International Marketing

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What is International Marketing?
• Application of marketing principles in more than one country
• Extension of the marketing strategy across borders
• With special attention to the environment
• Cultures
• Language
• Political
• Legal
• Economic
• Media Mix

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“International Marketing is the multinational
process of planning and executing the conception,
pricing, promotion and distribution of ideas,
goods, and services to create exchanges that
satisfy individual and organizational objectives”

American Marketing Association

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For a growing number of companies, going
beyond borders is not a tag or a chip. It is a
matter of economic survival.

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Challenge of moulding the controllable
elements within the framework of
uncontrollable elements

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Controllable elements
• Product
• Price
• Promotion
• Distribution
• Research

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Uncontrollable elements
• Competition
• Politics
• Legal Constraints
• Government control
• Weather
• Consumer behaviour
• Technology (penetration & acceptance)
• Geography
• Infrastructure
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Implications
• Construct a marketing programme designed for optimal adjustments
• Uncertainty of the business climate
• Controllable elements can be altered in the long run
• In the short run adjust corporate objectives or to consumer tastes
• Cultural adjustment is the most challenging
• Tip of the iceberg
• Adaptation to environmental differences from one market to another
• Avoid SRC (self reference criterion) – the common pitfall
• Subconscious reference to one’s own cultural values, experiences and
knowledge as a basis for decisions

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Isolating the SRC influence
• Define the problem in home country with existing culture
• Define the problem in the target country
• Incorporate their cultural norms
• Consult the locals
• Make no judgement
• Isolate the SRC influence and examine it carefully
• Problem appears complicated
• Redefine the problem without the SRC influence
• Cultural understanding across markets is of critical importance

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Stages of International
Marketing Involvement

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• Reactive
• No Direct Foreign Marketing
• Infrequent Foreign Marketing
• Strategic
• Regular Foreign Marketing
• International Marketing
• Global Marketing

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No Direct Foreign Marketing
• Does not actively seek business beyond home
• International sales
• Traders
• Direct customers
• Without knowledge of the producer
• Websites
• A big order from abroad kindles interest in International Marketing

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Infrequent Foreign Marketing
• Temporary surpluses
• Production
• Demand
• Customers seek long term relationships

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Regular Foreign Marketing
• Permanent production capacity for foreign markets
• Sales
• Important markets
• Own sales force
• Low priority markets
• Sales intermediaries
• The primary focus is to service domestic markets
• Profits from foreign operations seen as a bonus to domestic profits

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International Marketing
• Company fully committed to and involved in international marketing
• Selling across the world
• Markets are sought from all over the world
• Production spread across the world
• At this stage the company becomes an international or multinational
marketing firm

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Global marketing
• More than half the revenue comes from overseas markets
• The world is one market
• Segmentation is based on income levels, usage patterns etc.
• Everything has a global perspective
• Operations, finance, production, HR etc.
• Referred to scale of operations

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Trends most affecting over and
above the bumps
• Rapid growth of WTO
• Regional Free Trade Areas
• Technology – Internet, mobile and other media
• Manage the environment for generations to come

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WTO
• Operates a system of trade rules
• Organization for trade opening
• Forum for governments
• Negotiate trade agreements
• Settle trade disputes
• A place where member governments try to sort out the trade
problems they face with each other.

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Free Trade Area
• Increase trade of goods and services with each other
• Region encompassing a trade bloc
• Member countries have signed a free-trade agreement (FTA)
• Different quotas and custom duties/taxes as well as other policies
with respect to non-members
• Requirement for the minimum extent of local material inputs

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Cases

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Hyundai
• Second only to Maruti Suzuki
• India is the third largest market
• China
• USA
• India account for 15% of global sales
• India accounts for 9.5% of the global market
• Internally developing a “family design concept”
• Spacious and practical budget hatchback
• Specific to India
• To start AMT manufacturing
• Reduce cost of automatic transmission

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How did McDonald’s localize?
• Product
• No beef or pork
• Signature/Landmark product
• Internationally – Big Mac beef burger
• India – Chicken Maharaja Mac
• Culture
• Introduced Aloo Tikki Burger
• Mash potatoes, peas and Indian spices
• Priced at Rs. 20/-
• Eating out for Indians per 100 meals increases
• Earlier 2-3
• Post Aloo Tikki Burger – 9 - 10

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Path to success
• 4.5 million properties
• 81,000 cities
• 300 million guest
• Aim for 1 bn. By 2020
• Marketing differentiator
• A community, not a distribution platform 
• Built on trust and human connection among users 
• Hosts have the opportunity to put their homes on the global map
• Guests have the chance to experience the diverse, local, cultural flavours of
the city they travel to
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 Airbnb in India
• Over 1 million Indians have travelled globally
• 30,000 listings
• Grown by 115% over the past year
• TG - 230 million urban millennials
• Want new and more exciting ways to travel
• Atithi Devo Bhava
• India’s hosting culture
• Formed a strong community of hosts
• Want/willing to open their homes to the world
• Since 2016. We have witnessed over 100% YoY growth in inbound guests from
around the world 
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Discussions

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