Session Plan

Class Test 1: 10 marks. Will be held in our 5 th lecture

Attendance & class participation: 10 marks
Group project presentation: 20 marks. Will be held in our last
two lectures. Pl note:
1. Project details have to be given to me by the 5 th lectureevaluation criteria will be discussed
2. Not more than 5 members in one group
3. Each group will get 20 minutes to present
4. One B&W hard copy with all presentations to be handed
over to me BEFORE we start the presentations- this is a MUST
Final examination- 60 marks- 1st Question is compulsory for 20
marks, attempt 4 questions out of a choice of 6, each question
is for 10 marks. Each question from nos. 2-6 will have 3 sub
questions of 5 marks each, you have to answer any two

Todays Session

Introduction to International
Marketing

Session Objectives
To define domestic, international, and global
marketing
To study its scope
To explore the factors that impact markets
To examine the stages in the development of a
marketing strategy

Framework
Political/Legal

Price
Product

International
Customer

Promotion

Distribution

Sociocultural
Environme
nt

Financial
Environme
nt

Economic Environment
Environment

International Economic Institutions

and Agreements
4

Definitions
Domestic marketing :

encompasses a
firms efforts in its home country

International marketing:

involves
marketing same goods and services outside the
home country

Global marketing :

is an advanced form of
international marketing in which a firm addresses
global customers, markets, and competition

Benefits
It allows each country to maximize their
strengths and offset its weaknesses
Countries can optimize their comparative
advantages
It can extend the product life cycle,
dispose of discontinued items, and allow
for innovations

Types of Trade Restrictions

Tariffs

Legal Analysis

Trade Quotas

Embargo

Political
Analysis
Local Content
Laws

Globalization Forces: Government

Drivers

Reduction of tariff barriers

Reduction of non-tariff barriers
Creation of new trading blocs
Decline in the role of government as
producers and consumers
Market liberalization and privatization
Adoption of common standards
8

Scope

Comparative

Tax Incentives

PLC Stage

Advantage
Economic
&
Demographic trends

Growth in
Internation
al
Marketing

Domestic
Competition

Marketing Strategy Options

Domestic firm: It restricts efforts to home market
Exporting firm: It expands sales beyond its home
borders

International firm: It modifies products for foreign

markets or introduces new items

Multinational firm: While head-quartered in home
nation. 50% + of its sales/profits are from multiple
nations
Global firm: Its domestic sales are relatively low, so it
relies more on foreign transactions

Factors to evaluate
Cultural Environment
Standards of behavior
Language
Lifestyles
Goals

Technological Environment
Infrastructure
Statutory benefits
Penetration

Economic Environment

Standard of living
GDP
Stage of economic development
Stability of currency

Political and Legal Environment

Nationalism
Government stability
Trade restrictions
Trade agreements
Economic communities

The Cultural Environment

A culture is a group of people sharing a distinctive heritage
Inadequate information about foreign culture is a common cause
of marketing errors
Developing countries often have limited census data information,
poor communication tools, and limited technological access
Language barriers often inhibit access to traditions and customs
that are key to customer desires

Stages of Economic
Development
Industrialized Countries
High literacy rate
Modern technology
High per-capita GDP

Developing Countries
Rising education
Improving technology
Rising per-capita GDP
Less Developed Countries
Low literacy
Limited technology
Extremely low per-capita
GDP

Leading Economic Communities

The European Union (EU) : facilitates trade among member

countries by establishing common currency, product standards, and

the free flow of people and capital

North American Free Trade Association (NAFTA) : has

created an economic community to link U.S.A., Canada, and Mexico

TheSouth Asian Association for Regional

Cooperation(SAARC) is aneconomic andgeopolitical

cooperation among eightmember nations that are primarily located

inSouth Asiacontinent. Its secretariat is headquartered in
Kathmandu ,Nepal

Strategic evaluation by type of

organisation
Low
Medium
High
Commitment
Resource Needs
Control
Risk
Profit
Potential

Direct
Ownership
Joint Venture
Flexibility

Exporting

Methods of Product Planning

Straight Extension: a firm makes and markets the
same product for domestic and foreign sales
Product Adaptation: domestic products are
modified to meet foreign language needs, cultures,
religious beliefs, taste preferences, climates,
electrical requirements, laws, and/or other factors
Backward Invention: a firm appeals to developing
and less-developed nations by making products less
complex than it sells domestically
Forward Invention: a firm develops new products
for its international markets

Marketing Plan Options

Global Approach: A common
marketing plan is used for each nation
Non-standardized Approach: Each
country is given a separate marketing
plan
Glocal Approach (think global and
act local): This combines
standardized and non-standardized
plans and lets a firm gain production
efficiencies, have a consistent image,
have home office control, and still be
sensitive and responsive to local needs

Promotion Planning
It depends on the overlap of
audiences, language
similarities, and the
availability of media
Campaigns can be global,
non-standardized, or glocal
Firms sometimes globalize
promotions for image
purposes

Pricing Planning
It considers whether prices should
be standardized, the level at which
prices are set, the currency in which
prices are quoted, and terms of sale
Dumping is involved if a firm sells
a product in a foreign country at a
price lower than that prevailing in
its home market, below the cost of
production, or both. Duties may be
levied on dumped products

Distribution Planning

Distribution in each international market requires planning

It encompasses the selection and use of resellers, and the

physical movement of products

Government restrictions, costs, transportation, poor road

conditions, and other limitations may alter distribution modes

Inventory, storage, and reordering may be affected by

warehouse availability

Session Summary

This session defined domestic, international, and

global marketing
We looked at the context, concept and scope of
international marketing
We evaluated how the cultural, economic, political and
legal, and technological environments impact
international markets
We analyzed the stages in the development of an
international marketing strategy

Any Questions Please?