Name – Utkarsh Chauhan Roll No.

– 2114103458

DMKT – 404 INTERNATIONAL MARKETING

(SET-1)

1. Explain the concept of International Marketing. Also, to detail difference between

Domestic and International Marketing, add suitable examples to support your answer.

Answer – International marketing is the process of devising and implementing marketing strategies
to accomplish business objectives across international borders. It involves conducting market
research, identifying target markets, and creating marketing approaches that are customized to suit
the cultural, economic, and social characteristics of each country or region.
On the other hand, domestic marketing concentrates on promoting products and services within a
single country or region. It revolves around targeting customers in a specific market and developing
marketing strategies that align with local market conditions and consumer preferences.
There are notable distinctions between domestic and international marketing:
1. Cultural Differences: International marketing necessitates addressing cultural disparities
among countries, such as language, customs, and beliefs, whereas domestic marketing
centers on cultural similarities within a particular market. For instance, Coca-Cola's "Share a
Coke" campaign, which featured personalized bottles with individual names, achieved
success in the US and UK markets. However, its launch in China was less effective due to the
lesser significance of personalization in Chinese culture.
2. Legal and Regulatory Environment: International marketing requires an extensive
comprehension of the legal and regulatory frameworks in each country, including trade
regulations, intellectual property laws, and marketing restrictions. In contrast, domestic
marketing is subject to the laws and regulations of a single country. As an example, the
pharmaceutical industry must adhere to varying regulatory requirements in different
countries. A medication that is legal in one country might not be permissible in another,
necessitating distinct marketing strategies for each market.
3. Economic Differences: International marketing necessitates an understanding of the
economic conditions prevailing in each market, encompassing currency exchange rates, tax
laws, and market competition. Domestic marketing, on the other hand, focuses on the
economic conditions within a single market. For instance, McDonald's has adapted its menu
to cater to local tastes and preferences in various countries. In India, where a substantial
portion of the population follows a vegetarian diet, McDonald's offers vegetarian menu
options that are not available in other markets.
In summary, international marketing is a multifaceted process that demands awareness of cultural,
legal, and economic disparities among countries. By formulating marketing strategies tailored to the
requirements of each market, businesses can effectively expand their operations across national
borders and achieve their business objectives

2. Write a detailed note on different International Market Entry Strategies.

Answer – International market entry strategies refer to the approaches employed by companies to enter foreign
markets successfully. It involves strategic decision-making and meticulous planning to ensure a smooth entry and
Name – Utkarsh Chauhan Roll No. – 2114103458

establish a strong presence in the new market. Some of the commonly used international market entry strategies
include:
1. Exporting: Exporting entails selling products or services from the home country to customers in a foreign
market. It can be done through direct exporting, where the company directly sells its products or services
to customers in the target market, or indirect exporting, where intermediaries such as distributors or
agents are utilized. For instance, an Italian clothing manufacturer may export its products to customers in
the US by partnering with a US-based distributor.
2. Licensing: Licensing involves granting a foreign company the rights to use the company's intellectual
property, such as trademarks, patents, or technology, in exchange for fees or royalties. Licensing offers a
low-risk entry strategy as it requires minimal investment in infrastructure or resources. For example,
Coca-Cola licenses its brand to local bottlers worldwide, allowing them to produce and sell Coca-Cola
products under their own labels.
3. Franchising: Franchising entails granting a foreign company the right to operate a business using the
company's established business model and brand name, in exchange for fees and royalties. Franchising is
a popular strategy in the retail and service sectors. For instance, McDonald's has expanded globally
through franchising, providing franchisees with support, training, and access to the company's renowned
brand name.
4. Joint Venture: Joint venture involves partnering with a local company in the foreign market to establish a
jointly-owned business. This strategy allows companies to leverage each other's resources, expertise, and
networks for mutual benefits and increased competitiveness. For example, Nissan and Renault formed a
joint venture to manufacture and sell cars in India, combining their strengths to gain a stronger foothold
in the market.
5. Direct Investment: Direct investment involves establishing a company-owned subsidiary in the foreign
market to conduct business operations. This strategy requires significant investment in resources,
infrastructure, and personnel, but offers greater control and potential rewards. For instance, Toyota set
up a wholly-owned subsidiary in the US, investing in production facilities, distribution networks, and
marketing efforts to establish a strong presence in the American market.
In summary, companies have various international market entry strategies at their disposal. Each strategy comes
with its own advantages and challenges, and careful consideration is necessary to choose the most suitable
approach for a particular foreign market. By selecting the right strategy, companies can increase their chances of
success and achieve their business goals in the global marketplace.

