EPRG frame workThe foreign marketing involvement of a manufacturing company may widely vary from a state of no direct involvement to a state of total involvement. Several types of involvement are generally observed, even though they are not mutually exclusive nor sequentially progressive.Depending on the kind and degree of its involvement in foreign marketing, a firm has to re-orient and re-organize its activities to cope with different levels of operational responsibilities inherent in such involvement. To throw some light on the issue, some guidelines are available from what is called EPRG orientation. The EPRG framework attempts, four broad types of orientation of a firm towards foreign marketing. They are:1. ETHNOCENTRIC ORIENTATION :The ethnocentric orientation of a firm considers that the products, marketing strategies and techniques applicable in the home market are equally so in the overseas market as well. In such a firm, all foreign marketing operations are planned and carried out from home base, with little or no difference in product formulation and specifications, pricing strategy, distribution and promotion measures between home and overseas markets. The firm generally depends on its foreign agents and export-import merchants for its export sales.2. REGIOCENTRIC ORIENTATION :In regiocentric approach, the firm accepts a regional marketing policy covering a group of countries which have comparable market characteristics. The operational strategies are formulated on the basis of the entire region rather than individual countries. The production and distribution facilities are created to serve the whole region with effective economy on operation, close control and co-ordination.3. GEOCENTRIC ORIENTATION :In geocentric orientation, the firms accept a world wide approach to marketing and its operations become global. In global enterprise, the management establishes manufacturing and processing facilities around the world in order to serve the various regional and national markets through a complicated but well co-ordinated system of distribution network. There are similarities between geocentric and regiocentric approaches in the international market except that the geocentric approach calls for a much greater scale of operation.4. POLYCENTRIC OPERATION :When a firm adopts polycentric approach to overseas markets, it attempts to organize its international marketing activities on a country to country basis. Each country is treated as a separate entity and individual strategies are worked out accordingly. Local assembly or production facilities and marketing organisations are created for serving market needs in each country. Polycentric orientation could be most suitable for firms seriously committed to international marketing and have its resources for investing abroad for fuller and long-term penetration into chosen markets. Polycentric approach works better among countries which have significant economic, political and cultural differences and performance of these tasks are free from the problems created primarily by the environmental factors.CONCLUSION :The involvement decision is conditioned by a variety of internal and external factors such as firms' export policy, resources and product range, volume of export business, regulatory and procedural conditions to be fulfilled both from exporting and importing angle.From the foregoing, it will be evident that the scope of international marketing for a firm will be determined by its decisions regarding the means of entry into foreign markets as well as by the kind of involvement the firm wishes to have in its international marketing operations. It cannot be said that one kind of operation/orientation is better than the other, as each has its own advantage and disadvantage depending on the operating environmental factors.However, a firm can adopt a policy of common or differential approaches in respect of different marketing decision areas.In practice, planning the ethnocentric approach is found to be most common when overseas volume is insignificant, compared to the total sales turnover, or if the firm does not want to go for higher volume of overseas sales for some reason. Since little or no investment is needed, ethnocentric oriented firms have the least risk.Main PointsAn exporting company's international operation involves the following strategies.

1. Ethno centric Operational strategy : (with the help of overseas Agents) Product formulation, Product specification, Pricing strategy, Distribution Promotional measures

2. Regio Centric Operational strategy : Catering to a group of Countries having similarity in Marketing in market characteristic

3. Geo Centric Operational strategy : Creating globally through well Co-Ordinated Net work

4. Poly centric operational strategy : Creating to Country to country basisThere are various modes of entry available to a firm to enter international markets. A firm may have a production facility in its home country or locate it in a foreign country. It has to choose the alternative most suited to its needs and requirements.

Trade LiberalizationThe removal or reduction of restrictions or barriers on the free exchange of goods between nations. This includes the removal or reduction of both tariff (duties and surcharges) and non-tariff obstacles (like licensing rules, quotas and other requirements). The easing or eradication of these restrictions is often referred to as promoting "free trade."

Role of MNC’sAccording to an ILO repot, “the essential nature of multinational enterprises lies in the fact that its managerial headquarters are located in one country (home country) while enterprises carries out operations in number of other countries as well. (host countries). Dominance of MNC’s Through liberalization there has been expansion & growth of MNC’s. The GDP has increased from about 5% in beginning of 1980’s to nearly 7% at end of 1990’s. The MNC’s are estimated to employ directly, at home and abroad around 73 billion people. For example, the US footwear company Nike currently employees 9000 people, while nearly 75,000 people are employed by its independent sub-contractors located in different countries. Merits of MNC’sThe important arguments in favour of MNC’s are given below:- MNC’s help the host countries in following ways:- 1) MNC’s help to increases the investment level & thereby the income & employment in host country. 2) The transnational corporations have become vehicles for the transfer technology, especially to developing countries. 3) They also kind a managerial revolution in host countries through professional management and employment of highly sophisticated management techniques. 4) The MNCs enable that host countries to increases their exports & decreases their import requirements. 5) They work to equalize cost of factors of production around the world. 6) MNC’s provide and efficient means of integrating national economies. 7) The enormous resources of multinational enterprises enable them to have very efficient research & development systems. Thus, they make a commendable contribution to inventions & innovations. 8) MNC’s also stimulate domestic enterprise because to support their own operations, the MNC’s may encourage & assist domestic suppliers. 9) MNC’s help to increase competition & break domestic monopolies. Demerits:-

1) MNC’s may destroy competition & acquire monopoly powers. 2) The transfer pricing enables MNC’s to avoid taxes by manipulating prices on intra-company transactions. 3) Through their power and flexibility , MNC’s can evade national economic autonomy & control, and their activities may be inimical to national income interests of particular countries. 4) MNCs retard growth of employment in home country. 5) MNCs technology is designed for world-wide Profit maximization, not the development needs of poor countries. In general, it is asserted, the imported technologies are not adopted to (a) Consumption needs (b) size of domestic markets (c) resource availabilities (d) stage of development of many of developing countries.

