International marketing is the marketing of products or services outside of your brand's domestic audience. Think of it as a type of international trade. By expanding into foreign territories, brands are able to increase their brand awareness, develop a global audience, and of course, grow their business

1. INTERNATIONAL MARKETING
MANAGEMENT

2. International marketing ---
•Exchange of goods and services
across borders of a country.
•Estimation of price, product,
opportunities, areas , target audience
across national borders.
•It is done to fulfill companys goals and
objectives.
•The sales and product reaches the
audience to a wider public so that larger
number of people can benefit.
•Also sometimes called as Global
Marketing

3. Nature, Scope, Significance---
•It is a planned activity considering
many aspects of marketing like product,
price, place , promotion (4Ps) to sell
companys ideas , goods and services
across national borders to satisfy
publics needs and wants.
•Any company has to study the
geographical, behaviourial aspects of
that particular region where they want
to promote.

4. Nature, Scope,Significance---
•According to Kotler—”Global marketing
is considered with integrating and
standardizing marketing actions across
a number of geographic markets.”
•The scope of international marketing is
tremendous and has to be carried out
carefully.
Eg ----coke, colgate, Bata, Addidas

5. Nature, Scope,Significance---
•It increases the profits and economic
scale for any company
•Many new customers can be tapped in
studying the target audience of that
location.
•Special management skills are
required for international markets and
different marketing strategies are
applied.
•For products like food and plants or
other perishable items, one has to be
very careful

7. Domestic and international
•Domestic---Marketing which happens
within the country keeping the domestic
aspects in mind
•International ---where goods and
services are sold keeping the
geographical location and country
specifics.
•Domestic marketing has less risk as
same market enviormnet everywhere
and similar exchange of financials
•

8. •

9. •

10. Domestic and international
•The distribution network and making
products available to consumer becomes
difficult in international scenario
•Lot of investments needed
•Competition form products of other
countries
•Legal hassels in other country…
•Globalisation ---bringing economies of all
countries
together…integrating….stabalising
•

11. Exports
•A process where goods are
manufactured in one country and sold
to another country
•Usually requires custom policies , rules
, regulations, clearance authorities
•Selling is called exports and buying---
imports
•Goods can be shipped, brought
through plane or taken individually

12. Exports
•If a country exports more than it
imports, it has a trade surplus.
•If it imports more than it exports, it has
a trade deficit
•Countries export products where they
think they can produce in large quantity
and have competitive advantage
•They see that comparitively their
product will be accepted more ….

13. Exports
•Eg---Kenya, Colombia have the right
climate to grow coffee…so exporting
coffee gets them advantage
•Indians speak english and can live on
low costs so have advantage of working
as call center workers …..
•So basically which the country has in
abundance and can easily produce are
products they can export…..

14. Exports
•China has population which can live on
low wages due to low standard of living
….so they produce cheap products
•Exports increases knowledge of a
country
•Competitive spirit is more
•.all govts encourage exports as it
brings money, jobs, opportunities
•Generally india exports diamonds,
chemicals, oils…..

15. International Trade
• International trade is exchange of
goods and services with other countries
•It opens new opportunities for
companies and countries
•Mostly half of international economy
activity is international trade.
•One can see new products in market
which are not availabel in domestic
market

16. International Trade
• International trade also reflects a great
share in GDP
•It bring more profits , more cash flow,
more life for products .
•It also gives a channel to use our
surplus goods ….
•Main objective of international trade is
to make quality products available at
lesser price and contribute to economy.

17. International Trade
• International trade also reflects a great
•Total world trade is about $40trillion
•International trade is exports and
imports combined.
• mostly goods that are traded are
electronics, like computers, and
scientific instruments.

18. International Trade
• Then 12% are automobiles…
•. Then about 11% is oil and other fuels
….
• Other Chemicals, include 10%
•World economy is around $80 trillion

19. Process in international
marketing management
• strategy for any business marketing ---
---define your goals
•----study market and your product
category
•----plan for marketing activities
•----implement
•----evaluate

20. Process in international
marketing management
• Motivation----first the company has its
own motivation to enter into
foreignmarkets . It can be growth,
profits, visibility in other countries.
•Deciding to venture overseas-----for
this one has to see market scenario
abroad, the demand of product, the
target audience , consumer behaviour,
opportunities outside.

