International marketing

1. International Marketing
M = R+ STP+ MM+ I + C
H N Ramakrishna
Retired Director Marketing
Bharat Electronics Ltd

2. Coverage of the Course
1. Introduction and importance, Basis of international trade,
Theories of international trade, Trade barriers, India’s foreign trade
since independence.
2. International Marketing Environment : Economic, Political,
Legal, Socio- cultural and Demographic. International Market entry
strategies- MNCs , Global marketers etc.
3. Organization for International Marketing : Objectives of
international marketing, Factors affecting international marketing,
International marketing mix strategy. Distribution strategies and
Types of intermediaries in international marketing.
4. Export Planning: Export finance, Letter of credit, Export
licensing, Export houses, Export risk and insurance, Export
promotion and Incentives by the Govt of India. Export-Import
policies of the Govt of India- Export documentation procedures and
formalities.
5. International Economic Institutions and Forums : GATT,
WTO, EFTA, LAFTA, EU, SAARC, World Bank, IMF and other
trading blocks and common marketing for international business.

3. References
1.International Marketing – Sak Onkvisit & John J. Shaw
2.International Marketing – Philip Cateora & John Graham
3.International Marketing – CA Francis
4.International Marketing – Rakesh Mohan Joshi
5.International Business – Rakesh Mohan Joshi
6.Kotler on Marketing – Philip Kotler
7.Good to Great – Jim Collins
8.Marketing Miopia – Theodore Levitt
9.The Effective Executive – Peter Drucker
10.The New Age of Innovation – CK Prahlad

4. “ The Price of Staying in Business
is
Eternal Innovation”

5. Organization of the Course
Lectures : 40 hours, 4 hours per week
Announced Test : 1 hour
Surprise Test : 1 hour
Group Exercises : 4
Course Viva
Lecture Schedule
MBA Course  Monday : 10-11
 Tuesday : 8-10
 Thursday : 9-10
PGPM Course  Monday : 8-10
 Tuesday : 10-11
 Thursday : 8-9

6. Introduction

7. ‘If the world operates as one big
market, every employee will compete
with every person anywhere in the
world who is capable of doing the same
job’ Andrew Grove, Former CEO, Intel

8. Random Events of the Global Village
 IBM opens global research lab in Africa
 Global plumbers brainstorm in Delhi !
 Boeing bags $100 billion order from Gulf companies
 Bangalore Scientist to join UNESCO’s tsunami project
 Clinched WTOdeal says India
 By 2024, 1 in 3 foreign pupils will be a Chinese or an Indian
 China suCCessfully lands probe on the moon
 I am High on Modi Says Kotler
 IMD Launches SMS Based Weather Alerts

9. Gandhiji’s View of Customers
A customer is the most important visitor on our
premises.
He is not dependent on us. We are dependent on him.
He is not an interruption on our work. He is the
purpose of it.
He is not an outsider on our business. He is part of it.
We are not doing him a favour by serving him.
He is doing us a favour by giving us an opportunity to
do so.
Mahatma Gandhi

10. ISO 9001 : Customer Focus
Clause 5.2 : Top management shall ensure that
customer requirements are determined and met with
the aim of enhancing customer satisfaction.
Clause 7.2.1 : Determination of requirements
related to the product.
Clause 8.2.1 : Customer satisfaction.
Why are we discussing ISO 9001 here ?

11. The roaring success of
four-wheeler Tata Ace, in
a market earlier
dominated by three-
wheeler load carriers,
was due to a deep
understanding of the
market needs and
customer requirements.
Good Marketing is no Accident

12. GoodsGoods
ServicesServices
Events & ExperiencesEvents & Experiences
PersonsPersons
Places & PropertiesPlaces & Properties
OrganizationsOrganizations
InformationInformation
IdeasIdeas
What is Marketed ?

13. Gurus on Marketing
Peter Drucker :
It is the whole business seen from the point of view of
the final result that is from the customer’s point of view.
The customer is the foundation of a business and
keeps it in existence. He alone gives employment.

