5/2/2019 MBA Notes - Nature and Scope of International Marketing

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MBA Notes - Nature and

Scope of International
Marketing

March 10, 2017

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5/2/2019 MBA Notes - Nature and Scope of International Marketing

Q
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uestion – De ne International Marketing. Explain

nature and scope of International Marketing. Labels

International Marketing

International Marketing Notes

Answer
MBA Notes

Introduction

Today, the marketing

organisations are not restricted

to their national borders. The

entire world is open for them.

New markets are springing

forth in emerging economies

like – China, Indonesia, India, Korea, Mexico, Chile,

Brazil, Argentina, and many other economies all over

the world. In today’s global market opportunities are
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on a par with the expansion of economies, with the

increasing purchasing power, and with the changing

consumer taste and preferences. 

The economic, social, and political changes affect the

practice of business worldwide, the business

orgaisations have to remain exible enough to react
rapidly to changing global trends to be competitive.

The objective of this post is to make you understand

the term ‘International Marketing’ and nature and
scope of international marketing.

De nitions of International Marketing

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5/2/2019 MBA Notes - Nature and Scope of International Marketing

According to Kotler, "Global marketing is concerned

with integrating and standardizing marketing actions
across a number of geographic markets."

According to Cateora, "International marketing is the

performance of business activities that direct the ow
of goods and services to consumers and users in more
than one nation."

According to Cateora and Graham, "International

marketing is the performance of business activities
designed to plan, price, promote, and direct the ow
of a company’s goods and services to consumers or
users in more than one nation for a pro t."

According to Terpstra and Sorathy, “international

marketing consists of nding and satisfying global

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customer needs better than the competition, both

domestic and international and of coordinating
marketing activities with in the constraints of the
global environment.”

International marketing is different from domestic

marketing not only in scope but also in nature.

Following are the nature and scope of international

marketing.

Nature of International Marketing

1. Broader market is available – Unlike domestic

marketing the market is not restricted to national

population. Population of other countries can also be

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targeted in international marketing.

2. Involves at least two set of uncontrollable

variables – In domestic marketing the marketers have

to interact with only one set of uncontrollable

variables. In international marketing at least two set of

uncontrollable variables are involved or more if the

marketing organization deals in more countries.

3. Requires broader competence – Special

management skills and broader competence is

required in international marketing/business.

4. Competition is intense – An international marketing

organization has to compete with both the domestic

competitors and the international competitors.

Hence, the competition is intense in international

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marketing.

5. Involve high risk and challenges  – International

marketing is prove to various kinds of risk and

challenge like – political risk, cultural differences,

changes in fashion and style of foreign customers,

sudden war, changes in government rules and

regulations, communication challenges due to

language and cultural barriers, etc,.

Scope of International Marketing

1. Export – It is a function of international business

whereby goods produced in one country are shipped

to another country for further sale or trade.

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2. Import – Goods or services brought into one

country from another for use or sale.

3. Re-export – Import of semi- nished goods, further

processing, and export of nished goods.

4. Management of international operations

Operating marketing and sales facilities abroad,

Establishing production or assembly facilities in

foreign countries, and

Monitoring the operations and practices of other
MNCs and agencies.

...

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