International Marketing Management,VTU


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International Marketing Management,VTU

  1. 1. International Marketing Management By Prof. Raghavendran Venugopal
  2. 2. Meaning & Definition of International marketing• Marketing activity carried on across the nation boundaries.• According to AMA: “International Marketing is the multinational process of planning, executing, conception, pricing, prom otion and distribution of ideas, goods and services create exchanges that satisfy individual and organizational objectives.” Prof. Raghavendran Venugopal 2
  3. 3. International Marketing involves:• Identifying the needs and wants of the customers in international markets.• To take market mix decisions keeping in the view the diverse customers and market behavior.• Penetrating into International Markets using the various modes• Decisions in view of IBE Prof. Raghavendran Venugopal 3
  4. 4. Characteristics Of International Marketing• Dominance of Multinationals• Large Scale Operations• Boundary Restrictions & Trade Blocks• Marketing Research• Importance of Advanced Technology• Precise competition• Sensitive character.• Want for Specialized institutions• Long term planning• Cultural relations Prof. Raghavendran Venugopal 4
  5. 5. Scope of International Marketing• Exporting – Establishing – JV & Collaborations – Licensing – Consultancy – Know-how(Technical & Managerial)• Importing• Managing of international operations• Re-exporting Prof. Raghavendran Venugopal 5
  6. 6. Objective of International Marketing• To develop skills, creating marketing challenges & Opportunities.• To gain experience in developing marketing strategies.• To gain verbal, written skills for communication• To have decision making ability• To be ethical in practice and urge to learn more on marketing management. Prof. Raghavendran Venugopal 6
  7. 7. Why Firms go international• Reasons for the firms going international • Profitability • Growth • Economies of Scale • Access to imported inputs/Resources • Marketing Opportunities • USP of product & services • R& D Costs. Prof. Raghavendran Venugopal 7
  8. 8. Orientation of management• ETHNOCENTRIC• POLYCENTRIC• REGIOCENTRIC• GEOCENTRIC Prof. Raghavendran Venugopal 8
  9. 9. Process of Internationalization FDI Local Packaging/ Export Assembly through Export Via own sales Agent/ representat Distributor ive/ Sales License Subsidiary Prof. Raghavendran Venugopal 9
  10. 10. Transition from Domestic to International Markets• Pre-Export Behavior • Company characteristics • Perceived Export • Perceived Import • Organizational commitment• Economic Reasons • Relative profitability • Insufficiency of domestic demand • Reduce Business risks • Legal restrictions • Obtaining Imported inputs • Social Responsibility • Increased Productivity • Technological Improvement Prof. Raghavendran Venugopal 10
  11. 11. Process of International Marketing Growth Profitability Risk SpreadMotivation forInternationalMarketing Marketing USP of Access to Opportunities product/Services imported inputs Decision to Enter Spreading R & D SWOT Analysis into International Costs Markets Prof. Raghavendran Venugopal 11
  12. 12. Stages of International Marketing Involvement• No Direct Foreign Marketing• Infrequent Foreign Marketing• Regular Foreign Marketing• International Marketing• Global Marketing Prof. Raghavendran Venugopal 12
  13. 13. Challenges in International Marketing• Self- reference• Political & Legal Difference• Cultural Difference• Economic Difference• Difference in the currency unit• Differences in the language.• Difference in Marketing Infrastructure• Trade restrictions• High cost of distance• Difference in trade practices Prof. Raghavendran Venugopal 13
  14. 14. Difference B/w Domestic and International Difference Point Domestic Marketing International Marketing Operation Conditions One nation language & Many Nations, Languages culture & Culture Transportation cost Major extent Some Extent Currency One Multiple Political Same Differ Nature of market Relatively homogenous Diverse & Heterogeneous Change control & Tariffs No Problems Obstacles Data Availability Accurate Formidable, But doubtedGovernment interferences Relative free Influences Environmental Effects Little effect Distortion by large companies Business Environment Stable Unstable Climate & Nature of Uniform & Understood Varies & Unclear Prof. Raghavendran Venugopal 14 Business
  15. 15. Trade in International Marketing• International Trade is exchange of capital, goods and services across international borders or territories. TRADE DOMESTIC TRADE INTERNATIONAL TRADE Prof. Raghavendran Venugopal 15
  16. 16. Need for international trade• Large scale production• Degree of self- sufficiency• Geographic Factors• Occupational Distribution• Means of Transportation• Compensating the production Prof. Raghavendran Venugopal 16
  17. 17. Dynamic Environment of International Trade• Comparative Advantages• Impact of National Policies• Impact of Countries Prof. Raghavendran Venugopal 17
  18. 18. Balance of Payment• It refers to the net results that are drawn recording all the visible and invisible items that are exported and imported from the country.• Balance of Payments is comprehensive record of economic transactions between residents of home country & residents of the other countries.• It includes • Current Account • Capital Account • Reserves Account Prof. Raghavendran Venugopal 18
  19. 19. Characteristics of Balance of Payment• It is statement of systematic record of all economic transactions between one country & rest of the world.• It is a annual statement & pertaining to time.• Listing receipts & payments in international transactions of a country.• Double entry book keeping system. Prof. Raghavendran Venugopal 19
  20. 20. Fundamental of BOP• Identifying an International Economic Transactions.• Understanding the flow of goods, services, money & assets. • Real assets • Financial assets• Book keeping procedures for accounting. Prof. Raghavendran Venugopal 20
  21. 21. Factors Affecting BOP• Cost of production• Demand of the supply• Cost & availability• Exchange rate movements• Domestic business• Trade agreements• External pressures• Price Prof. Raghavendran Venugopal 21
  22. 22. Protectionism• It is the economic policy of restraining trade between states through methods such as tariffs on imported goods, restrictive quotas and a variety of government regulations designed to discourage imports and prevent foreign take over of domestic markets and companies. Prof. Raghavendran Venugopal 22
  23. 23. Reasons for trade barriers• To protect domestic companies.• BOP position favorable.• To curb prominent consumption.• To mobilize revenue for the government.• To discriminate against certain countries. Prof. Raghavendran Venugopal 23
  24. 24. Types of international barriers• Tariff barrier• Non- tariff barrier• Intended constraint Prof. Raghavendran Venugopal 24
  25. 25. Global e-Marketing• Search of convenience• Internet into purchase process.• Shift loyalties.• Future buying plans. Prof. Raghavendran Venugopal 25
  26. 26. Death of distance• Potential of e-commerce • Lower transactions costs • Reduce inventory costs • Competitive business advantage • Expands market • Reduce the supply chain management. Prof. Raghavendran Venugopal 26
  27. 27. Major benefits of e-Marketing• Global reach• Easy marketing• Economics• Updates• More attractive presentation Prof. Raghavendran Venugopal 27
  28. 28. Communications• Building relationships,• Individual attention• Instant , cheap• Easy transactions Prof. Raghavendran Venugopal 28
  29. 29. Targeting an Individual customers• Customer access• Insight• Dialogue• Emotions• Customers transactions Prof. Raghavendran Venugopal 29
  30. 30. Relationship marketing• It is the process of building the long term, trusting, win-win relationships with customers, distributors, retailers and suppliers. – Key elements are » Interactions between suppliers and customers » Customers segments to customers satisfaction » Working , developing and enhancing relationship in internal markets and building strong external markets Prof. Raghavendran Venugopal 30