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International marketing is the performance of business activities design to plan, price, promote and direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit. The only difference between the domestic marketing and international marketing is that the latter case marketing activities take place in more than one country. Describe the task of international marketing Task Ans. The international marketer’s task is more complicated than that of the domestic marketer because the international marketer must deal with lot of uncontrollable uncertainty. Uncertainty is created by the uncontrollable elements of all business environments, but each foreign country in which a company operates adds its own unique set of uncontrollable factors. So they have to consider the following factors. 1.Marketing decision factor: The most successful manager’s construct a marketing program designed for optimal adjustment to the uncertainty of the business climate. Assuming the necessary overall corporate resources, the marketing manager blends price, product, promotion and channel of distribution activities to capitalize on anticipated demand. The controllable elements can be altered in the long and usually in the short run to adjust to changing market conditions. Consumer tastes, or corporate objectives. 2.Aspect of the Domestic Environment:The aspects of the domestic uncontrollable environment that are often beyond the control of companies.
These include home country elements that can have a direct effect on the success of a foreign venture; political and legal forces, economic climate and competition. The domestic economic climate is another important home basted uncontrollable variable with far reaching effects on a country’s competitive position in foreign markets. Competition within the home country can also have a profound effect on the international marketer’s task. 3.Aspect of the Foreign Environment:In addition to uncontrollable domestic elements a significant source of uncertainty is the number of factors in the foreign uncontrollable environments. A business operating in its home country undoubtedly feels comfort table in forecasting the business climate and adjusting business decisions to these elements. The process of evaluating the uncontrollable elements in an international marketing program, however often involves substantial doses of culture, political and economic shock. Q. 2 Why need for environmental adaption and developing global awareness are more important in international marketing? Need for Environmental Adaptation: To adjust and adopt a marketing program to foreign markers, markers must be able to effectively interpret the influence and impact of each of the uncontrollable environmental elements on the marketing plan for each foreign market in which they hope to do business. In a board sense, the uncontrollable elements constitute the culture the difficulty facing the marketer
in adjusting the culture lies recognizing there impact. The task of cultural adjustment; however, is the most challenging and important one confronting international marketers; they must adjust their marketing efforts to cultures to which they are not attuned. Cultural conditioning is like an iceberg- we are not aware of nine tenths of it. In any study of the market systems of different peoples, their political and economic structures, religions and other elements for culture, foreign marketers must constantly guard against cultures. Developing a Global Awareness:The successful businessperson in the twenty-first century will have global awareness and a frame of reference that goes beyond a region or even a country and encompasses the world. To be globally aware is to have (1) tolerance of cultural differences, and (2) knowledge of cultures, history, world market potential and global economic, social and political trends. To be globally aware is to have tolerance for culture differences and accepting and working with others whose behavior may be different difference from us. We do not have to accept as our own the cultural ways of another, but we must allow others to be different and equal. A globally aware person is knowledgeable about culture and history. Knowledge of cultures is important in understanding behavior in the marketplace. Knowledge of history is important because the way people think and act is influenced by their history. Global awareness also involves knowledge of the world market potentials and global economic, social and political trends.
