A Brief Historical Background

Globalization is sourcing and supplying from and to the board less

world. Few words in the language of business have been more overused –
and perhaps misused in recent times than “globalization”. Much has been
written and said on the topic, but it is a phenomenon that is rather simply
described: Globalization is the process by which an activity or undertaking
becomes worldwide in scope. This chapter describes the consequences
and the determinants of the process by which firms activities become
worldwide in scope – why a firm becomes an MNE. We shall also attempt to
understand how a firm pursues its entry into markets abroad.

Globalizations via the development and spread of the MNE through

direct foreign investment are a more recent phenomenon. The earliest
MNEs were mainly European firms, setting up manufacturing facilities in
colonies to extract primary resources for conversation to finish goods back
home. However, by the mid-nineteenth century, many US firms began to
globalized – for example Singer Sewing Machines, which set-up a joint
venture in France in 1855, Westinghouse, which set up a plant in Paris in
1873, and Kodak, which set up a plant in London in 1889. The expansion of
US firms was further after World War II when both European and Japanese
industrial infrastructure was largely destroyed by the war. Resources
transferred for rebuilding these economies through programs such as the
“Martial Plan” gave US firms the ability to consolidate their position even
more firmly.

Introduction
International Marketing is a very broad field and it encompasses many
different types of professionals working at vastly different types of
occupations. Some of the International Marketing executives work in the
world of business, some others in finance, and others in advertising, and
the rest in human resources.
It is the International Marketing executives who research business
opportunities in foreign markets and make contacts with the appropriate
figures to get the business deals started. It is the International Marketing
executives who find sources of raw materials and goods in distant
countries and prepare all the import and export documentation needed for
shipping and transport. Most of the International Marketing executives are
aware of cultural nuances that might effect how a company goes about
doing its business in a foreign land.
 International marketing usually help companies define and transmit a
consistent message about a product across all markets. They also take
care to retool advertising campaigns and brand names to fit the tastes of
each culture. As the world continues to shrink, the role of those involved in
international marketing and business will only continue to become
increasingly important. This is especially the case in a country like India,
which had only just started exploring the international markets through
exports. With the oncoming dismantling of the quota system in the retail
sector, the demand for International Marketing executives in India is only
set to rise.

Meaning and Definition of

International Marketing
International marketing is a part of the total marketing process.
Marketing may be understood as the human activity directed at satisfying
needs and wants through exchange process. Marketing activities carried
out by marketer in more than one nation may be termed as international
marketing. According to Hess and Cateora it is ‘The performance of
business activities that direct the flow of goods and services to consumers
or uses in more than one nation.’
 Importance of international
marketing
1. To meets the imports of industrial needs.
2. Debt servicing.
3. Rapid economic growth.
4. Profitable use of natural resources.
5. Increase in employment opportunities.
6. Facing competition successfully.
7. Role of exports in national income.
8. Increase in standard of living.

Benefits of International Marketing.

1. Survival: - Most countries are not as fortunate as the US in terms of
market size, resources and opportunities; they must trade with
others to survive. International competition may not be a matter of
choice when survival is at state.
2. Growth of Overseas Market: - Developing countries inspite of
economic and marketing problems are excellent markets. Latin
America and Asia / Pacific are experiencing the strongest economic
growth. The world market is more than four times larger than the US
market.
3. Sales and Profits: - Foreign markets constitute a large share of total
business of many firms that have wisely cultivated markets abroad.
Many large companies have done very well because of their overseas
customers.
4. Diversification: -. One way to diversify a company’s risk is to consider
foreign markets as a solution for variable demand. Such markets
even out fluctuations by providing outlets for access production
capacity.
5. Inflation and price moderation: - the benefits of exports are readily
self evident. Imports can also be highly beneficial to a country
because they constitute reserve capacity for the local economy.
Without imports, there is no incentive for domestic firms to moderate
their prices and excessive profits for local firms. In Europe when
prices of orange juice were driven upward consumers shifted to
apple juice and other fruit drinks.
 Exploit competitive
Advantage through
Entry abroad

Product at
Home and Export Produce Abroad

Licensing or
Maintain control
Management
over assets abroad
Contact

Majority or wholly
Joint venture owned affiliate

Build from scratch Acquire or merge

 Why the firm should go abroad?
Firms go abroad for both organizational and Environmental reasons.
There is a set of factors both internal to the firm and industry, as well as
external to the firm, that makes it necessary to consider globalizing.

