This document provides an overview of key concepts in international marketing. It defines international marketing as finding and satisfying global customer needs better than competitors. Companies engage in international marketing to expand sales, acquire resources, diversify sales sources, and minimize risk. Firms can carry out international operations through exports, imports, and foreign investments. Reasons for growth in international marketing include technology expansion, liberalized trade policies, and increased global competition. Challenges include differing political, cultural, and competitive environments across countries. The document also discusses international marketing orientation approaches and factors that influence product planning and decisions in international markets.
6. International Marketing, Market Selection, Modes of Entry in International...Charu Rastogi
This presentation defines international marketing, international marketing decisions, challenges of international marketing, and driving and restraining forces of international marketing. It goes on to discuss the process of market selection, firm related, market related and other factors effecting market selection. It also reflects on various modes of entry into foreign markets such as exporting (commercial strategy, commercial mode), foreign direct investment (industrial strategy, integrated modes) and associated or contractual modes (contractual strategy, competitive alliances). The presentation closes with a case study on the experience of Proctor and Gamble (P&G) in various international markets like Japan, China and India.
International Marketing Management - IntroductionSOMASUNDARAM T
Definition; scope and challenges; difference between international marketing and domestic marketing; the dynamic environment of international trade; transition from domestic to international markets orientation of management and companies; international marketing environment.
In this presentation, we will discuss about International Business Environment while focusing on the factors to globalize a business. Types of international business, growing importance to globalize, motivators to become an international company for a domestic firm will also be discussed here. Various favorable business environment and strategic decisions that influence and affect international business will be discussed along with.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
international trade theory
,
why is free trade beneficial
,
what role does government have in trade
,
what is mercantilism
,
what is the heckscher-ohlin theory
,
how does the theory of absolute advantage work
,
is a current account deficit bad
,
what is smith’s theory of absolute advantage
,
what is the balance of payments
,
what is new trade theory
,
what is ricardo’s theory of comparative advantage
6. International Marketing, Market Selection, Modes of Entry in International...Charu Rastogi
This presentation defines international marketing, international marketing decisions, challenges of international marketing, and driving and restraining forces of international marketing. It goes on to discuss the process of market selection, firm related, market related and other factors effecting market selection. It also reflects on various modes of entry into foreign markets such as exporting (commercial strategy, commercial mode), foreign direct investment (industrial strategy, integrated modes) and associated or contractual modes (contractual strategy, competitive alliances). The presentation closes with a case study on the experience of Proctor and Gamble (P&G) in various international markets like Japan, China and India.
International Marketing Management - IntroductionSOMASUNDARAM T
Definition; scope and challenges; difference between international marketing and domestic marketing; the dynamic environment of international trade; transition from domestic to international markets orientation of management and companies; international marketing environment.
In this presentation, we will discuss about International Business Environment while focusing on the factors to globalize a business. Types of international business, growing importance to globalize, motivators to become an international company for a domestic firm will also be discussed here. Various favorable business environment and strategic decisions that influence and affect international business will be discussed along with.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
international trade theory
,
why is free trade beneficial
,
what role does government have in trade
,
what is mercantilism
,
what is the heckscher-ohlin theory
,
how does the theory of absolute advantage work
,
is a current account deficit bad
,
what is smith’s theory of absolute advantage
,
what is the balance of payments
,
what is new trade theory
,
what is ricardo’s theory of comparative advantage
Concept of international business environmentPinki Verma
Presentation on Concept of International Business Environment which includes:
1. Difference between International Business and International Business Environment
2.Difference between Domestic Business and International Business
3.Entry Modes of International Business
4.Nature of International Business
5.Advantages of International Business
6.Classification Of International Business Environment
(a) Micro and Macro Environment
(b) Domestic, Foreign and Global Environment
7.Components Of International Business Environment with examples.
To watch more ppt follow our channel.
Presentation on international business( differences in culture)Md. Sourav Hossain
This assignment will help every student for making their assignment and presentation better and effective. From it every student will understand the cultural differences in the world.
EPRG Characteristics -international-businessDinker Vaid
Ethocentric, Geocentric, Polycentric, regiocentric Approach.
(EPRG)
International Business. How to see these parameters to diversify the companies and products and policies.
The Characteristics, HRM practices, culture, Policies etc.
Concept of international business environmentPinki Verma
Presentation on Concept of International Business Environment which includes:
1. Difference between International Business and International Business Environment
2.Difference between Domestic Business and International Business
3.Entry Modes of International Business
4.Nature of International Business
5.Advantages of International Business
6.Classification Of International Business Environment
(a) Micro and Macro Environment
(b) Domestic, Foreign and Global Environment
7.Components Of International Business Environment with examples.
To watch more ppt follow our channel.
Presentation on international business( differences in culture)Md. Sourav Hossain
This assignment will help every student for making their assignment and presentation better and effective. From it every student will understand the cultural differences in the world.
EPRG Characteristics -international-businessDinker Vaid
Ethocentric, Geocentric, Polycentric, regiocentric Approach.
(EPRG)
International Business. How to see these parameters to diversify the companies and products and policies.
The Characteristics, HRM practices, culture, Policies etc.
Thinking of a career in international business? See if you and an international job environment are a good fit. Fuel the growth and success of multinational corporations with a career in international business. You’ll find many exciting opportunities for work at home and abroad. An increasing number of businesses now conduct business globally. In international business you’ll engage with global and cultural business issues as an import/export agent, translator, foreign currency investment advisor, foreign sales representative, international management consultant and more. If you’re in interested in learning where international business can take you, learn which personal and professional traits you’ll need to succeed.
Unit I (8 lectures)
Introduction: Definition, Nature, Scope, Trends, Challenges & Opportunities, Meaning and
Theories of International Trade.
International Financial Perspectives: International Monetary Systems and Financial Markets,
IMF, World Bank, IBRD, IFC, IDA
Come learn how YOU can Animate and Illuminate the World with Generative AI's Explosive Power. Come sit in the driver's seat and learn to harness this great technology.
