International Marketing
Management
By Nagendra R
CIT, Gubbi
Meaning & Definition of International
marketing
• Marketing activity carried on across the nation
boundaries.
• According ...
International Marketing involves:
• Identifying the needs and wants of the
customers in international markets.
• To take m...
Characteristics Of International
Marketing
•
•
•
•
•
•
•
•
•
•

Dominance of Multinationals
Large Scale Operations
Boundar...
Scope of International Marketing
• Exporting
–
–
–
–
–

Establishing
JV & Collaborations
Licensing
Consultancy
Know-how(Te...
Objective of International Marketing
• To develop skills, creating marketing
challenges & Opportunities.
• To gain experie...
Why Firms go international
• Reasons for the firms going international
•
•
•
•
•
•
•

Profitability
Growth
Economies of Sc...
Challenges in International Marketing
•
•
•
•
•
•
•
•
•
•

Self- reference
Political & Legal Difference
Cultural Differenc...
Difference B/w Domestic and International
Difference Point

Domestic Marketing

International Marketing

Operation Conditi...
Differences between domestic and
international marketing
Domestic

International

Research data is available in a
single l...
Differences between domestic and
international marketing (continued)
Domestic

International

Communication and control ar...
Differences between domestic and
international marketing (continued)
Domestic

International

Functional specialization wi...
International Expansion Drivers
Business Environment
Drivers
Competition
Regional Economic and Political
Integration
Tec...
Process of Internationalization

FDI

License

Export
through
Export Via own sales
representat
Agent/
Distributor ive/ Sal...
Transition from Domestic to
International Markets
• Pre-Export Behavior
•
•
•
•

Company characteristics
Perceived Export
...
Process of International Marketing
Growth

Profitability

Risk Spread

Marketing
Opportunities

USP of
product/Services

A...
Orientation of management
•
•
•
•

ETHNOCENTRIC
POLYCENTRIC
REGIOCENTRIC
GEOCENTRIC

17
Ethno centric approach
• Guided by domestic market extension concept
• Domestic strategies, techniques, and
personnel are ...
Poly centric approach
• Guided by the multi-domestic marketing concept
• Focuses on the importance and uniqueness of each
...
Regio centric approach
• Guided by the global marketing concept
• World regions that share economic, political, and/or
cul...
Geo centric approach
• Guided by the global marketing concept
• Marketing strategies aimed at market segments,
rather than...
Stages of International Marketing
Involvement

• No Direct Foreign Marketing
• Infrequent Foreign Marketing
• Regular Fore...
Trade in International Marketing
• International Trade is exchange of
capital, goods and services across
international bor...
Need for international trade
•
•
•
•
•
•

Large scale production
Degree of self- sufficiency
Geographic Factors
Occupation...
Dynamic Environment of International
Trade
• Comparative Advantages
• Impact of National Policies
• Impact of Countries

2...
Global e-Marketing
•
•
•
•

Search of convenience
Internet into purchase process.
Shift loyalties.
Future buying plans.

3...
Death of distance
• Potential of e-commerce
•
•
•
•
•

Lower transactions costs
Reduce inventory costs
Competitive busines...
Major benefits of e-Marketing
•

•

•

•

•

Global reach
– No physical limitations
– Access to unknown buyers
– Own virtu...
Communications
•
•
•
•

Building relationships,
Individual attention
Instant , cheap
Easy transactions

36
Targeting an Individual customers
•
•
•
•
•

Customer access
Insight
Dialogue
Emotions
Customers transactions

37
Relationship marketing
• It is the process of building the long
term, trusting, win-win relationships with
customers,
dist...
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IMM - module 1 - VTU MBA