The main internal organizational and industry reasons for going abroad
are those of:
1. Exploiting worldwide market imperfections (including matching a
rival’s move).

2. Exploiting the opportunities that arise along the life cycle of a

firm’s product.

The main environmental or external reasons for going abroad

are: -

1. Responding to the macro economic imperatives for

globalization: - Artistics have kept an aim to enter into a global
market. Globalization has been an important objective to be achieved
by the Artistics. It aims at developing modern economy of the country.
 2. Exploiting the competitive advantage of nations: - competition
has been rapidly increasing in today’s economy. To face that
competition has really become very difficult today. Artistics exploits
the competitive advantage of the nation.

We have discussed why firms decide to globalize and what factors

propel them to go abroad; however the issue of “H How” they globalize –
that is, the mode of entry abroad once they decide to globalize – still
remains to be addressed. In any decision to go abroad, the choice typically
comes down
d to one of three approaches:
1. Produce at home and export abroad.
2. Enter into a contractual agreement, such as licensing a
technology or enter into a management contract, without actually
owing significant amount of assets abroad.
3. Own and control assets abroad, by having a joint venture, or
through majority ownership (where the entry mode may involve
either building de novo, or acquiring a foreign asset.)
 The third choice is also sometimes referred to as: Direct Foreign
Investment” (DFI). These choices are summarized in the above figure.
There are two sets of ideas that provide guidelines for firms in making
their foreign entry decision:

1. The theory of internalization based on the economics of transactions

costs of activities undertaken by the firm.
2. The impact of the two environmental variables that is unique to the
MNE, MA and MV.

Why artistic go abroad?

The Artistics have decided to go abroad because of good response
from India. 30% of the customers of Artistics are those who come on visit
to India, who are considered as foreigners. Taking into consideration the
good response from foreign customers, Artistics have decided to launch an
art gallery abroad.
Factors considered launching an art gallery abroad?

1. Cultural factors: - India has a very rich culture which needs no

introduction. Indian culture is very well known by most of the
 foreigners. Every 7th person of the world is an Indian. He knows very
well what Indian culture is?

2. Standard of living: - Though the standard of living of India is lower as

compared to America, Great Britain and Australia then to it has a great
response in India. Assuming the same response in those countries
Artistics have decided to go abroad.

3. Less government interference:

interference - Due to less government
interference, procedure formalities for export of paintings abroad are
less and can be completed in short span of time.

Overview of Indian Art

Contemporary Indian Painting

A glance over the terrain traced by modern and contemporary Indian

painting shows a diverse range of artistic responses to reality. While in the
early years of the past century Indian painters seem to concern
themselves primarily with the societal.
 Throughout these phases, one may discern three emphases common
to artistic practice in most countries with a colonial past: an interrogation
of Western influences on artistic expression, the overpowering need to
establish a distinct identity and idiom for Indian art, and an engagement
with the role and function of the artist in a country like India.
The response of the Progressive Artists Group in Bombay, too, seems
apolitical, the fact of their coming together in the year of Independence
being purely coincidental. What these artists were more exercised about
was the fact that art as practised in India till then had to change; a total
break with the past and its stultifying constraints, both cultural and artistic,
was called for. F. N. Souza, S. H. Raza, K. H. Ara, M.F. Husain, S. H. Gade
and S. Bakre were determined to fashion an art that was 'entirely Indian
but also modern'. Their work does contain the latter two elements in ample
degree, though the modernism relies a great deal on Parisian abstract
Expressionism and post-Impressionism.

The decade also saw many more women artists come forward on the
artistic scene, the majority of them delineating a point of view that
combined the feminist and the subjective. As may be expected, Nalini
Malani, Arpita Singh, Madhvi Parekh, Ira Roy, Veena Bhargava, Suruchi
Chand, Navjot and others address the central issues of subjectivity and
victimhood, but the introspective and the apparently apolitical also find a
voice in their work. The obsessions of their male counterparts (modernism,
indigenism etc.) seem relatively peripheral concerns.

This trend would, of course, be a prefiguration of the tone of artistic

practice in the eighties and nineties. During these two decades, the
preoccupations of the earlier part of the century get considerably
attenuated and, with some younger artists, become a non-issue. The hard
fact of the globalised economy makes a post-modernised utterance seem
de rigeur now. Thus, in keeping with the tenor of the times, installation art,
mixed media, and digital representations insinuate their way into public
awareness.