21. Process in international
marketing management
• In descision one also has to see if one
is capable of production and satisfying
the demand of consumer there.
•Also one has to calculate the risk
involved in going out of the country.

22. Geographical location in
international marketing
• where is that region where you can
market your product. Geographical
location is necessary to know. Distance
matters.
•Transportation cost depends on how
far is the place.
•The market of the country to be studied
in terms of its import growth, market
size and prosperity there.

23. Geographical and Demographic in
international marketing
• factors like language, culture, climate,
lifestyle, location, of that region Affect
international mktg
• markets are of different sizes depending on
location.
•Population density plays a key role.
•It can further be divided into urban, rural, semi
urban, regional , metropolitan etc …..

24. Demographic in international
marketing
• Demographic factors also include age, sex, house,
income, caste, employment, location, education.
•Age telling criteria of TG, sex indicating the product of
males or females…
•Income gives a clear indication whether the consumer
can buy your product or not.
•Education gives an insight how much aware the
consumer is
•Marketers make changes in product and advertising to
match the demographics of the country.
•The media research should match the demographics of
TG.

25. Economic factor in
international marketing
• The currency , price of exporting is all seen in the
economic factor .
• Companies have to see the cost which does not
count in domestic market.
• International freight, imports, product adaptation
costs, commissions for agents and foreign exchange
risk all mount to economic factors.
• A company has to decide whether it should charge
the same price for a particular product in all its
markets or different prices in different markets.

26. Economic factor in
international marketing
• Per capita income determines whether there is
potential in the country or not. So the economics of
the country is imp for international trading.
• Another point----depends on the product category.
• If high end product—need to see the population for
that. Even if population small, but people can buy,
them there is potential.

27. Economic factor in
international marketing
• Export pricing analysis sees if changes made to
product will benefit the audience.
• What ads to the value of the product,what diminishes
it.
• Actually, it is not the cost that determines the
product’s price but the customer’s perception of that
value.
• Company has to match the competitor pricing
• Credits is also a part of pricing strategy.

28. Political enviornment
• having good political and business terms with your
country is important for exports .
•Country should not be biased towards products from
one country …..
•Political govts have lot of power.
•Business cannot run without ruling party of the country.
•Like north korea’s policies affected the mobile market at
large.
•Similarly if cities , districts unite or states merge, they
have different laws and rules, thus one has to see the
political scenario then..

29. Political enviornment
• sometimes very unpredictable for companies to
understand the scenario and environment n therefore
the risk
• like google has to ensure the accuracy of location and
ha sto be considerate for disputed locations. So
companies have to see political scenario nad get
affected
•Indias position on jammu Kashmir and chinas take on
that ….business affects on google…
•Govt activities in foreign land matter a lot

30. Political enviornment
• market economy---- where private individuals own most of the
property and do businesses. This is usually best as protected by
private players.
• socialist economy where many industries and businesses are
owned by the state. This is little difficult as state have own
policies.
• Some countries---communistic economic where the state
controls all aspects of the economy. Business is very difficult
here.
• Mixed economy also exists as in china in hongkong..
• Businesses have to see govt systems. Democracy has its
advantages and has answer people.
• Knowing PESTEL is imp.

31. Legal enviornment
• rules of the land have to be understood
• Legal systems and legal contracts of foreign land
• How independent a country is with its legal decisions and terms
is very imp
• Parts of Europe, Australia, Netherlands are quite open as
compared to china, Russia and other countries…
• Private trade law---laws for security, goods, exchange, contracts
of international delivery…all need to be seen
• International trade laws---that unite countries…world trade
organization also
• Laws on custom duty, insurance have to be seen

32. Legal enviornment
• corporations, partnerships, liability partnerships, limited
partnerships all have different legal status and issues.
• Security for investments in foreign land…then if business wants
other investors then the laws have to studies further.
• Employee protection laws---business will run with staff having
similar rules for all…no caste religion bar, male female
constraints , salary…
• Laws related to health, hygiene, stay, food, clothes , other items..
• Credits and ;loans also are imp to study
• Immigration laws---people coming form outside—how can they
work, what they need , what salary will they be paid etc etc…
• So legal system has to be flexible but also strong.

33. Socio cultural enviornment
• Socio cultural factors influence family, educational, religious,
social systems on people.
• choices they make and way of living affcets the marketing as it
depends on environment shaped by culture…
• important for marketers to learn about these customs and not
approved things so that they can see how to make acceptable
marketing programs.
• In middle east images of exposed arms or legs of the female
body are considered offensive. Where as its ok in U.S.
• Many other countries women also work as men, and take up any
job they can and go out into public areas.

