Advantages and Disadvantages of Exporting Processes and International Marketing Methods

This article discusses the advantages and disadvantages of direct and indirect exporting processes, documentation required for exporting, and different international marketing methods. It also provides recommendations for appropriate methods and countries to meet specific business requirements.

V
INTERNATIONAL MARLETING (PART 2)
Advantages and disadvantages of the different types of exporting processes for exporting
merchandising and services.
 Direct Exporting is the process in which sales of products without involving anybody
in between like middlemen. In this case direct exporting a company itself involves
selling of goods to overseas and is also responsible directly dealing with the foreign
organisation. A company like HSBC carry on the exporting directly by these modes:
◦ Sales branches through overseas.
◦ This is abroad based retailer, agents and distributors.
◦ Establishing HSBC’s own corporate export provision.
Advantages-
 Increase Profit- This helps firm to reduce business costs, resulting in potential for
increasing profit. During the export process there is no intermediary to take
commission.
 Increase Control- This help company HSBC to increase control more over the brand
image and also allow to forge deals and relationships with aims aligned with the
foreign businesses. The distribution and product in market can also be controlled.
Disadvantages-
 Increased Workload- The logistical planning is very complex and time-consuming.
The exporting process will lead to unnecessary costs for the company, it also
increases demand for more resources, finance and time on the company exportation
process. Cutting down intermediary means taking responsibility for their work.
 Increased Costs- Increased workload is directly linked with logistics of export
company and also the foreign research will more staff (Padmanabhan, 2022). This can
result in increased salaries, costs and more paid packages of employees. This directly
represent the increase financial risk for direct exporters.
In-Direct Exporting is the process in which company sales goods in foreign country
through middlemen. This involves using the sales intermediaries and independent
middle men that takes the responsibility of products which is send to foreign countries.
Some indirect exporting intermediaries are:
 Purchasing and buying of agents.
 Domestic based export trade and exports merchants’ companies.
Advantages-
 Less Risk- Indirect exporters has less risks and less risk of marketing as it gets
transferred to export market intermediaries and these intermediaries as special
skills in their filed.
 Less Investments- Indirect exporters mostly concentrate on assembling of
goods, manufacturing of products and they also require the less amount of
capital than direct exporters.
Disadvantages-
 Lower Prices- There is many intermediaries in case of indirect exports. So, in
various intermediaries there is distribution of total revenues and the high
prices is charges to exporter.
 Lower Sales Volume- The products are arranging in export houses from
various places and then there is contribution of individual exporters to merge.

Evaluating different types of methods of tapping into new international markets,
including its limitations and benefits.
International marketing methods is basically planned for services and goods into the
new targeted marketplace. The international marketing strategies outlines all the
companies overview and goals of the target market. The different international market
methods are:
 Export- This element means that when services and goods are delivered from
one country to another country (Cabaleiro-Cerviño and Burchartha, 2020).
This involves the currency between the countries that involves international
trade. However, the export also helps in enhancing the scope of globalisation
all across the globe.
Benefits of export -
 More job opportunities for the country's people, which are involved in
international business.
 This helps in enhancing the international trade that helps directly on the impact
of economy of the country.
Limitations of the export -
 This can also result in lack of control of owner of finished goods which is
exported because there are many conditions where the owner fails complete
needs and satisfy it for the client.
 This also results into increment of product's cost which are delivered to
different countries. As there are various taxes that more likely applied on the
imported products by the manufacturer of the products.
The documentation that is required e.g. letter of credit, packing list, commercial invoice,
terms of payment, customs document.
 A Letter of Credit (Lc) – This is a document that guarantees the buyers for the
payment to the sellers. This document is issued by bank that ensures full payment
with time to the seller. Sometimes when a buyer is not able to pay the bank covers the
remaining or full amount on behalf of buyer.
 Packaging List- This is an exporting packaging list that has detail document which
states packaging details contained in shipment and all the goods details. The shippers
create a complaint packaging list document to share shipping lines, freight
forwarders, importers and more other parties with the supply chain.
 Commercial Invoice- In simple words, the export documents is which serves as legal
evidence of sale transaction between the seller and buyers. This document is mainly
used for clearance purpose which is related to customer and helps in the assessment
of duties, determination and taxes payable.
 Customs Document- One of the main documents of export is Shipping Bill that is
required by the customs Authority for allowing shipment. A shipping bill is issued to
represent some kind of certificate for all the parties that includes ship’s buyer, owner,
seller and other parties and it is issued by shipping agent.

Justified recommendations on appropriate methods and countries to meet
specific
business requirements.
 For HSBC company in order to expand internationally the company can use
franchisee and licensing method option because it helps the firm to manage
their expenses and costs.
 Proper training and brief for the company should be provided to management
department in order to run the functioning of the firm smoothly.
 This is important to analyse the business environment of the region in which
various opportunities and assistance can be enjoyed.
 The company can also use the social media platform like Twitter, Facebook
and YouTube etc. which will help firm to enhance the brand image in the
target market.
CONCLUSION
This project can be concluded as the business global environment of business
involves the many components which involves the rules and regulation that results in
restricting the free trade within the different countries. This can be evaluated that
SMEs enterprises faces many opportunities and challenges which help them to
achieve more business and success in the market across the world. Furthermore, this
is observed this project that UK is more involve in trade agreements which helps in
free trade without paying high taxes. At last, there is recommendation of method
which can be used by the HSBC firm and this company also discovers the various
roadblock which limits the commerce with the global market.
REFERENCES
Padmanabhan, J., 2022. Entry Mode Choices of Platform Companies Seeking
Expansion in International Markets. In Academy of Management Proceedings (Vol.
2022, No. 1, p. 13855). Briarcliff Manor, NY 10510: Academy of Management.
Cabaleiro-Cerviño, G. and Burcharth, A., 2020. Licensing agreements as signals of
innovation: When do they impact market value?. Technovation, 98,
Nippa, M. and Reuer, J.J., 2019. On the future of international joint venture
research. Journal of International Business Studies, 50(4), pp.555-597.
Licensing- Through the licensing businesses has right to operate in other countries. Through
licensing the other person gets the opportunity to operate the small firms that has built up
goodwill and brand image in the target market and the person can also enjoy the goodwill
which helps to earn more profit in the future. Most probably its like franchisee. This is cost
effective and less expensive in the recent market.
Benefits of licensing -
 More cheaper than other businesses.
 Royalty in the business is included.
 This method has reduced the risk of operating the relationships in the business.
Limitations of licensing -
 Increased the competition in the targeted market.
 Also involves the limitation in hallmark on the specific goods that are produced by the
manufacturer.
Joint ventures -
The method of joint venture includes types of industries which has more than one owner of
the organisation. Basically, there are more than two companies in the joint venture method.
This includes the investment is done by the joint venture owners (Nippa and Reuer, 2019).
However, the both owners are liable of the liability and has various process this is followed by
the firm.
Advantages of joint venture -
 The owners share the liabilities in the business process.
 More benefit of sharing risk in the company.
Disadvantages of licensing-
 There can be conflict between the owners of joint venture business.
 There is not a single control over the activities and operations of the working
business.