This document provides an overview of international marketing management. It discusses the significance of global markets and the challenges of designing international marketing strategies. Key points covered include: - Reasons for international trade include access to products, comparative advantage, and potential demand in foreign markets. - Factors affecting international trade include technology, consumer preferences, trade barriers, and marketing capability. - Structures for operating in foreign markets range from low involvement like exporting to high involvement like wholly owned subsidiaries. - Designing the international marketing mix requires considering market research, product adaptation, pricing strategies, and promotional adaptations for different countries and cultures.

1. INTERNATIONAL MARKETING MANAGEMENT

2. Module 1 : Nature and Scope of Marketing 3. Global Markets and Marketing 2. The Dynamic Marketing Environment 1. The Field of Marketing

3. 1. The Field of Marketing

4. Who makes what? List B. Companies ITC, Godrej, BHEL, Videocon, Voltas, HP, Britannia, L&T, Atlas, Bata, HUL, Wipro, Microsoft, P&G List A. Products Air Conditioners Hamam soap Washing machines Power generators Sunsilk shampoo Lux Soap Safety Locks Dove Refrigerators Laptops 11. Biscuits 12. Cement 13. Office furniture 14. Shoes 15. Bicycles 16. Computer Software 17. Computer Hardware 18. Cooking Oil 19. Tooth Paste 20. Detergent Powder

5. What does a Marketer Do?

6. What does a Marketer Do? Why Bike ( Analyze Needs ) Bike Type (Product Plan) Which people? (Segment) What Quantity? (Demand Forecasting) Where to Sell? (Distribution) What to Charge? (Price) What & how to inform? (Promotion) Who all will compete (Analyze Competitors) What if problem? (Warranty)

7. Exchange – at the heart of Marketing Between Organizations and/or Individuals Marketers and Markets Exchange – the essence of Marketing Tangible/ Intangible goods, Services, Ideas, places, people

8. Conditions of Exchange Voluntary participation 2 or More parties Each has something of value for the other party Parties must communicate

9. Marketing Defined Business activities designed to Plan Price Promote Place (Distribute) Want-satisfying products to target markets to achieve organizational objectives

10. Stages of the Evolution of Marketing Promote through Sales and Advertising Sales-Orientation Stage Increase Supply Produce Efficiently Product-Orientation Stage Market-Orientation Stage Long-Run Customer Satisfaction

11. How Should a Business Be Defined? Kodak We make Cameras and Films We help Preserve Beautiful Memories. HUL We make and sell Soaps & Detergents ?? IBM We make Computer ?? SSIM We provide MBA Degree ?? Company Product oriented answer Market oriented answer

12. Marketing Concept Customer Satisfaction & Organizational Success A business philosophy that makes Customer Satisfaction as focal point of all the activities of the business Customer Orientation & Organization's Performance Objectives Coordinated Marketing Activities

13. Implementing the Marketing Concept (Customer Orientation) Mass Customization Produce products with variety and uniqueness Relationships Customer Relationship Management (CRM)

14. Implementing the Marketing Concept (Coordinated Marketing Activities) Value Creation Benefits vs. Costs Quality Total Quality Management

15. Implementing the Marketing Concept (Organizational Objectives) Societal Marketing Concept Fulfill firm’s social responsibility Performance Metrics Return on the marketing investment

16. Marketing Program (A Market) People or Organizations Money to Spend Willingness to Spend Needs to Satisfy Market

17. Marketing Program (Market Segments) Segments are subgroups of the market with similarities Wants Product Use Buying Preferences

18. Marketing Program (Target market) A market segment at which the firm directs its marketing program Market Segment A Market Segment C Market Segment B TARGET MARKET

19. Marketing Program (Position) Strategies and tactics to establish a unique position in the prospect’s mind so the product is viewed in a distinctive and attractive way DISTRIBUTION PROMOTION PRODUCT PRICE TARGET MARKET

20. Ethics and Marketing TRUST Builds Business Relationships CODE OF ETHICS CONFLICTS Challenges from conflicting goals E THICS Standards accepted by a society

21. Importance of Marketing Personally Organizationally Domestically Globally

22. Creating Utility Form utility Place utility Time utility Information utility Possession utility

23. 2. The Dynamic Marketing Environment

24. Levels of External Forces Macro Level Influences that affect all firms Micro Level Influences that affect a particular firm

