International Marketing

By Sunil Pathak
International Marketing

• International Marketing is the

performance of business activities
that direct the flow of a company's
goods and services to consumers or
users in more than one nation for a
profit.
• International Marketing is the making of
goods, Services and Information across
Political boundaries.
• It Includes
Planning
Promoting
Distributing
Pricing
Why go International?

• Market Saturation
• Emergence of New Markets
• Globalization of Markets
• Economics of Scale
• Safety net during business downturns
• Save labor costs
• More Profit
Entry Strategies
• How Many Markets to Enter
Water Fall Approach
Sprinkler Approach

• Deciding Which Market to Enter

Developed versus Developing Markets
Regional Free Trade Zones
Regional Free Trade Zones
The European Union-Formed in 1957,the
European market by reducing barriers to the
free flow of Products,services,finances and
labor among member countries and by
developing trade with nonmember nations.
Today ,it is one of the largest single
market.
NAFTA

• North American Free Trade Agreement

• NAFTA-In North America ,the United

States and Canada phased out trade
barriers in 1989.In January 1994,the North
American Free Trade Agreement establish
a free trade zone among the United
States, Mexico and Canada.
SAFTA

South Asian Free Trade Area

• India has started pursuing a strategy of

regional integration and bilateral free
trade agreements.
• Bangladesh,India,Pakistan,
Srilanka,Bhutan,Nepal,Maldives
Deciding How to Enter the Market

• Export-A Company may minimize the risk

of dealing internationally by exporting
domestically manufactured products either
by minimal response to inquiries or by
systematic development of demand in
Foreign markets.
A major part of the overseas involvement
of large firms is through export trade.
Conti…

• Licensing-A variety of Contractual

agreements are encompassed in licensing,
whereby an MNC marketer makes
available intangible assets such as
Patents, Trade marks and Company name
to foreign companies in return for royalties
or other forms of payment.
Joint Venture

• Foreign investors join with local investors

to create a joint venture company in which
they share ownership and control.
• In India –Tata AIG
Birla Sun life
HDFCSLIC
A joint venture may be necessary or
desirable for economic or political reasons.
Wholly-Owned subsidiary

• MNCs may also establish themselves in

overseas markets by direct investment in
manufacturing or assembly subsidiary.
Because of the volatility of worldwide
economic, social and political conditions,
these wholly-owned subsidiaries are the
most risky form of overseas involvement.
Risks in International Marketing
1-The company might not understand
foreign costumer preferences.
2-The company might not understand
foreign country’s business culture
3-The company might underestimate foreign
regulations and incur unexpected costs.
4-lack of Managers with international exp.
MNCs-Role, Strategy and Impact

• The MNC is the principle instrument in the

expansion of business on an international
scale.
The MNC Plays a decisive role in the
allocation and use of the world’s resources
by introducing new products and service,
creating or stimulating demand for them.
Conti…

Impact-
1.Money Flow
2.Income to Government
3.Job Opportunity to youngsters
4.Recognisation from the world
community.
• Any Question?