Posting 11

INSURANCE FOR THE EXPORT CARGO

In export the goods, we know that its include the parties inside or outside the country. So, we know that, if we want to delivered the goods, its about a long distance or time, from that, every things can happened. Who know? For example the criminal, hijack, accident, and so on. It is about the risk. So, for the precautions, we must insured the goods when want to export.

In Malaysia, usually when involve the global delivery, the parties for insurance for the cargo have two types. Firstly, operated by governmental insurance corporation which is ‘Malaysia Export Credit Insurance Berhad’ (MECIB) , and another more is Private Insurance Berhad. Both of this company is the parties who is managed the insurance for the cargo the export.

This parties exist is to protect the insured exporter for unpredictable or the other un aspect happened for example tragic event, or war to the outside the country. Malaysian Export Credit Insurance Berhad (MECIB) is fully owned by Malaysian Government. The main goal of this parties exist is to promote Malaysia’s export by protecting exporters from political risk and commercial and so on.

They have established the rules or policies to get their insurance. Three types of policies they have created or established. :-

Firstly, covers the risk of the non-payment by the importer from the outside the country for the goods and commodities exported by credit terms not more than 180 days (6 months).

Secondly, the contract between exporter and the importer must be legal. When the contract is void when in transit, the cover by insurer is from the contract having sign on the date they do the agreement of the contract.

 Thirdly, Covers the export of services is for the tangible goods to outside customer or buyers (importer).

Posting 12

Pricing Strategy

Pricing refers to the process of setting a price for a product or service and you will have the big impact on the amount of profit you get. Developing an effective pricing strategy is a critical element of marketing skills because pricing is the only element of the marketing mix that creates sales revenue. Once you know your customer base and the major trends in your industry. However, the pricing game becomes a matter of choosing a strategy and moving on it for as long as it continues to yield a profit.

An effective of your strategy:

·         Get the profits.

·         Beat or compete the prices to competitor.

·         retain or increase your market share

·         match your offer to market demand

To arrive at a price for your product or service you’ll need to:

Establish what it costs to offer and deliver your products. Without this knowledge, you’ll have no idea whether your prices are sufficient to not only cover all your costs, but to return a profit. Conduct market research to establish what price your competitors are charging and what is the optimum price that customers would willing to pay for your product.

The pricing structure

A pricing structure consists of a list price and a variety of price modifiers which depend on the type of product you are selling and the type of market in which you operate.

The most common price modifiers are:

1) Quantity discount means an incentive to buy more.

2) Promotion discount – a discount for a specific period of time.

3) Seasonal discount – an incentive to clear seasonally sensitive stock.

4) Ranging allowance – paid to a reseller in return for them stocking your product.

5) Delivery fee – an amount you charge for delivering the product.

The value they provide for your customers

For example:

How they satisfy their needs and wants in terms of features, benefits, utility value and prestige. This strategy shows how to get the customer requirement and willing to choose our product or services or buy.