3. What is the Scope of International Marketing Research? Elaborate International

Marketing Research Process.

Answer – The scope of international marketing research is extensive and encompasses gathering
and analyzing data on various aspects of a foreign market, such as consumer behavior, cultural
norms, economic conditions, and regulatory frameworks. The primary goal of international
marketing research is to acquire insights and information that can aid companies in making informed
decisions regarding entering or expanding their operations in foreign markets.
The international marketing research process typically involves the following steps:
1. Define the research problem: Clearly define the research problem or objective by identifying
specific questions to answer and the desired goals.
Name – Utkarsh Chauhan Roll No. – 2114103458

2. Conduct a preliminary investigation: Gather information about the foreign market, including
its size, demographics, consumer behavior, and other relevant factors that may impact
market entry.
3. Design the research plan: Determine the research methodology, sample size, data collection
techniques, and analysis methods.
4. Collect data: Gather primary data through surveys, interviews, and direct observation, as
well as secondary data from existing sources such as government reports, industry
publications, and academic research.
5. Analyze data: Apply statistical and quantitative methods to analyze the collected data,
identifying patterns, trends, and drawing conclusions.
6. Interpret the results: Evaluate the findings in the context of the research problem and
overall objectives.
7. Prepare the research report: Summarize the findings and recommendations in a clear,
concise report that provides actionable insights for decision-making regarding market entry
or expansion.
The scope of international marketing research encompasses various activities, including:
1. Market analysis: Gather information on the foreign market's size, growth potential,
consumer behavior, and competitive landscape.
2. Consumer research: Gain insights into the needs, preferences, and behavior of consumers in
the foreign market to develop tailored products and services.
3. Cultural research: Understand the cultural norms and values of the target market to develop
culturally sensitive marketing strategies.
4. Regulatory research: Understand the regulatory environment in the foreign market,
including product safety, labeling, and advertising laws and regulations.
5. Economic research: Analyze the economic conditions of the foreign market, such as GDP,
inflation, and unemployment rates.
By conducting comprehensive international marketing research, companies can gain a deeper
understanding of foreign markets and make informed decisions to enter or expand their operations
successfully.

DMKT – 404 INTERNATIONAL MARKETING

(SET-2)

4. What is International Logistics Planning? Discuss the challenges of International

Distribution and Logistics?

Answer – International logistics planning refers to the coordination and management of the
movement of goods, information, and resources across borders to fulfill customer requirements. It
encompasses planning, implementing, and controlling the physical flow and storage of goods from
origin to consumption in the global market. Efficient international logistics planning is crucial for
businesses aiming to expand overseas and meet the demands of foreign customers.
International distribution and logistics pose numerous complex challenges, including:
1. Cultural and language barriers: Understanding local culture, customs, and language is
essential when conducting business in foreign countries. Differences in communication
styles, business practices, and expectations can impact the success of logistics operations.
2. Transportation infrastructure: Transportation infrastructure quality and availability vary
across countries. Inadequate roads, ports, and customs procedures can cause delays and
higher costs.
Name – Utkarsh Chauhan Roll No. – 2114103458

3. Regulations and compliance: Compliance with diverse regulatory requirements can be

intricate and time-consuming. Businesses need to ensure adherence to customs regulations,
safety standards, and legal obligations.
4. Currency fluctuations: Fluctuations in currency exchange rates can affect transportation,
storage, and other logistics costs. This makes cost prediction and management challenging.
5. Security concerns: Certain countries may have higher risks of theft, piracy, and security
threats. This can jeopardize the safety of goods during transit and increase logistics costs.
The international logistics planning process involves the following steps:
1. Market research: Before entering a new international market, businesses must conduct
research to comprehend product/service demand, local competition, regulations, and
cultural disparities.
2. Transportation planning: Based on market research, businesses determine the most suitable
transportation methods (air, sea, land) considering distance, cost, and delivery urgency.
3. Logistics operations planning: Developing a plan to manage logistics operations, including
warehousing, inventory management, and customs compliance.
4. Execution and control: Businesses execute the logistics plan and monitor its progress to
ensure timely and satisfactory delivery of goods.
5. Evaluation: After completing logistics operations, businesses assess the effectiveness of the
plan and identify areas for improvement.
By addressing these challenges and following a structured logistics process, companies can enhance
their international operations and meet the demands of customers in foreign markets.