Regular Foreign Marketing:At this level.The Capital Account: A record of direct investment. A nation’s balance of payments statement records all financial transactions between its residents and those of the rest of the world during a given period of time – usually one year. A balance of payments statement includes three accounts: 1. Ans: when a company takes decision to go international market.Q. they are encouraged by local industry. or for both reasons. While the inspiration for such barriers may be economic or political. Products and services are exported and imported. the most profound change is the orientation of the company towards markets and associated planning activities. boycotts. it is generally imposed under the threat of stiffer quotas and tariffs being set by the importing . portfolio investment and short term capital movements to and from countries. 1. including their home market. 1. discriminatory and require constant administration and supervision. Q-5.International Marketing:Companies in this stage are fully committed and involved in international marketing activities. 2. however. 5. The system of accounts that records a nation’s international financial transaction is called its balance of payments.The reserve Account: A record of exports and imports of gold. imports and services plus unilateral transfers of funds. financial transactions among businesses or consumers are occur in different nationals. however this company’s products may reach foreign markets.Infrequent Foreign Marketing:Temporary surpluses caused by variations in production levels or demand may result in infrequent marketing internationally. increases or decreases in foreign exchange and increases or decreases of liabilities of foreign central banks. 2. Barriers are imposed against imports and against foreign businesses. companies treat the world. Tariffs may be used as a revenue generating tax or to discourage the importation of goods. central banks and other government agencies whose responsibility is to maintain external and internal economic stability. the firm has permanent productive capacity devoted to the production of goods to be marketed in foreign markets. Because the balance of payments record is maintained on a double entry book keeping system. In short. 3. investments are made. tariffs are arbitrary. At this stage.Global Marketing:At the global marketing level. voluntary export registrants and boycott embargo works in favor of protection? To encourage development of domestic industry and protect existing industry government may establish such barriers to trade a tariff. monetary barriers. in addition. simply defined.3 Describe the international marketing involvement stages. What is balance of payment? Which accounts are involved in balance of payment? Balance of payment: When countries trade. the VER is an agreement between the importing country and exporting country for a restriction on the volume of exports. Common in textiles. a one market. 3. Such companies seek markets all over the world and sell products that are a result of planned production for markets in various countries. non-tariff barriers and market barriers. agriculture and automobiles. monetary gifts are exchanged. it must always be in balance. cash payments are made and cash receipts are received and vacation and foreign travel occurs. is a tax imposed by government on foods entering at its borders. Quotas put an absolute restriction on the quantity of a specific item that can be imported. How do tariff. 3.Tariffs: A tariff. 4. A VER is called voluntary because the exporting country sets the limits.No direct foreign Marketing: A company in this stage does not actively cultivate customers outside the national boundaries. A nation’s balance of payments represents a overall view of its international economic position and is an important economic measure used by treasuries. quotas. 2. it must decide the degree of marketing involvement and commitment it is prepared to make.Voluntary Export Restraints: Similar to quotas is to the voluntary export restrictions (VERs) or orderly market agreements (OMAs). Here firm first identify the needs of individual foreign markets and produce goods for the foreign market regularly.Quotas: A quota is a specific units or dollar limit applied to a particular type of good. quotas. over a period of time there is a constant flow of money into and out of a country. Market segmentation decisions are no longer focused on national borders. Q-4. steel.The Current Account: A record of all merchandise exports. clothing.
3. It even affects how we sleep. Violators are assessed antidumping duties for selling below costs or are assessed countervailing duties to prevent the use of foreign government subsidies to undermine a specific country’s industry. teach acceptable behavior to succeeding generations and govern themselves. communism and democracy/ free enterprise. rituals. laws.Antidumping Penalties: Now there is a new nontariff barrier. Culture deals with a group’s design for living.Monetary barriers: A government can effectively regulate its international trade position by various forms of exchange – control restriction. religion. Q-6. The standards are sometimes used in an unduly stringent or discriminating way to restrict trade but the sheer volume of regulations in this category is a problem itself. a practice whereby a foreign producer would intentionally sell their products in a specific country for less than the cost of production to undermine the competition and take control of the market. Culture is the human made part of human environment – the sum total of knowledge beliefs. organize their activities to live in peace with one another. safety and product quality. the family. technology. school. There are three barriers to consider.Technology: Technology has tremendous power to change our human lifestyle.Family: Families lifestyles are different societies. 