INTRODUCTION TO INTERNATIONAL

MARKETING
International marketing is a complex process that involves identifying and
meeting the needs of customers in different countries and cultures. The basic
principles of marketing apply in all countries, but the application of these
principles requires an understanding of local market conditions, cultural
differences, and the legal and regulatory environment of different countries.

The goal of international marketing is to create value for customers in different

parts of the world and to generate profits for the company. This requires a deep
understanding of customer needs and preferences in different countries, as well
as the ability to design products and services that meet these needs.

International marketing involves conducting market research, understanding

cultural and political differences, and developing marketing strategies that are
appropriate for different countries and regions. Companies need to be able to
adapt their marketing strategies to local market conditions and cultural
differences in order to be successful.

In addition to developing marketing strategies, international marketing also

involves managing logistics, such as transportation and distribution. Companies
need to be able to get their products to customers in different countries in an
efficient and cost-effective manner. This requires an understanding of
international trade regulations, customs procedures, and logistics networks.

International marketing also involves dealing with the legal and regulatory
requirements of different countries. Companies need to comply with local laws
and regulations related to product safety, labeling, advertising, and other aspects
of marketing. Failure to comply with these regulations can result in legal and
financial penalties, as well as damage to the company's reputation.

One of the biggest challenges of international marketing is dealing with cultural

differences. Customers in different countries have different values, beliefs, and
preferences that can affect their buying behavior. Companies need to be able to
adapt their marketing messages and product designs to local cultural norms in
order to be successful.

Another challenge of international marketing is dealing with political and

economic instability in different countries. Political unrest, currency
fluctuations, and other economic factors can affect the demand for products and
the ability of companies to do business in different countries. Companies need
to be able to monitor and adapt to these changes in order to be successful in
international markets.

Types of export incentives and assistance in

international marketing
Export incentives and assistance are measures taken by governments to promote
exports and increase foreign exchange earnings. These measures can include
financial incentives, tax breaks, trade agreements, and other forms of support. In
this article, we will discuss some of the most common types of export incentives
and assistance in international marketing.
1. Export Subsidies: An export subsidy is a financial incentive provided by
the government to encourage companies to export their products. These
subsidies can be in the form of cash payments, tax rebates, or reduced
interest rates on loans. Export subsidies are designed to reduce the cost of
exporting and make the products more competitive in foreign markets.
2. Export Credit: Export credit is another type of financial assistance
provided by governments to support exports. Export credit agencies
(ECAs) provide loans or credit guarantees to exporters to help them
finance their exports. The aim is to reduce the risk of non-payment and
provide exporters with more favorable financing terms. Export credit can
be particularly helpful for small and medium-sized enterprises (SMEs)
that may have difficulty obtaining financing on their own.
3. Export Insurance: Export insurance is a form of risk management that
protects exporters against losses caused by non-payment or other risks
associated with exporting. Export credit agencies and private insurers
offer export insurance policies that cover a range of risks, including
political risks, commercial risks, and financial risks. Export insurance can
help companies expand into new markets with greater confidence and
reduce the financial risk of exporting.
4. Export Promotion Programs: Export promotion programs are designed to
help companies promote their products and services in foreign markets.
These programs can include trade fairs, market research, advertising, and
other forms of promotion. Governments may also provide funding for
companies to participate in trade missions, which can help them establish
relationships with potential customers and partners.
 5. Duty Drawback: Duty drawback is a refund of the customs duties paid on
imported materials used to manufacture exported goods. This incentive
can help reduce the cost of exporting and make the products more
competitive in foreign markets. Duty drawback programs can be complex
and vary from country to country, but they can provide significant cost
savings for companies that export large volumes of products.
6. Free Trade Zones: Free trade zones (FTZs) are designated areas where
goods can be imported, manufactured, and re-exported without paying
customs duties or taxes. FTZs are designed to promote international trade
and attract foreign investment. Companies that operate in FTZs can
benefit from lower operating costs and streamlined customs procedures.
7. Preferential Trade Agreements: Preferential trade agreements (PTAs) are
trade agreements between countries that reduce or eliminate tariffs and
other trade barriers for certain products. PTAs can provide significant
cost savings for exporters and increase market access in partner countries.
PTAs can also help establish a framework for deeper economic
cooperation between countries.
8. Export Financing Programs: Export financing programs provide
financing to support export transactions. These programs can include
loans, guarantees, and insurance to help companies finance their exports.
Export financing programs are designed to reduce the financial risk of
exporting and provide companies with more favorable financing terms.

