INTERNATIONAL MARKETING

Rajnish Kumar Roopak Sharma Pawan jain Praveer Sinha Rahul Kumar Saumya Singh Dibyendu

Kumar

MARKETING

Marketers everywhere must

Know their markets

Develop products or services to satisfy customers’ needs

Price the products or services so that they are readily available

Make them available to the buyers

Inform potential customers and persuade them to buy

INTERNATIONAL MARKETING

• Refers to the process of identifying the goods and services that customer outside the home country wants and then providing them at the right price and place.

DOMESTIC AND INTERNATIONAL MARKETING

On the basis of DOMESTIC INTERNATIONAL

SCOPE Limited and will eventually dry up.

Endless opportunities and scope.

BENIFITS Less as compared to international marketing.

As is obvious, more benefits.

SHARING OF TECNOLOGY Limited in the use of technology.

Allows use and sharing of latest technologies.

POLITICAL RELATION Nothing to do with political relations.

Leads to improvement in political relations between countries and also increased level of cooperation as a result.

BARRIERS No barriers. Many barriers such as cross cultural differences, language, currency, traditions and customs.

ACTIVITIES IN INTERNATIONAL MARKETING

International Customer

Product Price

Promotion Distribution

International Economic Institutions and Agreements

Economic Env. Political/Legal Env.Fi

nanc

ial

Envi

ronm

ent

Soci

o-cu

ltura

l En

viro

nmen

t

ACTIVITIES IN INTERNATIONAL MARKETING

MARKETING AND OTHER FUNCTIONS

OperationsManagement

FinanceHuman

ResourceManagement

Accounting

Marketing

INTERNATIONAL MARKETING STRATEGY

INTERNATIONAL MARKET ASSESSMENT

Assess alternative

foreign market

Select market for

entry or expansion

Evaluate : cost, benefits

and risk

INTERNATIONAL PRODUCT STRATEGIES

Local and International Environment

Competitive Situation

Firm’s Internal

Situation

Customer Needs &Price

Elasticity

ProductStrategies

STANDARISATION AND ADAPTATION

Developing same product for multiple countries.

Premise:-consumers share some common values, beliefs, and consumption patterns.

Advantages: economies of scale and scope, price competitiveness,

uniform image

Modifying product to reflect characteristics of a market.

Premise-- consumers are not the same.

Advantages: improved fit between product and consumer, expanded penetration

FACTORS FAVORING PRODUCTS STANDARDIZATION VERSUS

ADAPTATIONStandardization

• High cost of Localization

• Primarily industrial products

• Convergence and similar tastes in diverse country markets

• Predominant use in urban environments

• Marketing to predominantly similar countries e.g. Scandinavia

• Centralized management of international operations when mode of entry is mainly exports

• Strong country-of-origin image and effect

• Scale economies in production, marketing, and R&D

• Standardized products marketed competitors

Adaptation • Differences in technical standards

• Primarily consumer and personal-use products

• Variation in consumer needs and applications

• Variations in conditions of use

• Variations in ability to buy-differences in income levels

• Fragmentation, with autonomous national subsidiaries

• Strong cultural differences, language, etc., affecting purchase and use

• Local environment-induced adaptation: differences in raw material available,

government-required standards and regulations

• Adaptation strategy successfully used by competitors

Brand Decision

• What is Brand ?

• Brand name are one of the most valuable assets which companies possess.

• Brand Equity

Issues Relating to Brand Name

• Whether or not to use uniform brand internationally…?

• Expansion to the overseas market

• Image issue

• Legal and cultural factors

Pricing issue & Policies

• Standard Price Policy

• Two tiered pricing

• Market Pricing

PROMOTION ISSUES AND POLICIES

4 elements of promotion mix:-

a)Advertisingb)Personal sellingc) Sales promotiond)Public relation

Constraints on advertising

• Language difference

• Government control

• Agency availability

• Economic difference

• Cultural diversity

Advertising programs

• Message The message it wants to convey

• Medium The media available to convey the message

• Global vs. local advertising The extent to which the firm wants to globalize its advertising

efforts

Advantages of Personal Selling for International Firms

• Local sales representatives understand local culture, norms, and customs.

• Personal selling promotes close, personal contact with customers.

• Personal selling makes it easier for firm to adopt valuable market information

Sales Promotion

Sales promotion comprises specialized marketing efforts designed to offer an incentive for behavior such as coupons, in-store promotions, sampling, direct mail campaigns, cooperative advertising, and trade fair attendance.

Unique forms of international promotion

Government Role

Trade Fair

Barter And Countertrade

Bribery

Miscellaneous Measures

Public Relations

Public relations consists of efforts aimed at enhancing a firm’s reputation and image with the general public, as opposed to touting the specific advantages of an individual product or service.

Firms make use of two principles channels of distribution when marketing

1) Indirect selling-also known as local or domestic channel ,is employed when a manufacture markets its product through another firm form the same country that acts as intermediary.

2) Direct Selling-Is employed when a manufacturer develops an overseas channel Here the firm directly deals with a foreign party without going through an intermediary in the home country.

Channels of Distribution

Eight guidelines have been advocated to make multinational distributors partnership

1) Select distributor , don’t let them select you.

2) Treat the local distributors as long term partners , not temporary

market entry vehicles.

3) Support marketing entry by committing money, mangers , and proven

marketing ideas

4) From the start, maintain control over marketing strategy.

5) Make sure distributors provide you with detailed market and financial

performance data.

6) Build links among national distributors at the earliest opportunity.

7) Understand host country culture

Physical Distribution

Average time required to move a product from “firm to shelf “ is four to five months .Although it takes only about seventeen minutes to produce a product, the rest of the time is spent on logistical activities – storage handling ,transition, packaging etc .

International logistics costs can account for 25 to 35 percent of the sales value of a product

MODES OF TRANSPORTATION

The three fundamental means of transportation are:-

1.Air

2.Water (ocean and inland)

3.Land (rail and truck)

Appropriate transportation mode depends on

1. Market location

2. Speed

3. Cost

Que 1 Are the 4 ps of international marketing of equal importance to all the firms ?

Que 2

Why do international firms use market pricing ?

Que 3

Why are brand names an important market tool for international business ?

Que 4

Bring out the benefits of international marketing ?