34. Socio cultural enviornment
• Values are influenced by family, education, moral, and religious
beliefs.
• Values are also learned through experiences. values influence
consumer perceptions and purchasing behavior.
• In some countries, religion might be a source of opportunities or
threats to companies doing the business in that particular
location.
• Performance of companies depend on cultural gaps in countries
. Campaigns are handled in different way. And demand and
supply chain are affected

35. • Tariff or tax duty imposed on imports
cause companies to change trade policy
• China put a 25% tariff on US goods and
US put $16billion on china.
• Tariffs are paid by domestic people buying
it but pricing has to be set by exporting
country..
• Tariff and non tariff both can be applied on
imports and exports
• These are done for security, protecting
jobs , govt taxes etc…
• These are duty, tax, custom imposed on
goods when trade happens internationally
• Import tariffs happen on imports so that
country can protect domestic business
• Export tariffs are levied on products which
are sent outside the country
• Transit duties----when products pass
through different country or region
Tariff
and
non
tariff
barrier

36. Tariff and non tariff barrier
• Non tariffs are other restrictions on products in terms of govt
procedures, quota, subsidies etc…
• Quota is the limit on number of products crossing borders, if
more import then, company has to pay for that.
• Voluntary export restraint---where company sending goods more
than decided has to pay for extra exports
• Subsidies---govt gives value to these domestic companies so
that they compete with international brands so that they can exist
in the market.
• Some economists say that it should be free trade.

37. WTO
• World trade organization -----
• Governs with all the rules of trade.
• To handle disputes over international trade
• Largest economic organization in world
• Came in 1995, over 600 staff in Switzerland
• Having offices in 50 countries
• There is no discrimination between partners and countries but
gives weightage to social causes/…..
• ADD INFO…..

38. UNCTAD
• United Nations Conference on Trade and Development
• UNCTAD is the part of the United Nations Secretariat dealing with trade,
investment issues. The organization's goals are to: "maximize the trade,
investment and development opportunities of developing countries and assist
them in their efforts to integrate into the world economy on an equitable basis
• They guide all countries for financial investments and global economy should
be advantageous for all.
• Working across 195 countries it aims at integrating all financial economies.
(ADD INFO)

39. GSP
• Generalized system of preferences
• For tariff reduction
• Preferential schemes given form industries to developing
countries
• Most favoured nations (MFN) get advantage of reduced taxes
• Came in india in 1971
• About 13 preferential schemes
• Recently grants on Indian goods was taken back by America
• GSP done for economic growth and development
• Benefit to developing countries so that they can have more trade
with developed nations

40. GSP
• Gives encourgement to the companys as their cost of making
products goes down if raw material imported is cheap
• No or less import duty for india makes it easier for us to make
more goods and deliver
• For developed countries like US, it makes it easier for their
markets to have international products nad have competitive
prices

41. EU
European Union
• Created around second world war to build again and reunite and
integrate together
• 27 European countries are a part of this.
• UK was the founding member but got out in 2020
• Was made to have economic and political stability by a common
currency euro
• Initially started by western Europe , later expanded
• Mainly for democracy and peace for which it also got nobel prize
in 2012
• To increase trade and economic system
• Many other treaties were formed before this aiming at
development and in the end EU took its formal shape

42. NAFTA
• North American Free trade Agreement
• Jan 1 1994
• To promote trade between Between US, Canada and Mexico
• Initially between Canada and US
• To reduce tariffs
• Many tariffs were canceled
• In 2018, NAFTA was replaced by USMCA---united states Mexico
Canada agreement
• This was to give more jobs, stabalise economy and all classes in
these countries
• Free trade agreement
• To increase investment
• Processes like MFN to partners
• USMCA still in formal process– 2020

43. NAFTA
• Tariff will be waived for original products after they show the
origin certificate.
• Products from different countries origin passing through one
country will have have to pay tariff on entering other two
• It took some time to form this agreement …

44. ASEAN
• Association of south east Asian nations
• 8 aug 1957 in Bangkok
• Indonesia, malasiya, thialand, Singapore philipines ---started
• To promote peace, security, social cultural environment
• For joint trade, research and regional stability
• To stabalise after cold war
• 2015 established Asean economic community
• Free trade, and more investment
• Outstanding scientist and techniological award after every three
years

