Process of International

Marketing
• The process of international calls for a variety of
interrelated sets of international marketing decisions
which have long-term repercussions
• Such a framework of international marketing,
depicted in (figure 1), is self explanatory and provides
synoptic views of decisions required to be made while
approaching international markets
• The initial stimuli for entering international markets
include any one or several motivations such as growth,
profitability, achieving economies of scale, risk spread,
access to imported spreading R&D cost
• The significance of these stimuli varies among the
firms, which may assign them respective weights to
carry out a cost-benefit analysis, as shown in (figure 2)
• Subsequently, a firm is required to carry out a SWOT
analysis to assess its capability to internationalize and
identify the issues and factors which need special
attention while taking international marketing decisions
• The analysis may vary from company to company;
however, a typical SWOT analysis made for a small-or
medium-size company in a developing country like
India may appear similar to what is shown in (figure 2)
• Once a firm’s strengths and weaknesses are
carefully examined, decisions to enter into international
markets are taken
• The marketing decision is made by adopting
appropriate strategies to take benefit of emerging
marketing opportunities and suitable measures to
respond to the threats of international markets.
 Motivation for International Marketing

― Growth
― Profitability
― Risk Spread
― Access to Imported Inputs
― Uniqueness of Product/ Services
― Life Cycle Marketing Opportunities
― Spreading R&D Costs
SWOT Analysis

Decision to International Markets

 International Marketing Decisions
― Market Identification and Targeting
― Entry Mode Selection
― Product Decisions
― Distribution Channels Decisions
― Market Promotion Decisions

Enter International Markets

Review Performance

Consolidate Marketing Efforts to Global Marketing

(Figure 1), International Marketing Process

Strengths
• Specialized technical skills,
viz., IT or any other skills
• Competent human
resources
• Adequate production
facilities
Weakness
• Little expertise in
international marketing
• No prior experience in
overseas markets
• Financial constraints
Opportunities
• High growth in overseas
markets
• Emerging new market
segments
• Substantial difference in
price realization
Threats
• High competitive intensity
• Increasing non-tariff
barriers
• Increased market risk

(figure 2), SWOT Analysis for a Medium-sized

Company for Internationalization