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IMM - module 1 - VTU MBA

  1. 1. International Marketing Management By Nagendra R CIT, Gubbi
  2. 2. Meaning & Definition of International marketing • Marketing activity carried on across the nation boundaries. • According to AMA: “International Marketing is the multinational process of planning, executing, conception, pricing, prom otion and distribution of ideas, goods and services create exchanges that satisfy individual and organizational objectives.” 2
  3. 3. International Marketing involves: • Identifying the needs and wants of the customers in international markets. • To take market mix decisions keeping in the view the diverse customers and market behavior. • Penetrating into International Markets using the various modes • Decisions in view of IBE 3
  4. 4. Characteristics Of International Marketing • • • • • • • • • • Dominance of Multinationals Large Scale Operations Boundary Restrictions & Trade Blocks Marketing Research Importance of Advanced Technology Precise competition Sensitive character. Want for Specialized institutions Long term planning Cultural relations 4
  5. 5. Scope of International Marketing • Exporting – – – – – Establishing JV & Collaborations Licensing Consultancy Know-how(Technical & Managerial) • Importing • Managing of international operations • Re-exporting 5
  6. 6. Objective of International Marketing • To develop skills, creating marketing challenges & Opportunities. • To gain experience in developing marketing strategies. • To gain verbal, written skills for communication • To have decision making ability • To be ethical in practice and urge to learn more on marketing management. 6
  7. 7. Why Firms go international • Reasons for the firms going international • • • • • • • Profitability Growth Economies of Scale Access to imported inputs/Resources Marketing Opportunities USP of product & services R& D Costs. 7
  8. 8. Challenges in International Marketing • • • • • • • • • • Self- reference Political & Legal Difference Cultural Difference Economic Difference Difference in the currency unit Differences in the language. Difference in Marketing Infrastructure Trade restrictions High cost of distance Difference in trade practices 8
  9. 9. Difference B/w Domestic and International Difference Point Domestic Marketing International Marketing Operation Conditions One nation language & culture Many Nations, Languages & Culture Transportation cost Major extent Some Extent Currency One Multiple Political Same Differ Nature of market Relatively homogenous Diverse & Heterogeneous Change control & Tariffs No Problems Obstacles Data Availability Accurate Formidable, But doubted Government interferences Relative free Influences Environmental Effects Little effect Distortion by large companies Business Environment Stable Unstable Climate & Nature of Business Uniform & Understood Varies & Unclear 9
  10. 10. Differences between domestic and international marketing Domestic International Research data is available in a single language and is usually easily accessed Research data is generally in foreign languages and may be extremely difficult to obtain and interpret Business is transacted in a single currency Many currencies are involved, with wide exchange rate fluctuations Head office employees will normally possess detailed knowledge of the home market Head office employees might only possess and outline knowledge of the characteristic foreign markets Promotional messages need to consider just a single national culture Numerous cultural differences must be taken into account Market segmentation occurs within Market segments might be defined a single country across the same type of consumer in many different countries.
  11. 11. Differences between domestic and international marketing (continued) Domestic International Communication and control are immediate and direct International communication and control might be difficult Business laws and regulations are clearly understood Foreign laws and regulations might not be clear Business is conducted in a single language Multilingual communication is requires Business risks can usually identified and assessed Environments may be so unstable that it is extremely difficult to identify and assess risks Planning and organizational control systems can be simple and direct The complexity of international trade often necessitates the adoption of complex and sophisticated planning, organization and control systems
  12. 12. Differences between domestic and international marketing (continued) Domestic International Functional specialization within a marketing department is possible International marketing managers require a wide range og marketing skills Distribution and credit control are straightforward Distribution and credit control may be extremely complex Selling and delivery documentation is routine and easy to understand Documentation is often diverse and complicated due to meeting different border regulations Distribution channels are easy to monitor and control Distribution is often carried out by intermediaries, so is much harder to monitor Competitors’ behavior is easily predicted Competitors’ behavior is harder to observe, therefore less predictable New product development can be New product development must take geared to the needs of the home account of all the markets the product is sold in.