But alongside these highly personalized and contemporary gestures,

the thematic concerns of the past still continue to haunt the artist: the
search for that elusive Indian voice, the anxiety over the looming shoulder,
and the guilt over an activity which seems like so much fiddling while the
country burns. In short, through the obsessions of its painters, Indian art
seems to yield a picture of a vital and vigorous creative practice, which, at
times, also seems a bit bewildering and confusing. But let the poet phrase
the matter.

About Artistics
 Artistics has been acclaimed as one of the most comprehensive
and definitive sources for modern and contemporary Indian art today.
Artistics provides a platform for talented artists to project their wide
collection of contemporary art in variety of styles and media. Artistics is
proud to have a long list of clients in the Corporate Sector, Art Lovers and
collectors in India and abroad.
Artistics also provides services such as art Consultation and
Conservation of Art. Artistics has been a major proponent of contemporary
art by providing artists with greater opportunities to engage Indian
audience as well as providing individual corporate and institutions with
access to a substantial range of art, information and advice. The Artistics
team works closely with artist of India. India has a rich tradition and
culture which is hundreds of years old. Our effort is to maintain such old
culture and tradition abroad through our paintings and sculptures. Artistics
is looking forward to launch its renowned gallery in international market
which means it will now provide fame, honour of Indian arts and offer
magnificent paintings which denote Indian culture to the deserving
customers across the boundaries of India.
The concept of launching Artistics in international market is a
brittle one. It insists on playing a latest claim to Avant-Grade status, while
downplaying the century-deep view of the modern people. Such a
distinction crumbles when we reflect on the history of Indian art, which
achieves in a seague, rather than buy violent rapture, its transitions from
colonial to post-colonial idioms, modernists to post modernists positions
and conventional to heterodox strategies.
Product
Product is an important facet of company life. Product plays a role of
bread and butter into the entrepreneur Artistic deals in that kind of
product which gives customers a chance to recognize their culture and
tradition which lies behind the art of the various artists. Paintings of
various such painters are silent speakers which means without uttering a
word, it explains what it means to say, that touches your heart.

Our products like paintings, frames and sculptures are not the products
like other MNCs like any food items or garments etc or any service which
can be useful to the consumers. But are products can be used by the
consumers just to make their house, a home – a sweet home.
It is used as a decorative item.
Price:-
Price is a very broad concept. It not only mentions the monetary term
of the product but also explains the value and the quality of the product.
Higher the price, more will be determined the value and quality of the
product. The pricing strategy adopted by the Artistics –the art of artist is.

The prices in the countries which we are going will vary according to
their currencies. The prices will vary according to the demand, standard of
living, and income level of people residing in that particular country.
Art Care in Artistics
Care and conservation

The terms, "restoration" and "conservation" although used

interchangeably, are very different. The differences lie in the fact that
conservators shy away from using unnecessary and often detrimental
chemicals, and prefer using natural materials and methods, which will
contribute to the longevity, and therefore, preservation of the object.

Conservation is, in other words, a careful approach, which comprises

the processes of stabilization, preservation and often restoration, using
reversible materials, which will not be hazardous to the object. Two
important areas under conservation are:
  Preventive conservation in which regular maintenance and care are
taken to prevent the onset of damage or future problems to the
object. Proper environment, storage, display, etc. are all essential to
forestall deterioration.

 Interceptive conservation in which any treatment to an object in the

form of cleaning, mending tears, in painting, removing old and
improper restorations, etc. is carried out

Basic care for paintings and

Sculptures.
Oil paintings on canvas:

Avoid scratches and tears, regular maintenance and care should be

taken to prevent damage to the painting. Flaking is common in thick
layered oil paintings. This depends on methods used for painting and
proportion of linseed oil and turpentine used. Painting should be properly
framed. Frames are very important for protection of the paintings.
  Frames certainly increase life of paintings.
 Wall should be dry and free from fungus.
 Damp walls can spoil paintings.
Water color on paper:

 Water color paintings should be kept away from direct sun light.
 Damp wall can spoil water color paintings.
 Do not let dust accumulate on paintings.
 The heat of the spot light is likely to fade water color paintings.

Charcoal on paper:

 These drawings require the fixers to protect original drawings or the

colors will smudge.
 Oil pastel, crayon, and cone all this media require fixing avoiding
smudging.