45. ASEAN
• Also works for wildlife and environment
• Asean university network in 1995 for acdemics and educatoion
sector
• Sports another category in which it is working
• Largest area in asia
• About 3rd largest labour in asia

46. Selecting Products in international
marketing
• Products should be decided seeing whether that product is
made of raw material in domestic country or made from
imported products.
•As investment is done according to that
•What kind of product is in demand . Get to know through
journals, trade magazines, data …
•Own experience or business also counts/ own ability
•direct exports ----when products are manufactured in own
country and sold without middle men , directly to consumer
•Indirect exports ----when products are exported through
middle man or some other agency

47. Selecting Products in international
marketing
• whether the exporter can meet the demand or not.
•Sometimes seasonal edible items cant meet the complete
year demand due to climatic conditions in domestic countries
•Products manufactured can also be tuff as they are
dependent on people, management, resources etc..
•Products ---mass production ---more area to export
•Products ---limited production---less area
•Already imported products ----see availability ---then export
•Too trendy products might wither with time and not be stable

48. Selecting Products in international
marketing
• Products requiring after sales ---depends on the capacity of
company to open service centers internationally or provide
service from their land
•Product adaptability and stability are imp
•Adaptation might cost the company ….
•Stable and rising demand is of utmost importance

49. Selecting Products in international
marketing
•

50. Selecting markets in international
marketing
• Market research---the area in terms of size and target
population.
•It should be seen that where area is small with maximum
consumer potential.
•Research whether some products are prohibited or banned
for exports .
• areas where shipping or reaching costs are too high will have
difficulty in exporting
•Competition in international scenario might be too much for
any product to enter

51. Selecting markets in international
marketing
• Pricing will have to be higher in that respect
•Tariff and non tariff barriers have to be considered
•Climatic conditions of the international space
•cost of entering the market and acceptance of product to be
considered
•Ultimately should be a profitable long term venture.
•Per capita income/ income growth/ economic stability of the
region
• sometimes a particular country dominates the foreign market
•Sometimes test marketing is used in partial areas

52. Process to enter foreign
markets
• process to enter markets ---whether products are being
manufactured in own country and exported or being
developed in another country.
•Investments on that basis

53. Process to enter foreign markets
• Liscensing ----when some other business group agrees to
manufacture the products internally and sell in the market.
•Franchising ---when the parent company has an agreement
on terms and conditions and allows other company abroad to
market its products under specified market plan.

54. Process to enter foreign markets
• joint venture---.when an international company ties up with
a local company abroad having ownership with itself
•Merger---when an international company buys assets of
another company or has shares and takes over the
management manpower at a fixed agreeable price

55. Process to enter foreign markets
• Contract marketing ---under this an international company
makes a contract with the local company to manufacture its
products and does the entire marketing itself.
•Wholly owned subsidiary---doing 100 % of investment for
business in foreign country and setting its own infrastructure
•Doing 100 % investment and owning an already existing set
up
•To have full control . Work according to their business
•Some nations don’t allow.
•Only big and economically sound companies can do this as
all investment is done by them
•Have to bear losses completely

56. Choosing the way forward
• which way to consider depends on -----
•Expected profits
•Expected investment and financial back up
•Number and area of markets covered internationally
•How much control can the company have
•Capacity and volume of product
•Networking and infrastructure

57. Product adaptation and standarisation
• adaptation ---products have to be changed considering the
needs of consumers aboroad and changes from country to
country
•Marketing strategy might vary considering the region
•Product is modified- price, shape, size, positioning…
•Bata---modified as per country specifics
•Advantage of relating to consumer more
•Good brand image
•Disadvantage ----complexities in understanding the consumer
everywhere
•Time taking

58. Product adaptation and standardization
• standardization ---where the company keeps in standatrds
same for products all over the world and sells it in similar way
•No change in marketing strategy
•No modification in products
•Its easier, less time taking
•Assumption that the product sells all across
•Initially google standard. Later adapted
•Vodafone went from local to standard

59. Packaging
• esthetics
•Safety, export packaging expensive than domestic
•International standards
•Details about product---contents, date of manufacturing,
expiry, quantity…etc. marking to be proper .
•Nature of product
•Time and way of transportation
•Ship, air, land motions….hard, thick, stable packaging
•Storage facilities in domestic and foreign land
•Handling of products ---equipments used
•Supervision of landing and transport to destination