A.I. (artificial intelligence) platforms are popping up all the time, and many of them can and should be used to help grow your brand, increase your sales and decrease your marketing costs.In this presentation:We will review some of the best AI platforms that are available for you to use.We will interact with some of the platforms in real-time, so attendees can see how they work.We will also look at some current brands that are using AI to help them create marketing messages, saving them time and money in the process. Lastly, we will discuss the pros and cons of using AI in marketing & branding and have a lively conversation that includes comments from the audience.
Key Takeaways:
Attendees will learn about LLM platforms, like ChatGPT, and how they work, with preset examples and real time interactions with the platform. Attendees will learn about other AI platforms that are creating graphic design elements at the push of a button...pre-set examples and real-time interactions.Attendees will discuss the pros & cons of AI in marketing + branding and share their perspectives with one another. Attendees will learn about the cost savings and the time savings associated with using AI, should they choose to.
SMM Cheap - No. 1 SMM panel in the worldsmmpanel567
Boost your social media marketing with our SMM Panel services offering SMM Cheap services! Get cost-effective services for your business and increase followers, likes, and engagement across all social media platforms. Get affordable services perfect for businesses and influencers looking to increase their social proof. See how cheap SMM strategies can help improve your social media presence and be a pro at the social media game.
Search Engine Marketing - Competitor and Keyword researchETMARK ACADEMY
Over 2 Trillion searches are made per day in Google search, which means there are more than 2 Trillion visits happening across the websites of the world wide web.
People search various questions, phrases or words. But some words and phrases are searched
more often than others.
For example, the words, ‘running shoes’ are searched more often than ‘best road running
shoes for men’
These words or phrases which people use to search on Google are called Keywords.
Some keywords are searched more often than others. Number of times a keyword is searched
for in a month is called keyword volume.
Some keywords have more relevant results than others. For the phrase “running shoes” we
get more than 80M relevant results, whereas for “best road running shoes for men” we get
only 8.
The former keyword ‘running shoes’ has way more competition from popular websites to
new and small blogs, whereas the latter keyword doesn’t have that much competition. This
search competition for a keyword is called search difficulty of a keyword or keyword
difficulty.
In other words, if the keyword difficulty is ‘low’ or ‘easy’, there won’t be any competition
and if you target such keywords on your site, you can easily rank on the front page of Google.
Some keywords are searched for, just to know or to learn some information about something,
that’s their search intention. For example, “What shoe size should I choose?” or “How to pick
the right shoe size?”
These keywords which are searched just to know about stuff are called informational
keywords. Typically people who are searching this type of keywords are top of a Conversion
funnel.
Conversion funnel is the journey that search visitors go through on their way to an email
subscription or a premium subscription to the services you offer or a purchase of products
you sell or recommend using your referral link.
For some buyers, research is the most important part when they have to buy a product.
Depending on that, their journey either widens or narrows down. These types of buyers are
Researchers and they spend more time with informational keywords.
Conversion is the action you want from your search visitors. Number of conversions that you
get for every 100 search visitors is called Conversion rate.
People who are at different stages of a conversion funnel use different types of keywords.
Mastering Local SEO for Service Businesses in the AI Era is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business.
Key Takeaways:
Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
The digital marketing industry is changing faster than ever and those who don’t adapt with the times are losing market share. Where should marketers be focusing their efforts? What strategies are the experts seeing get the best results? Get up-to-speed with the latest industry insights, trends and predictions for the future in this panel discussion with some leading digital marketing experts.
Videos are more engaging, more memorable, and more popular than any other type of content out there. That’s why it’s estimated that 82% of consumer traffic will come from videos by 2025.
And with videos evolving from landscape to portrait and experts promoting shorter clips, one thing remains constant – our brains LOVE videos.
So is there science behind what makes people absolutely irresistible on camera?
The answer: definitely yes.
In this jam-packed session with Stephanie Garcia, you’ll get your hands on a steal-worthy guide that uncovers the art and science to being irresistible on camera. From body language to words that convert, she’ll show you how to captivate on command so that viewers are excited and ready to take action.
Most small businesses struggle to see marketing results. In this session, we will eliminate any confusion about what to do next, solving your marketing problems so your business can thrive. You’ll learn how to create a foundational marketing OS (operating system) based on neuroscience and backed by real-world results. You’ll be taught how to develop deep customer connections, and how to have your CRM dynamically segment and sell at any stage in the customer’s journey. By the end of the session, you’ll remove confusion and chaos and replace it with clarity and confidence for long-term marketing success.
Key Takeaways:
• Uncover the power of a foundational marketing system that dynamically communicates with prospects and customers on autopilot.
• Harness neuroscience and Tribal Alignment to transform your communication strategies, turning potential clients into fans and those fans into loyal customers.
• Discover the art of automated segmentation, pinpointing your most lucrative customers and identifying the optimal moments for successful conversions.
• Streamline your business with a content production plan that eliminates guesswork, wasted time, and money.
10 Video Ideas Any Business Can Make RIGHT NOW!
You'll never draw a blank again on what kind of video to make for your business. Go beyond the basic categories and truly reimagine a brand new advanced way to brainstorm video content creation. During this masterclass you'll be challenged to think creatively and outside of the box and view your videos through lenses you may have never thought of previously. It's guaranteed that you'll leave with more than 10 video ideas, but I like to under-promise and over-deliver. Don't miss this session.
Key Takeaways:
How to use the Video Matrix
How to use additional "Lenses"
Where to source original video ideas
For too many years marketing and sales have operated in silos...while in some forward thinking companies, the two organizations work together to drive new opportunity development and revenue. This session will explore the lessons learned in that beautiful dance that can occur when marketing and sales work together...to drive new opportunity development, account expansion and customer satisfaction.
No, this is not a conversation about MQLs and SQLs. Instead we will focus on a framework that allows the two organizations to drive company success together.
In this presentation, Danny Leibrandt explains the impact of AI on SEO and what Google has been doing about it. Learn how to take your SEO game to the next level and win over Google with his new strategy anyone can use. Get actionable steps to rank your name, your business, and your clients on Google - the right way.