Internal environment and External environmentInternal Environment of Marketing :This refers to factors existing within a marketing firm. They are also called as controllable factors, because the company has control over these factors : a) it can alter or modify factors as its personnel, physical facilities, organization and function means, such as marketing mix, to suit the environment.There are many internal factors that influence the marketing function, they are :Top Management : The organizational structure, Board of Director, professionalization of management..etc Factors like the amount of support the top management enjoys from different levels of employees, shareholders and Board of Directors have important influence on the marketing decisions and their implementation.Finance and Accounting: Accounting refers to measure of revenue and costs to help the marketing and to know how well it is achieving its objectives. Finance refers to funding and using funds to carry out the marketing plan. Financial factors are financial polices, financial position

and capital structure.Research and Development : Research and Development refers to designing the product safe and attractive. They are technological capabilities, determine a company ability to innovate and compete.Manufacturing : It is responsible for producing the desired quality and quantity of products. Factors which influence the competitiveness of a firm are production capacity technology and efficiency of the productive apparatus, distribution logistics etc.,Purchasing : Purchasing refers to procurement of goods and services from some external agencies. It is the strategic activity of the business.Company Image and Brand Equity : The image of the company refers in raising finance, forming joint ventures or other alliances soliciting marketing intermediaries, entering purchase or sales contract, launching new products etc.In organization, the marketing resources like organization for marketing, quality of marketing, brand equity and distribution network have direct bearing on marketing efficiency. They are important for new product introduction and brand extension, etc..External Environment of Marketing.External factors are beyond the control of a firm, its success depends to a large extent on its adaptability to the environment.The external marketing environment consists of :a) Macro environment, and b) Micro environmenta) Micro environment: The environmental factors that are in its proximity. The factors influence the company’s non-capacity to produce and serve the market. The factors are :

1) Suppliers: The suppliers to a firm can also alter its competitive position and marketing capabilities. These are raw material suppliers, energy suppliers, suppliers of labor and capital. According to michael Porter, the relationship between suppliers and the firm epitomizes a power equation between them. This equation is based on the industry condition and the extent to which each of them is dependent on the other.The bargaining power of the supplier gets maximized in the following situations:a) The seller firm is a monopoly or an oligopoly firm.b) The supplier is not obliged to contend with other substitute products for sale to the buyer group.c) The buyer is not an important customer.d) The suppliers’ product is an important input to the buyer’s business and finished product.e) The supplier poses a real threat of forward integration.2) Market Intermediaries : Every producer has to have a number of intermediaries for promoting, selling and distributing the goods and service to ultimate consumers. These intermediaries may be individual or business firms. These intermediaries are middleman (wholesalers, retailers, agent’s etc. ), distributing agency market service agencies and financial institutions.3) Customers : The customers may be classified as :1) Ultimate customers: These customers may be individual and householders.2) Industrial customers: These customers are organization which buy goods and services for producing other goods and services for the purpose of other earning profits or fulfilling other objectives.3) Resellers: They are the intermediaries who purchase goods with a view to resell them at a profit. They can be wholesalers, retailers, distributors, etc.4) Government and other non-profit customers: These customers purchase goods and services to those for whom they are produced, for their consumption in most of the cases.5) International customers: These customers are individual and organizations of other countries who buy goods and services either for consumption or for industrial use. Such buyers may be consumers, producers, resellers, and governments.6 )Competitors: Competitors are those who sell the goods and services of the same and similar description, in the same market. Apart from competition on price, there are like product differentiation. Therefore, it is necessary to build an efficient system of marketing. This will bring confidence and better results.7) Public: It is duty of the company to satisfy the people at large along with its competitors and the consumers. It is necessary for future growth. The action of the company do influence the other groups forming the general public for the company. A public is defined as ‘any group that has an actual or potential interest in or impact on a company’s ability to achieve its objective.’ Public relations are certainly a broad marketing operation which must be fully taken care of.

Macro Environment: Macro environment factors act external to the company and are quite uncontrollable. These factors do not affect the marketing ability of the concern directly but indirectly the influence marketing decisions of the company.These are the macro environmental factors that affect the company’s marketing decisions :a) Demographic Forces: Here, the marketer monitor the population because people forms markets. Marketers are keenly interested in the size and growth rate of population in different cities, regions, and nations ; age distribution and ethnic mix ; educational levels; households patterns; and regional characteristics and movements.

b)Economic Factors: The economic environment consists of macro-level factors related to means of production and distribution that have an impact on the business of an organization.c) Physical Forces: Components of physical forces are earth’s natural renewal and non-renewal resources. Natural renewal forces are forest, food products from agriculture or sea etc. Non- renewal natural resources are finite such as oil, coal, minerals, etc. Both of these components quite often change the level and type of resources available to a marketer for his production.d) Technological Factors: The technological environment consists of factors related to knowledge applied, and the materials and machines used in the production of goods and services that have an impact on the business of an organization.e) Political and Legal Forces: Developments in political and legal field greatly affect the marketing decisions. sound marketing decision cannot be taken without taking into account, the government agencies, political party in power and in opposition their ideologies, pressure groups, and laws of the land. These variables create tremendous pressures on marketing management. Laws affect production capacity, capability, product design, pricing and promotion. Government in almost all the country intervenes in marketing process irrespective of their political ideologies.f) Social and Cultural Forces: This concept has crept into marketing literature as an alternative to the marketing concept. The social forces attempt to make the marketing socially responsible. It means that the business firms should take a lead in eliminating socially harmful products and produce only what is beneficial to the society. These are numbers of pressure groups in the society who impose restrictions on the marketing process.