60. Branding and after sales
• after sales service imp for domestic and international
marketing
•Sometimes expensive to set up centres abroad
•But prompt after sales carry a strong value in terms of
branding
•Develops loyalty and trust
•Can be outsourced ---IT, electronics etc
•Very imp for brand recognition and image
•Either from market of origin or infrastructure in foreign market

61. ISO 9001:2000 quality system standard
• an international standard mechanism
•used by organizations to show that they can consistently
provide products and services that meet customer and
regulatory requirements
•Also shows growth and improvement
•Documents of processes, work, standards to be submitted
•Authenticity and credibility
•Any organization can avail if meet standards
•Developed by the ISO Technical Committee (ISO/TC) 176 –
Quality management and quality assurance
•Quality management systems
•For customer satisfaction

62. Pricing
• pricing to be set on objectives
•When entering its comparitively low
•If more competition then accordingly
•Set on population and potential TG. If more volume then price
can be low
•Production cost plus transportation cost.
•Cost -price relationship---might hold good / might not
•Exchange rate of currency
•Profit margins
•Sometimes minimum export prices fixed.
•Dependent also on taxes, rules , regulations ,duty of foreign
land
•Packaging, storage, advertising. Promotion costs…
•After sales cost…

63. Types of Pricing quotation
• quotation has description of the product/ price of the product/
total price/ no. of pieces/ quantity/ date of delivery/shipment/
terms and conditions of sale and payment
•FCA—free carrier---where exports responsibility ends when
he has delivered goods at a place located by buyer
•FAS---free alongside ship---exported keeps products along
the side of ship for selling
•Ex works / ex factory---when expoter keeps goods in his own
storage apace /warehouse and rest importer will see
•FOB—free on board---when the exporters role ends when he
keeps the products in ship. All expenses to be born by
importer
•DES—delivered ex ship. Exporter keeps all things at the
importers destination port. Exporter bears all the cost

64. Types of Pricing quotation
• cost and freight C&F—when exporter ads the amount of
freight from his country to country of importer
•Delivery ex DEQ—impoter pays all for tax and duty and all
taxes to be paid as per his govt.

65. Distribution channels
• zero channel---where the manufacturer goes directly to the
customer . No middleman, no agent. No extra fee.
•Consumer gets at original price
•One level channel---where there is one chain of people in
between. One level. Manufacturer sends it to him , and he
sends it to consumer
•two level channel---where manufacturer gives first to
wholesaler ---he gives to retailer ---gives to customer. Mainly
in large volumes. Good with international products.
•Easy for international manufacturer to sell products. Eg
similar garments in retails outlets….
•Three level channel----through sales agent ----
•Sales agent—wholesaler—retailer ---consumer
•Cosmetics / branded products
•Fourth---manufacture—sales agent—wholesaler—retailer—
consumer. Most of clothing --

66. Distribution channels
• usually 3-4 channels used in food items
•Middle man charge their own commission or are involved in
trade/
•Choosing warehousing and middleman depends on ---
•Product—size, nature etc
•Climatic conditions
•Size of target population
•Markets to be covered
•Networking of agents
•Warehouse conditions
•Distance from actual point to be sold

67. International advertising
• keeping everything the same depends on the product
specifications
•Using same message, approach is standardization of
advertising
•Good for brand consistency, recognition all across borders
•Coke , mcdonalds have standarised advertising for long
• sometimes brands standardize advertisng to an extent but
then adapt it according to country
•Shampoo brands using different characters /
•Celebrities according to national appaeal
•Loreal using Indian celebs
•Nike ---standarised ---international people
•So sometimes mix of both are used
•TVC, print, outdoor , posters very effective so have to be
made judgingly

68. Media and agency selection
• media selection is based on TG and prevalent media for that
category of products
•Local media is used more for promotion
•As people see local media
•International media might have some promotion for TG
viewing that
•Agency is usually taken from the origin as they understand
the client better
•Usually big agencies have offices everywhere
•National agency will have to collaborate with international one
and work accordingly
•Agency---past experience/ clients/ creativity/ work done
/infrastructure/ human resource /

69. ADVERTISING EFFECTIVENESS
• ACCORDING TO SALES
•How much awareness
•Brand recognition
•Increased demand
•Advertising works over a period of time