25. External Macroenvironment Forces Company’s Marketing Program Technology Political and Legal Forces Social & Cultural Forces Natural Environment Competition Demo- graphics Economic conditions

26. Demographics People Make Markets Distribution Growth Size Characteristics of Populations

27. Key Demographics of India >1 billion Population growing @ 2% Literacy 65% (1951 – 17%) Over 3.5 Million Engineers & Scientists Life Expectancy >62 Years 2nd largest Market (next to China)

28. Economic Factors Inflation Interest Rates Stage of the Business Cycle People with Money to Spend and Willing to Spend it

29. Key Economic Facts (Indian Environment) Significant FDI, Vibrant Capital Market, High FE Reserve Inflation (Moderate – High) Interest Rates (High) Economy Growing @8-9.5%

30. Competition Rivals for Customers’ Limited Buying Power Substitute Products Every Company Brand Competition Differential Advantage

31. Social and Cultural Forces People Make Markets Beliefs Socio-cultural Patterns Changing Quickly Values Lifestyles

32. Key socio-cultural facts of India 7 Religions 17 Languages Many Cultures, Tradition bound (Changing fast due to exposure to lifestyle, Media, Globalization) More Health Conscious, Working Harder/Longer, Premium on time Changing role of Women (Housewife -Employed women)

33. Political and Legal Forces Type of Governance and Direction Governmental Relationship with Industries Monetary and Fiscal Policies Legislation - Social & Related to Marketing

34. Key facts of India's Political & Legal Environment Political consensus on Economic Growth Economic Reforms, Moving rapidly to Market economy To operate within legal framework of laws related to Corporate affairs, Consumer protection, Employee protection, MRTP etc

35. Key facts of India's Natural Environment Rich natural resources (iron, coal, rare minerals, ocean wealth) Tropical climate favours agriculture and industry Good rainfall, Has strong network of rivers In energy, costs are constantly on rise

36. Technology Affects How Marketing is Carried Out Altering Existing Industries Impacts lifestyles, consumption patterns, economic well-being Starting New Industries Stimulates Markets and Other Industries

37. External Microenvironment of a Company’s Marketing Program Company’s Marketing Program Marketing Interme- diaries The Market Marketing Interme- diaries Suppliers Value Chain

38. Internal Environment Internal Environment Affecting a Company’s Marketing Activities

39. Firm’s Marketing Environment Marktg Intrmdries Market Marktg Intrmdiaries Market Technology Political and Legal Forces Social & Cultural Forces Natural Environment Competition Demo- graphics Economic conditions

40. 3. Global Markets and Marketing

41. Lesson Objectives The significance of marketing to firms and countries The attractiveness of foreign markets The challenges of designing international marketing strategies The alternative organizational structures The international marketing mix issues and concepts

42. Reasons for International Trade Access to products Comparative Advantage

43. Role of Export Trade in Selected Countries INSERT TABLE 3.1

44. International Trade Balance of Payments Accounting record of all Transactions between countries Trade Balance Difference between imports and exports

45. Factors Affecting International Trade Technology Consumer Preferences Trade Barriers Subsidized Industries Tax Structure Marketing Capability

46. Why International Marketing? Potential Demand Market Saturation Customer Expectations

47. Strategic Planning for International Marketing Regional Strategy Local Strategy Global Strategy

48. Market Demand Number of people Buying behavior Ability to buy

49. Social and Cultural Environment Family Customs and Behavior Education Language Differences

50. Economic Environment Infrastructure Competition Level of Economic Development

51. Political and Legal Forces Tariff Import quota Local-content law Local operating laws Standards and certification Boycott Trade Barriers

52. Political and Legal Forces World Trade Organization European Union North American Free Trade Agreement Asia-Pacific Economic Cooperation forum Association of Southeast Asian Nations Common Market of the South WTO EU NAFTA APEC ASEAN MERCOSUR Trade Agreements

53. Structures for Operating in Foreign Markets Exporting Directly, or through Import-Export Middlemen Company Sales Branches Licensing Foreign Products Contract Manufact-uring by Foreign Producers Joint Ventures and Strategic Alliances Wholly Owned Subsidia-ries Multinational Corporat-ions Low involvement abroad High involvement abroad

54. Designing the Marketing Mix Market Research Data availability Infrastructure, etc Product Planning Product extension Product adaptation New invention Branding Labeling Pricing Cost Plus Dumping Countertrade or Barter Distribution Systems Export/Import Agents Export Merchant Gray Marketing Advertising Language Format Media etc