Foreign market Selection1. Determine Export Marketing Objectives: Before entry in overseas market, the exporter must list out export marketing objectives. The export marketing objectives may be as follows:•        Increase in market share.•        Increase in profits.•        Building firm’s goodwill, etc.2. Collection of Information: The exporter must collect relevant information from the overseas markets. The information may be in respect of the following:•        Demand for the product.•        Competition.•        Nature of consumers.•        Political situation.•        Import regulations.•        Infrastructure facilities, etc.3. Analysis of Information: The exporter has to analyze the collected information in respect of overseas markets. Such analysis is required to shortlist the overseas markets. For instance, the exporter has to analyze the likes and dislikes of the buyers, the purchasing power, buying pattern, etc.4. Short Listing of Markets: After analysis of the overseas markets, the exporter must shortlist the markets. The main objective of short listing is to arrive at a list of few markets/ countries, which promise good returns not only in the short term but also from the long term point of view.5. Detailed Investigation of Short Listed Markets: The exporter should undertake detailed investigation of the short listed markets. The detailed investigation is in respect of competition, demand, consumers, government policies, availability of intermediaries, etc. The exporter may even visit the short listed overseas markets to conduct detailed investigation.6. Selection of Markets: After detailed investigation of the short listed markets, the exporter would then proceed to select the overseas markets. The exporter should eliminate such markets which are subject to high rate of inflation, government instability, high trade barriers, and so on.

The exporter may select only those markets or countries, which would provide a good return investment not only in the short run but also from the long term point of view.7. Entry in Overseas Markets: The exporter then makes necessary arrangements to enter in the overseas markets. He-may appoint the required sales people, and intermediaries. He should complete all other formalities regarding the entry in overseas markets. He would then produce the goods as per the requirements of overseas buyers.8. Follow-up: The exporter should undertake a review of the performance in the overseas markets. Such review would enable the exporter to know which markets are performing well, and which ones are not. He would then find out the reasons for the same, and if there are problems, he would try to resolve such problems, or exit from such markets that do not provide good potential.

International marketing PositioningPositioning may refer the position a business has chosen to carry out their marketing and business objectives. Positioning relates to strategy, in the specific or tactical development phases of carrying out an objective to achieve a business' or organization's goals, such as increasing sales volume, brand recognition, or reach in advertising. Its objective is to occupy a clear, unique, and advantageous position in the consumer's mind. Example: Mercedes is positioned for luxury segment, Volvo is positioned for safety.The position of the brand has thus to be carefully maintained and managed. Example: when Marlboro cut down its prices, its sales dropped immediately, as it began being associated with the generic segment. Watches like Rolex are positioned as luxury segment watches, thus they being one of the most expensive have become a symbol for accomplishment in life. If Rolex reduces its prices, it loses its perceived image and hence is in danger of losing its customers. Different types of positioning planks /bases are used by the marketers are:-Economy:- Product positioned toward a particular segment keeping in mind it economy. Example-Maruti 800, Tata Nano, Nirma detergent powder etc are positioned for the economy segment.Gender:- Product positioned for a particular segment. Example- Scooty Pept, Titan Raga.Luxury and exclusiveness:- Product or services positioned toward luxury segment. Example- Taj group of hotel, Mercedes Benz E-class etc.Fashion for elite class:- Product positioned for fashionable elite class or member of the society, who always want to stay ahead in term of fashion and demands exclusive products only. Example Peter England, Van Heusen, Raymond etc.Benefit:- Product positioned with beneficial features. Example- Colgate Total, clinic Plus etc.

Product Planning for Global MarketProduct planning is the process of creating a product idea and following through on it until the product is introduced to the market. Additionally, a small company must have an exit strategy for its product in case the product does not sell. Product planning entails managing the product throughout its life using various marketing strategies, including product extensions or improvements, increased distribution, price changes and promotions.Developing the Product ConceptThe first phase of product planning is developing the product concept. Marketing managers usually create ideas for new products by identifying certain problems that consumers must solve or various customer needs. For example, a small computer retailer may see the need to create a computer repair division for the products it sells. After the product idea is conceived, managers will start planning the dimensions and features of the product. Some small companies will even develop a product mock-up or model.

Studying the MarketThe next step in the product planning process is studying the competition. Most small companies will order secondary research information from vendors such as the NPD Group and Forrester Research. Secondary research usually provides details on key competitors and their market share, which is the percent of total sales that they hold in the marketplace. Some companies

may also do a SWOT analysis (strengths, weaknesses, opportunities and threats), according to NetMBA.com, which will help them compare their strengths and weaknesses against those of key competitors. The business can then determine places in which it has an advantage over the competition to identify areas of opportunity. For example, a small company with a high-quality image may be able to find additional markets for its products.

Marketing ResearchA small company should consider doing both qualitative and quantitative marketing research for its new product. Focus groups are an example of qualitative information. Focus groups allow companies to ask their consumers about their likes and dislike of a product in small groups. A focus group allows the company to tweak the product concept before testing it through phone surveys--a more quantitative marketing research function. Phone surveys enables a company to test its product concept on a larger scale, the results of which are more predictable across the general population.

Product IntroductionIf the survey results prove favorable, the company may decide to sell the new product on a small scale or regional basis. During this time, the company will distribute the products in one or more cities. The company will run advertisements and sales promotions for the product, tracking sales results to determine the products potential success. If sales figures are favorable, the company will then expand distribution even further. Eventually, the company may be able to sell the product on a national basis.