5. It was intended as a kind of antitrust law for international trade. A government may enact such restrictions to preserve its balance of payment position or specifically for the advantage or encouragement of particular industries. How do monetary barriers. geography has influenced history. customs and any other capabilities and habits acquired by humans is members of society. shared by a group of people and transmitted from generation to generation. media. fascism. jet aircraft and birth control pill and so on. What is mean by culture? Why the origins of culture are important to a marketer? Culture: Culture affects every part of our lives.Social Institutions: Social institutions. they also understand the origins of these differences. including family. But geography exercises a more profound influence than just affecting the buying decision of consumers.Boycotts and Embargoes: A government boycott is an absolute restriction against the purchase and importation of certain goods from other countries.country if a VER is not established. Culture values and even consumer behavior. 3.Standards: Non-tariff barriers of this category include standards to protect health. We can that Spaniards sleep less than other European’s. social classes. 2. economics our social institution and our ways of thinking. behavior. Antidumping laws designed to prevent foreign producers from using predatory pricing. especially for international marketing. symbols. art. group behavior. computer. antidumping laws that have emerged as a way of keeping foreign goods out of market. morals.Geography: Geography has immediate effects on consumer choice. These .The Political Economy: For most of the twentieth century three approaches to governance competed for world dominance. government and corporations all affect the ways in which people relate to one another. It can change our habit. Q-7. age groups and how societies define decency and civility are interpreted differently within every culture: a. 1. An embargo is a refusal to sell to a specific country. Origins of culture are important to a marketer: The best international marketers not only appreciate the culture differences pertinent to their businesses. Most traditional definitions of culture center around the notion that culture is the sum of the values. So. system.History: The impact of specific events in history can be seen reflected in technology social institution. A fruit content regulation for jam various so much from country to country and different standards are one of the major disagreements between two countries. Indeed. geography has influenced history. consumption and thinking pattern also. But the expression “a culture” recognizes that large collectives of people can be like minded to a great degree. Technology has the power to change our culture though new innovations. 4. A public boycott can be either formal or informal and may be government sponsored or sponsored by an industry. technology. standards and antidumping penalties works in favor of protection? 1. internet. The positions of men and women in the society. 2. such as television. It is pertinent to the study of marketing. 4. economics our social institution and our ways of thinking. Indeed. every day from birth to death and everything in between. culture resides in the individual’s mind. beliefs and thought processes that are learned.
Cultural values and Consumer Behavior: Cultural values might help us to predict the speed of diffusion of such new consumer services as equity investment. b.Corporations: Of course. These elements are discussed below: 1. c. Affects all aspects of the culture from economic development to consumer behavior.Power distance index: The power distance index measures the tolerance of social inequality that is power inequality between superiors and subordinates within a social system. Moreover. The impact of elements of culture on our daily life: Culture has a significant impact on our daily life. c. 5.Individualism/ Collectivism Index: The individualism/ collectivism index refers to the preference for behavior that promotes one’s self interest. Confucius is reputed to have opined.differences lead directly that how does children think and behave. e. 2.Thought Process: Culture has much more power on our thinking process. ******** . 2.Symbols.Rituals. 3.Thought Process. So international marketers in must design products distribution systems and promotional programs with due consideration of each of the all elements.Religion: Religion clearly does affects people’s habits. Elements of culture: 1. “A picture is worth a thousand words” Obviously. corporations influence us early via the media. 3. or patterns of behavior and interaction that are learned and repeated.School: Education. We also observe that thinking of Asian and Western people has huge differences. b. 5. What are the elements of culture? Describe the impacts of elements of culture on our daily life. b.Beliefs. 4. But more important is that most innovations are introduced to societies by companies.Culture values: the most useful information in the case of international marketing is that how cultural values influence various types of business and market behavior.Rituals: Life is filled with rituals. multinational firms have access to from ideas around the world.Beliefs: Believes comes form religious training and it I not possible to adequately consider matters of true faith and spirituality. a dance or a song can be equally meaningful. their out look on life the products they buy and way they buy them. 4.Language: The importance of understanding the language of a country cannot be overestimated particularly if we are selling our product in France. d. one of the most important social institutions. a. The Successful international marketer must achieve expert communication. many times multinational companies.Uncertainty Avoidance index: The uncertainty avoidance index measure the tolerance of uncertainty and ambiguity among members of a society.Government: Most often government tries to influence the thinking and behaviors of adult citizens for the citizens “own well” of course. the relationship between superstition and religion is not at all clear. which is difficult by other forms. Indeed. Learning to correctly interpret the symbols that surround us is a key part of socialization a. d. in some countries the government owns media and regularly uses propaganda to from “favorable” public opinions.Culture values.Aesthetics as Symbols: Art communicates.Symbols: Anthropologist says that culture is communication. f. Q-8.The media: The media has the power to make or bring some changes easily in culture and society.
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