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close this bookExport Marketing for a Small Handicraft Business (Oxfam, 1996, 192 p.)
close this folder3 Markets and their characteristics
View the document3.1 The perception of value
View the document3.2 Competition
View the document3.3 Market structures
View the document3.4 The costs of distribution
View the documentSummary

Summary

I Customers are not interested in what a product costs, but in what its value is. Value depends on the way a product is presented to a particular market. There are many different types of markets, and many different motivations for a customer to buy a product. The marketing process can be seen as realising the highest possible value out of a capacity to produce.

2 Product design, quality of production and presentation, the price of the product, its method of promotion, distribution, and the level of service to the customer are all variable factors in the marketing process. It is the way in which they are combined which defines what is called the marketing mix. All markets are competitive. Successful marketing means creating a marketing mix which is better than your competitors'.

3 Markets are structured according to the function played in the distribution chain, and the type of product being sold. An exporter must identify the correct point of entry, in order to reach a potential customer. Making a visit to the target country will greatly assist identification of who the customers might be.

4 Distribution adds cost. When countries import handicrafts, they sell them at around four times the export price, in order to recover their costs, such as shipping, rent of premises, and staff. There are standard methods of pricing for export contracts, determined by whether the exporter or importer is responsible for certain of the distribution costs.