Week 2

International Marketing
Global trends
Export-Import trade
Definition
 It is the process of planning and conducting transactions
across national borders to create exchanges that satisfy the
objectives of individual organizations.
 performance of business activities that direct the flow of the
company’s goods and services to consumers in more than
one nation for a profit.
 There are uncontrollable forces in the macroenvironment.
• Politics
• Culture
• Geography
• Infrastructure
• Distribution
• Technology
• Competition
It is a tool focuses on international transactions.
Other concepts to consider:
1. Suppliers
2. Marketing adjustments-labelling requirements
3. Threats in global competition-imports and export
restrictions
4. Strategic global alternatives-environmental laws

The primary obstacle to success in international marketing is

a person’s self-reference criterion (SRC) in decision
making.This is the unconscious reference to one’s cultural
values, experiences, beliefs and knowledge as basis for
decisions.
 4Ps of marketing also known as factors influencing international
mktg.
(domestic and international marketing)
• Product
• Promotion
• Place
• Price

Phases of International Marketing:

1. Domestic exporter= operates exclusively within a single country
2. Regional exporter= operates within a geographically defined region
that crosses national boundaries.
3. Exporter= runs operations from a central office in the home region
exporting finished goods to various countries
4. International exporter= regional operations are autonomous but key
decisions are made and coordinated from central office in the home
region.
5. International to global exporter= runs independent and
mainly self sufficient subsidiaries in a range of
countries.Other functions such as research and
development and financing are decentralized.
6. Global exporter= is a highly decentralized organization
operating across a broad range of countries.
Stages of international marketing:

1. No direct marketing- concentrated in the home market , the

firm’s
products may reach foreign markets through trading companies,
wholesalers, distributors and foreign buyers
- No direct effort to export goods
2. Infrequent foreign marketing- sales to foreign markets only occur
when a firm experiences temporary surpluses
- No formal effort maintain foreign sales
3. Regular foreign marketing- a firm affects a part of its production
capacity to be marketed on a regular basis for foreign consumers.
4. International marketing- products sold in foreign markets and
firm has became multinational depending on its revenues.
5. Global marketing-firm- treats its home and international markets
as one.
Benefits of going international:

• Use of ingenious materials

• Technological development
• Expansion and development
• Unempolyment rate decreases
• Foreign exchange earnings increase
• Excess production capacity is utilized
• Seasonality of the products is leveled out
 Difference between Domestic
DOMESTIC MARKETING
Marketing
INTERNATIONAL
MARKETING
and International Marketing :
Domestic marketing International marketing
refers to carrying out refers to carrying out
01. marketing activities marketing activities
within the national outside the national
boundaries. boundaries also.

It refers to doing
It refers to doing
marketing in local
marketing in global
02. market and it’s scope is
market and it’s scope is
limited
wide.
(communication)

There is one nation, There are many nations,

03. same language and many languages and
one culture. culture.

In domestic marketing In international

04. only one currency is marketing different
used. currencies are used.
 Controlling domestic Controlling international
05.
marketing activities is marketing is difficult as
easy as compared to compared to domestic
international marketing. marketing.

Well familiarity with

Lack of familiarity with
06. domestic or local
global or foreign market.
market.

Where as more risk

Low risk factors are
factors are associated
07. associated with
with international
domestic marketing.
marketing.

International marketing
Domestic marketing
requires more
requires less investment
08. investment as
as compared to
compared to domestic
international marketing.
marketing.
 Mostly there is stable Mostly there is
09. business unstable business
environment. environment.

It relatively deals
It relatively deals
10. with homogeneous
with diverse market.
market.

In domestic In international
11.
marketing marketing
competitors behavior competitors behavior
is easy to predict. is difficult to predict.

12. Product and packaging

13. Payment terms
14. Physical distribution