Approaches to Exporting

Posted on 28 April 2023 Category : How to export

Approaches to Exporting

The way a company chooses to export its products can have a significant effect on its export plan and specific marketing strategies. The basic distinction among approaches to exporting relates to a company's level of involvement in the export process. There are at least four approaches, which may be used alone or in combination:

Passively supplying to domestic buyers who then export: These sales are indistinguishable from other domestic sales as far as the original seller is concerned. Someone else has decided that the product in question meets foreign demand. That party takes all the risk and handles all of the exporting details, in some cases without even the awareness of the original seller.

Seeking out domestic buyers who represent foreign end users or customers: Many foreign corporations, trading companies, government agencies, distributors and retailers purchase for export. These buyers procure goods from domestic market and export them on a large scale. In this case a company may know its product is being exported, but it is still the buyer who assumes the risk and handles the details of exporting.

Exporting Indirectly through Intermediaries: Under this approach, a firm engages the services of an intermediary capable of finding foreign markets and buyers for its products. In India, export houses and trading companies act as such intermediary. In this case, the exporter can exercise a considerable control over the process and other benefits of exporting.

Exporting Directly: Under this approach, the exporter Personally handles every aspect of the exporting process from market research and planning to foreign distribution and collections. Consequently, a significant commitment of management time and attention is required to achieve good results. However, this approach may also be the best way to achieve maximum profits and long-term growth.

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