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Difference between domestic and export marketing

Marketing is a concept of a commercial sale of a product by a seller to a buyer in the norms set by the governments and adhering to the sales tax and central excise rules and regulations. The major difference between the domestic and export marketing is dependant on the geographical factors primarily. If a commodity is sold within the country it is a local sale or domestic market following the rules of the land. If the same commodity is sold overseas, it becomes foreign trade or an export. Where export is involved various factors come into play. Firstly you are dealing with a different people, a different culture, and of different language. You have to reckon with these factors primarily. Secondly, the commercial part comes in such as payment of import duty, taxations, documentation and logistics, insurance and quality certifications for the products being exported. As in the case of local sales, the terms and conditions of sale are agreed upon and the price fixation is arrived at between the buyer and seller. The same modus operandi applies to export with additional stress on documentation, certifications to meet international standards, inspections, time schedules, packaging modalities, shipping procedures, etc. The formalities for export are extensive but in the long run pays off. You get valuable foreign exchange and your company and brand name reaches an enviable position. Exporters are manufacturers and sellers of a commodity and merchant exporters are who do not manufacture, but buy and sell. The government has set up various promotion councils and encourages export for various products made in the country. Various incentives and programs are conducted for export promotion, like buyer seller meets, international trade fairs and forums of various business communities to smoothen out hassles of the trade. It is evident that the export trade is lucrative from the statistics which show a consistent upward trend and there is also the diversification of the trader who has moved up from the designation of a local trader to an international exporter.

Define Export marketing

Marketing can be classified as a business activity which uses the resources of a seller to sell products to meet the demands of a buyer. Marketing is broadly classified as local trade and export marketing. Unlike the domestic market, export marketing takes place across national borders to overseas clients. Export marketing involves dealing with factors like different people, cultures, political issues, languages and other alien rulings. Each country has its listing of restricted goods and banned items and exporters need to have these details for every country. The exporter also should be familiar with the duties involved in the transaction as well as the documentation and logistics. Manufacturers who supply foreign customers directly are termed as exporters and then there are merchant exporters who do not manufacture, but outsource merchandise and export to overseas clients. The business of export involves advertising, branding, packaging and international market research for export potential for products country wise and identifying the customer and his needs. This exercise encompasses study of the creditworthiness of the customer, the cost factors, the volume of business, the terms of business and repeat orders. The recent trends in export market are the promotional councils set up in India for various commodities and the schemes and export incentives formulated by the government to improve exports and bring in valuable foreign exchange. A lot of countries have also joined hands to form forums and smoothen out the export import trade based on common business grounds and streamline the business process. Another factor in play is trade fairs being conducted in India and participation in world trade fairs. Foreign buyers visit India to look for merchandise and deals are closed after physically seeing the products at the stalls and satisfying themselves on the critical trade factors. Exporters also participate in world trade fairs and display their commodities for review. The advantages are that little time is lost and business deals are closed faster and exports take place with no delay. Having come to a clear understanding the buyer and seller settle down for long term business association and repeat orders. This fetches more revenue for the exporter and makes export expenses less costly. The government in turn rakes in revenue and encourages the exporter by providing more financial subsidies. More and more businessmen who started out with local supplies have now expanded in to the export arena for the exclusive benefits it offer