This document provides an overview of international marketing. It defines international marketing as the application of marketing principles across national boundaries. The document outlines the evolution, nature, and stages of internationalization of marketing. It discusses the benefits of international marketing for consumers, producers, and economies. Key differences between international and domestic marketing are presented, such as political factors, languages/cultures, financial climates, and familiarity. Controllable and uncontrollable elements of international marketing are introduced. Finally, the document defines trade barriers like tariffs and subsidies that governments impose on international trade.
2. Contents
• Introduction to International marketing
• Evolution
• Nature
• Stages of internationalization
• Benefits/importance
• International marketing v/s Domestic marketing
• Controllable and uncontrollable elements
• Trade barriers
3. International marketing???
According to the American Marketing Association,
“International Marketing is the multi-national process of
planning and executing the conception, prices, promotion
and distribution of ideal goods and services to create
exchanges that satisfy the individual and organizational
objectives.”
4. • In simplified words International marketing is
the application of marketing principles to
across national boundaries.
• There is a crossover between international
marketing and global marketing.
6. Evolution & Nature
• High level of complexity in terms of the targeted market.
• High-level of uncertainty in terms of perhaps the preference of
consumer in the targeted market.
• The possibilities of high-volume of heterogeneity (diversity).
8. Stage -1 Domestic Marketing
• First stage
• marketing scope of the company is only within the country
boundaries
• Focus only on local customers
• Ethnocentric and seldom pay attention on outside world demands &
trends
• Never pay attention on emerging competition
9. Stage-2 Export Marketing
• Sell directly to overseas customers
• Company sells it both domestically and to selected target
market in other countries
• Types of export marketing :-
Direct-company sells directly to the customers overseas
Indirect-company relies on the 3rd party companies to
handle and distribute the products from the company
10. Stage-3 International marketing
• company is more with polycentric orientation
• manufactures products in one certain country but they
considered their neighborhood country as their market too
11. Stage-4 Multinational Marketing
• focus of the company is more on the regional basis
• companies have their manufacturing plant all over the region
and they consider the whole world as their market
12. Stage-5 Global marketing
• Last stage of evolution
• approach in which companies are actually standardizing all their marketing
mix across the national, regional, and global markets.
• manufacturing plants are spread all over the world and their targeted
markets are every place in the world or so called global market.
• 3 activities :-
1. standardization efforts
2. coordination across markets
3. global integration
13. Importance/ Benefits
Consumer's point of view :
• Consumption of goods at a low price
• Enjoying benefits of competition
• Consumption of new products
• Increase in consumption
14. Producers point of view
• Export of surplus production
• Expansion of market in foreign countries
• Production of goods at a low cost
• Increase in production
• More profitable
• Reduce business risk
• Reduce cost
15. Economic point of view
• Increases total production
• Increases export earnings
• knowledge and cultural progress
• Increases international peace and friendship
• Extension of industry
• Export of unusual goods
• Optimum utilization of natural resources
• Progress in technological knowledge
• Image development.
17. Basis Domestic Marketing International Marketing
Definition “It is concerned with the marketing
practices within the researchers or
Marketers home country (domestic
market).”
“It is the performance of business
activities designed to plan, price,
promote and direct the flow of a
company’s goods and services to
consumers or users in more than one
nation for a profit.”
Role of Politics Political factors are of minor
importance.
Political factors play a vital role.
Languages &
Cultures
One language and culture. Many languages and difference in
cultures.
Financial
Climate
Uniform financial climate. Variety of financial climate.
Risk Involved Normal risk is involved. Higher risks of different nature are
18. Control of
Marketing
Activities
Control of marketing activities is
easy as compared to international
activities.
Control of marketing activities is
difficult because of different factors
like – regional, cultural, political,
etc.
Payment Minimum payment and credit risks. Considerable payment and credit
risks.
Familiarity Well familiarity with domestic
market.
Lack of Familiarity with foreign
markets, research becomes essential.
Knowledge
Requirement
Management knowledge is
required.
Specific management knowledge
and competence is required.
Basis Domestic Marketing International Marketing
19. Basis Domestic Marketing International Marketing
Product Mix Product mix is decided keeping in
view the satisfaction and more
sales.
Product mix is decided according to
foreign market.
Product
Planning and
Development
Product planning and development
according to domestic market.
Product planning and development
according to foreign market.
Focus Focus of interest is on general
information.
Focus of interest is on strategic
emphasis.
Market Aspect Market is much more
homogeneous and different
segments.
Different or diverse markets
fragmented in nature
22. Trade barrier
• A barrier to trade is a government-imposed restraint on
the flow of international goods or services.
23. Basics
• Tariff- most common barrier
Tax on imports
Tariffs raise the price of imported goods relative to domestic
goods
• Subsidy - a government subsidy to a particular domestic industry ,
subsidies make those goods cheaper to produce than in foreign
markets.
Results in a lower domestic price.
• Embargo- a blockade or political agreement that limits a foreign
country's ability to export or import
24. Barriers to trade are often called "protection" because
their stated purpose is to shield or advance particular
industries or segments of an economy. From an
economic perspective, though, the costs to the
economy almost always outweigh the benefits
enjoyed by those who are protected.
