MARKETINGMarketers everywhere mustKnow their marketsDevelop products or services tosatisfy customers’ needsPrice the products or services sothat they are readily availableMake them available to the buyersInform potential customers andpersuade them to buy
INTERNATIONAL MARKETING• Refers to the process of identifying the goods and services that customer outside the home country wants and then providing them at the right price and place.
DOMESTIC AND INTERNATIONAL MARKETINGOn the basis of DOMESTIC INTERNATIONALSCOPE Limited and will eventually dry Endless opportunities and up. scope.BENIFITS Less as compared to As is obvious, more benefits. international marketing.SHARING OF TECNOLOGY Limited in the use of Allows use and sharing of technology. latest technologies.POLITICAL RELATION Nothing to do with political Leads to improvement in relations. political relations between countries and also increased level of cooperation as a result.BARRIERS No barriers. Many barriers such as cross cultural differences, language, currency, traditions and customs.
ACTIVITIES IN INTERNATIONAL MARKETING Economic Env. Political/Legal Env. Product Price Socio-cultural Environment Environment International Financial Customer Promotion Distribution International Economic Institutions and Agreements
MARKETING AND OTHER FUNCTIONS OperationsManagement Accounting Marketing Human Finance Resource Management
INTERNATIONAL MARKET ASSESSMENT Assess alternative foreign market Select market for entry or expansion Evaluate : cost, benefits and risk
INTERNATIONAL PRODUCT STRATEGIES Local and International Environment Product Firm’sCompetitive Internal Situation Strategies Situation Customer Needs & Price Elasticity
STANDARISATION AND ADAPTATIONDeveloping same product for Modifying product to reflect multiple countries. characteristics of a market. Premise:-consumers share some common values, Premise-- consumers are not the same. beliefs, and consumption patterns. Advantages: improved fit Advantages: economies of between product and scale and scope, price consumer, expanded competitiveness, penetration uniform image
FACTORS FAVORING PRODUCTS STANDARDIZATION VERSUS ADAPTATION Standardization Adaptation • Differences in technical standards• High cost of Localization • Primarily consumer and personal-use• Primarily industrial products products• Convergence and similar tastes in • Variation in consumer needs and applications diverse country markets • Variations in conditions of use• Predominant use in urban environments • Variations in ability to buy-differences in income levels• Marketing to predominantly similar countries e.g. Scandinavia • Fragmentation, with autonomous national subsidiaries• Centralized management of international operations when mode • Strong cultural differences, language, of entry is mainly exports etc., affecting purchase and use• Strong country-of-origin image and • Local environment-induced adaptation: effect differences in raw material available,• Scale economies in production, government-required standards and marketing, and R&D regulations• Standardized products marketed • Adaptation strategy successfully used competitors by competitors
Brand Decision• What is Brand ?• Brand name are one of the most valuable assets which companies possess.• Brand Equity
Issues Relating to Brand Name• Whether or not to use uniform brand internationally…?• Expansion to the overseas market• Image issue• Legal and cultural factors
Pricing issue & Policies• Standard Price Policy• Two tiered pricing• Market Pricing
PROMOTION ISSUES AND POLICIES4 elements of promotion mix:-a)Advertisingb)Personal sellingc) Sales promotiond)Public relation
Constraints on advertising• Language difference• Government control• Agency availability• Economic difference• Cultural diversity
Advertising programs• Message The message it wants to convey• Medium The media available to convey the message• Global vs. local advertising The extent to which the firm wants to globalize its advertising efforts
Advantages of Personal Selling for International Firms• Local sales representatives understand local culture,norms, and customs.• Personal selling promotes close, personal contact withcustomers.• Personal selling makes it easier for firm to adoptvaluable market information
Sales PromotionSales promotion comprises specializedmarketing efforts designed to offer anincentive for behavior such as coupons, in-store promotions, sampling, direct mailcampaigns, cooperative advertising, and tradefair attendance.
Unique forms of international promotion Government Role Trade Fair Barter And Countertrade Bribery Miscellaneous Measures
Public RelationsPublic relations consists of efforts aimed atenhancing a firm’s reputation and imagewith the general public, as opposed totouting the specific advantages of anindividual product or service.
Channels of DistributionFirms make use of two principles channels of distribution whenmarketing1) Indirect selling-also known as local or domestic channel ,is employed when amanufacture markets its product through another firm form the samecountry that acts as intermediary.2) Direct Selling-Is employed when a manufacturer develops an overseas channel Herethe firm directly deals with a foreign party without going through anintermediary in the home country.
Eight guidelines have been advocated to make multinational distributors partnership1) Select distributor , don’t let them select you.2) Treat the local distributors as long term partners , not temporary market entry vehicles.3) Support marketing entry by committing money, mangers , and proven marketing ideas4) From the start, maintain control over marketing strategy.5) Make sure distributors provide you with detailed market and financial performance data.6) Build links among national distributors at the earliest opportunity.7) Understand host country culture
Physical DistributionAverage time required to move a product from “firm to shelf “ isfour to five months .Although it takes only about seventeenminutes to produce a product, the rest of the time is spent onlogistical activities – storage handling ,transition, packaging etc .International logistics costs can account for 25 to 35 percent of thesales value of a product
MODES OF TRANSPORTATIONThe three fundamental means of transportation are:-1.Air2.Water (ocean and inland)3.Land (rail and truck)