Direct export means direct sales to a customer abroad. You send your invoice directly to the customer.
For instance: you product handmade mobile casings, and mail them to your customers in Belgium and Germany.
You maintain close contacts with your customers and undertake your own marketing and sales.
What are three examples of exports?
- Top U.S
- Food, beverage and feed: $133 billion
- Crude oil, fuel and other petroleum products: $109 billion
- Civilian aircraft and aircraft engines: $99 billion
- Auto parts, engines and car tires: $86 billion
- Industrial machines: $57 billion
- Passenger cars: $53 billion
What influences the choice of entry mode in international business?
- i) Market Size:
- ii) Market Growth:
- iii) Government Regulations:
- iv) Level of Competition:
- v) Physical Infrastructure:
- vi) Level of Risk:
- vii) Production and Shipping Costs:
- viii) Lower Cost of Production:
Why entry mode is important
The choice of entry mode is an important strategic decision for SMEs as it involves committing resources in different target markets with different levels of risk, control, and profit return.
What is passive export
In passive exports, exporters wait for orders or find them by chance. They only fulfill orders received.
After receiving an order from a foreign buyer, the exporter then sends the product.
That contrasts with active exports.
What is partnering market entry strategy
Partnering. Partnering means that two or more people will work together to enter a new market.
The partner may be from the desired market. Partnering can occur in any expansion but is most beneficial in the international market.
What are the three basic strategies for entering foreign markets
opening a physical presence. selling through online marketplaces. offering direct e-commerce sales. selling indirectly through another company that exports to the target market.
What are the forms of indirect exporting
There are five main entry modes of indirect exporting: 1 export buying agent; 2 broker; 3 export management company/export house; 4 trading company; 5 piggyback (shown as a special case of indirect exporting in Figure 10.1).
What are the 5 international market entry strategies?
- Exporting
- Piggybacking
- Countertrade
- Licensing
- Joint ventures
- Company ownership
- Franchising
- Outsourcing
What is piggyback in exporting
Piggyback is a form of distribution in foreign markets in which a SME company (the “rider”), deals with a larger company (the “carrier”) which already operates in certain foreign markets and is willing to act on behalf of the rider that whishes to export to those markets.
What is direct and indirect exporting
When the export activity is directly carried out by the manufacturer of the goods, it is called as direct exporting.
In indirect exporting the manufacturer hires the services of an export intermediary agency to export his goods through the intermediaries.
What are 2 types of exports
Exporting mainly be of two types: Direct exporting and Indirect exporting.
How can exporting limit risks
How to minimise risk when exporting. The first step to minimising the risks of exporting is to conduct thorough market research.
Market research helps you understand the risks of doing business in a particular country.
You can then decide how you want to control those risks.
How do I get customers to export
Contacting the commercial section of a country’s embassy and asking if they can provide you with a list of wholesalers of your export product is well worth doing.
This also works in reverse, if you are looking to source particular products from a country, contacting the embassy of that country is a good idea.
Which of the following are strategy options for entering foreign markets
There are five basic options available: (1) exporting, (2) creating a wholly owned subsidiary, (3) franchising, (4) licensing, and (5) creating a joint venture or strategic alliance (Figure 7.25 “Market entry options”).
Who are the direct exporters
Direct exporting is the method of exporting goods directly to the foreign buyers by the manufacturer himself or through his agent situated in the foreign country.
Such exporters are also known as manufacturer exporters. Even goods supplied on consignment basis are considered to be direct export.
What are the different entry modes in international business
The five most common modes of international-market entry are exporting, licensing, partnering, acquisition, and greenfield venturing.
How do I export a product?
- Assess your company’s export readiness
- Build an export plan
- Research and select your target market
- Create an export marketing plan
- Determine the best methods of delivering your product or service to your target market
- Develop a sound financial plan
- Understand the key legal aspects of international trade
How can a country increase its exports?
- Creation of duty drawback schemes
- Increasing the availability of credit
- Simplifying regulation
- Improving cooperation among economic actors
- Combining short-term and long-term export growth policies
What are the 3 marketing strategies to enter a foreign market
selling through online marketplaces. offering direct e-commerce sales. selling indirectly through another company that exports to the target market.
What factors would determine your entry into a market?
- Economic Factors:
- Social and Cultural Factors:
- Political and Legal Factors:
- Market Attractiveness:
- Capability of the Company:
Why do companies decide to enter a foreign market
The most common goal of companies going international is to acquire more customers, boost their sales, and increase their revenues.
By entering a new country, your company gets access to customers that were not on your radar yet.
What are the three approaches to entering an international market?
- By exporting the goods or services,
- By making a direct investment in the foreign country,
- By partnering with local companies, or
- Reverse Internationalization
What is international marketing strategy
International marketing can be defined as the tactics and methods used to market products and services in multiple countries.
This could be in the form of import/export, franchising, licensing, and online sales.
How do Organisations enter foreign markets
Small businesses can enter the global market by selling directly to customers in export territories, marketing products through a local distributor, participating in a joint venture with a local business partner, or selling through a website.
What does entry mode mean
Sharma and Erramilli (2004: 2) define an entry mode as “a structural agreement that allows a firm to implement its product market strategy in a host country either by carrying out only marketing Page 3 3 operations (i.e. via export modes) or both production and marketing operations there by itself or in a partnership
What are the factors to be considered when entering a foreign market?
- Size & growth of the market (e.g
- Economic growth & levels of disposable income
- Ease of doing business / political environment
- Exchange rates
- Domestic competition
- Infrastructure
What are five common international entry modes
The five most common modes of international-market entry are exporting, licensing, partnering, acquisition, and greenfield venturing.
Each of these entry vehicles has its own particular set of advantages and disadvantages.
How can barriers to entry be overcome
Use a disruptive pricing model / have different objectives. Produce outstanding content/products – this makes a product less price sensitive.
Leveraging an existing brand to enter a new market – an economy of scope!
Viral marketing to cut the marketing costs of attracting new sales.
What are the 5 marketing strategies
The 5 areas you need to make decisions about are: PRODUCT, PRICE, PROMOTION, PLACE AND PEOPLE.
Although the 5 Ps are somewhat controllable, they are always subject to your internal and external marketing environments.
Read on to find out more about each of the Ps.
Sources
https://app.croneri.co.uk/topics/customs-entry/indepth
https://inhousemarketing.co.nz/the-marketing-mix-5-ps-helping-you-choose-the-right-strategies/
https://penpoin.com/passive-exporting/
https://archive.mu.ac.in/myweb_test/TYBCOM%20study%20material/Export%20Mkt…pdf
https://www.doubtnut.com/pcmb-questions/why-is-export-promotion-necessary-45229