Sculptures:
 Wood sculptures need careful cleaning. Keep away from white ants and
termite. Treatment is advisable. Ceramic sculptures are all weather
sculptures. Cleaning with water is advisable. Handle with great care to
avoid chipping. Metal sculptures can be washed with water or cleaned with
damp cloth as required.
Frames
The frame of a painting is as important as the painting itself. It is not
merely functional but serves to enhance the art-work, complement the
surroundings in which the painting is hung and also subtly reflect the
tastes of the owner. Like art, frames too can be categorized.
Today, there are multiple options. The frames could be simple, made of
a single or multiple strips. The color of the frame should be such that it
does not detract from the work of art and also one that blends with the
décor of the room where the painting is hung. If the work of art is small,
one could mount it on a silk or patterned ground that serves to lift up the
art object or a painting.

Place
 In the 4 P’s of marketing mix, place refers to the nations, the land in
which the products are sold. And in the eye of Artistic, our place will be
America, Great Britain and Australia. Our target audience will be people of
upper middle class and royal class people. It will be from youngsters to old
people except, children each and every people who have some knowledge
of art.
 Marketing strategies
Every marketing strategy that is implemented by a company should be
analyzed and measured by its ability to directly impact and improve upon
each of the above listed three factors. Increasing only one of the above
listed factors will produce linear business growth. However increasing all
three factors will ensure a geometric business growth.

There are only three essential factors that marketing strategies should
satisfy in order to reach the end of growing our business. The three
essential marketing strategy factors are as listed and explained below:
Increase the number of customers:

Increasing the total number of customers is usually the very first step
that our business owners and managers resort to in order to grow our
business. However, this strategy can backfire because losses can occur
when inexperienced sales personnel are put in charge of designing and
implementing a marketing program.

If executed efficiently and cost effectively, basic marketing strategies

always produce new prospects that are ready, willing and able to buy
products or services. The main purpose of any marketing strategy is to
generate new prospects that the sales personnel can convert into paying
customers.

Increase the average transaction amount:

A large number of owners and managers spend most of their time

operating their business and searching for new customers. Most of them
often overlook their own existing customers. These repeat customers are
usually taken for granted and left to conduct entire transactions without
ever being asked if they would like to buy more product or service.

These are the customers who can be tapped further through cross
selling and up selling. It is through systematically offering customers more
value via additional products or services at the point of sale that business
owners can take to increase their average transaction amount.
Increase the frequency of repurchase:

A customer’s repeat business is usually only earned by the

business that gives the customers what they want. Without putting
in place basic marketing strategies or processes for consistently
offering customers more of what they want, the repeat business is
earned less frequently.
 Promotional marketing
Promotional marketing is a balanced combination of strategic
activities, giveaways, presentation, and the right timing. The goal of
promotional marketing is to increase your company awareness in the
marketplace. Promotional Marketing includes branded gifts that usually
tend to increase response rates and the overall effectiveness of your other
marketing programs.
Promotional Marketing is gaining a lot of popularity in India recently.
This has been noticed especially in the case of the fast moving consumer
goods segment. The price wars started out between the two FMCG giants
HLL and P&G. These price wars have further led to promotions that have
almost become a norm in the industry.
A prospect might just pick up an item of promotion at a tradeshow,
view it on a co-workers desk, or receive it in the mail. Therefore, there are
a few important factors to be considered when defining the promotional
marketing item to go with your promotional campaign. The very first and
most important step to choosing the right promotional marketing strategy
requires understanding your target audience.
It is important to find out whether our target customer will enjoy a
stuffed toy, or might he/she enjoy something that can be used on a daily
basis like a pen. Knowing how the target customer spends the time during
the day can greatly influence the type of promotion item that you consider
and how well the promotion performs in the promotional marketing
activity.
Promotion
Promotion refers to all the forms of communication used by
enterprises to inform, remind, explain, persuade and to influence the
attitudes and buying behavior of customers and other persons.
Communication tool are of critical importance in international marketing.
The promotional methods adopted by the Artistics are:-

Exhibitions: - Our product will be exhibited to the people of America,

Great Britain and Australia in the trade fairs and exhibitions conducted on
various occasions.
Hotels: - Our products will be displayed on the walls of the lobby of the
hotels so that visitors may put a glance on it and they will be attracted
towards it.

Hoardings: - Hoardings will be displayed in various places of these

countries for effective advertising.

Vans: - Artistics will be having its own transport van for delivery of its
products and it will contain its name on it. Also posters will be used as a
communicating tool as it will be put up or placed on the buses.

Advertisement through Paper Bags: - Free paper bags printed with the
brand name of Artistics will be distributed in crowded areas like funfairs,
trade fairs and markets.