International marketing involves marketing activities across national borders. It focuses on foreign markets and involves the cultures of two countries. There are several ways for companies to enter international markets, including contract manufacturing, licensing, franchising, joint ventures, and direct ownership. Contract manufacturing involves a company producing and marketing products for another company in exchange for fees but with less control. Licensing and franchising provide rights to use another company's brand or business model in exchange for royalties or fees. Joint ventures allow companies to share investment, risks, and profits internationally. Direct ownership gives full control but requires more financial resources and market knowledge.

1. International Marketing 2 Chapter

2. Definition of International Marketing “ International marketing is the performance of marketing activities across national borders.” “ International marketing is to make available country’s products & services to more than one country’s customers for use.”

3. Nature of International Marketing Relationship between ultimate consumer & organization Transaction in Goods & Services Priority to Marketing Recognition Wider than Export Marketing Focus on Foreign Market Culture Involvement of Two Countries Many Basis Language Difference Comparative More Risk Government Intervention Payment in Foreign Currency

4. Scope of International Market The main ways of entering into International Marketing are as follows: Contract Manufacturing Licensing Franchising Joint Ventures Direct Ownership

5. Contract Manufacturing Any famous company of a country takes the responsibility of marketing of the products & services produced by a company of some other country. Advantages: No need to arrange for production. No risk of investment in foreign country. Opportunity to cash the benefit of previously earned goodwill. In case of failure, business can be easily shunned. Limitations: Lack of control on Production Activity. Risk from prospective competitors.

6. Licensing It refers to the agreement to produce & market the products of the company of another country in exchange for a royalty or fees. This method is used: When Govt. of Importer nation has imposed restriction on import. When we do not want to invest capital in foreign country. When no adequate awareness of foreign market. When Govt. of the country wants to avoid dominance of foreign companies.

7. Franchising It refers to that special right which is given by a producer to a trader to start the same business at a particular place being done by a producer. Features: Right to use the name. Continuous control. Assistance to Franchise. Separate Business. Periodical Fees. Minimum Agreement Period. Written Undertaking.

8. Joint Venture It refers to that partnership in which companies share investment, risks, management & profits in the development, production or selling of products. This method is used: When a company wants to do business on international level but lacks in capital & human resource. When a company anticipates that doing business with a local partner will prove profitable. When a company is willing to avail the benefit of the existing Distribution System of the local partner of importer country.

9. Direct Ownership The parent company is often based in one country and carries manufacturing, management, and marketing operations in different countries. Advantages: Full Control over production & quality of product. There is no risk of prospective competitors. Limitations: More need of financial & administrative sources. Lack of awareness about foreign markets. Lack of co-operation of foreign government.