The document discusses various topics related to international marketing including: 1. Definitions of international marketing as marketing activities carried out across national boundaries and as a multinational process of planning various marketing activities. 2. The main differences between international and domestic marketing are that international marketing involves activities across more than one country and is more complicated due to legal, cultural and other restrictions in foreign countries. 3. International marketing involves identifying customer needs and wants in international markets and adapting the marketing mix to diverse international customers and markets.

1. International Marketing
Management
13MBAMM418
Module 1

2. • Kotler definition of Marketing – Human activity
directed at satisfying needs and wants through
exchange process.
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3. 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, promotion and distribution of
ideas, goods and services create exchanges that
satisfy individual and organizational objectives.”
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4. International Marketing Vs. Domestic
Marketing
• The main difference between them is that the
marketing activities take place in more than one
country.
• More complicated. (legal, culture, restrictions)
• Uncertainty is created by the uncontrollable
elements of all business environments, but each
foreign country in which a company operates adds its
own unique set of uncontrollable.
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5. International Marketing Vs. Domestic
Marketing
• Three similarities –
• Success depends on satisfying customers needs &
wants.
• Need to build goodwill in market
• Need to do R & D for product improvement &
adaption.
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6. International Marketing Vs. Domestic
Marketing
• Sovereign political entities
• Different legal systems
• Different Monetary systems
• Lower mobility of factors of production
• Differences in market characteristics
• Differences in procedures & documentation
• Greater risk
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7. Sovereign political entities
• Each country has its own independent political system which
places a number of restrictions
1. Tariff or Customs duties – such duties make goods more
expensive but does not ban entry of foreign goods
completely. GATT tried to reduce tariffs globally.
2. Quantitative restrictions – this is mainly to restrict trade in
specific goods with the main objective to protect domestic
industries.
3. Exchange controls – these controls do not allow importers
the foreign exchange for payment of goods. Along with
exchange control quantitative control is also placed.
4. Local taxes – objective is to make foreign goods
comparatively costlier than domestic goods.
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8. Different legal systems
• Each country has its own legal system and which
differs from country to country.
• Many countries follow English Common law and
many important European countries follow the civil
law.
• East European countries have developed their own
legal system.
• The United Nations Commission on International
Trade Law (UNCITRAL) are trying to bring uniformity
in international trade law.
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9. Different Monetary systems
• Each country has its own monetary system and
exchange value of each country’s currency is
different from that of the other.
• Exchange rates are more or less fixed by the rules of
the International Monetary Fund.
• But exchange rates fluctuate because of the forces of
supply and demand.
• Some countries have multiple exchange rates, each
rate for certain transactions.
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10. Lower mobility of factors of production
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11. • Marketing objectives are achieved in a way of
molding the controllable elements of
marketing decisions (product, price,
promotion and distribution) within the
framework of the uncontrollable elements of
marketplace (competition, politics, laws,
consumer behavior, level of technology, and
distribution).
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12. • Competition, legal restraints, government
controls, weather, fickle consumers, and any
number of other uncontrollable elements can,
and frequently do, affect the profitable
outcome of good, sound marketing plans.
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13. International Marketing Environment
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(controllables)
Domestic environment
(uncontrollable)
Economic
climate
Competitive
structure
Political/
legal
forces
Political/legal
forces
Foreign environment
(uncontrollable)
Economic forces
Cultural
forces
Competitive
forces
Geography and
infrastructure
Structure of distribution
Level of
technology
Environmental
uncontrollables
country market A

14. 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
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15. 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
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16. Scope & Challenges of International
Marketing
• Is mainly Exporting but also means entry into international markets by:
– Opening a branch/subsidiary abroad (processing, packaging,
assembly or complete manufacturing)
– JV & Collaborations for manufacturing or marketing
– Licensing/ franchising whereby foreign companies are granted
the rights to use the exporting company’s patents, processes or
trade marks with or without financial investment.
– Consultancy services and undertaking turnkey projects abroad
– Know-how(Technical & Managerial)
• Importing / sub – contracting and countertrade
• Managing of international operations
• Re-exporting
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17. Difference Btn International Trade and
International Marketing
International Trade (scarce
resources)
• Nations
• Comparative advantage
• Buy & sell
• Physical distribution
• Pricing
• No market research
• Product development
• Promotion
• No management of
distribution channels
International Marketing (process
through which trade takes place)
• Firms
• For profit
• Buy & sell
• Physical distribution
• Pricing
• market research
• Product development
• promotion
• management of distribution
channels
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18. International Business
• Is any type of business activity that takes place
across international borders.
• Is wider in scope than international marketing
as it includes marketing, investments abroad,
setting up subsidiaries and joint ventures
abroad.
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19. 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.
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20. 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.
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21. Orientation of management
• ETHNOCENTRIC
• POLYCENTRIC
• REGIOCENTRIC
• GEOCENTRIC
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22. Process of Internationalization
License
Export Via
Agent/
Distributor
Export
through
own sales
representat
ive/ Sales
Subsidiary
Local
Packaging/
Assembly
FDI
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23. 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
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24. Process of International Marketing
Growth Profitability Risk Spread
Access to
imported inputs
USP of
product/Services
Marketing
Opportunities
Spreading R & D
Costs
SWOT Analysis
Decision to Enter
into International
Markets
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Motivation for
International
Marketing

25. Stages of International Marketing
Involvement
• No Direct Foreign Marketing
• Infrequent Foreign Marketing
• Regular Foreign Marketing
• International Marketing
• Global Marketing
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26. 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
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27. Difference B/w Domestic and International
Difference Point Domestic Marketing International Marketing
Operation Conditions One nation language &
culture
Many Nations, Languages
& 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 doubted
Government interferences Relative free Influences
Environmental Effects Little effect Distortion by large
companies
Business Environment Stable Unstable
Climate & Nature of
Business
Uniform & Understood Varies & Unclear
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28. Trade in International Marketing
• International Trade is exchange of capital,
goods and services across international
borders or territories.
TRADE
DOMESTIC TRADE
INTERNATIONAL TRADE
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29. Need for international trade
• Large scale production
• Degree of self- sufficiency
• Geographic Factors
• Occupational Distribution
• Means of Transportation
• Compensating the production
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30. Dynamic Environment of International
Trade
• Comparative Advantages
• Impact of National Policies
• Impact of Countries
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31. 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
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32. 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.
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33. 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.
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34. Factors Affecting BOP
• Cost of production
• Demand of the supply
• Cost & availability
• Exchange rate movements
• Domestic business
• Trade agreements
• External pressures
• Price
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35. 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.
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36. 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.
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37. Types of international barriers
• Tariff barrier
• Non- tariff barrier
• Intended constraint
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38. Global e-Marketing
• Search of convenience
• Internet into purchase process.
• Shift loyalties.
• Future buying plans.
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39. Death of distance
• Potential of e-commerce
• Lower transactions costs
• Reduce inventory costs
• Competitive business advantage
• Expands market
• Reduce the supply chain management.
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40. Major benefits of e-Marketing
• Global reach
• Easy marketing
• Economics
• Updates
• More attractive presentation
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41. Communications
• Building relationships,
• Individual attention
• Instant , cheap
• Easy transactions
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42. Targeting an Individual customers
• Customer access
• Insight
• Dialogue
• Emotions
• Customers transactions
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43. 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
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