What is International Marketing?

International Marketing is the multinational process

of planning and executing the conception, pricing,
promotion, and distribution of ideas, goods, and
services to create exchanges that satisfy individual
and organizational objectives.
 Characteristics of IM
1. What is to be exchanged is not restricted to tangible
products alone but may include concepts and services as
well. UN-birth control, TB, Polio etc.
2. IM applies not only to market or business transactions
but also to non-profit marketing. Government attracting
FDI at WEF, Ramdev Baba, Pope etc.
3. It is improper for a firm to create a product first and then
look for a place to sell it. Refined edible oil, Slimming
centers, Diapers etc.
4. It is improper for any firms to regard their international
function as simply to export available products from one
country to another.
5. International Marketing process is not a mere repetition of
using identical strategies abroad. Dabur, Coca Cola,
McDonalds, Sony etc.
 Domestic Marketing VS International
Marketing

A company is subject to the risks of doing business

internationally, including unexpected changes in
regulatory requirements, fluctuations in foreign
currency exchange rates, imposition of tariffs and
other barriers and restrictions, the burdens of
complying with a variety of foreign laws, and
general economic and geopolitical conditions,
including inflation and trade relationships.
Process of Internationalization

HIGH
International Marketing Task
 Examples of International Marketing

International Marketing Strategy Company/Home Country

Brand Name Coca-Cola

Product Design MacDonald's,Toyota, Ford
Product Positioning Uniliver
Packaging Gillette
Sourcing Toyota, Honda
Distribution Benetton (Italy)
 Economic Blocs and International Marketing

Types of Regional trade Blocks

1. Preferential trading agreement: Where the member

countries lower barriers to imports of identified products
from one another.

2. Free trade area: Where barriers to trade in respect of all

items among member countries are completely eliminated
by each member country, which follows its own policy in
regard to trade with non-member countries. NAFTA.
3. Customs union: Where, apart from elimination of all
barriers to trade among themselves, the member
countries follow a common policy in their trade with non-
members. EU.

4. Common market: Where the region becomes a

common market for all factors of production including
labour, services and capital. EU.

5. Economic community: Where the member countries

follow common policies in respect of all economic
matters.
 Regional Economic Integration
Benefits
• Trade creation when locus of production shifts from a high
cost point to a low cost point. NAFTA
• Inter-commodity substitution in favour of goods produced
within the union. SAVE FOREIGN EXCHANGE.
• Dynamic effects in the form of gains arising from the
increased size of market, from economies of scale and from
growing competition and technological change. EU
• Development of collective self-reliance among member
countries, especially through harmonization of economic
policies. EU
• Increased foreign direct investment within the union and
from outside the union, especially in view of the larger
market.
Costs

• Trade diversion when locus of production moves from a

low cost point to a high cost point.

• Trade deflection when outside goods enter a free trade

area through a member country having lowest tariff.

• Polarisation of benefits from integration moving away

from the weaker partner in favour of the economically
stronger partner, leading to intra-region inequality.