1. Market Research  Desk research: general information and National Statistics Information Sheets from the Chamber of Commerce for Foreign Affairs  Embassies and banks  practical information on import and export legislation  Austrian Trade Associations in over 140 countries – arrange trade fair visits and joint ventures, recommend agents and help to establish links with business partners 1Mag. Maria Peer

2. Export Marketing  Contains all the elements of general marketing like - systematic market analysis, - segmentation - the „4 P‘s“ (product, price, place, promotion) 2Mag. Maria Peer

3. Problems exporters have to face  Language  Regulations, safety standards  Differences in measurement  Import/export regulations  Damage of goods  Transport  Documentation  Payment arrangements  Delay in payment, risk of bad debt  Insolvency of the buyer  Checking the credit worthiness of the trading partner  Different legal systems  Exchange rate fluctuations 3Mag. Maria Peer

4. Solutions of the problems  Try to get as much export knowledge as possible (bank, forwarding agent, chambers of commerce, Trade Association)  Risks can be insured against or mitigated through the payment mechanism  To overcome the exchange rate fluctuation risk - try to invoice in your own currency - forward contract (hedging): importer or exporter knows in advance the exact value of the future transaction in domestic currency terms – aids cashflow management (budgeting,costing and pricing)  Foreign Currency Account – avoids costs related to currency exchanges  Try to find the best distribution channel 4Mag. Maria Peer

5. Direct Export Approaches  Mailing  Visits from representatives of your own company  Trade Fairs and Exhibitions – make contacts, research the market or find agents or wholesalers  Own outlet (branch) in foreign country - sales office - sales office + warehousing - production and sales office 5Mag. Maria Peer

6. Indirect Export  Export merchant: independent firms buying goods from manufacturers and exporting them in their own name and for their own account.  Distributors: hold stocks for the product they buy from the exporter and sell it for their own accounts  Franchising: selling a business as a ready made package to local operators in return for fees and a percentage of annual turnover.  Export through middlemen like - export agents - commission agents: advantages are their know-how of the market and low costs.  Licence Agreements: The exporter grants another firm the right to use the product‘s name, technical specifications, processes, or patents. A fee is charged for the licensed rights. 6Mag. Maria Peer