Key Takeaways:
1. Real content is king
2. Find ways to show EEAT
3. Repurpose across all platforms
Digital marketing is the art and science of promoting products or services using digital channels to reach and engage with potential customers. It encompasses a wide range of online tactics and strategies aimed at increasing brand visibility, driving website traffic, generating leads, and ultimately, converting those leads into customers.
https://nidmindia.com/
1. *MARKETING
collection of activities undertaken by the firm to relate profitability to its
market
-study its prospective buyers
-develop products that satisfy customer needs and wants
-set prices that appear reasonable
-distribute products
-inform the market
-after sales-services
*INTERNATIONAL MARKETING
Consists of finding and satisfying global customer needs better than the
competition, both domestic and international, and of coordinating marketing
activities within the constraints of the global environment
2. -concerned with the micro level of the market
-uses the company as the unit of analysis
The multinational process of planning and executing the conception,
pricing,
promotion and distribution of ideas, goods and services to create exchanges
that
satisfy individual and organizational objectives
-AMA
* WHY COMPANIES ENGAGE IN INTERNATIONAL MARKETING
-to expand their sales
-acquire resources
-diversify their sources of sales and supplies
-minimize competitive risk.
*MEANS OF CARRYING OUT INTERNATIONAL MARKETING
OPERATIONS
-merchandise exports and imports
-service exports and imports
-investments
3. * REASONS FOR RECENT GROWTH IN INTERNATIONAL MARKETING
-expansion of technology
-liberalization of government policies regarding cross border movement of
goods and resources
-development of supporting institutional arrangements
-increased global competition
*CHALLENGES FIRMS FACE IN INTERNATIONAL MARKETING
-political and legal environment
-Cultural environment
-competitive environment
4. *PROCESS OF INTERNATIONALIZATION/STAGES OF INTERNATIONAL
MARKETING
1) DOMESTIC MARKETING COMPANY
Focusing solely on domestic consumers and economy
2)EXPORTING MARKETING COMPANY
begins with unsolicited orders from abroad
tend to engage in indirect exporting
Eg:Birla Tyres
3)INTERNATIONAL /MULTINATIONAL MARKETING COMPANY
Focus on consumer needs and requirements in more than one country and
accordingly devises product, price and promotion strategies
Eg: Samsung, LG Electronics
5)GLOBAL /WORLDWIDE MARKETING COMPANY
Global product with local variations
Eg:Ranbaxy
5. INTERNATIONAL MARKETING ORIENTATION
On the basis of EPRG framework, Wind Douglas and Per mutter have
analyzed a
company’s approach towards global opportunities
1)ETHNOCENTRIC APPROACH
Develop their products on the basis of the requirements of local customers
Are highly domestic centralized
Eg: Hero Cycles
2)POLYCENTRIC APPROACH
Each market is unique and needs to be addressed individually and
differently.
Firms conduct their own business research ,plan their own product
adaptations,
price positioning and promotion strategy to suit local needs.
Eg: Ford Motors, Toyota
3)REGIOCENTRIC APPROACH
Segment the market on the basis of regional similarities eg economic,
political etc
6. 4)GEOCENTRIC APPROACH
Manufacturers offer homogenous, identifiable services and products to integrate
for worldwide operational efficiency
Eg:McDonald’s,Pizza Hut
TYPES OF GOVT. AND POLITICAL ECONOMIC SYSTEM
1 ) Collectivism vs. Individualism
Refers to a political system that stresses the primacy of the collective goals and
the
needs ,welfare and benefits of a society are given more importance over that of an
Individual.
2) Socialism
Is a system that advocates government ownership and control of industry
considered critical to the welfare of the nation.
3)Communism vs.Social Democrats
Socialism can be achieved only through violent revolution and totalitarian
dictatorship.
Social democrats believed that socialism could be achieved by democratic means
7. 4) Individualism
Every man should have freedom to pursue his economic and political aims
5) Democracy
Govt is elected by the people and is administered and run by the
representatives
of the people
6) Totalitarianism
Denies its citizens all those guarantees on which democratic nations thrive
POLITICAL RISKS IN INTERNATIONAL MARKETING
1) Economic performance of the country
2) Political stability
3) Spirit of nationalism
4) Risk related to the govts trade policies
5) Risks pertaining to economic policy
6) Confiscation of international firm's assets
7) Expropriation of firm’s asset
When the govt seize the firm’s investments and offer a nominal
compensation for
8. the same ,such expropriated assets are managed by the public sector
agencies
as nationalised units
8) Nationalisation of business assets
When the govt decides to move the property and assets of business from
private
hands to got sponsored public sector undertaking or agencies
9) Domestication
Using locally manufactured raw material for manufacturing products of
international firms
Gradual transfer of ownership and management of international firms to
local
managers
not permitting repatriation of funds and profit above a certain limit and
insisting
on profits being deployed back in the local industry.
10) Diplomatic severances and political sanctions
11) Risks pertaining to Non-Governmental organizations and social activist
12)Risks pertaining to religious and political terrorism and extremisms
13)Terrorism on net
10. INTERNATIONAL TRADE THEORY-SIGNIFICANCE AND BENEFITS
OF
INTERNATIONAL TRADE
WHY DOES INTERNATIONAL TRADE TAKES PLACE?
-entrepreneurial and labour skills differ
-factor endowments are not the same
-human wants are multiple and varied. No single country satisfies all of them
-level of technology is different in different countries
THE THEORY OF COMPARATIVE COST-CLASSICAL VIEW
The classical theory of international trade is an application of the principle of
division of labor known as the Theory of Comparative Cost
International trade occurs due to geographical specialisation in the production
of
different goods due to differences in the comparative cost of production of two
nations
Adam Smith asserted that international trade occurred because of absolute
advantage by a particular country in particular product and absolute advantage
11. enjoyed by another country in another product.
