International marketing and its environment: Dr. Gopal Thapa

1. International Marketing
Dr. Gopal Thapa
Associate Professor
Tribhuvan University

2. International Marketing
 International Marketing is defined as 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.
 It is the application of marketing principles to
satisfy the varied needs and wants of different
people residing across the national borders
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3. International Marketing
 International Marketing is the performance of
business activities that direct the flow of a
company’s goods and services to consumers or
users in more than one nation for a profit.
 Cateora and Ghauri (1999)
 International marketing is the application of
marketing orientation and marketing capabilities
to international business.
 Muhlbacher, Helmuth, and Dahringer (2006)
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4. Features of International
Marketing
 Mobility of factors of productions
 Different national policies
 Separate markets
 Different political and legal system
 Different monetary units
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5. International Marketing
Environment
 Economic Environment
 Cultural Environment
 Political – legal Environment
 Socio-demographic Environment
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6. Economic Environment
 Economic System
 Open economy
 Closed economy
 Mixed economy
 Stages of Economic Development
 Highly developed
 Developing
 Under developed
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7. Economic Environment
 Economic Regionalism
 Association of South East Asian Nations (ASEAN)
 Asia Pacific Economic Cooperation (APEC)
 European Union (EU)
 North American Free Trade Agreement (NAFTA)
 South Asian Preferential Agreement (SAFTA)
 The Bay of Bengal Initiative for Multi-Sectoral
Technical and Economic Cooperation (BIMSTEC)
 Etc.
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8. Economic Environment
 Balance of Payment
 The balance of payments (BOP) is a statement of
all transactions made between entities in one
country and the rest of the world over a defined
period of time, such as a quarter or a year.
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9. Economic Environment
 Government Policy
 Tax policy
 Trade barrier: Tariff and non tariff
 Exchange convertibility
 Quota System
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10. Economic Environment
 World Institutions
 World Trade Organization
 World Bank
 International Monetary Fund (IMF)
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11. Economic Environment
 Income level
 Per capita income
 Income distribution
 GDP & GNP
 Level of employment and unemployment
 Inflation
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12. Socio-cultural Environment
 A set of beliefs, customs, practices and behavior
that exists within a population.
 International companies often include an
examination of the socio-cultural environment
prior to entering their target markets.
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13. Socio-cultural Environment
 Material culture (bike, TV, mobile phone)
 Language (World 6500, Nepal 123)
 Aesthetics (arts, music, dance, color, drama)
 Education
 Religion
 Social organizations
 Religious groups, associations, occupation groups, political
groups, sex groups
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14. The Top 10 Most Spoken Languages
in the World
 Mandarin Chinese (1.1 billion speakers) ...
 English (983 million speakers) ...
 Hindustani (544 million speakers) ...
 Spanish (527 million speakers) ...
 Arabic (422 million speakers) ...
 Malay (281 million speakers) ...
 Russian (267 million speakers) ...
 Bengali (261 million speakers)
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15. Religion
 According to the 2011 census, 81.3% of the
Nepalese population is Hindu, 9.0% are Buddhist,
4.4% are Muslim, 3.0% are Kiratist (indigenous
ethnic religion), 1.4% are Christian, 0.1% are
Sikhs, 0.1% are Jains and 0.7% follow other
religions or no religion.
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16. Widely practiced religions of the
world
 Christianity (2.1 billion)
 Islam (1.3 billion)
 Nonreligious (Secular/Agnostic/Atheist) (1.1
billion)
 Hinduism (900 million)
 Chinese traditional religion (394 million)
 Buddhism 376 million.
 Primal-indigenous (300 million)
 African traditional and Diasporic (100 million)
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17. Political Environment
 Role of Government
 Participative role
 Regulatory role
 International political relation
 Political stability and permanency of Government
 A change in the form of government
 A shift in political parties
 Feeling of nationalism
 Strong cultural division
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18. Legal Environment
 Domestic or home country’s law
 International law and law governing regional
groupings
 Host country’s law
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19. Legal Environment
 Legal Disputes in International Market
 Between two governments
 Between the company and the government
 Between the firms of two countries
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20. Legal Environment
 Methods of Resolving International Disputes
 Mitigation (No use of mediator)
 Conciliation ( use of mediator)
 Arbitration
 Litigation (through the court)
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21. Any Queries?
Thank you
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