14. Selling is only the Tip of the Iceberg
“There will always be a need for
some selling. But the aim of marketing
is to make selling superfluous. The aim
of marketing is to know and understand
the customer so well that the product or
service fits him and sells itself. Ideally,
marketing should result in a customer
who is ready to buy. All that should be
needed is to make the product or
service available.”
Peter Drucker

15. Theodore Levitt :
Organizations must consider and adapt to market
conditions.
Effective leadership has to consider the needs of
customers.
An organization must view itself as a customer
satisfying organism.
Every aspect of an organization should be aware of
the importance of its customers.
Gaining and retaining customers should be the
primary consideration.
Gurus on Marketing

16. Philip Kotler :
The guiding principle in marketing is consumer value.
Marketing is based on the process of exchange.
To achieve success, organizations have to respond to
changes in the external environment.
Such responses necessitate preparation of a strategic
plan.
The strategic plan should be followed by marketing
planning.
The marketing plan should pay attention to marketing
mix.
Gurus on Marketing

17. Michael Porter :
Porter’s Five Forces governing competition :
1.Potential entrants
2.Competitive rivalry
3.Substitutes
4.The bargaining power of buyers
5.The bargaining power of suppliers
All five forces jointly determine the intensity of industry
competition and profitability and the strongest force or
forces are governing and becoming crucial from the
point of view of strategy formulation.
Gurus on Marketing

18. CK Prahalad’s View
Technical Architecture of the firm
N = 1 R = G
The New House of Innovation :
Fundamental Transformation of Business
Flexible and resilient
Business processes
& focussed analytics
Social Architecture of the
firm

19. Key elements of Transformation
 Value shift from products to solutions to experiences
(N=1).
 All companies will have to access talent, components,
products and services from the best source (R=G).
CK Prahalad’s View

20. Quiz Question
 What is the common theme in Gandhiji’s
message, ISO 9001 and Marketing /
Management Gurus ?

21. Trade - Marketing - Business
1 2 3
1. International Trade
2. International Marketing
3. International Business

22. National Marketing Vs International Marketing
 The distinction arises from the differences in the
environment.
 International marketing managers have to deal with
environmental challenges which are beyond the
firm’s control and do vary significantly among
countries. If a firm operates in multiple countries, the
complexity increases multi-fold.

23. A Simple Marketing System

24. Definitions
International Trade : The exchange of goods
between countries for mutual gain
International Marketing :
“ Marketing activities of a company in an
international environment ”
“ Marketing carried out across national boundaries”
“ The performance of business activities designed to
plan, price, promote and direct the flow of a company’s
goods and services to consumers or users in more than
one nation for a profit “

25. International Marketing :
“ Multinational process of planning and executing the
marketing mix to create exchanges that satisfy
customer’s and organizational objectives”
“ Management process for identifying, anticipating and
satisfying customer requirements profitably”
The four Ps of marketing must be integrated and
coordinated across countries in order to bring about the
most effective marketing mix that will facilitate an
exchange.
Definitions

26. International Business : Business activities that
involve cross border transaction of goods, services and
resources between two or more nations.
Definitions

27. Globalization
Defined as the economic integration and
interdependence of national economies across the
world through a rapid increase in cross border
movement of goods, services, technology and capital.
Globalization is a result of increasing influence
exerted by economic, political, socio-cultural and
financial processes across the globe.
It offers not only numerous challenges to business
enterprises but also presents immense opportunities.

28. Challenges
Opening up of domestic market to foreign companies
increases competition even for the local companies
solely operating in domestic markets.
Liberal investment regime facilitates international
competitors in establishing business operations, giving
rise to increased competition to companies that have
been accustomed to operate in protected markets.

29. Opportunities
Increased market access and reduced tariffs make
foreign markets not only accessible , but increase
competitiveness as well.
Liberalization of regulatory framework for investment
in target countries enables companies to invest and
expand their business operations abroad.
Integration of business operations on a global scale.
Development of global capabilities.