The principle of comparative cost was formulated by David Ricardo
Assumptions of Classical theory
1)By production cost, the classicists regarded only labour cost
2) A policy of laissez faire is advocated
3)There is perfect competition
4)All labourers were assumed to be homogenous
5)There are constant returns to scale
6) The factors of production are completely mobile within the country and
perfectly immobile between different countries
7)Transport cost are zero
8) Trade takes place only in case of goods. There is no capital movement
9)It is assumed that there are only two countries
10) There are no trade cycles in the economy
12. CRITICAL EVALUATION (stated by Bertin Ohlin and Frank D. Graham)
-unrealistic assumption of labour cost
-static nature of theory
-neglect of transport cost
-assumption of fixed proportions
-assumption of constant costs
-Unrealistic theory
-inadequate explanation of comparative cost
-demand conditions ignored
-Complete specialization is impossible
MODERN THEORY OF INTERNATIONAL TRADE
Bertil Ohlin built up his theory of international trade on the basis of the
following
assumptions
-there are two regions only between which trade takes place
-factors of production are perfectly mobile within the regions
-no restrictions on the movement of goods between the two regions
13. -no transportation costs
-goods transactions alone are to be considered
-no qualitative differences in the factors of production in the two regions
-each region possesses a paper currency system
REFINEMENTS OF THE THEORY
- His theory would also be applicable to more than two regions or countries
- Introduced the economies of large scale production
- Qualitative differences in three factors of production i.e. land,labour and capital
- Introduced transport costs
CRITICISM OF THE MODERN THEORY
- Unrealistic character
- Provides at best only a partial equilibrium analysis, not a general equilibrium
system
-Leontief paradox
factor prices are determined not only by the supply of productive factors, but also
by the demand for their services
14. - Trade even with identical factor endowments
- Commodity prices determine factor prices
the price of a commodity is determined by its utility to the consumers
- Product differentiated
- Highly static in nature
- Production functions not identical
- Qualitative differences in productive factors
- Mobility of productive factors
15. EXPORT BUSINESS ENVIRONMENTS
SIGNIFICANT CHANGES
Rapid growth of world trade and investments
International competitiveness, constant foreign trade deficit and present foreign
exchange crisis
Growth of global brands in autos,food,clothing,electronics etc
The gradual opening up of major new markets,namely,China,Eastern Europe and
the Arab countries
Increased forming of strategic alliances between major international companies
from different countries
Substantial speedup of international transportation, communication and financial
Transactions
I] ECONOMIC ENVIRONMENT
1) Income
2) Level of economic development
characters reflect the country’s attraction as an export market
-size of the country’s population
16. -the country’s industrial structure
There are four types of industrial structures
A} subsistence economies
Majority of people engage in simple agriculture
B}raw material exporting economies
These economies are rich in one or more natural resources but poor in other
aspects e.g. Chile for tin and copper
C} industrializing economies
D}developed economies
3 ) levels of savings
4) Economic policies of the ruling govt
II) DEMOGRAPHIC ENVIRONMENT
-Population of the country and its growth rate
-male/female ratio
-family size
-purchasing power of consumers
-importance of middle class
17. III) SOCIO-CULTURAL ENVIRONMENT
-culture
-social structure
-Religious and ethical systems
-language
-education
-cultural change
-habits and behavior
IV)LEGAL ENVIRONMENT
Various laws,rules,procedures and regulations made by the govt
Laws relating to environment protection,ecology protection, retail price
maintenance
V) TECHNOLOGICAL ENVIRONMENT
Opportunities for innovation, varying R&D budgets
18. PRODUCT PLANNING AND DECISIONS
a bundle of physical, psychological, tangible and intangible, present and future
attributes that but together bring satisfaction or benefits to the buyer beyond the
price paid by him.
BASIC CLASSIFICATION OF PRODUCTS
1)Industrial Products (Capital goods and raw materials)
-These are the products that can be sold for use in producing other goods and
services, altering the very nature of the original product.
2)Consumer Products
-These products satisfy a customer’s need and do not require further processing.
-three categories on the basis of buyers behaviour and on the purchase action of its
consumers.
a) Convenience products
these are meant for day to day living and basic survival and are brought on instinct,
eg., food items medicine and toiletries etc.
b) Shopping products
these are purchased after thorough planning in advance, where the customer may
have a
preconceived and predetermined brand and budget in mind.
19. c) Specialty Products
these are products that are specially designed and manufactured to cater to a specific
demand of customers,
eg., specially designed, tailor- made dress, or a custom made sports car.
PRODUCT PLANNING IN INTERNATIONAL MARKETS
-refers to the process of determining the length and depth of the product line to be
offered.
-length will specify the number of products to be offered
-depth will relate to the various shades to be adopted for the same product in different
international markets.
Local Products
-When a product is available in a town or, at best, in a region of the nation state, it
will be known as local product.
-Ex: MTR Spices
National Products
A product that is sold and marketed only within the confines of a national state.
When Dabur India offers ‘Real Fruit Juices’ and Godrej markets ‘Appy’
20. International Products
- The products that are sold across many countries are called international products.
- Ex: Suzuki, Honda and Hyundai Technologies.
Global Products
- True global market are always marketed in global markets, in all continents, and in
every
country
-create same perception across continents by universal positioning
e.g Pepsi, Pepsi's Tropicana juice Coke, Nestle , Cadburys and Sony
PRODUCT EXTENSION
-Companies here extend the same product marketed successfully in the home market to
other parts of the world without many modifications
-adopted when enough loyalty has been earned in the home market
e.g.MTR spices ,Mother’s Recipes pickle
PRODUCT STANDARDIZATION AND ADAPTATION
-process of marketing a product in international markets by affecting little change in the
basic nature of the product
-product positioning and strategy also remain ,more or less, the same
21. Advantages of standardization
-builds up a global brand and product image
-economies of large –scale productions help achieve an economic cost
-global marketing mix can be developed at an optimum cost
FACTORS THAT FAVOUR STANDARDIZATION
1) High technology intensive industry
- cost of putting up plants in each country in high technology oriented industry
can be
prohibitively expensive
- may not be able to find right kind of quality staff to produce another version of
the same
product as per international standards
e.g. industrial capital equipment, computer hardware
2) Prohibitive Adaption Costs
- Mean reconverting the product once it has been standardized for one country.
- Will involve making investments on alternate product manufacturing systems
to meet new customers needs or to alter the promotion and communication
strategy.
3) Emergence of global customers
- Their tastes, preferences, needs aspirations for achieving similar standards of
living and dreams of better future all converge into a global niche of common
identified segmentation of sizable market universe.
