UNIT I

Definition of International Marketing: The marketing of goods and services across national borders or Marketing in an internationally competitive environment, no matter whether the market is home or foreign. Or The marketing operations of an organization that sells and or prod!ces within a given co!ntry when: a. that organization is part of, or associated with, an enterprise which also operates in other co!ntries" and b. there is some degree of infl!ence on or control of the organization#s, marketing activities from o!tside the co!ntry in which it sells and or prod!ces. Different Orientations of International Marketing There are $ different types of orientations or dimensions of %nternational Marketing known as &'() framework" &thnocentrism *home co!ntry orientation+ 'olycentrism *host co!ntry orientation+ (egiocentrism *regional orientism+ )eocentrism *world orientation+ a. Ethnocentric Orientation: %n the ethnocentric operations are viewed as secondary to domestic operations and primarily as a means of disposing of ,s!rpl!s# domestic prod!ction. 'lans for overseas markets are developed in the home office, !tilizing policies and proced!res identical to those employed in the domestic market. Overseas marketing is most commonly administered by an e-port department or international division, and the marketing personnel by an e-port department or international division. The ethnocentric position appears to be appropriate for a small company .!st entering international operations, or for companies with minimal international commitments beca!se this approach entails a minimal risk and commitment to overseas markets / no international investment is re0!ired and no additional selling cost inc!rred, with the possible e-ception of higher distrib!tion costs.

b. Polycentric Orientation: 1s the company begins to recognize the importance of inherent differences in overseas markets, a polycentric attit!de emerges. The prevalent philosophy at this stage is that local personnel and techni0!es are best s!ited to deal with local market conditions. 2!bsidiaries are established in overseas markets and each s!bsidiary operates independently of the others and establishes its own marketing ob.ectives and plans. c. Regiocentric and Geocentric Orientations: 1 regiocentric company views different regions as different markets. 1 partic!lar region with certain important common marketing characteristics is regarded as a single market, ignoring national bo!ndaries. Ob.ectives are set by negotiation between head0!arters and regional 34 on the one hand and between regional 34 and individ!al s!bsidiaries on the other. 1 geocentric company views the entire world as a single market and develops standardized marketing mi-, pro.ecting a !niform image of the company and its prod!cts, for the global market. %n general, the desirability of a partic!lar international orientation 5 &, ', (, ) 5 tends to depend on several factors, s!ch as the size of the firm, the e-perience gained in a given market, the size of the potential market, and the type of the prod!ct and its c!lt!ral dependency. INTERNATIONALISATION STAGES Do estic !o "any# Most international companies have their origin as domestic companies. The orientation of a domestic company essentially is ethnocentric. 1 p!rely domestic company operates domestically beca!se it never considers the alternative of going international. The growing stage/one company, when it reaches growth limits in its primary market, diversifies into new markets, prod!cts and technologies instead of foc!sing on penetrating international markets. 1 domestic company may e-tend its prod!cts to foreign markets by e-porting licensing and franchising. The company, however is primarily domestic and the orientation essentially is ethnocentric. International !o "any# %nternational company is normally the second stage in the development of a company towards the transnational corporation. The orientation of the company is basically ethnocentric and the marketing strategy is e-tension, i.e, the marketing mi- ,developed# for the home market is e-tended into the foreign markets. M$ltinational !o "any# 6hen the orientation shifts from ethnocentric to polycentric, the international company becomes m!ltinational. %n other words, when a company decides to respond to market differences, it evolves into a stage/three company is m!ltinational that p!rs!es a m!lti/domestic strategy. The foc!s of the stage/three company is m!ltinational or, in strategic terms, m!lti/domestic *that is, the company form!lates a !ni0!e strategy for each co!ntry in which it cond!cts b!siness+.

Glo%al&Transnational !o "any# 1ccording to 7eegan, global company represents stage fo!r and transnational company stage five in the evol!tion of companies. 1ccording to 7eegan, the global company will have either a global marketing strategy or a global so!rcing strategy b!t not both. %t will either foc!s on global markets and so!rce from the home or a single co!ntry to s!pply these markets, or it will foc!s on domestic market and so!rce from the world to s!pply its domestic channel. The Transnational 8orporation is m!ch more than a company with sales, investments and operations in many co!ntries. This company, which is increasingly dominating markets and ind!stries aro!nd the world, is an integrated world enterprise that links global reso!rces with global markets at a profit. International *i+ arketing Decisions

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International '$siness Decision: The first decision a company has to make, of co!rse, is whether to take !p international b!siness or not. This decision is based on serio!s consideration of a n!mber of important factors, s!ch as the present and f!t!re overseas opport!nities, present and f!t!re domestic market opport!nities the reso!rces of the company, company ob.ectives etc. Market Selection Decision: The ne-t important step is the selection of the most appropriate market. 9or this p!rpose, a thoro!gh analysis of the potentials of the vario!s overseas markets and their respective marketing environments is essential. 8ompany reso!rces and ob.ectives may not permit a company to do b!siness in all the overseas markets. 1 proper selection of the overseas market*s+, therefore, is very important. Entry and O"erating Decisions: The ne-t important task after the market selection decision is to determine the appropriate mode of entering the foreign market. Marketing Mi( Decisions: The foreign market is characterized by a n!mber of !ncontrollable and controllable variables. The marketing mi- consists of internal factors which are controllable. The s!ccess of %nternational marketing, therefore, depends to a large e-tent on the appropriateness of the marketing mi-. The elements of the marketing mi- sho!ld be s!itably designed so that may be adapted to the characteristics of the overseas market. International Organi)ation Decision: 1 company which wants to do direct e-porting has also to decide abo!t its organizational str!ct!re, so that the e-porting f!nction may be properly performed. This decision sho!ld necessarily be based on a caref!l consideration of s!ch factors as the e-pected vol!me of e-port b!siness, the nat!re of overseas market, prod!ct, size and reso!rces and length of its e-port e-perience.

*$t$re of International Marketing :. ;. <. $. =. ?. @. A. B. )lobalisation of s!pply chain and operations management %nternational %nvestments %nformation s!rge and cons!mer choice 6orld growth >omination of the world economy Trade cycle decison r!le 'ervasiveness of free markets 1ccelerating growth of global markets The rise of the %nternet and %nformation technology

INTERNATIONAL MAR+ETING EN,IRONMENT The vario!s environments that can be termed important for %nternational marketing are: ' 5 'olitical & 5 &conomical 2 5 2ocial T 5 Technological & 5 &nvironmental C 5 Cegal > / >emographic Dased on the syllab!s of %st Trimester from the s!b.ect of Marketing Management Enit % *Topic: Marketing &nvironment+