International Marketing - An Introduction


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This chapter is an introduction to International marketing. It covers the need for International Marketing, Difference between Domestic and International Marketing, The EPRG frame work, Challenges for International Marketing.

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  • International Marketing - An Introduction

    1. 1. International Marketing The scope and challenge of International Marketing Bindumadhavi P
    2. 2. Global Brands Apple Samsung Google GEMicrosoft Coca-Cola IBM VodafoneWalmart Bindumadhavi P 2
    3. 3. Indian firms in Global Ranking Tata Airtel State Bank of India Reliance Indian Oil Corporation InfosysBindumadhavi P 3
    4. 4. Indian international companies • The Tata group operates in more than 80 countries and markets across: – AFRICA – ASIA Ratan Tata, Chairman, Tata Sons,sums up the Tata group’s efforts to – AUSTRALIA internationalise its operationsthus: “I hope that a hundred years – NORTH AMERICA from now we will spread our wings far beyond India, that we – SOUTH AMERICA become a global group, operating – EUROPE in many countries, an Indian business conglomerate that is at home in the world, carrying the same sense of trust that we do Bindumadhavi P 4
    5. 5. Top 15 cities to do businessTop 15 cities in the world to do Business1. Ahmedabad – India 8. Doha - Qatar2. Gurgao – India 9. Melbourne 10. Bogota3. Chengdu - china 11. San José4. Changquing – china 12. Santiago – Chile5. Austin – US 13. Lagos – Nigeria6. Salt lake city – US 14. Warsaw – Poland7. Vancouver – Canada 15. Stockholm - Sweden Bindumadhavi P 5
    6. 6. Chapter Learning Objectives 1. The Distinction between Domestic and Global Marketing 2. The scope of the Global marketing task 3.The increasing importance of global awareness 4. The progression of becoming a global marketer5. Major Concerns of International Marketers Bindumadhavi P 6
    7. 7. What is International MarketingInternational marketing is defined as theperformance of business activities designed to plan,price, promote, and direct the flow of a company’sgoods and services to consumers or users in morethan one nation for a profit Marketing concepts,It is an approach of a company processes, andwith truly global outlook, seeking principles areits profit impartially around the universallyworld, on a planned and applicable allsystematic basis. over the world Bindumadhavi P 7
    8. 8. Why go International? Domestic Market Profit Motive constraintGovernment Policies Spin off benefits Monopoly Power Competition Bindumadhavi P 8
    9. 9. Factors Influencing Global Business • North American free Rapid growth of world trade area trade organization • European Union Trend towards acceptance of free market system • Asia among developing • Europe countries Impact of Internet, Mobile • Global channels phones and other global media • Global customers Bindumadhavi P 9
    10. 10. Marketing V/S International Marketing Bindumadhavi P 10
    11. 11. Factors affecting International Marketing Trade Facilities DistancepracticesCulture Economy Law Bindumadhavi P 11
    12. 12. Domestic v/s International Similarities Differences • Political Entities • Legal systems• Understanding buyers • Cultural differences needs • Different monetary systems• Building Goodwill • Marketing infrastructure• Research Development • Trade Restrictions • Procedures and documentations • Highly unpredictable Bindumadhavi P 12
    13. 13. Progression to Global Marketing EPRG FRAMEWORKEthnocentric Polycentrism Regiocentrism Geocentrism - Home - Host country - A regional - A world country orientation orientation orientation orientation Bindumadhavi P 13
    14. 14. EPRG FRAMEWORKEthnocentric Domestic techniques and Personnel are considered - Self superior Reference Criterion Bindumadhavi P 14
    15. 15. Ethnocentric• Overseas operations are viewed as secondary to domestic operations• Considered as a means to dispose of surplus domestic production• Plans for overseas market are developed in the home office, utilizing policies and procedures identical to those employed in the domestic market• Overseas marketing is looked after by home country nationals Bindumadhavi P 15
    16. 16. Ethnocentric continued• No systematic research is conducted overseas• No major modifications are made to products sold in overseas markets• Prices are calculated on the same basis as in the home market with the addition of overseas distribution costs• Promotion and distribution strategies are similar to that employed in the home country• Strong reliance on export agents Bindumadhavi P 16
    17. 17. Surf – Super washout in JapanUnilever enters Japan Detergent Market• It releases Surf Super concentrate washing powder inJapan• Measured sachets for Convenience• Fresh Smell WHAT WENT WRONG??
    18. 18. Un explored market• Washing powder did not dissolve completely due to weather conditions• Low agitation washing machines were more popular in Japan, in which the super concentrate surf washing powder did not wash completely• Fresh smell was not very significant
    19. 19. EPRG FRAMEWORK Polycentrism Local Personnel and Techniques are best - Host country suited to deal with local orientation market conditions Bindumadhavi P 19
    20. 20. Polycentric orientation• Subsidiaries are established in overseas market• Each subsidiary operates independently with its own marketing objectives and plans• Marketing activities are organized on country by country basis• Marketing research is conducted independently in each country• Separate product lines are developed in each country• Home country products are modified to meet local needs. Bindumadhavi P 20
    21. 21. Polycentric continued• Each subsidiary will have its own pricing and promotion policy• Sales personnel from those countries• Traditional channels of distribution of those countries Eg. McDonalds – Veg burgers in India McDonald’s does not use multiple 4’s in advertising prices in China; four sounds like the word death. Bindumadhavi P 21
    22. 22. EPRG FRAMEWORK Recognizes regional Regiocentrism commonalities - A regional and leads to orientation the design of regional strategies Bindumadhavi P 22
    23. 23. EPRG FRAMEWORK Best man for the job Geocentrism irrespective - A world of national orientation origin Bindumadhavi P 23
    24. 24. Regiocentric and Geocentric• Region or entire world as potential market• Firm develops policies and organizes activities on a regional or worldwide basis• Marketing personnel from the region or from any country• Standardized product lines for regional or worldwide markets• Regional or Global channels of distribution are also developed Bindumadhavi P 24
    25. 25. ConclusionThe globalisation of Markets has necessitated all managers to pay attention to International marketing.Other than Environmental factors, self reference criterion are considered obstacles to International Marketing.Global awareness and sensitivity are the best solutions challenges faced in International marketing Bindumadhavi P 25
    26. 26. Reference –1. International Marketing by Cateora and Graham2. International Marketing by Czinkota and Ronkainen Bindumadhavi P 26