MAIB

Unit - I
Session - 1

Nature - Importance and Scope of International

Marketing
Key Words
Domestic
International marketing
marketing

International
marketing
challenges

Cultural Legal differences

differences
Definition

"International marketing is the performance of

business activities that direct the flow of a
company's goods and services to consumers or
users in more than one nation."
Importance of IM
 Cost Advantages
 High profit margins
 Selling surplus production
 Extending product life cycle
 Competition
 Excess capacity
 Geographic diversification
 Increasing market size
Session - 2

Differences between international and

domestic marketing
Key Words
High risk
Large area

Business
operation

Marketing
research
Latest
technology

Government
interference Different
customers
Basis for comparison Domestic marketing International
marketing

Limited to national Serves across

Area served boundaries international
boundaries

Government Relatively less Relatively more

interference

Business operation In single country In more than one

country
Basis for comparison Domestic marketing International
marketing

Risk factor Low High

Capital requirement Relatively less Huge

Nature of customers More or less similar Great differences in

multiple aspects

Research Required Required and is much

more complicated than
Session - 3

International Marketing Orientation

Key Words

Ethnocentric
Polycentric

EPRG
Framework

Regiocentric Geocentric
Ethnocentric Orientation
 Overseas operations are generally considered
secondary to domestic operations

 Primarily a means to dispose off domestic

surplus production.

 International marketing activities and expansion

plans are carried out from home country office

 Same policies and procedures

Contd..
 No difference in product, price, distribution
and promotion strategies

 Marketing research is hardly done.

 Sales personnel are mostly from home

country.
Polycentric Orientation
 International marketing activities on a country
to country basis.

 Subsidiaries in each country which is treated

as a separate entity.

 Each subsidiary has its independent

objectives, plans.
Contd..

 Product, price, distribution and promotion

strategies are separate.

 Independent marketing research for each

country.

 Sales personnel are mostly local nationals

Regiocentric Orientation
 Recognizing common features of a region and treating
the region as one market.

 Organizing business activities for that region as a

whole

 Marketing personnel are from the region

 Regional channels of distribution are developed

 Product, price and promotion policies have regional

orientation.
Geocentric Orientation
 Basic philosophy is all human beings are
alike.

 Whole world is treated as one market.

 Standardized product lines are developed.

 Pricing is established on a world wide basis

Contd..
 Global channels of distribution are
established.

 Promotional policy is developed to project a

uniform image of the firm and its products.

 Marketing personnel are recruited from any

country of the world.
EPRG Orientation and Characteristics of Firm

Ethnocentric Orientation:

 Most appropriate when overseas sales volume

is very less of the total sales of the firm.

 Entails minimum risk on the part of he firm.

 Suits small firms just entering international

operations.
Contd..
Polycentric Orientation:

 Ideal for firms seriously committed to international

marketing.

 When have the capacity to invest to the desired extent.

 Most effective way of motivating the management, since the

management in each country is given a free hand in framing
policies and implementing them.

 Possibility of knowing the customer better and maximum

&pee of marketing orientation.
Contd..
Regiocentric and Geocentric Orientations:

 Theseorientations imply regional or global attitude to

the development of marketing policies.

 Provide for improved coordination and control

 Geocentricapproach may prove more successful in areas

such as production and research than in marketing.

 Therole of information in successfully implementing

global or regional strategies is crucial.
Factors to be considered while
selecting EPRG orientation

1. Size of the firm

2. Experience in overseas markets

3. Extent of heterogeneity of the potential

market

4. Nature of the product

Session - 4

Involvement in international marketing

Key words

Accidental
exporters
Domestic
marketing

Global
marketing
Export
Casual marketing
exporters
1) No direct foreign marketing – Domestic marketing
or accidental exporter

2) Infrequent foreign marketing – Casual exporter

3) Regular foreign marketing – Export marketing

4) International Marketing

5) Global business
PRACTICUM
International Market Segmentation
and Positioning
Unit - II
Screening and Selection
of Markets
Key words
 International marketing objectives

 selection parameters

 preliminary screening
 social environment
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 political environment

 legal environment
 Shortlisting
 Evaluation
 test marketing
 commercial production