International Marketing

Presented by-

•Adeep Mehrotra
•Anis Sattar
•Burhan Ali
•Labeeb Ahmed
•Masoom Ali
•Mohd Anas
•Shahjaan Rehman
•Soumya Sharma
•Tarique Hasnain
 DEFINITION OF INTERNATIONAL
MARKETING
“To make available company's products and services to more
than one country's customers for use, is known as International
Marketing.”
Philip Ketiora and John M.Hess

“The process of marketing beyond the country's border is called

International Marketing.”
Van Terpestra
International Marketing Mix
 Differences between
Domestic Marketing and International
Marketing
 Marketing is defined as the set of activities which are undertaken by
the companies to provide satisfaction to the customers through value
addition and making good relations with them, to increase their
brand value. It identifies and converts needs into products and
services, so as to satisfy their wants.
 There are two types of marketing namely, Domestic and International
marketing.
 Domestic marketing is when commercialization of goods and
services are limited to the home country only.
 International marketing, as the name suggests, is the type of
marketing which is stretched across several countries in the world.
Differences
Differences
 Benefits of International Marketing
Provides higher standard of living - International marketing
ensures high standard life style & wealth to citizens of nations
participating in international marketing.
Ensures rational & optimum utilization of resources - Logical
allocation of resource & ensuring their best use at the
international level is one of the major advantages of international
marketing.
Rapid industrial growth - Demand for new goods is created
through international market.
Facilitates cultural exchange - International marketing makes
social & cultural exchange possible between different countries
of the world.
 Benefits of International Marketing
International cooperation and world peace - Trade relations
established through international marketing brings all the
nations closer to one another and gives them the chance to sort
out their differences through mutual understanding.
Availability of foreign exchange - International marketing
eases the availability of foreign exchange required for
importing capital goods, modern technology & many more.
Diversification - Many businesses expand internationally to
diversify their assets, an action that can protect a company’s
bottom line against unforeseen events.
 Barriers to International Marketing
 Protection of local industry.
 Tariffs Barriers
 Export and Import tariffs
 Protective and revenue tariffs
 Non- Tariffs Barriers
 Government participation in trade
 Quotas
 Custom and Entry procedures
 Product Requirements.
 Easing Trade Restrictions
 GATT
 WTO
 IMF
 The Omnibus Trade and Competitiveness Act
 GOING GLOBAL
Major decisions in International Marketing
 GOING ABROAD

If domestic market is large enough, most companies would

prefer to remain domestic.
Four stages of internationalization
No regular export activities
Export via independent representatives
Establishment of sales subsidiaries
Production in abroad
 Understanding International
Marketing Environment
The International Trade System
 Restrictions on trade between nations
 Tariffs, duties & Taxes
 Quotas
 Non Tariff Trade barriers

Economic Environment
 Industrial Environment
 Income Distribution
 Understanding International
Marketing Environment
Political- Legal Environment
 Country’s attitude towards international buying
 Government bureaucracy
 Political stability
 Monetary regulations

Cultural Environment
 Impact of culture on marketing strategy
 Impact of marketing strategy on cultures
 Foreign Market Entry Strategies -
Segmentation Decision in International
Marketing
Standardization -
Companies may follow the same marketing strategy across all
their markets
Certain elements of the marketing mix maybe adjusted for the
local market, however the entire marketing mix remains same
globally
Such kind of strategy is generally used in luxury goods or
goods with premier brand value.
Example: Apple, Rado, Tissot etc.
 Foreign Market Entry Strategies -
Segmentation Decision in International
Marketing
Localization –
Companies changes it’s entire marketing mix and STP for the
local market.
This is done to make the product more accessible and
understandable to the local sensibilities
This is generally followed in FMCG, Banking, Restaurant
sector
Example: Tide, McDonalds etc.
 Foreign Market Entry Strategies
Foreign Direct Investment (FDI)
Exporting
Licensing
Management Contract
Joint Venture
Manufacturing
 Foreign Market Entry Strategies

Producer

method
method
Indirect

Direct

Transfer of
expertise or
Intermediary: ideas:-
Strategic
Eg: Merchant FDI Joint venture
Alliance
Or Agent Licensing
Franchising
Contracting

Consumer
 PRICING DECISIONS IN
INTERNATIONAL MARKETING
INTERNATIONAL PRICING INFLUENCERS –
There are some considerations for setting basic pricing for
marketing the product in international markets. They are as follows-
INTERNATIONAL MARKETING OBJECTIVES
MARKET COMPETITION
PRICING OBJECTIVES (PENETRATIVE PRICING,
SKIMMING PRICING ETC)
PURCHASE POWER PARITY (EXCHANGE RATE
FLUCTUATIONS)
GOVERNMENT POLICY ( PRICE
CEILING,TAXES,SUBSIDIES)
 PRICING DECISIONS IN
INTERNATIONAL MARKETING
APPROACHES IN GLOBAL PRICING –

FULL COST METHOD

Cost of Production[Fixed and Marginal] + Direct/Indirect Expenses
+ Profit Margin
MARGINAL COST PRICING
Based on assumption that the firm has been producing the goods for
home consumption and the fixed costs are already achieved.
MARKET ORIENTED EXPORT PRICING
Price is changed according to market changes. Considering prices of
competitors and substitutes before setting up margins.
International Marketing – Ford Motors

“If Everyone is moving forward together, then success takes care

of itself.”

Henry Ford
 Local to Global (Glo-cal)
Being in the business of cars, trucks, crossovers, Financing and
utilities, founded by a legendary Henry Ford and incorporated in
1903 the company have emerged as a front-runner in most of
the developed nations in their respective segment of the
businesses.
Adaptation and Standardization these two factor have been
imperative to understand and to distinguish at the right moment
before taking a company to global level, because if it get
delayed none of the master strategies will work and the
company’s future will be at stake.
Same thing happened with Ford Motors when it started its
global operation.
 Local to Global (Glo-cal)
Standardization - To produce similar products for all its
targeted customers.
Adaptation bases its arguments on following a market’s needs,
thus adapting to the changes demanded by the market
Initially, Ford Motors focused more on the adaptation strategy;
however, after incurring high production costs, the company
decided to shift and adapt the standardization formula.
After launching its One Ford plan, the company shut down a
few production plants, and in the process merged some of its
departments as a way of standardizing the firm.
 Local to Global (Glo-cal)
Ford Motor Company develops new products through a
strategy of diversification. Here, the firm has introduced the
One Ford Plan, which helps in presenting new and smaller
cars, battery-powered vehicles, plug-in hybrids, as well as
environmentally friendly vehicles.
One aspect of customer service is differentiation, whereby
Ford Company is defining a new range of cars in terms of fuel
efficiency, aesthetics, and the latest technologies.
customer service offered by Ford Motors as a global strategy is
‘Focus,’ whereby the company specializes in improving its
products.
THANK YOU!