Product Life CycleProduct planning must also include managing the product through various stages of its product life cycle. These stages include the introduction, growth, maturity and decline stages, according to QuickMBA.com. Sales are usually strong during the growth phase, while competition is low. However, continued success of the product will pique the interest of competitors, which will develop products of their own. The introduction of these competitive products may force a small company to lower its price. This low pricing strategy may help prevent the small company from losing market share. The company may also decide to better differentiate its product to keep its prices steady. For example, a small cell phone company may develop new, useful features on its cell phones that competitors do not have.

Standardization v/s Adaption

Marketing Mix Standardization Adaptation

Product No changes are made to product/service

Specific changes are made to the product/service to fit cultural characteristics

PriceFixed pricing in all international markets

Prices are determined by local competitive conditions

Place Uniform channel structures Adjusting distribution

Promotion

Same promotion is used in all international markets, and no changes are made

Specific changes are made to promotions to fit cultural contexts

Basis of Difference Adaptation Standardization

1) Application in Marketing Means

It is supported by strong market variety especially by market individualism and market uniqueness.

Companies should apply the four basic marketing instruments (4P5) in the same way world wide and ignore national specialties in individuals markets.

2) Reason for Application Almost every international company takes into account (in higher or lower level), regional or local conditions which are typical to the differentiation.

MNC should think globally and apply integration access world wide.

3) Product Offered Altering relevant feature of the product in significant ways for each and every individual geographical market in the product is sold.

Complete standardization would involve designing a product that is identical in every relevant way for geographical market in which the product will be sold.

4) Characteristics A product is differential from competitor’s product and further the products produced by particular company.

A standard product does not need to have all the characteristics of the other products buyer requires.

5) Approach Adaptation is an approach of detailing the differentiation that exists between products and services.

Standardization of product is the approach for increasing commonality of product in the supply chain management.

6) Economics of Scale Unique aspects in product result in different in quality thus increasing cost of production and lower economies of scale.

Commonality in products results in higher productivity due to higher demand, having an impact on economies of scales which lowers the total cost.

7) Need Satisfy a particular need of buyer.

8) End Result Show sense of value to the buyer but they have to pay more for such product.

Benefits buyer by lowering price.

New Product DevelopmentWhen teams collaborate in developing new innovations, having the following eight ingredients mixed into your team's new product developmental repertoire will ensure that it's overall marketability will happen relatively quick, and accurately -- making everyone productive across the board.

Step 1: GeneratingUtilizing basic internal and external SWOT analyses, as well as current marketing trends, one can distance themselves from the competition by generating ideologies which take affordability, ROI and widespread distribution costs into account. Lean, mean and scalable are the key points to keep in mind. During the NPD process, keep the system nimble and use flexible discretion over

which activities are executed. You may want to develop multiple versions of your road map scaled to suit different types and risk levels of projects.

Step 2: Screening the IdeaWichita, possessing more aviation industry than most other states, is seeing many new innovations stop with Step two screening. Do you go/no go? Set specific criteria for ideas that should be continued or dropped. Stick to the agreed upon criteria so poor projects can be sent back to the idea-hopper early on. Because product development costs are being cut in areas like Wichita, "prescreening product ideas," means taking your top three competitors' new innovations into account, how much market share they're chomping up, what benefits end consumers could expect etc. An interesting industry fact: Aviation industrialists will often compare growth with metals markets; therefore, when Boeing is idle, never assume that all airplanes are grounded, per se.

Step 3: Testing the ConceptAs Gaurav Akrani has said, "Concept testing is done after idea screening." And it is important to note, it is different from test marketing. Aside from patent research, design due diligence, and other legalities involved with new product development, knowing where the marketing messages will work best is often the biggest part of testing the concept. Does the consumer understand, need or want the product or service?

Step 4: Business AnalyticsDuring the New Product Development process, build a system of metrics to monitor progress. Include input metrics, such as average time in each stage, as well as output metrics that measure the value of launched products, percentage of new product sales and other figures that provide valuable feedback. It is important for an organization to be in agreement for these criteria and metrics. Even if an idea doesn't turn into product, keep it in the hopper because it can prove to be a valuable asset for future products and a basis for learning and growth.

Step 5: Beta/Marketability TestsArranging private tests groups, launching beta versions, and then forming test panels after the product or products have been tested will provide you with valuable information allowing last minute improvements and tweaks. Not to mention helping to generate a small amount of buzz. Word press is becoming synonymous with beta testing, and it's effective. Thousands of programmers contribute code, millions test it, and finally even more download the completed end-product.

Step 6: Technicalities and Product DevelopmentProvided the technical aspects can be perfected without alterations to post-beta products, heading towards a smooth Step seven is imminent. According to Akrani, in this step, "The production department will make plans to produce the product. The marketing department will make plans to distribute the product. The finance department will provide the finance for introducing the new product". As an example, in manufacturing, the process before sending technical specs to machinery involves printing MSDS sheets, a requirement for retaining an ISO 9001 certification (the organizational structure, procedures, processes and resources needed to implement quality management). In internet jargon, honing the technicalities after beta testing involves final database preparations, estimation of server resources, and planning automated logistics. Be sure to have your technicalities in line when moving forward.

Step 7: CommercializeAt this stage, your new product developments have gone main stream, consumers are purchasing your good or service, and technical support is consistently monitoring progress. Keeping your distribution pipelines loaded with products is an integral part of this process too, as one prefers not to give physical (or perpetual) shelf space to competition. Refreshing advertisements during this stage will keep your product's name firmly supplanted into the minds of those in the contemplation stages of purchase.

Step 8: Post Launch Review and Perfect Pricing

Review the NPD process efficiency and look for continues improvements. Most new products are introduced with introductory pricing, in which final prices are nailed down after consumers have "gotten in." In this final stage, you'll gauge overall value relevant to COGS (cost of goods sold), making sure internal costs aren't overshadowing new product profits. You continuously differentiate consumer needs as your products age, forecast profits and improve delivery process whether physical, or digital, products are being perpetuated.

