2. Meaning & Definition of International
marketing
• Marketing activity carried on across the nation
boundaries.
• According to AMA: “International Marketing is
the multinational process of
planning, executing, conception, pricing, prom
otion and distribution of ideas, goods and
services create exchanges that satisfy
individual and organizational objectives.”
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Prof. Raghavendran Venugopal
3. International Marketing involves:
• Identifying the needs and wants of the
customers in international markets.
• To take market mix decisions keeping in the
view the diverse customers and market
behavior.
• Penetrating into International Markets using
the various modes
• Decisions in view of IBE
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Prof. Raghavendran Venugopal
4. Characteristics Of International
Marketing
• Dominance of Multinationals
• Large Scale Operations
• Boundary Restrictions & Trade Blocks
• Marketing Research
• Importance of Advanced Technology
• Precise competition
• Sensitive character.
• Want for Specialized institutions
• Long term planning
• Cultural relations
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Prof. Raghavendran Venugopal
5. Scope of International Marketing
• Exporting
– Establishing
– JV & Collaborations
– Licensing
– Consultancy
– Know-how(Technical & Managerial)
• Importing
• Managing of international operations
• Re-exporting
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Prof. Raghavendran Venugopal
6. Objective of International Marketing
• To develop skills, creating marketing
challenges & Opportunities.
• To gain experience in developing marketing
strategies.
• To gain verbal, written skills for
communication
• To have decision making ability
• To be ethical in practice and urge to learn
more on marketing management.
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Prof. Raghavendran Venugopal
7. Why Firms go international
• Reasons for the firms going international
• Profitability
• Growth
• Economies of Scale
• Access to imported inputs/Resources
• Marketing Opportunities
• USP of product & services
• R& D Costs.
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Prof. Raghavendran Venugopal
8. Orientation of management
• ETHNOCENTRIC
• POLYCENTRIC
• REGIOCENTRIC
• GEOCENTRIC
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Prof. Raghavendran Venugopal
9. Process of Internationalization
License
Export Via
Agent/
Distributor
Export
through
own sales
representat
ive/ Sales
Subsidiary
Local
Packaging/
Assembly
FDI
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Prof. Raghavendran Venugopal
10. Transition from Domestic to
International Markets
• Pre-Export Behavior
• Company characteristics
• Perceived Export
• Perceived Import
• Organizational commitment
• Economic Reasons
• Relative profitability
• Insufficiency of domestic demand
• Reduce Business risks
• Legal restrictions
• Obtaining Imported inputs
• Social Responsibility
• Increased Productivity
• Technological Improvement
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Prof. Raghavendran Venugopal
11. Process of International Marketing
Growth Profitability Risk Spread
Access to
imported inputs
USP of
product/Services
Marketing
Opportunities
Spreading R & D
Costs
SWOT Analysis
Decision to Enter
into International
Markets
Prof. Raghavendran Venugopal 11
Motivation for
International
Marketing
12. Stages of International Marketing
Involvement
• No Direct Foreign Marketing
• Infrequent Foreign Marketing
• Regular Foreign Marketing
• International Marketing
• Global Marketing
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13. Challenges in International Marketing
• Self- reference
• Political & Legal Difference
• Cultural Difference
• Economic Difference
• Difference in the currency unit
• Differences in the language.
• Difference in Marketing Infrastructure
• Trade restrictions
• High cost of distance
• Difference in trade practices
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14. Difference B/w Domestic and International
Difference Point Domestic Marketing International Marketing
Operation Conditions One nation language &
culture
Many Nations, Languages
& Culture
Transportation cost Major extent Some Extent
Currency One Multiple
Political Same Differ
Nature of market Relatively homogenous Diverse & Heterogeneous
Change control & Tariffs No Problems Obstacles
Data Availability Accurate Formidable, But doubted
Government interferences Relative free Influences
Environmental Effects Little effect Distortion by large
companies
Business Environment Stable Unstable
Climate & Nature of
Business
Uniform & Understood Varies & Unclear
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15. Trade in International Marketing
• International Trade is exchange of
capital, goods and services across
international borders or territories.
TRADE
DOMESTIC TRADE
INTERNATIONAL TRADE
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16. Need for international trade
• Large scale production
• Degree of self- sufficiency
• Geographic Factors
• Occupational Distribution
• Means of Transportation
• Compensating the production
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17. Dynamic Environment of International
Trade
• Comparative Advantages
• Impact of National Policies
• Impact of Countries
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18. Balance of Payment
• It refers to the net results that are drawn recording
all the visible and invisible items that are exported
and imported from the country.
• Balance of Payments is comprehensive record of
economic transactions between residents of home
country & residents of the other countries.
• It includes
• Current Account
• Capital Account
• Reserves Account
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19. Characteristics of Balance of Payment
• It is statement of systematic record of all
economic transactions between one country
& rest of the world.
• It is a annual statement & pertaining to time.
• Listing receipts & payments in international
transactions of a country.
• Double entry book keeping system.
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20. Fundamental of BOP
• Identifying an International Economic
Transactions.
• Understanding the flow of
goods, services, money & assets.
• Real assets
• Financial assets
• Book keeping procedures for accounting.
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21. Factors Affecting BOP
• Cost of production
• Demand of the supply
• Cost & availability
• Exchange rate movements
• Domestic business
• Trade agreements
• External pressures
• Price
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22. Protectionism
• It is the economic policy of restraining trade
between states through methods such as
tariffs on imported goods, restrictive quotas
and a variety of government regulations
designed to discourage imports and prevent
foreign take over of domestic markets and
companies.
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23. Reasons for trade barriers
• To protect domestic companies.
• BOP position favorable.
• To curb prominent consumption.
• To mobilize revenue for the government.
• To discriminate against certain countries.
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24. Types of international barriers
• Tariff barrier
• Non- tariff barrier
• Intended constraint
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25. Global e-Marketing
• Search of convenience
• Internet into purchase process.
• Shift loyalties.
• Future buying plans.
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26. Death of distance
• Potential of e-commerce
• Lower transactions costs
• Reduce inventory costs
• Competitive business advantage
• Expands market
• Reduce the supply chain management.
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27. Major benefits of e-Marketing
• Global reach
• Easy marketing
• Economics
• Updates
• More attractive presentation
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30. Relationship marketing
• It is the process of building the long
term, trusting, win-win relationships with
customers, distributors, retailers and
suppliers.
– Key elements are
» Interactions between suppliers and customers
» Customers segments to customers satisfaction
» Working , developing and enhancing relationship in
internal markets and building strong external markets
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