Export Credit Guarantee Corporation of India

(ECGC)
The Export Credit Guarantee Corporation of India (ECGC) is a specialized
financial institution owned by the Government of India. It was established in
1957 with the objective of promoting Indian exports by providing insurance
cover to exporters against payment risks.
The ECGC provides various types of export credit insurance policies to Indian
exporters. These policies help exporters mitigate the risks of non-payment or
default by their overseas buyers, allowing them to expand their business without
fear of financial losses. In addition to export credit insurance, the ECGC also
provides a range of advisory and support services to Indian exporters. These
services include information on international trade regulations, market
intelligence, and assistance with trade disputes.
Export Credit Insurance Policies:
Export credit insurance is a type of insurance that protects exporters from the
risks of non-payment or default by their overseas buyers. The ECGC provides
various types of export credit insurance policies to Indian exporters. Each policy
is tailored to meet the specific needs of different types of exporters. The primary
export credit insurance policies offered by the ECGC are as follows:
1. Standard Policy: The Standard Policy is the most common type of export
credit insurance policy offered by the ECGC. Under this policy, the
ECGC provides cover for up to 95% of the invoice value of an export
shipment. The policy covers commercial risks such as insolvency of the
buyer, bankruptcy, and protracted default. It also covers political risks
such as war, civil unrest, and expropriation.
2. Small Exporters Policy: The Small Exporters Policy is designed to cater
to the needs of small and medium-sized enterprises (SMEs) that have an
annual export turnover of up to INR 25 crores. Under this policy, the
ECGC provides cover for up to 90% of the invoice value of an export
shipment. The policy covers both commercial and political risks.
3. Specific Shipment Policy: The Specific Shipment Policy is designed to
provide cover for a single export transaction. Under this policy, the
ECGC provides cover for up to 100% of the invoice value of the
shipment. The policy covers both commercial and political risks.
4. Buyer's Credit Policy: The Buyer's Credit Policy is designed to provide
cover for Indian exporters who provide credit to their overseas buyers.
Under this policy, the ECGC provides cover for up to 100% of the credit
extended by the Indian exporter to the overseas buyer. The policy covers
both commercial and political risks.
5. Financial Institutions Policy: The Financial Institutions Policy is designed
to provide cover to Indian financial institutions such as banks and non-
banking financial companies (NBFCs) that provide credit to Indian
exporters. Under this policy, the ECGC provides cover for up to 90% of
the credit extended by the financial institution to the Indian exporter. The
policy covers both commercial and political risks.
Advisory and Support Services:
In addition to export credit insurance, the ECGC also provides a range of
advisory and support services to Indian exporters. These services are designed
to help exporters navigate the complex world of international trade and expand
their businesses globally. The primary advisory and support services offered by
the ECGC are as follows:
 1. Information on International Trade Regulations: The ECGC provides
information on international trade regulations to Indian exporters. This
includes information on import regulations, export regulations, and
customs procedures. The ECGC also provides guidance on how to
comply with international trade regulations.
2. Market Intelligence: The ECGC provides market intelligence to Indian
exporters. This includes information on market trends, competitor
analysis, and consumer behavior. The ECGC also provides guidance on
how to enter new markets and how to position products in existing
markets.
3. Trade Dispute Resolution: The ECGC provides assistance with trade
disputes to Indian exporters

CONCLUSION
In conclusion, international marketing is a complex process that requires a deep
understanding of customer needs and preferences, cultural differences, logistics
and regulatory requirements, and the political and economic environment of
different countries. Successful international marketing requires companies to be
able to adapt their marketing strategies to local market conditions and cultural
differences, as well as to manage logistics, regulatory compliance, and
economic and political risks.
In conclusion, export incentives and assistance are critical components of
international marketing. Governments use a range of measures to support
exports, including financial incentives, tax breaks, trade agreements, and other
forms of support. Companies that export products can benefit from these
incentives and assistance programs, which can help reduce costs, increase
market access, and manage risks associated with exporting
In conclusion, the ECGC is a vital institution that plays a critical role in
supporting the growth of Indian exports. The organization provides export
credit insurance, advisory and support services, and training programs to Indian
exporters. This enables them to expand their businesses globally and mitigate
the risks of non-payment or default by their overseas buyers. Overall, the ECGC
has been a key enabler of India's export-led growth strategy and has helped to
position India as a competitive player in the global market.