Limitations :-

Cost - Conducting a market research for a new product can be costly. For instance, you may have to hire a research company to conduct the research for you. According to market research firm B2B International, research costs about $20,000 for a small target market, as of 2013. For a small business, this can be a high cost to incur.Inaccurate Information - A biased population or a poorly formulated research can result in false or inaccurate feedback. Plus, market research on new products developments may only reveal customer attitudes about your new product such as the intentions to buy it. However, these intentions may not translate to actual sales in future. Market research also affords you a small focus group, which may give you inconclusive data about your new product.

Time Constraint - Market research involves a detailed process of collecting and analyzing data, which is time-consuming. Also, for you to have a relevant market survey, you have to collect and analyze the data within a given time frame; otherwise it might easily become outdated. You also need to make quick decisions regarding the product to gain a competitive edge over others before you lose the available market opportunity. Allocating all the market research processes in your constrained timetable can be difficult.Constantly Changing Markets - The period over which a market research data is relevant may be limited because market parameters keep changing. Data collected for the purpose of launching a new product may be outdated by the time the product is ready for a market launch. To ensure that your research stays relevant, you need to constantly monitor changing market conditions and update your data accordingly. If you fail to update your data, the survey might not give a true reflection of the reality on the ground.

Management of International Brand Brand management is a communication function that includes analysis and planning on how that brand is positioned in the market, which target public the brand is targeted at, and maintaining a desired reputation of the brand. Developing a good relationship with target publics is essential for brand management. Tangible elements of brand management include the product itself; look, price, the packaging, etc. The intangible elements are the experience that the consumer takes away from the brand, and also the relationship that they have with that brand. A brand manager would oversee all of these things. Branding is defined as "the process of creating a relationship or a connection between a company's product and emotional perception of the customer for the purpose of generating segregation among competition and building loyalty among customers."

PackagingPackaging is more than just your product's pretty face. Packaging is the technology of enclosing or protecting products for distribution, storage, sale, and use. Package reduces the risk of wastage, spoilage, leakage, metage and evaporation etc. in the process of transportation and storage. Packaging is defined in the regulations as "all products made of any materials of any nature to be used for the containment, protection, handling, delivery and preservation of goods from the producer to the user or consumer." Packaging can be described as a coordinated system of preparing goods for transport, warehousing, logistics, sale, and end use.LabelingThe objective of foodstuff labeling is to guarantee that consumers have access to complete information on the content and composition of products, in order to protect their health and their

interests. Other information may provide details on a particular aspect of the product, such as its origin or production method. Some foodstuffs, such as genetically modified organisms, allergenic foods, foods intended for infants or even various beverages, are also subject to specific regulations. Labeling of certain non-food products must also contain particular information, in order to guarantee their safe use and allow consumers to exercise real choice. In addition, the packaging of foodstuffs must adhere to production criteria in order to avoid contaminating food 

Promotion DecisionPromotional tools.  Numerous tools can be used to influence consumer purchases:

Advertising—in or on newspapers, radio, television, billboards, busses, taxis, or the Internet.

Price promotions—products are being made available temporarily as at a lower price, or some premium (e.g., toothbrush with a package of toothpaste) is being offered for free.

Sponsorships Point-of-purchase—the manufacturer pays for extra display space in the store or puts a

coupon right by the product Other method of getting the consumer’s attention—all the Gap stores in France may

benefit from the prominence of the new store located on the Champs-ElyseesIssues / Constraints on Global Communications Strategies.  Although firms that seek standardized positions may seek globally unified campaigns, there are several constraints:

Language barriers:  The advertising will have to be translated, not just into the generic language category (e.g., Portuguese) but also into the specific version spoken in the region (e.g., Brazilian Portuguese).  (Occasionally, foreign language ads are deliberately run to add mystique to a product, but this is the exception rather than the rule).

Cultural barriers.  Subtle cultural differences may make an ad that tested well in one country unsuitable in another—e.g., an ad that featured a man walking in to join his wife in the bathroom was considered an inappropriate invasion in Japan.  Symbolism often differs between cultures, and humor, which is based on the contrast to people’s experiences, tends not to travel well.  Values also tend to differ between cultures—in the U.S. and Australia, excelling above the group is often desirable, while in Japan, “The nail that sticks out gets hammered down.”  In the U.S., “The early bird gets the worm” while in China “The first bird in the flock gets shot down.”

Local attitudes toward advertising.  People in some countries are more receptive to advertising than others.  While advertising is accepted as a fact of life in the U.S., some Europeans find it too crass and commercial.

Media infrastructure.  Cable TV is not well developed in some countries and regions, and not all media in all countries accept advertising.  Consumer media habits also differ dramatically; newspapers appear to have a higher reach than television and radio in parts of Latin America.

Advertising regulations.  Countries often have arbitrary rules on what can be advertised and what can be claimed.  Comparative advertising is banned almost everywhere outside the U.S.  Holland requires that a toothbrush be displayed in advertisements for sweets, and some countries require that advertising to be shown there be produced in the country.

International AdvertisingGlobal advertising is generally cross cultural marketing communications planned and executed to engage people in advertising. It entails the dissemination of a message to target audiences from more than one country.  International advertising can also be viewed as a business activity through which a firm attempts to inform target audiences in multiple countries about itself and its product or service offerings. In some cases the advertising message relates to the firm and its activities, i.e. its corporate image. In other cases, the message relates to a specific product or service marketed by the firm. In either case, the firm will use the services of an advertising agency to determine the appropriate message, advertising copy and make the media placement. A global campaign offers a number of advantages. In the first place, it can be an important means of building a strong and coherent global image for the firm and/or its products worldwide.

