International marketing involves the buying and selling of goods and services across national borders. It entails larger scale operations than domestic marketing due to factors like intense global competition, the dominance of multinational corporations in world trade, and the need to consider cultural and economic differences between countries. There are both push factors that compel companies to expand internationally like market saturation at home as well as pull factors like opportunities for growth and lower costs abroad that attract companies to foreign markets. However, international marketing also presents challenges such as political and legal differences between countries, trade restrictions, and high costs associated with distance.

1. International
Marketing
TYBMS

2. What is international
marketing?
 Buying and selling of goods and services
across national frontiers refers to International
Trade
 Selling of goods to other countries refers to
exports, while buying the goods from a
foreign country is imports
 Marketing of such goods and services across
between two or more nations, is International
Marketing

3. Features
 Large scale operations
 Domination of MNCs/developed countries in the
world trade
 Tariff and non tariff restrictions
 Acute competition
 International Research for marketing strategies
 Advanced technology
 Need for long term planning
 Lengthy and time consuming
 Vast scope in comparison with national trade
 Support from specialised institutions (banks, financial
institutions, marketing consultants) needed

4. Need for IM
 Unequal distribution of natural resources among
nations
 Earning foreign exchange
 To maintain favorable balance of payments
position
 Assistance to underdeveloped countries
 Optimum utilization of available resources

5. Why go international?
Broadly divided into push and pull factors- proactive and
reactive
1. Profit Advantage:
Cheap labour, low cost of production, better technology in
international markets, make international business more
motivating than domestic one.
2. Growth Opportunities:
Tremendous potential, population and income rising. Even
though no present demand for the product, a future
potential demand is predicted. Companies eager to
establish a strong foothold in such countries.

6. 3. Domestic market constraints:
Saturation of local demand, e.g. US of A has more stock of
consumer durables than number of households.
Economies of scale, e.g., feasible no of units that can be
produced, is less than the domestic demand.
A small domestic market- Nestle and Philips get only 2%
and 8% sales from home mkts-Switzerland and Holland
4. Competition:
Post liberalization (July 1991), a protected domestic market
disappeared. This made domestic players to plan
internationalization strategies.

7. 5. Govt. policies and regulations:
Incentives by local govt. to export or make foreign
investment
Policies of other governments may be more favorable in an
international market
6. Spin off benefits:
International business may aid in improving domestic
business
Image building exercise
Foreign exchange earnings aid in importing technology
etc.
Economic incentives are attached to exports

8. Problems in IM
 Political and legal differences
 Cultural/language difference
 Economic differences
 Differences in currency units
 Differences in marketing infrastructure
 Trade restrictions
 High costs of distance

9. Poor performance of India’s
Exports
 Volume of Indian exports is increasing, even though the
share of the exports in comparison with world exports is
insignificant
 Indian exports accounted for 0.8% of world exports in
2003-04, 1.3% in 2009 and 1.4% in 2010
 Export promotion measures by Indian government have
not contributed as expected
 India’s balance of payments position is also poor

11. Reasons for poor export figures
for India
 Limited capacity to compete in the global scenario
 Export of services not tapped to the fullest
 Less importance given to exports of agriculture and
allied activities
 Limited contribution of Special Economic Zones (SEZ
s) to promote exports
 Iraq war affected exports to the Middle East region

12.  Global terrorism affected the business environment
 Measures taken to globalise Indian economy not
tapped completely
 Infrastructure bottlenecks
 Complex procedures
 Inadequate information and its distribution
 Unfair trade practices by Indian businessmen