22. - e.g. TV, Levi’s Jeans, McDonalds, Pizza hut, Kentucky Fried Chicken, Café coffee
day are accepted as popular products by the global customers.
4) Country of origin
- It has been a tradition to associate and ascribe excellence of quality of certain
products to their original innovation sources or country of origin.
- Eg: Swiss watches
PRODUCT ADAPTATION
-modifying product as per the requirements of overseas consumers.
a) Global variations in physical conditions, such as geography, topography, weather,
climatic conditions, availability of logistical support, earning systems and means of
livelihood, per capita income and standards of living of the inhabitants of the
country etc.
b) Varying cultural manifestations, consumer tastes and perceptions, usages,
purchasing patterns, consumptions and satisfaction drivers.
c) Various levels of competition and the competitive strategies adopted by the other
international marketing firms around the globe.
Eg: Mattel Toys, in order to lure Indian children, offer dolls that are replicas of Indian
Brides.
23. PRODUCT COMMUNICATION STRATEGIES
A product can be marketed abroad only with the help of a communication strategy,
which is
what conveys the promotional theme to consumers abroad, allowing them to form
perceptions about the product, spelling out, in turn, the quantitative and qualitative
sales
for the manufacturers.
Keegan has identified five major product communication strategies international
marketers
can chose from to convey the message to customers in different foreign markets.
ONE PRODUCT / ONE COMMUNICATION STRATEGY WORLDWIDE (DUAL
EXTENSION)
-This strategy is also known an extension of the product,
-extension of communication about the product in foreign markets by international
marketing firms.
-Same product that is offered to the domestic customer is marketed in international
markets without any significant changes in the product profile or even in the
campaign
themes.
Eg: Pepsi, Coca Cola
Cost of research and development and the expense on marketing activities can be
24. PRODUCT EXTENSION / COMMUNICATION ADAPTATION STRATEGY
-Same product can be viewed differently in a foreign market, even though its basic
functions
remain same.
-Customer may look for additional need fulfillment or an altogether different need
satiation
from the product.
E.g.: three wheeled auto rickshaws are commercial transport vehicles in India, but in
Srilanka it has been converted like a car.
-Such adaptations does not change the basic construction of the product but creates
an
altogether different perception in the minds of the user.
PRODUCT ADAPTATION / COMMUNICATION EXTENSION STRATEGY
-Products are modified to suit alternate usage patterns, weather conditions and
statutory
requirements abroad to adopt the same communication strategy in different
countries.
-Eg: clothing may serve the purpose of fashion everywhere, yet the fashion designer
will
25. PRODUCT / COMMUNICATION ADAPTATION STRATEGY
-Strategy involves modifying both the product as well as communication to meet the
tangible as well as intangible needs of customers in all countries.
-Such a move is also called as dual adaptation strategy
-Strategy is adapted when the conditions of use as well as condition related to
environments differs from country to country.
-Eg: Americans like to store enough food for the week at home.
INTERNATIONAL MARKETING MIX
-idea was first coined by Professor Neil H. Borden of the Harvard Business School in
1965
-the four controllable variables are
a) PRODUCT
Assessment of consumer needs, product standardization or adaptation, packing and
packaging,branding,after sales services and warranties
b) PRICE
Price determination and administration, competitors pricing strategy and consumer
response
26. c) PROMOTION
Advertising and sales promotion, merchandising, public relations and
management
of sales force
d) PLACE
Channel selection, management, channel remuneration ,transport management
MEANING OF PRODUCT PLANNING
Study of product in international market includes
-product planning and development
-product life-cycle
-branding decisions
-packaging decisions
NEED AND IMPORTANCE OF PRODUCT PLANNING IN INTERNATIONAL
MARKET
1) Product introduction
Three strategies for introducing a product are product standardization ,product
adaptation and product innovation
27. 2) Packaging decisions
An attractive and durable packaging not only protects the product but also acts as
a
silent salesman
3) Branding decisions
4) Product mix or product line decisions
5)Product positioning decisions
Is the act of designing the company’s offer ao that it occupies a distinct and valued
place in the target customer’s minds
6) Product labeling and marking decisions
7)Product warranty decisions
A warranty attests the suppliers commitment to quality and performance of the
product as stipulated at the time of sale
8)After-sales services
Is provided by the seller to maintain the product in working condition
PRODUCT PLANNING STRATEGIES FOR INTERNATIONAL MARKET
1) Product standardization strategy
2) Product adaptation strategy
28. 3) Product innovation strategy
A company develops a totally new product for overseas markets
e.g. Gillette
NEW PRODUCT DEVELOPMENT PROCESS
a) Idea generation
b) Idea screening
c) Concept testing (seeking expert advice on production and marketing of a
new product)
d) Business analysis (demand analysis, cost analysis and profit potential)
e) Product development (actual undertaking of production by arranging
necessary physical and financial resources and basic infrastructure)
f) Test marketing (refers to testing of the actual product in one or two
markets on a small scale)
g) Commercialization(if test results are positive, the marketer can go
ahead with the commercial production and marketing on a large scale)
29. INTERNATIONAL PRODUCT LIFE CYCLE
Raymond Vernon emphasized that the life cycle starts with the location from
where the product originates
-innovator familiar with needs of the market
-R&D programme promote product development and risk of innovation are
perceived as low
Other countries may have similar needs to those of initiating country which forms
a
potential export market
-growth of demand in importing nations provides sufficient volume to justify local
manufacturer
-as production becomes abroad, exports of initiating company grow less rapidly
-the mature product uses an already established technology and a lower skilled
labour content
-consumers are more price conscious because the products are no longer a novelty
-less developed nations may become attractive production points and begin
exporting the products to more advanced countries
30. BRANDING
A brand is a name ,term symbol or design or a combination of them, which is
intended to identify the goods or services of the seller or group of sellers and
to
differentiate them from those of competitors
-AMA
ROLE OR SIGNIFICANCE OF BRANDING IN INTERNATIONAL MARKET.