Use of the same image in different countries builds familiarity and generates synergies across world markets. It allows utilization of good ideas and creative talent (both of which are scarce commodities) on a worldwide basis. In addition, use of a single campaign provides substantial cost savings in copy development and production costs. Conversely, development of multiple local campaigns can lead to duplication of effort, result in inconsistent brand images across countries and confusion in consumers' minds with regard to the benefits offered by the brand and corporate image.

Personal SellingIn the language of sales and marketing, "personal selling" singles out those situations in which a real human being is trying to sell something to another face-to-face. Personal selling is where businesses use people (the “sales force”) to sell the product after meeting face-to-face with the customer. The sellers promote the product through their attitude, appearance and specialist product knowledge.  They aim to inform and encourage the customer to buy, or at least trial the product. A good example of personal selling is found in department stores on the perfume and cosmetic counters.  A customer can get advice on how to apply the product and can try different products.  Products with relatively high prices, or with complex features, are often sold using personal selling.  Great examples include cars, office equipment (e.g. photocopiers) and many products that are sold by businesses to other industrial customers. Because selling involves personal contact, this promotional method often occurs through face-to-face meetings or via a telephone conversation, though newer technologies allow contact to take place over the Internet including using video conferencing or text messaging (e.g., online chat).

Importance of personal SellingPersonal selling is an important element of promotion mix and an effective promotional tool. Personal Selling offers the following compensation.

(i) It is a flexible tool: Personal selling involves individual and personal communication as compared to the mass and impersonal communication of advertising and sales promotion. Therefore, personal selling is most flexible in operation. A salesman can tailor his sales presentation to fit the needs, motives and attitudes of individual customers can observe the customer's reaction to a particular sales approach and thus make necessary adjustments right on the spot. Face-to-face contact with customers is the most effective means of communication and persuasion.

(ii) It involves minimum wasted effort: In personal selling, a salesman can select the target market and concentrate on the prospective customers. He need not communicate with the people who are not the real prospects. Therefore, personal selling involves minimum wastage of effort.

(iii) It results in actual sale : Advertising and sales promotion techniques can only attract attention and arouse desire. By themselves they cannot create actual sale. Personal selling in most cases leads to actual sale. A salesman can find prospective buyers, demonstrate the product, explain its operation, and convince customers to buy it, install it at the customer's place and provide after-sale service. No other method of promotion can perform all these functions. Therefore, personal selling does the entire job of selling. Personal Selling is a complete promotional technique of keeping customers satisfied.

(iv) It provides feedback: Personal selling involves two-way flow of communication between the buyer and the seller. It is a useful method of understanding the needs and behavior customers. It provides knowledge about the tastes, habits and attitudes of the prospective customers.

(v) It complements advertising : In most situations, there is a need for explaining the quality uses and price of the product. Salesmen can persuade the prospective customers to buy a product. Advertising attracts customers but their doubts and questions about the product are

answered by salesmen. In this way personal selling supports advertising. Salesmen educational the consumers about new products and about new uses of existing products.

(vi) It educates customers : Salesmanship is not simply a tool of convincing people to buy certain products. It assists customers in satisfying their wants. A salesman provides: information, education and guidance to customers. He handles their complaints and assists them in getting value for their money. He can clear their doubts on the spot.

(vii) It assists the society: Salesmen help to increase aggregate sales and production in the country thereby increasing employment opportunities. They help to maintain equilibrium between demand and supply. Despite the above advantages, personal selling suffers from several disadvantages. Firstly personal selling is the costliest method of promotion. Secondly, it can cover only limited number customers at a time. Thirdly, it is not very effective for creating consumer awareness about a product or service. Fourthly, many consumers are suspicious of personal selling at the retail level and they criticize salesmen for lack of honesty, poor knowledge, strong pressure, etc. Lastly, it is difficult to recruit, train and motivate competent salespersons.

Sales PromotionSales promotion is one level or type of marketing aimed either at the consumer or at the distribution channel (in the form of sales-incentives). It is used to introduce new product, clear out inventories, attract traffic, and to lift sales temporarily. It is more closely associated with the marketing of products than of services. The American Marketing Association (AMA), in its Web-based "Dictionary of Marketing Terms," defines sales promotion as "media and non-media marketing pressure applied for a predetermined, limited period of time in order to stimulate trial, increase consumer demand, or improve product availability." Business pundits and academic students of business have developed almost fancifully sophisticated views of sales promotion. In down-to-earth terms it is a way of lifting sales temporarily by appealing to economic motives and impulse-buying behavior. The chief tools of sales promotion are discounts ("sales"), distribution of samples and coupons, the holding of sweepstakes and contests, special store displays, and offering premiums and rebates. All of these techniques require some kind of communication. Thus sales promotion and advertising are difficult to distinguish.

International Logistic DecisionAccording to Council of logistics management:“Logistics is the process of planning, implementing and controlling the efficient, effective flow and storage of goods, services and related information from point of origin to point of consumption for the purpose of conforming the customer requirement”.This definition clearly points out the inherent nature of logistics and it conveys that Logistics is concerned with getting products and services where they are needed whenever they are desired. In trade Logistics has been performed since the beginning of civilization: it’s hardly new. However implementing best practice of logistics has become one of the most exciting and challenging operational areas of business and public sector management. Logistics is unique, it never stops! Logistics is happening around the globe 24 hours a days Seven days a week during fifty-two weeks a year. Few areas of business involve the complexity or span the geography typical of logistics. From the point of view of management, marketing logistics or physical distribution has been described as ‘planning, implementing and controlling the process of physical flows of materials and final products from the point of origin to the point of use in order to meet customer’s needs at a profit. As a concept it means the art of managing the flow of raw materials and finished goods from the source of supply to their users. In other words, primarily it involves efficient management of goods from the end of product line to the consumers and in some cases, include the 4 movement of raw materials from the source of supply to the beginning of the production line. These activities include transportation warehousing, inventory control, order processing and information monitoring. These activities are considered primary to the effective management of logistics because they either contribute most to the total cost of

logistics or they are essential to effective completion of the logistics task. However, the firms must carry out these activities as essential part of providing customer with the goods and services they desire.

