INTERNATIONAL MARKETING

EXPORT MANAGEMENT (DR. T.N. RAMAKRISHNA)

8/12/2013

A.J INSTITUTE OF MANAGEMENT

International Marketing:
Marketing carried on across national boundaries.

According to Hess & Cateora International Marketing is the performance of business activities that direct the flow of goods & services to consumers or users in the more than one nation. (It is different from domestic marketing as the exchange takes place beyond the frontier, thereby involving different markets & consumers who might have different needs, wants & behavioral attributes.)

8/12/2013

A.J INSTITUTE OF MANAGEMENT

Similarities between Domestic Marketing & International Marketing:

- Both in domestic marketing as well as international marketing, success depends upon satisfying the basic requirements of the consumers. - It is necessary to build goodwill both in the domestic market as well as in the international market. (Now Caveat emptor to Caveat Vendor.) - R&D for product improvement & adoption is necessary both for international marketing & domestic marketing.
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Special Problems in International Marketing:

- Political & Legal Differences: The political & legal environment of foreign markets are different from that of the domestic. The complexity generally increases as the number of countries in which a company does business increases.
- Differences in Marketing Infrastructure: (E.g. An advertising medium very effective in one market may not be available or may be underdeveloped in another market.) - Trade Restrictions: Tariffs, Quotas & Exchange controls are important problems which an international market faces.
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- Difference in Procedures & Documentation: Each Country has its own procedures & documentary requirements & traders have to comply with these regulations if they want to export or import goods from foreign countries. - Different Monetary Systems: Each country has its own monetary system & the exchange value of each countrys currency is different from that of the other. - Greater Degree of Risk: There is greater degree of risk involved in international marketing than in domestic marketing (Larger volume of transactions, Higher Value of Transactions, Longer time in transit, Comparatively less knowledge about the parties reputation & credibility.) - Low Mobility of Factors of Production:
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Scope of International Marketing:

- Opening a branch/subsidiary abroad for processing, packaging, assembling or even complete manufacturing through direct investment. - Negotiating licensing/franchise arrangements whereby foreign enterprises are granted the right to use the exporting companys know viz., patents, or trade marks with or without financial investments. - Establishing Joint Ventures in foreign countries for manufacturing &/marketing. - Offering Consultancy services & undertaking turnkey projects abroad.
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A.J INSTITUTE OF MANAGEMENT

Trade Barriers/Trade Restrictions:

International Trade is generally characterized by the existence of various trade barriers. The main objective of imposing trade barriers can be - To protect Domestic Industries from Foreign competition; - To guard against dumping; - To conserve the foreign exchange resources of the country; - To make the BOP position more favourable; - To Mobilize revenue for the government; - To discriminate against certain countries.

8/12/2013

A.J INSTITUTE OF MANAGEMENT

8/12/2013

A.J INSTITUTE OF MANAGEMENT