1. Facilitates Brand Recognition
2. Promotes Brand Loyalty
3. Aids in Brand extensions
4. Enhances Brand equity
5. Facilitates Advertising
6. Increases Overall Profitability
7. Help Retailers
8. Help Salesman
9. Help Consumers
31. BRANDING DECISION IN INTERNATIONAL MARKETING
1.Decision on generic or no brand
2.Decision to have manufacturer's own brand or private brand
a. Manufacturer’s Brand
b. Private brand
3.
Decision to have local or global brand
a. Local brands
b. Global brand
4.Decision to have single brand or multiple brand
a. Single brand
b. Multiple brands
MEANING OF PACKAGING AND PACKING
Packaging refers to inner wrapping or container, which covers one or more
units of the product.
Packing is the outer casing or materials, which is used to transport the
product or number of units of the product.
32. TYPES OF PACKS
Depends upon various factors
1.Nature of product
2.Physical and physio-chemical properties of the product
3.Mode of transportation to be used
4.Time taken in transportation
5.Trans-shipment involved
6.Specifications of the importer
7.Legislations governing acceptable packing materials
REQUISITES OF GOOD PACKAGING
1.Protection
2.Preservation
3.Convenience
4.Presentation
5.Recycling
6.Reusable
33. 7.
8.
9.
Identification
Lightness
Conformity
IMPORTANCE / FUNCTIONS OF PACKAGING IN INTERNATIONAL
MARKET
1. Primary Functions
a. Protection
b. Preservation
c. Presentation
2. Secondary Functions
a. Self-service
b. Handling and Transportation
c. Identification
d. Information
e. Integrated Marketing Approach
34. FACTORS INFLUENCING PACKING DECISIONS IN INTERNATIONAL
MARKET
1.General Considerations Affecting Packaging Decisions
a. Physical Characteristics
b. Physio-chemical Factors
c. Economy
d. Purpose
e. Convenience
f. Statutory Regulations
g. Environmental Factors
2. Special Considerations Affecting Packaging Decisions In International
Marketing
a. Regulations
b. Buyer’s Specifications
c. Socio-cultural Factors
d. Retailing requirements
e. Environmental Factors
f. Disposability
35. MEANING OF TRANSPORT PACKAGING
Transport packaging is the term used internationally and often described as
Distribution Packaging’ or ‘Protective Packaging’.
It includes all packaging for the containment and protection of goods during
handling, storage and transportation in the physical distribution process.
‘
CRITERIA FOR TRANSPORT PACKAGING
1) Transport packaging in relation to mode of transport
The cycle of transport is comparatively longer and consists of different modes such
as
rail,truck,sea and air.
2) Transport damage in relation to packaging costs
The main problem in designing packages for transport is not to have a solution
which will protect the product completely and carry it to its ultimate consumer
without any damage.
3) Containerization
Containerization is a system of inter-model freight transport using standard intermodal containers as prescribed by the international organisation for
standardisation(ISO).
These can be loaded and sealed intact onto container ships, rail road cars, cargo
36. 4) Risk of Pilferage
Proper transport packaging can help in reduce the rate, at least of casual pilferage
in harbors and ware houses.
Unit loads and particularly shipment in freight containers, make pilfering more
difficult.
5) Adequate marketing is an indispensable component of transport packaging
Marking is put on each packing case so that the consignment may be identified
throughout transit and on reaching its destination.
ROLE OF INDIAN INSTITUTE OF PACKAGING
LABELLING AND MARKING IN INTERNATIONAL MARKETING
PRODUCT WARRANTIES AND AFTER SALES SERVICE IN INTERNATIONAL
MARKETING
A warranty attests the suppliers commitment to quality and performance of the
product as stipulated at the time of sale
An exporter has three options while taking decisions about the warranty to be
given to the oversee buyers,
37. to offer uniform warranty in domestic market as well as in the international
market
To offer different warranties in domestic market and in the international
market
To offer different warranties in different markets
After sale service is provided by the seller to maintain the product in working
condition
Essential especially in the case of industrial goods and consumer durables
Factors to be considered while taking decisions regarding warranties
1)Nature of product
Generally warranty is required for consumer durable and the industrial products,
which last for a number of years and are subject to heavy wear and tear.
2)Climatic conditions
The performance of certain products is affected by climatic and weather
conditions
3)Competitors policy
The seller must take into consideration warranties offered by competitors in the
market
38. 4)Cost factor
Efficient post-sales servicing requires the maintenance of a separate servicing
department.
5)Estimated life of the product
If the estimated life of the product is very long, it requires maintenance.
Reasons for providing warranties and after sales service,
to maintain product in working condition for a longer duration
to build consumers confidence and thereby make them brand loyal
to attract consumers and increase the market share
To enhance the goodwill of the company.
