About the scope and importance of International Marketing

1. Dr.T.S.Bhuvaneswari
Assistant Professor
Department of Commerce
SRMIST
International Marketing -
Introduction

2. Unit - 1
Introduction

3. Meaning
International marketing is defined as the
performance of business activities designed to
plan, price, promote and direct the flow of the
company’s goods and services to consumers or
users in more than one nation for a profit.

4. International + Marketing =
International marketing
 International – two or more countries
 Marketing – Attracting and retaining a growing
base of satisfied customers
In general we can say that:
 ‘International Marketing can be defined as
exchange of goods and services between
different national market involving buyers and
sellers’

5. Definition
 According to American Marketing Association
‘International Marketing is the multinational process
of planning and executing the conception, prices,
promotion and distribution of ideal goods and
services to create exchanges that satisfy the
individual and organisational objectives’

6. Concept of International
Marketing
 Domestic Marketing – Marketing practices within
the home or country
 Foreign Marketing – It refers to domestic
marketing with foreign country
 Comparative marketing – Analytical comparison
of marketing method practices in different
countries
 International Marketing – Marketing practices
between different (two or more countries)
national markets for earning profits
 Global Marketing – Marketing practices can be
extended world wide

7. Again, in simple words,
 When two or more countries exchange the
product and services with the motive of business
trade, the process is called as international
marketing

8. Nature of International marketing
 Broader market is available
 Involves at least two set of uncontrollable
variables
 Require broader competence
 Competition in intense
 Involves high risk and challenges

9. Scope of International marketing
 Import – Importing products for a brand
company or general company that they can
resale it to potential customer of their own use
creation and improving their production line
 Export – Companies exports their product to
international market or their franchises for
generating huge revenue and boost for the
brand
 Contractual Agreement- Contractual
Agreement can be in terms of licensing for co-
production or even of technical assistance

10.  Joint venturing – Joint venture is the name of
collaborative association of two brands for a reasonable
period of time. This new firm works under the banner of
both ‘Venturing’ brands and the division of profits and
losses take place between the two companies
 Contract manufacturing – Contract manufacturing is one
of the most used tactics to reduce the cost of production
 Fully owned manufacturing – Fully owned manufacturing
is the best interests of the company to take full control
over both the production and promotion in the target
markets
 Strategic Alliances – Gaining a long-term competitive
advantage over the competitors the best option to choose
strategic alliances. It works just like the concept which
says that enemy of you can be your friend
 Management Contracts – Management contracts are
helpful in achieving a skilled labour force for the brand
with comparatively experienced workers

11. Importance of International marketing
 Domestic market constraint
 Government policies and regulations
 Increased productivity
 Counter competition
 Relative profitability
 Reducing business risk
 Control inflation and prise rise
 Product obsolescence
 Unequal distribution of natural resources
 Advantages of specialisation
 Technological development

12.  To create research opportunity
 Helps in political peace
 Economic development of a country
 Rapid economic growth
 Profitable use of natural resources
 Increase in employment opportunity
 Role of export in national income
 Increase in standard of living
 International collaboration
 Closer cultural relations

13. Factors influencing International
Marketing
 Internal Factors
 External Factors

14. Internal Factors (Controllable)
 SWOT Analysis
 Strength – Enthusiastic employees and unique
product
 Weakness – No existing customers and limited
finance
 Opportunities – Potential customers
 Threat – Bigger budget

15. External factors (uncontrollable)
 Economic Environment
 Social and cultural environment
 Political environment
 Legal environment
 Physical environment
 Technological environment
 Business environment

16. Management process of International
Marketing
Step 1 – Deciding to internationalise
Step 2 – Market selection
Step 3 – Product selection
Step 4 – Selection of Entry mode
Step 5 – Selection of Marketing Strategy
Step 6 – Selection of Marketing organisation

17. Step 1- Deciding to
internationalise
 Present and future overseas opportunities
 Present and future domestic opportunities
 Resources of the company
 Company objectives

18. Step 2 – Market selection
 Geographical proximity
 Market potential of the country
 Market access
 Market characteristics

19. Step 3 – Product selection
 Elasticity of supply
 Demand of the product

20. Step 4 – Selection of entry mode
 Exporting
 Licensing
 Franchising
 Contract manufacturing
 Joint venture
 Strategic alliance
 Assembly
 Mergers and Acquisitions

21. Step 5 – Selection of Marketing
strategy or market mix decision
 Product strategy
 Pricing strategy
 Distribution strategy
 Promotion strategy

22. Step 6 – Selection of Marketing
organisation
 Extent of commitment of the organisation to
international business
 Nature of international orientation
 Size of international business
 Expansion plan
 Number of consistency of product lines
 Characteristics of foreign markets