Role of Export Promotion Organizations

Export promotion organizations like Export Promotion Councils (EPC), Export Development Authorities, Commodity Boards, India Trade Promotion Organization (ITPO), Exim Bank etc., can play a very important role in promoting Indian products abroad.

These organizations undertake export marketing communication by:

(i) Advertising
(ii) Sales Promotion
(iii) Public Relations.

Export marketing communication by these organizations is not for the benefit of any particular firm. These organizations aim at promoting the Indian products.

These organizations can be instrumental in:

(i) Creating awareness about India’s export potentials.
(ii) Impressing foreigners about India’s industrial advance and technical capability.
(iii) Improving the quality image of India.

The role of these organizations assumes greater importance in the light of the small sizes and resources of the Indian exporters.

Apart from the publicity for the Indian products by advertising and public relations, they play a very important role in sales promotion .The Export Promotion Councils, Trade Development Authorities and Commodity Boards sponsor trade fairs. For example, the Marine Products Export Development Authority organizes in collaboration with the Seafood Exporters’ Association, an Indian Seafood fair every alternate year which attracts potential buyers from different countries. The Spice Fair and Spice Congress organized by the Spices Board have considerably helped in promoting Indian Spices. Similarly, other organizations sponsor international fairs of the respective products. These organizations also help in the participation of Indian exporters in the fairs held abroad.

The export promotion organization could be of help to the exporters in formulating communication strategies. They can also play an important role in sponsoring buyer seller meets.

The strategic market entry support scheme of the Export-Import Bank of India helps Indian firms in identifying products with export potential and right market segments and in formulating suitable promotion strategy.

The Darjeeling logo promoted by the Tea Board and the feature on the Darjeeling tea telecasted in some foreign countries helped to boost the image and sale of the Darjeeling tea and to check the sale of bogus products.

The functions of ITO are described in the chapter ‘export promotion’.

In short, export promotion organizations can play an important role in promoting abroad the Indian products.

Trade Fairs and Exhibitions:

Trade fairs and exhibitions, by bringing potential buyers and suppliers in contact and imparting information about the relevant development around the world, play an important role in International marketing. In certain cases they have a special significance. For example, in Libya, where media advertisement for products is not permitted, the annual Tripoli International Trade Fair is very important means to promote business. Friendly countries are also permitted to hold single country /single product exhibition and trade fair.

A trade fair, as its name implies, is target directed. It is staged for the purpose of selling goods or demonstrating new ideas and techniques. An exhibition on the other and, is not specifically for trade but for the public.

There are two type fairs, viz.,

(i) General fairs, also known as horizontal fairs; and
(ii) Specialized fairs, also known as vertical fairs and solo fairs.

At a general fair, the goods displayed cover many different fields. A specialized fair concentrates on products of a particular industry or group of industries. Within that industry or group, a large number of products may be on display.

The general fairs attract visitors of all ages, tastes and types and, therefore, is a good place to show consumer goods or new products that needs to be seen and accepted. National pavilions are often built for general fairs and in them the government organizes an exhibition that gives the visitors a good idea of country’s industry, agriculture, ways of life and tourist attraction as well as products it wishes to sell abroad. In other words, the purpose is largely to build up an image of the country in the public mind.

If the product that an exporter, actual or potential, wishes to display is one that interests a specific group of buyers and especially if it is technical in nature, the specialized fair is probably the better choice. Many prefer the specialized fair because it is not open to general public or open only at specific times and people who come have both an interest and some knowledge of the product.