30. Globalization: Enablers Vs Constraints
Enablers
Constraints
Economic
Liberalization
Technological
Breakthrough
Multilateral
Institutions
Economic
Integration
Free Marketing
Systems
Rising R&D
Costs
Logistics
Management
Global Customer
segments
Regulatory
controls
Trade barriers
Cultural
factors
Nationalism
Management
myopia
Wars & civil
disturbances

31. What Makes a Great Company ?
Disciplined People Disciplined Thought Disciplined Action
Fly wheel
Level 5
Leadership
First who..
Then what
Confront the
Brutal facts
Hedgehog
Concept
Culture of
discipline
Technology
accelerators
Build up
Breakthrough

32. The Hedgehog Concept
What you are deeply
passionate about
What you can
be the best in
the world at
What drives
your economic
engine

33. In the Christian era, India was the most populated
country with 75 million people constituting 32.5% of
world population.
China was in the second place with 59.6 million
people constituting 25.8% of world population.
In this period, India was the world’s largest economy
with 32.9% share of world’s GDP followed by China
(26.1%).
Much later, India’s foreign trade was largely
determined by the strategic needs of the British Colonial
Powers until its independence in 1947.
The dependence of India on Britain for manufactured
goods hindered the process of industrialization.
India’s International Trade

34. India’s International Trade
After independence, India’s trade patterns began to
change in view of its developmental needs.
India had to import equipment and machinery in order
to create production capacity and build infrastructure.
It had to also import consumer goods such as food
grains that were in short supply domestically, in order to
curb inflationary pressures.
During 1950-51, India’s export and import were 1.269
and 1.273 USD Billion respectively. The figures for
2012-13 are 300.6 and 491.4 USD Billion.
The growth of India’s exports has been much lower
than that of some of the South East Asian countries.

35. India’s International Trade Performance
Year Exports Imports
Share % Rank Share % Rank
2000 0.7 31 0.8 26
2005 0.9 29 1.3 17
2007 1.0 26 1.5 18
2008 1.1 26 1.8 17
2009 1.2 22 1.9 15
2010 1.4 20 2.1 13
Goods

36. India’s International Trade Performance
Year Exports Imports
Share % Rank Share % Rank
2000 1.2 22 1.4 19
2005 2.3 11 2.2 13
2007 2.7 9 2.5 13
2008 2.8 9 2.6 12
2009 2.6 12 2.4 12
2010 3.0 10 3.3 7
Services

37. India’s Exports : 2002-2014
Year USD Billion
2002-03 52.81
2003-04 63.95
2004-05 83.81
2005-06 103.42
2006-07 126.41
2007-08 163.10
2008-09 185.30
2009-10 178.80
2010-11 251.10
2011-12 306.00
2012-13 300.60
2013-14 312.00

38. Constraints in India’s exports growth
1. Adoption of import substitution rather than export
promotion strategy
2. Over protection to Indian industry from external
competition
3. High import barriers
4. High import tariffs
5. Inadequate infrastructure
6. Complexity of export procedures

39. Benefits of International Marketing
1. Survival and growth
2. Sales and profits
3. Diversification
4. Inflation and price moderation
5. Employment
6. Standards of living
7. Absorption of good practices

40. Major Obstacles to International Marketing
1. Self-Reference Criterion
 Unconscious reference to one’s own cultural values,
experiences and knowledge as a basis for decisions.
2. Ethnocentrism
 Notion that one’s own country/company knows best
how to do things.
 Both impede the ability to assess a foreign market in
the true light.
 They can influence the evaluation of the suitability of
a domestically designed marketing mix for a foreign
market.

41. Kotler’s Marketing Process
Marketing
Research
Strategic
Marketing
Tactical
Marketing
Administrative
Marketing
R STP MM I & C
Frame work of International Marketing

42. Marketing Mix

43. Framework of International Marketing
Decision to enter international markets
Set objectives
Market identification,
segmentation and targeting
Entry mode decisions
Implement decisions
Review performance
Consolidation
Marketing mix
decisions
Product
Price Place
Promotion

44. Supplementary Material

45. India’s Imports & Exports

46. Source: commerce.nic.in
Top Ten Commodities of Export – 2013-14

47. India’s Imports & Exports

48. Country wise Export

49. India’s Exports

50. India’s Imports

51. India’s Imports & Exports