International Marketing

International Marketing can be defined as exchange of goods and

services between different national markets involving buyers and
sellers.

According to the American Marketing Association, “International

Marketing is the multi-national process of planning and executing
the conception, prices, promotion and distribution of ideal goods
and services to create exchanges that satisfy the individual and
organizational objectives.”
Marketing is the process of focusing the resources and objectives of

an organization on environmental opportunities and needs. It is a

universal discipline. However, markets and customers are different

and hence the practice of marketing should be fine tuned and

adjusted to the local conditions of a given country. The marketing

man must understand that each person is different and so also each

country which means that both experience and techniques should

be practiced to be successful in one country or countries. If that is

so, for each country there must be a unique marketing plan.

It is important in international marketing to recognize the extent to
which marketing plans and programs can be extended to the world
and the extent to which marketing plans must be adapted.

For instance, in Japan, Coca-cola offer beverages for every lifestyle

and occasion while providing quality that consumers trust. As a
manufacturer of soft drinks that proposes healthy lifestyle and the
well-being of consumers, provide beverage related information,
and promote active , healthy lifestyle through sponsorship of
sports programs and carrying out a variety of initiatives that
provide consumers as an entryway into exercise and sports.
“PESTEL analysis” is an acronym for analyzing the external
environment/factors of a market (political, economic,
sociological/demographic, technological, Ecological and legal) and
setting the stage for strategic planning.
Political factors: Often considered more relevant when entering a
foreign market, the political situation in any new or existing
market is invaluable to study and understand.

E.g. GSK’s marketing strategy include possible changes in

international trade regulation and competitive regulation likely to
be introduced by the governments of China and India.
Economic factors: The economic health and welfare of a nation also
impact the firm’s decision-making process. If an area is healthy
economically and the consumers in a region have the potential
means for creating purchasing power, then a company may want
to consider selling its product or service in that area.

E.g. GSK marketing strategy include high rate of economic growth

in China and India. Moreover, current economic uncertainties
associated with European markets might have negative
implications on the marketing strategy.
Sociological factors: In this part of analysis, firm looks at societal
attitudes or population shifts that represent either opportunities or
threats to overall strategy. Increasing level of customer resentment
towards large amounts of profits made by pharmaceutical
companies and sliding images of large pharmaceutical companies
as the most significant social factor in the current environment.
Technological factors: Include breakthroughs in pharmaceutical
industry, issues associated with licensing and patenting drug
manufacturing technology, as well as, the level of development of
industry technology.

Ecological factors: Problems related to global warming, and

impact to the environment by pharmaceutical industry and the
reaction of stakeholders to this impact.
Legal factors: One of the most important factors involve rules and
regulations directly and indirectly related to pharmaceutical
operations in local markets, as well as international trade rules,
regulations and agreements.
A value chain is a chain of activities that a firm operating in a
specific industry performs in order to deliver a valuable product or
service for the market.

Value chain Analysis is the examination of the value chain of a

firm to ascertain how much and at which stage value is added to
its products and/or services, and how it can be increased to
enhance the competitive advantage in market.
Generally, the value chain includes the following activities:

✔Inbound logistics—bringing raw materials into the business.

✔Operations—management of processes to create the product or

service for the customer.

✔Outbound logistics—the means for getting the product or service

to the customer (for example, distribution systems and shippers to
get products into retail stores).

✔Marketing and sales—creating value.

✔Service—aligning customer expectations and the performance of
the product or service.

✔Firm infrastructure—the organization of the firm to maximize

service to the customer.

✔Human resources management—creating a structure for the

people in the firm, which includes recruitment, training, retention,
and compensation of employees.

✔Technology—using technology to maximize service, thereby

enhancing customer value.
Stepwise Procedure for export of pharmaceutical products

1. Selection of the markets for export

It is necessary to do a proper groundwork about the markets and

the countries targeted for the export. The markets are thoroughly
studied on various aspects like political stability, socioeconomic
conditions, Government policies, business environment,
investment incentives, status of judiciary etc.
Following are some of the parameters to be studied about
the targeted market:-

 Market potential for the products to be exported.

 Registration requirements, cost of registration & period to

complete registration of each product.

 Labeling & packaging requirements (Pack size, Language).

 Local regulatory guidelines (including those related to IPR) &

standards practiced.

 Market distance (by sea/by air).

 Marketing costs.

 Distribution network.
2. Technical Documentation

To start with actual exports of the pharmaceuticals there are

number of prior requirement to be completed, including the most
important one i.e, preparation and submission of registration
Dossiers for the products to be exported to that country. The
registration formats/requirements, costs & period to complete the
registration differ from country to country.
However, the following documents/certificate(s) are required to
comply with registration requirement:-

 FDA license copy.

 Free sale certificate.

 WHO-GMP certificate.

 Details of manufacturing facilities.

 Details of Quality Control Systems.

 Technical details about the product.

 Samples of sales pack with Q.C test report.

3. Sequence of activities in Pharmaceutical export

 Appointment of agent/representative in that country.

 Identifying the Potential Buyers / Customers.

 Going for procuring orders.

 Agreeing upon pricing, document ,freight charges, currency

,delivery etc.

 Signing of contract.

 Determining the payment terms: Advanced Payment /

Letter of Credit (LC).

 Importer sends purchase order.

 Production.

 Packaging, warehousing.

 Certificate of quality control.

 Submission of docs to banks: Insurance certificate, Packing list ,

customs invoice etc.

 Bank sends docs to importer’s bank, payment is done.

 Transportation by air / ship.