International Marketing - Introduction

Dr.T.S.Bhuvaneswari
Assistant Professor
Department of Commerce
SRMIST
Unit - 1
Introduction
Meaning

International marketing is defined as the performance

of business activities designed to plan, price, promote
and direct the flow of the company’s goods and
services to consumers or users in more than one nation
for a profit.
International + Marketing = International
marketing

International – two or more countries

Marketing – Attracting and retaining a growing base of
satisfied customers
In general we can say that:
‘International Marketing can be defined as exchange
of goods and services between different national
market involving buyers and sellers’
Definition
According to American Marketing Association
‘International Marketing is the multinational process of
planning and executing the conception, prices, promotion
and distribution of ideal goods and services to create
exchanges that satisfy the individual and organisational
objectives’
Concept of International Marketing
Domestic Marketing – Marketing practices within the
home or country
Foreign Marketing – It refers to domestic marketing
with foreign country
Comparative marketing – Analytical comparison of
marketing method practices in different countries
International Marketing – Marketing practices
between different (two or more countries) national
markets for earning profits
Global Marketing – Marketing practices can be
extended world wide
Again, in simple words,
When two or more countries exchange the product and
services with the motive of business trade, the process
is called as international marketing
Nature of International marketing
Broader market is available
Involves at least two set of uncontrollable variables
Require broader competence
Competition in intense
Involves high risk and challenges
Scope of International marketing
Import – Importing products for a brand company
or general company that they can resale it to
potential customer of their own use creation and
improving their production line
Export – Companies exports their product to
international market or their franchises for
generating huge revenue and boost for the brand
Contractual Agreement- Contractual Agreement can
be in terms of licensing for co-production or even of
technical assistance
 Joint venturing – Joint venture is the name of collaborative
association of two brands for a reasonable period of time. This new
firm works under the banner of both ‘Venturing’ brands and the
division of profits and losses take place between the two companies
 Contract manufacturing – Contract manufacturing is one of the most
used tactics to reduce the cost of production
 Fully owned manufacturing – Fully owned manufacturing is the best
interests of the company to take full control over both the production
and promotion in the target markets
 Strategic Alliances – Gaining a long-term competitive advantage
over the competitors the best option to choose strategic alliances. It
works just like the concept which says that enemy of you can be
your friend
 Management Contracts – Management contracts are helpful in
achieving a skilled labour force for the brand with comparatively
experienced workers
Importance of International marketing
 Domestic market constraint
 Government policies and regulations
 Increased productivity
 Counter competition
 Relative profitability
 Reducing business risk
 Control inflation and prise rise
 Product obsolescence
 Unequal distribution of natural resources
 Advantages of specialisation
 Technological development
To create research opportunity
Helps in political peace
Economic development of a country
Rapid economic growth
Profitable use of natural resources
Increase in employment opportunity
Role of export in national income
Increase in standard of living
International collaboration
Closer cultural relations
Factors influencing International Marketing

Internal Factors
External Factors
Internal Factors (Controllable)
SWOT Analysis
Strength – Enthusiastic employees and unique product
Weakness – No existing customers and limited finance
Opportunities – Potential customers
Threat – Bigger budget
External factors (uncontrollable)
Economic Environment
Social and cultural environment
Political environment
Legal environment
Physical environment
Technological environment
Business environment
Management process of International
Marketing

Step 1 – Deciding to internationalise

Step 2 – Market selection
Step 3 – Product selection
Step 4 – Selection of Entry mode
Step 5 – Selection of Marketing Strategy
Step 6 – Selection of Marketing organisation
Step 1- Deciding to internationalise
Present and future overseas opportunities
Present and future domestic opportunities
Resources of the company
Company objectives
Step 2 – Market selection
Geographical proximity
Market potential of the country
Market access
Market characteristics
Step 3 – Product selection
Elasticity of supply
Demand of the product
Step 4 – Selection of entry mode
Exporting
Licensing
Franchising
Contract manufacturing
Joint venture
Strategic alliance
Assembly
Mergers and Acquisitions
Step 5 – Selection of Marketing strategy or
market mix decision

Product strategy
Pricing strategy
Distribution strategy
Promotion strategy
Step 6 – Selection of Marketing organisation

Extent of commitment of the organisation to

international business
Nature of international orientation
Size of international business
Expansion plan
Number of consistency of product lines
Characteristics of foreign markets