Definition of International Marketing “ International marketing is the performance of marketing activities across national borders.” “ International marketing is to make available country’s products & services to more than one country’s customers for use.”
Nature of International Marketing Relationship between ultimate consumer & organization Transaction in Goods & Services Priority to Marketing Recognition Wider than Export Marketing Focus on Foreign Market Culture Involvement of Two Countries
Payment in Foreign Currency
Scope of International Market
The main ways of entering into International Marketing are as follows:
Any famous company of a country takes the responsibility of marketing of the products & services produced by a company of some other country. No need to arrange for production. No risk of investment in foreign country. Opportunity to cash the benefit of previously earned goodwill. In case of failure, business can be easily shunned. Lack of control on Production Activity.
Risk from prospective competitors.
It refers to the agreement to produce & market the products of the company of another country in exchange for a royalty or fees. When Govt. of Importer nation has imposed restriction on import. When we do not want to invest capital in foreign country. When no adequate awareness of foreign market.
When Govt. of the country wants to avoid dominance of foreign companies.
It refers to that special right which is given by a producer to a trader to start the same business at a particular place being done by a producer.
Minimum Agreement Period.
It refers to that partnership in which companies share investment, risks, management & profits in the development, production or selling of products. When a company wants to do business on international level but lacks in capital & human resource. When a company anticipates that doing business with a local partner will prove profitable.
When a company is willing to avail the benefit of the existing Distribution System of the local partner of importer country.
The parent company is often based in one country and carries manufacturing, management, and marketing operations in different countries. Full Control over production & quality of product. There is no risk of prospective competitors. More need of financial & administrative sources. Lack of awareness about foreign markets.
Lack of co-operation of foreign government.