WHAT IS INTERNATIONAL BUSINESS ???• Wide range of activities involved in conducting business transactions across national boundaries• Described as being heterogeneous, universal and sequential• Comprehensive approach to operations of both large and small firms engaged in business abroad• Concerns all activities of the firm (selling, procurement, outsourcing…)• About seizing global opportunities (market expansion or diversification)
EPRG MODEL• Ethnocentric: everything is centered on the domestic market.• Polycentric: several important foreign markets exist.• Regiocentric: the market is composed of several large economic regions.• Geocentric: the world is one large global market.
INTERNATIONAL MARKETING• - “International marketing is the process of planning and conducting transactions across national borders to create exchanges that satisfy the objectives of individuals and organizations”• - It is a tool used to obtain improvement of the firm’s position in the global market
INTERNATIONAL MARKETING DECISIONS Deciding whether to go abroad Deciding which markets to enter Deciding how to enter the market Deciding on the marketing program Deciding on the marketing organization
INTERNATIONAL MARKETING CONCEPT Export marketing Global marketing Inter-cultural, multi- cultural marketing
INTERNATIONAL MARKETING MIX-PRODUCT• Product: a bundle of attributes• Hamburger: meat type, taste, texture, size• Automobile: power, design, quality, performance, comfort, size/capacity• Attributes need to be adapted to a greater or lesser extent to satisfy• Consumer preferences/tastes due to culture• Economic development levels affect consumer behavior• National product/technical standards state mandated
INTERNATIONAL MARKETING MIX- PLACE• Optimal channel a company chooses to deliver the product• The most locally responsive element of marketing mix because distribution channels vary dramatically across countries• Retail system: concentrated-fragmented• Channel length: long, short
INTERNATIONAL MARKETING MIX-PROMOTION Push vs pull strategies Push strategy: personal selling emphasis • Industrial products; complex new products • Short distribution channels • Few print or electronic media Pull strategy: mass media advertising emphasis • Consumer goods • Long distribution channels • Marketing message may be carried via print / electronic media
INTERNATIONAL MARKETING-PRICEPrice discrimination: demand elasticityStrategic pricing • Predatory (quick share of market focus): • lower prices to drive competitors out, then raise prices • Multipoint pricing: • pricing in one market may have an impact in another market • Experience curve: • use aggressive pricing to build volume and move firm down experience curve. Regulatory issues: • Monopoly restriction
RURAL MARKETING• In the India context, the word ‘RURAL’ is so much associated with agriculture and farmers that rural marketing tends to be seen as a marketing of inputs or outputs related to agriculture.
Urban Rural Manufacturing, trade, Cultivators n few non –Occupation commerce, professions. agricultural pursuits. urbanity & size of open farms & smallSize of Community community are +vely community are –vely co-related co-relatedDensity of Population Higher Lower Social mobility increases social mobility is less. MoreMobility with urbanity. migration from villages to townSystem of Interaction Higher Lesser
WHY RURAL MARKETING ??• Rural markets have become the new targets to corporate enterprises for two reasons : Urban market has become congested with too many competitors. The market have reached a near saturation point.
4P’S OF RURAL MARKETING• Product for rural market must be built or modified to suit the lifestyle and needs of the rural consumersProduct Strategies• New/Modified Product.• Utility Oriented Product• Avoiding Sophisticated Packaging• Application of value Engineering.• Small unit packaging
PRICE• The villagers due to their limited resources are very price sensitive by nature.• Pricing Strategies• Large Volume –low merging• Overall Efficiency And passing on benefits to consumers.• low cost/ value for money product• Low volume-low price.
PLACEPlace Strategy• Segmentation.• Coverage of villages with 2,000 and above population.• Distribution up to feeder markets.• Direct Contact with rural Retail.
PROMOTION• Promotion aspect always creates a challenge in rural markets because of the fact that village have thin population density and are widely spread over large remote areas.
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VARIOUS FACTORS WHICH HAVE MADE RULEMARKETS VIABLEo Large populationo Raising prosperityo Growth in consumptiono Life-style changeso Life-cycle advantageso Market growth rates higher than urbano Rural marketing is not expensiveo Remoteness is no longer a problem
EXAMPLES OF RURAL MARKETING• Nokia develop affordable Mobile phones for rural markets with unique features such as local language capabilities, present time/ call limits etc.• Philip develop a TV ‘ Vardaan’ for rural markets. This TV work on the voltage 90-270 volts.• Philips developed ‘ Free Power radio’ this radio do not require power and battery also. it run on simple winding of level provided in the set. The price of this attractive set is Rs. 995.