International marketing
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  • 1.
      • International Marketing
    2 Chapter
  • 2. 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.”
  • 3. 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
    • Many Basis
    • Language Difference
    • Comparative More Risk
    • Government Intervention
    • Payment in Foreign Currency
  • 4. Scope of International Market
    • The main ways of entering into International Marketing are as follows:
    • Contract Manufacturing
    • Licensing
    • Franchising
    • Joint Ventures
    • Direct Ownership
  • 5.
    • Contract Manufacturing
    • Any famous company of a country takes the responsibility of marketing of the products & services produced by a company of some other country.
    • Advantages:
        • 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.
    • Limitations:
        • Lack of control on Production Activity.
        • Risk from prospective competitors.
  • 6.
    • Licensing
    • It refers to the agreement to produce & market the products of the company of another country in exchange for a royalty or fees.
    • This method is used:
        • 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.
  • 7.
    • Franchising
    • 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.
    • Features:
        • Right to use the name.
        • Continuous control.
        • Assistance to Franchise.
        • Separate Business.
        • Periodical Fees.
        • Minimum Agreement Period.
        • Written Undertaking.
  • 8.
    • Joint Venture
    • It refers to that partnership in which companies share investment, risks, management & profits in the development, production or selling of products.
    • This method is used:
      • 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.
  • 9.
    • Direct Ownership
    • The parent company is often based in one country and carries manufacturing, management, and marketing operations in different countries.
    • Advantages:
    • Full Control over production & quality of product.
    • There is no risk of prospective competitors.
    • Limitations:
    • More need of financial & administrative sources.
    • Lack of awareness about foreign markets.
    • Lack of co-operation of foreign government.