of order Manufacturing or procuring goods Clearance from central excise Pre-shipment Inspection Appointment of Clearing and Forwarding Agents Goods to Port of Shipment Port Formalities and Custom Clearance Despatch of documents by Forwarding Agent to the exporter 10.Certificate of Origin 11.Despatch of Shipment Advice to the Importer 12.Submission of Documents to Bank 13.Claiming Export Incentives
Export Marketing Organisations in
India
Merchant exporters Export houses Trading houses Star trading houses Super star trading houses Export Consortia Export corporations Service export house
Export Import Policy of India
The EXIM Policy of India provides the guidelines , rules and regulations framed by the government towards exports and imports. It consists of : Open general license items Items restricted for exports and imports Special import license items Advance License Items Duty Entitlement Pass Book Scheme Export Promotion Capital Goods Scheme Eligibility criteria for Export Houses and all forms of Trading Houses Benefits to Export- Oriented Units(EOUs), units in Export Promotion Zones(EPZs) and other exporters Schemes for exporters and importers and other details
Finance for exports
The government has established special financial institutions and has introduced various financial schemes to assist the exporters. They are :
Export Import Bank of India
( EXIM Bank) Export Credit Guarantee Corporation of India Ltd. (ECGC) Small Industries Development Bank of India (SIDBI) Reserve Bank of India (RBI) Commercial Banks
Export Promotion Organizations
State Trading Corporation of India (STC)
Export Promotion Council (EPC) India Trade Promotion Organization (ITPO) Indian Institute of Foreign Trade (IIFT) Indian Council of Arbitration( ICA) Federation of Indian Export Organizations ( FIEO) Export Inspection Council Department of Commercial Intelligence and Statistics World Trade Organisation (WTO)
Problems related to exports
Unawareness about foreign market Inadequate Knowledge of procedure, formalities and legal requirements Information Technology a barrier Inconsistent Quality Inconsistent production levels Cost ineffectiveness Frequent strikes Composition of Exports Government Machinery