SALIENT FEATURES OF INTERNATIONAL MARKETING:

1. The process of international marketing must be orderly.

2. The process of international marketing must be Methodical
3. The process of international marketing must be one of adaptation.
BASIC FUNCTIONS OF INTERNATIONAL MARKETING:
The direction & supervision of international business, including the
development of an export import policy
The adaptation of the product for international markets including
packing
Selling ,including related functions as advertising, sales promotion,
sales training , translation, service & the like.
Transportation of the product, including documentation for shipment,
railways, marine insurance, export credit & guarantee & other related matters

Credit & terms of payment.

Financing, including exchange, invoicing& collection.
After sales service.
FACTORS AFFECTING THE FUNCTIONS:
International division of labor

Comparative cost

Surplus production

Balance of international payment

Trade promotion.
INTERNATIONAL MARKETING DECISIONS
A firm which plans to go international has to make series of strategic decisions.
They are:

1.International business decision: The decision is

based on a number of important factors such as the
present & future overseas opportunities, present &
future domestic market opportunities, The recourses of
the company etc.
2.Market selection decision: Once it has been
decided to go international the next important step is the
selection of the most appropriate market. A proper
selection of the overseas markets is very important.
3. Entry & operating decisions: Once the market
selection decision has been made ,the next important task
is to determine the appropriate mode of entering the
foreign market.

4. Marketing mix decision: The foreign market is

characterized by a number of uncontrollable variables.
But the marketing mix is consist of internal factors .
Element of marketing mix : 4PS :

5. International organization decision: The nature

of the organization structure of the company will depend
on a number of factors like its international orientation,
nature of business , size of business & future plans etc.
INTERNATIONAL MARKETING DECISION STRUCTURE:

Company Company
INTERNATIONAL
resources objectives
MARKETING DECISION
Environmental
Market
factors
potential MARKET SELECTION
DECISION

ENTRY AND
OPERATING DECISION
Promotion
Product
MARKETING MIX
DECISION
distribution
Distribution
Price

MARKETING
ORGANIZATION
DECISION
 INTERNATIONALIZATION
MEANING: “ The process of entering into a global market”

The companies pass through different stages of

internationalization

“ A firm which is domestic in its marketing activities

normally passes through different stages
internationalization before it becomes a true global one”

Many firms, starting their overseas business with a low

degree of commitment or involvement & gradually develop
a global outlook in a big way.
STAGES :

Primary domestic with

Pure domestic company some foreign business
company

Multinational company International company

Global or transnational
company
 DOMESTIC COMPANY:
The orientation of a domestic company is essentially
ethnocentric, purely operates its marketing activities domestically.
When a domestic company reaches growth in home market can
enter into the primary domestic with diversifies to various steps.
Primary domestic company may extend its marketing of goods &
services to foreign market by direct/indirect export, licensing &
financing.& enter into the next stage.

International company:

The orientation of the company is basically

ethnocentric & the marketing strategies should be
extended.

Marketing mix (4ps) of home market is extended to

foreign marketers.
 Multinational company:
Here the companies are going to formulate a multi
domestic strategy for their business.

the company can formulate a unique strategy for

each country. (A.B.C.D )

Global company/Transnational company:

According to keegan “ The global company will have
either global marketing strategy or global sourcing
strategy but not the both, towards the global
corporations.
The transnational corporations are increasingly
dominating markets & industries around the world & links
global resources with global Mkt. at a profit.
THE INTERNATIONAL MARKETING TASK
FOREIGN ENVIRONMENT E
N
( UNCONTROLLABLE) V
POLITICAL I
/LEGAL R
FORCES UNCONTROLLABLE
O
( DOMESTIC ENVIRONMENT) N
M
E
CONTROLLABLE N
POLITICAL COMPE T
/LEGAL TITIVE C
CULTURAL FORCES PRICE PRODUCT STUCT O
FORCES URE U
N
PROMOTION
T
DISTRIBUTION
R
Y
GOEGRAPHY M
& ECONOMIC CLIMATE A
INFRASTRUC R
TURE K
E
DISTRIBUTION STRUCTURE T
A,B& C