39. DISTRIBUTION STRATEGIES
Two kinds of methods are adopted as a means of channel distribution when
marketing abroad
A] Indirect selling
B] Direct selling
A] Indirect selling
-Is used when a manufacturer in India, for example, markets his product
through
another Indian firm that acts as the manufacturer’s sales intermediary or
middlemen
-the middlemen acts as the manufacturer’s external export organization
-assumes responsibility for moving the product overseas
-middlemen may be termed as a domestic agent if it does not take title to the
goods
Or domestic merchant if it does take title to the goods
B] Direct selling
-is employed when a manufacturer develops an overseas channel
40. Channel
Indirect Channel
Direct Channel
Domestic Agent
Domestic Merchant
•Export Broker
•Sales Representative
•EMC
•Co operative
Exporter
•Buying Agent
•Country Controlled
Buying Agent
•Resident buyer
•Export Merchant
•Export Drop Shipper
•Export Distributor
•Trading Company
•Foreign Distributor
•Foreign retailer
•State Controlled
trading Company
•End User
41. FOREIGN DISTRIBUTOR
Is a foreign firm that has exclusive rights to carry out distribution for a
manufacturer
in a foreign country
-distributor purchases merchandize at a discount and then resells or
distributes the
merchandize to retailers or final consumers
e.g. Seiko USA is a distributor for its Japanese parent(Hattori Seiko)
FOREIGN RETAILER
A manufacturer may contact foreign retailers and interest them in carrying a
product
,ranging from a personal visit by the manufacturer's representative to mailings
catalogues, brochures and other literature to prospective retailers
Body Shop - UK
STATE CONTROLLED TRADING COMPANY
- for some products, particularly telecommunication, a manufacturer must
contact
and sell to state – controlled companies
42. END USER
A manufacturer is able to sell directly to foreign end users with no
intermediary
Involved
-natural choice for costly industrial products
EXPORT BROKER
-function of an export broker is to bring a buyer and seller together for a fee
-negotiates the best terms for the seller but cannot conclude the transaction
without the principal’s approval of the arrangement
SALES REPRESENTATIVE
-an independent businessperson who usually retains his or her own identity
by not
using manufacturers name
--may take possession but no title to the goods and thus assumes no risk
EXPORT MANAGEMENT COMPANY
-EMC manages, under contract the entire export program of a manufacturer
-is also known as a Combination Export Manager because it may function as
43. -an EMC usually solicits business in the name of the manufacturer and may
even
use the manufacturer’s letterhead
COOPERATIVE EXPORTER/PIGGYBACK EXPORTER/MOTHER HEN
EXPORTER
Is a manufacturer with his own export organization that is retained by other
manufacturers to sell in some or all foreign markets
-the usual arrangement is to operate as an export distributor for other
suppliers
PURCHASING AGENT
By residing and conducting business in the exporter’s country, the purchasing
agent
is in a favorable position to seek a product that matches the foreign
principal’s
preferences and requirements
-also known as commission agent, buyer for export, commission house, and
export
buying agent
COUNTRY CONTROLLED BUYING AGENT
44. RESIDENT BUYER
-is an independent agent that is usually located near highly centralized
production
Industry
-offer a favorable opportunity for a supplier to maintain a steady and
continuous
relationship as long as the supplier chain remains competitive
EXPORT MERCHANT
-seeks outs needs in foreign markets and makes purchases from manufacturers
in
its own country to fill those needs
-handles staple goods, undifferentiated products or those in which brands are
unimportant
- Export merchant resells the goods in its own name through contacts in
foreign
markets
EXPORT DROP SHIPPER
-also known as a desk jobber or cable merchant
-upon the receipt of an order from overseas, the export drop shipper in turn
45. EXPORT DISTRIBUTOR
-differs from a foreign distributor simply in location
-export distributor is located in the manufacturer’s country and is authorized
to sell
in one or more countries abroad
TRADING COMPANY
-May buy and sell as a merchant
-resembles an EMC,except for the fact that it has more diverse products, offers
more services, is larger and better financed, takes title to merchandize, goes
beyond the role of an intermediary by engaging directly in production,
physical
distribution channel development,financing,and resource development
FACTORS AFFECTING CHOICE OF CHANNELS
1. Middlemen Criterion
2. Self Reliance Criterion
3. Specific Country Reference Criterion
46. PRICING POLICY IN INTERNATIONAL MARKETS
Price refers to the value of the goods and services expressed in terms of
money.”
“Price is also related to value. The price that a customer is willing to pay
depends
upon the perceived or actual value received.”
OBJECTIVES OF PRICING
Survive
Increase Profits
Increase the Market Share
Maximize Market Skimming
Product Quality Leadership
Face Competition
Brand Loyalty and Goodwill
Achieve the Organizational Objectives
47. FACTORS THAT DETERMINE INTERNATIONAL PRICING DECISIONS
Company and Product Factors
Corporate Objectives
Product Life Cycle, USP,
Product development cost
Transportation
Market Factors
Consumer’s expectations and ability to pay
Need for product adaptation
Distributions strategy
Need for credit
Competition objective
Environmental Factors
Government influences
Level of inflation
48. PRICING STRATEGIES
Local Pricing
Standardized Pricing
Penetration Pricing
Skimming Pricing
Competitors Pricing
Transfer Pricing
COSTING/PRICING METHODS
I) Cost oriented methods
a] cost plus pricing
-adding a certain percentage to the cost price to fix the selling price
b] Mark up pricing
Are calculated as a percentage of selling price
c] break even pricing
-the firm determines the level of sales needed to cover all of the relevant fixed
and
49. variable costs.
d]Target return pricing
-the firm set prices in order to achieve a particular level of return on investment
e] Marginal cost pricing
The marketer considers only the variable costs in fixing prices
f]Early cash recovery pricing
-some firms may fix a price to realize early recovery of investment involved
,when
market forecasts suggest that the life of the market is likely to be short
II) Market oriented method
a} perceived value pricing
A good no of firms fix the price of their goods and services on the basis of
customer’s
perceived value
b}Going rate pricing
The benchmark for setting prices is the price set by major competitor(s)
c} Sealed – bid pricing
50. d} Differentiated pricing
-Firms may charge different prices for the same product or service
-some types are
Customer segment pricing (customer groups are charged different prices
depending upon size of the order, payment terms)
Time pricing (where different prices are charged at different timings or
seasons)
Area pricing (where different prices are charged in different market areas)
Product form pricing (where different versions of the product are priced
differently but not proportionately to their respective costs)
e} Two part pricing
Service firms often adopt two part pricing ,consisting of a fixed fee and a
variable using fee e.g. telephone companies
51.
52. BREAK EVEN ANALYSIS
Assumptions and limitations of BEP Analysis
Break-even analysis is only a supply side. Does not account for demand.
It assumes that fixed costs (FC) are constant.
It assumes average variable costs are constant per unit of output.
It assumes that the quantity of goods produced is equal to the quantity of
goods sold.
Method of production does not change.
No change in pricing policy.
Product mix remains the same.
Advantages of BEP analysis
It is easy to understand and cheap to carry out.
It can show the profits/losses at varying levels of output.
Helps management to decide the production level.
It provides a simple picture of a business - a new business will often have
to present a break-even analysis to its bank in order to get a loan.
