INTERNATIONAL MARKETING

MANAGEMENT

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Meaning
 Export Marketing is concerned with the
production of goods in one country and
marketing them in different countries of
the world.
 while international marketing is a broader
concept and includes Globalization, MNCs
and Joint Ventures and Foreign
Collaborations.

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Definitions
 “International Marketing can be defined
as, marketing carried on across national
boundaries.”
 “International Marketing is a process of
planning and executing the conception,
pricing, promotion and distribution of
ideas, goods and services to create
exchanges between nations that satisfy
individual and organizational objectives.”
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Features of International Marketing

 Large Scale Operation

 Trade Barriers
 Trading Blocs
 International Marketing Research
 Importance of Advanced Technology
 Foreign Exchange Regulations
 Three faced competition
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Importance of International Marketing

 Division of Labour and Specialisation

 Increases National Income and Per-capita
Income
 Facilitates Transfer of Technology
 Resolves Balance of Payment Crisis
 Global Peace
 Optimum Utilization of Recourses
 Employment Opportunity
 Research and Development
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Challenges in International
Marketing
 A. New Rules of
Global Engage-
-ment B. New Global Economic
H. CSR & Ethics Architecture

G. Managing The Focal C. Matching the needs

Relationship Organization Of new global
consumers

F. Knowledge at source of
Competitive advantage
D. Achieving Global
E. Marketing using Competitiveness
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Problems of International Marketing

 Political Factors
 Exchange Instability
 Entry Requirements
 Tariffs, Quotas And Trade Barriers
 Corruption
 Technological Pirating
 High Cost
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Trends in India’s Foreign Trade

 India’s merchandise export reached level

US$126.3 billion during the year 2006-07
registering a growth of 22.5% over previous
year.
 During 10th Plan period the growth rate is
witnessed more than 20%
 The Export target for 2004-05 at US $75 billion
was sought to be doubled to US $ 150billionby
the year 2008-09. With the current trends in
export performance
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Differences between International and
Domestic Marketing
 Culture: multi-cultural markets
 Data: difficult to access, perhaps unreliable
 Politics: unstable governments, protectionism
 Stakeholders: commercial, host country,
home country
 Economies: Varying levels of unemployment,
inflation etc
 Control: Difficult to control and co-ordinate
 Business: difficult to negotiate

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12C framework for analysing
international markets
 Country - What are the political and economic
issues of your potential overseas market, as well as
its current trading activity and your knowledge and
experience of it?
 Currency - If foreign currencies fluctuate wildly
against the £, you may have difficulties in pricing
your goods or making a profit. Some countries, like
China don’t allow their currency to leave the country,
so you may have to work in $
 Culture - Every culture is different - even from one
European country to another. Your product,
advertising and even brand may need to change to
suit your new market
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  Control & Co-ordination - Trading abroad is not only
about selling, there may well be after sales service. All
the other business activities and the people you get to
help you will need to be organised and monitored
 Concentration (of markets) - It may not be so easy or
cost effective to sell to different groups in isolated areas.
However, there may be opportunities to sell cross-
countries to different nationalities with similar
cultural/language attitudes
 Commitment -Selling abroad seriously requires long
term planning and investment in terms of your funds,
other physical resources, time and skills of your staff.
There are risks and the benefits may be long time coming
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 Communication - You need to consider the language
skills of you, your staff and your contacts abroad, and what
media or information technology they have (advertising,
telecommunications, e-mail etc). If it is difficult to
communicate, it will slow up and complicate matters. It
may also prevent you from developing your business
properly.
 Choices (of consumers) - It is possible that there are
perfectly good products or services available from local
suppliers. Yours are likely to be more expensive, so will
need to consider what makes your product better or more
desirable.
 Channels of distribution - Getting goods and services to
overseas markets can be difficult.

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 Contractual obligations - Make sure that the contract
meets everyone’s needs and that you and your customer
are fully aware of the commitments listed. Failure to meet
the exact requirements of the contract, can result in non-
payment.
 Capacity to pay - You should take a look at the customer
and their ability pay as well as the country itself. This will
include not only financial health, but also political issues,
and currency and banking regulations.
 Caveats (laws) Some countries have laws that are very
protective of their local traders and do not readily accept
imports. There may be restrictions or differences between
the domestic and the foreign market about what can be
sold and under what circumstances.

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Value Chain and Boundaryless
Marketing

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Management Orientations

Polycentric
_____________
____________
Ethnocentric
Each host country Is
Home country is unique, sees differences
Superior, sees in foreign countries
similarities in foreign
countries

_____________
Regiocentric
Sees similarities and
differences in a world
region; is ethnocentric or
polycentric in its view of
the rest of the world
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____________
Geocentric
World view, sees
similarities and
differences in home
and host countries
16
Forces Affecting Global Integration
and Global Marketing

Global
Integration
and
Global
Marketing

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Driving Forces
 Technology
 Culture
 Market Needs
 Economic Integration
 Peace
 Management Vision
 Strategic Intent
 Global Strategy and Action
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Restraining Forces
 Culture
 Market Differences
 Costs
 National Control
 Nationalism
 War
 Management Myopia
 Organization History
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 Domestic Focus