5. State the various documents required in export.

Answer – Export documentation is a vital requirement for businesses engaged in exporting goods to
foreign countries. These documents play a crucial role in ensuring compliance with the laws and
regulations of both the exporting and importing nations. The following are essential export
documents:
1. Proforma invoice: It is an initial invoice providing a detailed description of the goods, price,
and sales terms for the export transaction.
2. Commercial invoice: This official invoice includes the price, quantity, description of the
goods, and sales terms for the exported products.
3. Packing list: A detailed list specifying the contents of each package, including weight,
dimensions, and item count.
4. Bill of lading: This legal document serves as a receipt for the shipped goods and establishes
the contract of carriage between the exporter and the shipping company.
5. Certificate of origin: This document indicates the country where the goods originate from
and helps customs officials determine applicable duties and taxes.
6. Export license: Some governments require this document to ensure compliance with export
control regulations for specific goods.
7. Inspection certificate: It may be necessary for the importing country to verify that the
exported goods meet certain quality and safety standards.
8. Insurance certificate: This provides evidence that the shipped goods are insured against loss
or damage during transit.
9. Export packing declaration: This document confirms that the goods have been appropriately
packed and are safe for transportation.
10. Consular invoice: This document may be required by the importing country to provide
additional information about the exported goods.
Apart from these documents, exporters may need to adhere to other regulations and requirements,
such as obtaining a phytosanitary certificate for agricultural products, complying with labeling and
packaging regulations, or obtaining permits for specific goods.
Name – Utkarsh Chauhan Roll No. – 2114103458

It is crucial for exporters to ensure they possess all the necessary documentation before shipping
their goods. Non-compliance with export regulations and requirements can result in delays, fines,
and penalties that can be costly and time-consuming. By understanding the export documentation
requirements and collaborating with experienced logistics providers and customs brokers, exporters
can ensure smooth and efficient shipping while remaining compliant with applicable regulations.

6. What is Foreign Exchange? In brief, mention Organization of the foreign exchange market.

Answer – Foreign exchange refers to the process of exchanging one currency for another, typically for
international trade or investment purposes. It is facilitated through the foreign exchange market, which operates
globally and involves the trading of currencies. The foreign exchange market consists of three tiers: the interbank
market, the retail market, and the forward market.
The interbank market is where banks and financial institutions trade currencies among themselves. It is the
largest and most liquid segment of the foreign exchange market. The retail market caters to individuals and small
businesses who exchange currencies for travel, commerce, or investment, usually through commercial banks or
currency exchange providers. The forward market is a specialized market allowing participants to secure
exchange rates for future transactions, commonly used by businesses and investors to manage currency risk.
Unlike a centralized market, foreign exchange trading takes place electronically through trading platforms
provided by financial institutions or brokers. The market is highly competitive, with participants striving to obtain
the best prices for currency pairs.
Various governmental and non-governmental organizations regulate the foreign exchange market. The
International Monetary Fund (IMF) promotes international monetary cooperation and exchange rate stability,
offering policy advice and financial assistance to member countries. The Bank for International Settlements (BIS)
acts as a central bank for central banks, supporting global monetary and financial stability. The Financial Stability
Board (FSB) monitors the global financial system, striving to strengthen its resilience and reduce the risk of crises.
Additionally, national regulatory agencies oversee financial markets and institutions within their respective
countries, ensuring compliance with rules and regulations.
The foreign exchange market is vital for facilitating international trade, investment, and currency availability
worldwide. While it can be complex and volatile, the market is highly liquid and efficient, making it appealing to
investors and traders.