Nature of International

Marketing
Challenges & Opportunities…

By:Batul Bharmal
 Process of International Marketing
AMA Definition
International marketing is the
multinational process of planning and
executing the conception, price, promotion,
and distribution of ideas, goods, and services
to create exchanges that satisfy individual as
well as organizational objectives.
 International Dimensions of
Marketing
How it Differs from…
1.Domestic marketing
Concerned with the marketing practices within a
marketer’s Home country.

2. Foreign marketing
The domestic operations within a foreign
country
Comparative marketing
• Its purpose is to contrast two or more
marketing system rather than examine a
particular country’s marketing system
International Trade
Concerned with the flow of goods and capital
across national borders.
Multinational=Global=world
 Domestic marketing versus
international marketing
• International marketing is nothing but
domestic marketing on a larger scale..

• International marketing is complex because of

uncontrollable factors.

• Customization needed for international

marketer.
 Characteristics of Multinational
Corporations(MNCs)
• At before they called as “Foreign Devils”
Definition by size
• Value? Sales? Profit? Return on Equity?
Definition by Structure
• Structural requirements for definition as an
MNC include the number of countries in
which the firm does business and the
citizenship of corporate owners and top
managers
Defination by Performance
• Depends on such characteristics as earnings,
sales, and Assets.
Definition by Behavior
• Ethnocentricity is a Strong orientation
toward the home country. Markets and
Consumers abroad are viewed as unfamiliar
and even inferior in taste, Sophistication, and
Opportunity.
Polycentricity
• The assumption is that each market is unique
and consequently difficult for outsider to
understand. Thus, managers from the host
country employed and allowed to take
decision.
• Geocentricity is an orientation that
considers the whole world rather than any
particular country as the target market.
 The Process of Internationalization
• Andersons U Model
1. No regular Export Activity
2. Export via independent
representatives(Agents)
3. Establishment of an overseas sales subsidiary
4. Overseas Production/ Manufacturing
 Benefits of International Marketing
• Survival
• Growth of overseas Markets
• Sales and Profits
• Diversification
• Inflation and Price Moderation
• Employment
• Standards of Living
• Understanding of Marketing Process
Thank You