  13. 13. International Expansion Drivers Business Environment Drivers Competition Regional Economic and Political Integration Technology Improvements in Transportation and Telecommunication Economic Growth Transition to Market Economy  Converging Consumer Needs  Firm specific Drivers Product Life Cycle High New Product Development Costs Standardization Economies of Scale Cheap Labor Experience Transfers  13
  14. 14. Process of Internationalization FDI License Export through Export Via own sales representat Agent/ Distributor ive/ Sales Subsidiary Local Packaging/ Assembly 14
  15. 15. Transition from Domestic to International Markets • Pre-Export Behavior • • • • Company characteristics Perceived Export Perceived Import Organizational commitment • Economic Reasons • • • • • • • • Relative profitability Insufficiency of domestic demand Reduce Business risks Legal restrictions Obtaining Imported inputs Social Responsibility Increased Productivity Technological Improvement 15
  16. 16. Process of International Marketing Growth Profitability Risk Spread Marketing Opportunities USP of product/Services Access to imported inputs SWOT Analysis Decision to Enter into International Markets Motivation for International Marketing Spreading R & D Costs 16
  17. 17. Orientation of management • • • • ETHNOCENTRIC POLYCENTRIC REGIOCENTRIC GEOCENTRIC 17
  18. 18. Ethno centric approach • Guided by domestic market extension concept • Domestic strategies, techniques, and personnel are perceived as superior. • International markets are secondary, regarded primarily as outlets for surplus domestic production. • International marketing plans are developed in-house by the international division. 18
  19. 19. Poly centric approach • Guided by the multi-domestic marketing concept • Focuses on the importance and uniqueness of each international market • Firms establish independent businesses in each target country. • Fully decentralized, minimal coordination with headquarters • Marketing strategies are specific to each country. • Outcomes: – No economies of scale – Duplicated functions – Higher final product costs 19
  20. 20. Regio centric approach • Guided by the global marketing concept • World regions that share economic, political, and/or cultural traits are perceived as distinct markets. (e.g. EU, NAFTA*) • Divisions are organized based on location. • Regional offices coordinate marketing activities. 20
  21. 21. Geo centric approach • Guided by the global marketing concept • Marketing strategies aimed at market segments, rather than geographic locations • Maximizes efficiencies worldwide and provides standardized product or service throughout the world • E.g. McDonalds 21
  22. 22. Stages of International Marketing Involvement • No Direct Foreign Marketing • Infrequent Foreign Marketing • Regular Foreign Marketing • International Marketing • Global Marketing 22
  23. 23. Trade in International Marketing • International Trade is exchange of capital, goods and services across international borders or territories. TRADE DOMESTIC TRADE INTERNATIONAL TRADE 23
  24. 24. Need for international trade • • • • • • Large scale production Degree of self- sufficiency Geographic Factors Occupational Distribution Means of Transportation Compensating the production 24
  25. 25. Dynamic Environment of International Trade • Comparative Advantages • Impact of National Policies • Impact of Countries 25
  26. 26. Global e-Marketing • • • • Search of convenience Internet into purchase process. Shift loyalties. Future buying plans. 33
  27. 27. Death of distance • Potential of e-commerce • • • • • Lower transactions costs Reduce inventory costs Competitive business advantage Expands market Reduce the supply chain management. 34
  28. 28. Major benefits of e-Marketing • • • • • Global reach – No physical limitations – Access to unknown buyers – Own virtual office – Always accessible Easy marketing – Classified information on competitive products – Acquire product knowledge – Compare product & service Economics – Cost effective strategy – Saves money on customer interaction Updates – Easy to change content – Addition of product – Updated communication to customers More attractive presentation – GUI 35
  29. 29. Communications • • • • Building relationships, Individual attention Instant , cheap Easy transactions 36
  30. 30. Targeting an Individual customers • • • • • Customer access Insight Dialogue Emotions Customers transactions 37
  31. 31. Relationship marketing • It is the process of building the long term, trusting, win-win relationships with customers, distributors, retailers and suppliers. – Key elements are • Interactions between suppliers and customers • Maximizing life time value Customers segments to customers satisfaction • Working , developing and enhancing relationship in internal markets and building strong external markets 38
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