INTERNATIONAL

MARKETING
Understanding Of
Business Products &
Services In
International Trade

Pravin B Tiwari
 PRODUCTS & SERVICES FOR BUSINESSES
INDUSTRIAL GOODS & SERVICES
 Business services – Accounting, Advertizing,
Insurance, Banking, Law & Travel
 Adaptation Vs Standardization – Photocopy
Machine
 Similarities

Industrial Goods Customers Consumer Goods Customers

Creating Another Products & Final Form Of Consumption
Services
Seeking Profits Seek Satisfaction
 DEMAND IN GLOBAL BUSINESS
TO BUSINESS MARKETS
 Industrial good & services takes huge
investment – metro or bullet train
 IGS Demand is affected by
1. Volatility
2. Stages of industrial & economic development
3. Level of technology of products & services &
market development
 1.VOLATILITY
 Demand is very unstable
 Similar to consumer demands but
 Depend on professional buyers
 Derived demand
 Depend on other sources
 Boeing & Airbus suffered recession due to shortages in
demand after 9/11
 2.STAGES OF ECONOMIC
DEVELOPMENT
 Stage 1 = Traditional Society
 Stage 2 = Precondition for takeoff
 Stage 3 = Takeoff
 Stage 4 = Drive to Maturity
 Stage 5 = Age of mass consumption
 3.TECHNOLOGY & MARKET DEMAND

 Grouping countries based on their ability to

benefit from & use of technology
 Following trends spur demand for
technologically advanced products
1. Expanding economic & industrial growth in Asia
2. Disintegration of soviet empire
3. Privatization of govt owned industries worldwide
QUALITY & GLOBAL
STANDARDS
 IG&S quality parameter differ substantially
country to country
 Quality is defined by buyer
 High quality high priced product in Africa with
plenty of labour?
 Highengineered , high prices products should give
way to?????????

TQM
 BUSINESS SERVICES
 Many industrial products, associated services
exceeds the revenues from the products
 Mobile/ Telecom Industry
 Printers
 After
sales services, maintenance contract for
heavy equipments,
 AFTER SALES SERVICE
 Not only proper product design but also
effective service, prompt deliveries, ability
to furnish spares & replacement parts
without delay!!
 Bajaj& Maruti – India context
 GE Medical systems
 Hyundai & Samsung

 Customer training
 Imperative/ inevitable
 Results in more sales & profits - WOM
 OFFERING SERVICES
 Firms to enter in through licensing,
franchising or direct investment due to
perishibility of services
 Medicalequipment, heavy machineries, High
tech setup,

 Not always required

 IT & ITES
 ???
 Architectural & engineering services
 TRADE SHOWS
 Why ????
 Physical contact
 Direct Platform for buyer/ seller
 Difference in spending
 Europeanspend 22% vs American 5%
 Germany the largest spending country
\
 RELATIONSHIP MARKETING
 What & why ??
 Need of hour
 Long term business relationship
 Creates profit today and scope for tomorrow!!
 Individual Assignment
 Presentation on Japanese
distribution structure.
Include the four
distinguished features of
Japanese distribution
system. Use exhibit 14.1 to
compare distribution
channels between USA &
Japan
 Time limit = 15 minutes
Even Role No = pg 475-477
 Presentation on business
philosophy, dietenho &
changes in Japanese
distribution system. Explain
the relationship based
philosophy of doing business in
Japan, which protects small
retailers, the law on scale
retailing and the changes
creeping into the Japanese
retailing
 Time limit = 15 minutes
Odd Role No = pg 477-481