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International Marketing Process
- 1. Dr.T.S.Bhuvaneswari Assistant Professor Department of Commerce SRMIST International Marketing - Introduction
- 3. 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.
- 4. 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’
- 5. 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’
- 6. 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
- 7. 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
- 8. 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
- 9. 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
- 10. 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
- 11. 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
- 12. 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
- 13. Factors influencing International Marketing Internal Factors External Factors
- 14. Internal Factors (Controllable) SWOT Analysis Strength – Enthusiastic employees and unique product Weakness – No existing customers and limited finance Opportunities – Potential customers Threat – Bigger budget
- 15. External factors (uncontrollable) Economic Environment Social and cultural environment Political environment Legal environment Physical environment Technological environment Business environment
- 16. 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
- 17. Step 1- Deciding to internationalise Present and future overseas opportunities Present and future domestic opportunities Resources of the company Company objectives
- 18. Step 2 – Market selection Geographical proximity Market potential of the country Market access Market characteristics
- 19. Step 3 – Product selection Elasticity of supply Demand of the product
- 20. Step 4 – Selection of entry mode Exporting Licensing Franchising Contract manufacturing Joint venture Strategic alliance Assembly Mergers and Acquisitions
- 21. Step 5 – Selection of Marketing strategy or market mix decision Product strategy Pricing strategy Distribution strategy Promotion strategy
- 22. 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