53. EXPORT PROMOTION MEASURES IN INDIA
I) IMPORT FACILITIES TO EXPORTERS
• Export Promotion Capital Goods Scheme (EPCG) Scheme
-Introduced by the EXIM policy of 1992-97
-enables manufacturer exporter to import machinery and capital goods for
export
production at concessional or no custom duties
Advance Authorization Scheme
-Is issued to allow duty free import of inputs, which are physically
incorporated in
export product
Duty Free Import Authorization (DFIA) Scheme
-is issued to allow duty free import of inputs ,fuel,oil,energy sources which are
required for production of export products
-issued only for products for which Standard Input and Output Norms (SION)
have
54. II) DUTY REMISSION SCHEME:
Duty Entitlement Passbook (DEPB) Scheme
-objective of DEPB is to neutralize the incidence of customs duty on import
content
of export product
Duty Drawback(DBK) Scheme
-is administered by the Directorate of Drawback, Ministry of Finance
-exporter is entitled to claim customs duty paid on import of raw materials,
components and consumables and central excise duty paid on raw materials,
components and consumables utilized in manufacture of exportable goods
Excise Duty Refund
-Is a tax imposed by the central govt on goods manufactured in India
-is collected at source i.e. before removal of goods from the factory premises
Central Sales Tax Exception
Service Tax Exemption
Octroi Exemption
55. III) FISCAL INCENTIVES:
Exemption from Income Tax
IV) MARKETING ASSISTANCE:
Market Development Assistance (MDA)
-is allowed to delegations travelling abroad for market survey sponsored by
the
EPC’s,CB’S and FIEO
-amount granted varies from 25%-60%of the actual expenditure incurred
Market Access Initiative (MAI)
-scheme is formulated on focus product-focus country approach to evolve
specific
market and specific product through market survey
V) SUPPLY OF RAW MATERIALS
Industrial Raw Material Assistance Centre (IRMAC)
-subsidiary of STC
56. VI) INSTITUTIONAL MEASURES
Indian Institute of Foreign Trade (IIFT) to provide training facilities
Indian Institute of Packaging(IIP) to upgrade packaging standards
Export Promotion Council’s (EPC) to undertake export promotion activities
Export Inspection Council (EIC) to upgrade quality standards
Export credit Guarantee Corporation (ECGC)to protect exporters against
payment risks
Indian Council of Arbitration (ICA) to settle and solve disputes between
importers and exporters
INCOTERMS
-introduced in 1936
-Purpose is to provide common interpretation for the different trade terms
used in
international trade
GROUP E –DEPARTURES
a) EXW-Ex-works
-exporter delivers goods to the importer at his factory premises and all risks
and
57. GROUP F-MAIN CARRIAGE UNPAID
a) FCA-Free carrier
-seller hands over the goods, cleared for export, in to the custody of the first
carrier
named by the buyer at the named place
-suitable for all modes of transport
b) FAS - Free alongside ship
-Carriage to be arranged by the buyer
-Risk and cost transfer from seller to buyer when the goods have been placed
alongside the ship
-Used only for maritime transport
c) FOB - Free on board
-Carriage to be arranged by the buyer
-Risk and cost transfer from seller to buyer when the goods pass the ship’s rail
-Used only for maritime transport
GROUP C-MAIN CARRIAGE PAID
a)CFR -Cost and freight
58. Risk transfer from seller to buyer when the goods pass the ship’s rail
Cost transfer at the port of destination
Used only in maritime transport.
b) CIF- Cost insurance and freight
Carriage and insurance to be arranged by the seller
Risk transfer from seller to buyer when the goods pass the ship’s rail
Cost transfer at the port of destination
Used only in maritime transport.
c) CPT -Carriage paid to
Carriage to be arranged by the seller to the named port of destination.
Risk transfer from seller to buyer when the goods are handed over to the first
carrier
Is the general/multimodal equivalent of CIF
59. d) CIP- Carriage and insurance paid to
Carriage and insurance to be arranged by the seller to the named port of
destination
Risk transfer from seller to buyer when the goods are handed over to the first
carrier
Is the general/multimodal equivalent of CIF
GROUP D-ARRIVAL
a) DAF- Delivered at frontier
Carriage to be arranged by the seller
Risk and cost transfer from seller to buyer when the goods have been
delivered at the frontier
When the goods are transported by rail and road.
b) DES- Delivered ex ship
Carriage to be arranged by the seller
Risk and cost borne by the exporter up to the arrival of the vessel at the
named port
60. c) DEQ- Delivered ex quay
Carriage to be arranged by the seller
Exporter undertakes to make goods available at the port of destination
Bears the cost of discharging them from quay.
d) DDU -Delivered duty unpaid
Carriage to be arranged by the seller
Risk and cost transfer from the seller to the buyer when the goods are placed
at the named place of the destination.
e)DDP- Delivered duty paid
Carriage to be arranged by the seller
Seller pays for all transportation and risk till the goods are delivered.
Comprehensive price quotation for buyer
61.
62. As of January 1, 2011 the eighth edition, Incoterms 2010, [1][2] have effect. The
changes therein affect all of the five terms previously listed in section D,
which are now obsolete and have been replaced with these three:
DAT (Delivered at Terminal)
DAP (Delivered at Place)
DDP (Delivered Duty Paid)
The new terms apply to all modes of transport.
63. IMPACT OF CONTRACT CONDITIONS ON EXPORT PRICE OFFERS
1) Base of export price quotation
-since transport costs account for a fairly substantial proportion of total
C&F/C.I.F
costs, any increase in freight can substantially affect the profitability of export
transactions.
2) Exchange rate variation
Quote in Indian rupees
Quote in the currency desired by the importer ,but also insert a clause that
the quotation is based on present exchange partly and the change will be on
the buyers account
3) Packing of export consignment
4) Guarantee
Manufacturers prepare the standard guarantee clause and absorb the
anticipated
expenditure on guarantee/warranty provisions in price calculations
5)Price variation formula
-only cost changes on account of labour and raw materials will be taken into
64. MARKET SELECTION
“Research
is a systematic design, collection, analysis and reporting the
findings and solutions for the marketing problems of a company”.
- Murthy & Bhojanna
64
71. “Market segmentation means breaking down the total market into self
contained
Market Segmentation
and relatively homogenous subgroups of consumers, each possessing its own
special requirements and characteristics.”
- Robert Benett
ESSENTIAL CHARACTERISTICS OF MARKET SEGMENTS
Measurability
Substantial
Accessible
Actionable
Differentiable