Organizing and ControllingMarketing activities are not carried out haphazardly. Due to intensive competition in the marketplace and the need for firms to build strongholds, it becomes imperative for them to plan. The organizational structure adopted by firms also influences their efficacy. Planning cannot be effective and result oriented if there is no instituted control system that would measure actual performance with necessary. (organizing-pg39com-2)ControllingThe control process is always seen as the final, but often neglected stage of international market planning. However, these activities not only are important for the performance evaluation, but provide the feedback necessary for the start of the next planning cycle. And nowadays the evaluation and control probably represents one of the weakest areas of the marketing activities in many international companies. it is necessary to define what ‘control’ actually means. In the managerial literature, control is defined as the process by which managers ensure that resources are used effectively and efficiently in the accomplishment of the organizational objectives. Control activities are directed towards marketing programs and other projects initiated by planning process. Data measures and evaluations generated by the control process in the form of a global audit are also input to the planning process. Thus, there is no planning without control. And nowadays it becomes an even more important part of the cycle. The environment in which businesses operate is constantly changing. So it is obvious that business must adapt to reflect changes in the environment and make decisions about how to change the marketing mix in order to succeed. Sometimes this is quite a straightforward task. For example, in many small businesses there is only one geographical market and a limited number of products. However, there is another situation, the challenge faced by marketing management in a multinational business, with hundreds of business units located around the globe, producing a wide range of products. In this case well-organized marketing planning was usually considered as a vital activity to keep control of marketing decision-making. While control processes were undervalued.

Information And Technology In International Marketing The accessing speed, volume and availability of information through the internet as well technologically advanced data transferring and data management systems have resulted in quicker, cheaper and increasingly globalized business transactions. This has enabled the process of branding, marketing and transacting of products, services and information through the internet and electronic mediums such as e-mails and short message service (SMS). Electronic transfer of information has enabled a revolution in business through outsourcing business processes to leverage on cost and quality of a specialized service provider.  This has resulted in non-core transactional processes as well as certain value added functions of organizations in the west being outsourced to Asian countries such as India, Sri Lanka and the Philippines.Haeckal et.al (1999) identify that successful firms which focus on sensing and satisfying dramatically changing customer needs effectively use I.T to reduce time and space constraints relevant to acquiring, interpreting and acting on information.Porter’s Diamond theory addresses factors that drive competitive advantage of nations. It can be argued that IT is a catalyst in identifying and developing these factors through provision of timely, organized and detailed information for this purpose. For example, firms may use IT to develop their competitive position and customer demand in certain industries such as banking, retail trade and telecommunication by providing clients the ability to perform an increasing number of transactions online.

Impact of Globalization on International marketingIn the past two decades, the world has gone through the process of globalization, one that causes increasing economic, financial, social, cultural, political, market, and environmental

interdependence among nations. Business, as well, is inevitably affected by this process of change towards more interdependence. Globalization is defined as the process of increasing social and cultural inter-connectedness, political interdependence, and economic, financial and market integrations. Globalization refers to the reduction and removal of barriers between national borders in order to facilitate the flow of goods, capital, services and labor. Globalization has various aspects which affect the world in several different ways such as: Industrial - emergence of worldwide production markets and broader access to a range of foreign products for consumers and companies. Particularly movement of material and goods between and within national boundaries. Financial - emergence of worldwide financial markets and better access to external financing for borrowers. Economic - realization of a global common market, based on the freedom of exchange of goods and capital. Health Policy - On the global scale, health becomes a commodity. Global priorities, in this situation, are sometimes at odds with national priorities where increased health infrastructure and basic primary care are of more value to the public than privatized care for the wealthy. Political - some use "globalization" to mean the creation of a world government which regulates the relationships among governments and guarantees the rights arising from social and economic globalization. Informational - increase in information flows between geographically remote locations. Language - the most popular language is Mandarin (845 million speakers) followed by Spanish (329 million speakers) and English (328 million speakers). Competition - Survival in the new global business market calls for improved productivity and increased competition. Due to the market becoming worldwide, companies in various industries have to upgrade their products and use technology skillfully in order to face increased competition. Ecological - the advent of global environmental challenges that might be solved with international cooperation, such as climate change, cross boundary water and air pollution, over-fishing of the ocean, and the spread of invasive species. Since many factories are built in developing countries with less environmental regulation, globalism and free trade may increase pollution Cultural - growth of cross-cultural contacts.

Spreading of multiculturalism and better individual access to cultural diversity. Greater international travel and tourism. Greater immigration Spread of local consumer products (e.g., food) to other countries Worldwide fads and pop culture Worldwide sporting events such as the Olympic Games.

Social - development of the system of non-governmental organizations including humanitarian aid and developmental efforts. Technical

Development of a global telecommunications infrastructure and greater trans-border data flow, using such technologies as the Internet, communication satellites, and wireless telephones. Increase in the number of standards applied globally; e.g., copyright laws, patents and world trade agreements.

NEGATIVE EFFECTSGlobalization has generated significant international opposition over concerns that it has increased inequality and environmental degradation. EFFECT ON DISEASE Globalization, the flow of information, goods, capital and people across political and geographic boundaries, has also helped to spread some of the deadliest infectious diseases. FOOD SECURITY

The gradual change in diet among newly prosperous populations is the most important factor underpinning the rise in global food prices. SWEATSHOPS It can be said that globalization is the door that opens up an otherwise resource-poor country to the international market. The majority of the earliest occurrences of economic globalization are recorded as being the expansion of businesses and corporate growth, in many poorer nations globalization is actually the result of the foreign businesses investing in the country to take advantage of the lower wage rate. One example used by anti-globalization protestors is the use of sweatshops by manufacturers. There are factories set up in the poor countries where employees agree to work for low wages. Then if labor laws alter in those countries and stricter rules govern the manufacturing process the factories are closed down and relocated to other nations with more conservative policies

Unfair Marketing PracticesUsing various deceptive, fraudulent or unethical methods to obtain business. Unfair trade practices include misrepresentation, false advertising, tied selling and other acts that are declared unlawful by statute. It can also be referred to as deceptive trade practices. There are certain agent or insurer practices that are considered unfair, unethical, or deceptive. These include the following activities.A misrepresentation is simply a false statement of fact; that is a lie. It is illegal an unethical for any agent to misrepresent the benefits, advantages, or provisions of any insurance policy. For example, dividends are never guaranteed and to imply or state that a policy dividend is guaranteed is a lie and naturally an unethical sales practice. It is misleading and deceptive for an agent or an insurer to purposely mislead or attempt to deceive an applicant by misrepresenting any aspect, condition, or provision of the policy.Generally there are two reasons for misrepresentations by agents. One is simply pressure to make the sale. Since insurance is a commission-paid business, an agent might feel desperate to make a sale due to his own personal financial situation. In order to convince an unsure prospect to buy, he may answer that person’s questions with misleading information.The other reason for misrepresentations is lack of knowledge or ignorance of the product being sold. For example, the consumer may ask the agent a question regarding whether something is covered. Instead of saying, "I don’t know, but I will find out", the agent might say, "Yes, that is covered" thinking that he remembers reading something about that, and believing coverage exists.False advertising is related to the concept of misrepresentation and is considered an unethical method of competition. To mislead the buyer of insurance by using misleading or incorrect sales literature, sales proposals, or similar forms of advertising is a violation. To illustrate, a whole life policy, which depicts the contracts, guaranteed cash value and non-guaranteed dividends as a single guaranteed sum is false advertising.

Defamation is the deliberate attempt to discredit the good name and reputation of another insurer (or agent) by means of false, malicious or derogatory statements. It should be noted that proving defamation requires that someone has communicated the derogatory information to another – verbally or in writing. Without the element of communication there can be no defamation.

Boycott, coercion and intimidation are unethical trade practices that attempt to limit or restrain trade in the transaction of insurance. For example, a bank may indicate that a customer must have adequate amounts of life insurance to provide security for a business pr personal loan. The bank may even determine whether specific insurance is adequate to satisfy their lending requirements. However, the bank (or any lending institution) may not force or coerce a person into purchasing insurance from a specific agent or company. To intimidate a person by indicating that a loan will not be granted unless the person purchases specific insurance from a particular company or agent is considered an unethical business practice.

False financial statements made by an insurer/agent are considered illegal and unethical business conduct. All states have reserve requirements whereby insurers must set aside a certain amount of their premium income in a reserve against future policy claims. To falsify

such information is a violation. Insurers are also audited and the Insurance department reviews financial records. To provide incorrect financial information is both unethical and a civil violation.

Twisting is inducing a person to lapse, surrender, or terminate insurance for the purpose of purchasing a similar policy with another agent or insurer. Twisting should not be confused with replacement, which is legal if done in accordance with specific state laws. Twisting could be thought of as "illegal replacement".

The key word in the definition of twisting is "inducement". Inducements could include an incomplete policy comparison, a misrepresentation, or some other unethical act.

Discrimination is both illegal and unethical in accordance with state and federal laws. From an insurer’s perspective, it is unlawful to permit discrimination between individuals of the same class and life expectancy regarding life insurance rates, dividends or other policy benefits. It is unlawful to discriminate because of age in the issuance of and rates for automobile insurance. It is unethical and illegal to permit or cause discrimination due to race, creed, color or national origin regarding the issuance of insurance or the rates charged for insurance.

Rebating is generally considered to be an unethical marketing practice although in a few states, including California, rebating is not contrary to state law. By definition, rebating is any inducement, particularly commission, in the sale of insurance that is not specified in the insurance contract. Rebating is not limited to monetary inducements and may also include services. For example, an offer to tune up a car for a prospect or to repair an appliance could be inducements in the sale of insurance and accordingly, rebates.

Solutions to prevent unfair PracticesThe Federal Trade Commission Act (FTC Act) of 1914 is a federal  law designed to protect consumers from unfair and deceptive practices in the marketplace, as well as to prevent businesses from engaging in monopolizing practices. It created the Federal Trade Commission (FTC), an independent government agency responsible for enforcing the act’s provisions.

The FTC is headed by five commissioners and split up into several offices, with the main ones being the Bureau of Consumer Protection and the Bureau of Competition. All 13 offices, which cover everything from policy planning to international affairs, act together as a single unit with specific goals in mind.

The first part of the FTC Act bans businesses from using unfair practices, which are any practices that cause substantial and unavoidable injury to the consumer.

In determining whether a practice is unfair, the FTC considers the S&H criteria, a set of criteria based on the 1972 Supreme Court ruling in the case of Sperry and Hutchinson. Although these criteria help the FTC make decisions, they leave room for variances in judgment and are not set in stone.

The FTC utilizes a similar set of criteria in determining whether a company’s action is deceptive, which is also outlawed by the FTC Act. These criteria are slightly more rigid. Although the criteria still leave room for interpretation, deceptive practices must fit all three benchmarks.

The FTC Act works in conjunction with numerous other laws to protect consumers and their financial information. Because of the act’s close connections with other laws, the FTC oversees and helps enforce laws related to the FTC Act.