INTERNATIONAL MARKETING

SHEETAL RAWAT ROLL NO. 1026 MMS - I

Table of content
Introduction

WTO
Scanning the international eco environment International marketing research Decision making process Entering international market Product strategy Building brands International distribution Communication decisions

INTRODUCTION
International marketing involves recognizing that

people all over the world have different needs. Companies like Gillette, Coca-Cola and Cadbury Schweppes have brands that are recognized across the globe.
Theories of international marketing 1. Absolute advantage theory 2. Comparative advantage theory

Evolutionary process of global marketing

Domestic marketing

Export marketing
International marketing Multinational marketing

Towards glocal marketing

International Marketing Decisions

Deciding whether to go abroad Deciding which markets to enter

Deciding how to enter the market

Deciding on the marketing program

Deciding on the marketing organization

WTO
The WTO is the only organization dealing with global

rules of trade between nations.

It came into existence on 1 Jan 1955 as a successor of

general agreement on tariffs & trade(GATT).

WTO
The major implication of the WTOs multilateral trade regime are as follows:
Security of access to international markets.
Stability of access to international markets. Implications for importers of raw materials & other

inputs.

FROM GATT TO WTO

YEAR ROUND SUBJECT COVERED COUNT RIES 23 13 38 AVERAGE TARIFF CUT(%) 35 NA 25

1947 1949 1951

GENEVA ANNECY TORQUAY

TARIFFS TARIFFS TARIFFS

1956
1960-61 1964-67 1973-79

GENEVA
DILLON KENNEDY TOKYO

TARIFFS
TARIFFS TARIFFS & ANTI DUMPING MEASURES TARIFFS,NON-TARIFF MEASURES,FRAMEWORK AGREEMENTS CREATION OF WTO

26
26 62 102

NA
NA 35 33

1986-94

URUGUAY

123

36

PRINCIPAL OF MULTILATERAL TRADING SYSTEM UNDER THE WTO

Trade without discrimination. Gradual move towards freer markets through negotiations. Increased predictability of international marketing environment. Promoting fair competition in international markets.

SCANNING THE INTERNATIONAL ECONOMIC ENVIRONMENT

The international marketing decisions are

influenced, to a large extent, by environmental factors in the target markets. It major framework areas are INTERNATIONAL ECONOMIC INSTITUTIONS & TRADE GROUP. The major international economic institution include the WORLD BANK GROUP (IBRD, IDA, IFC, MIGA, ICSTD), IMF, WIPO,ITC & UNCTAD.

INTERNATIONAL ECONOMIC INTEGRATION

The trade group or the form of economic integration,

also known as regional trading agreement (RTAs).

The major RTAs include EU, GCC, ASEAN &

NAFTA.
India is involved in economic integrations with RTAs

such as ASEAN, GCC, SAARC, SAPTA & EAEC.

INTERNATIONAL ECONOMIC INTEGRATION

Political Union Economic Union Common Market Free trade Area Preferential trading agreement Increasing bbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbb (tariff concessi0ns on import Integration b(complete political & economic integration) select items) (free trade among members) (common external ((( trade policy) (Harmonization of economic policies) (Complete political & economic integration)

INTERNATIONAL MAKETING RESEARCH

International marketing research can be defined as

research that crosses national borders & involves respondents & researchers from different countries & cultures. The major objective of international marketing research are: i. To carry out country screening & selection. ii. To evaluate a countrys market potential. iii. To identify aspects of countrys environment iv. To evaluate the components of marketing mix v. To facilitate in developing a strategic marketing plan.

INTERNATIONAL MAKETING RESEARCH

CROSS-CULTURE MARKETING BEHAVIOUR & RESEARCH i. Religion ii. Value system iii. Norms iv. Aesthetics

INTERNATIONAL MAKETING RESEARCH

Comparison of cross-cultural behavior Power distance
Country score 120 100 80 60 40 20 0

Country

Comparison of cross-cultural behavior

100 90 80 70 60 50 40 30 20 10 0

Individualism vs. collectivism

Country score

Country

Comparison of cross-cultural behavior

Masculinity vs. femininity
German Swiss Scandinavian North America English Italian Spanish Greek Arab Vietnamese Japanese Korean Chinese High Context Low Context

Cultural Context

Culture Homogeneity

PROCESS OF INTERNATIONAL MARKETING

DECISION MAKING PROCESS

The decision making process consist of

i.
ii. iii.

iv.
i.

ii.
iii. iv.

Identification Segmentation Selection Targeting A firm has to overcome various distances Geographical Psychic Economic Political

DECISION MAKING PROCESS

A firm can make use of information & services from

i.
ii. iii.

i. ii.

iii.
iv.

export promotion agencies The world bank WTO The international market segmentation Geographic Demographic Psychographic Segmentation

DECISION MAKING PROCESS

Selection of international markets

Preliminary screening of international markets ii. Accessibility to international markets iii. Tariff Barriers iv. Profitability v. Estimate market potential
i.

ENTERING INTERNATIONAL MARKET

In order to succeed in international markets, the

decision to select an appropriate entry mode is crucial & integral part of a firms international marketing strategy.
The modes of entry in international market varies

from low-commitment to high commitment.

INTERNATIONAL MARKET ENTRY MODES

International market entry modes Production in Home country Exports Providing offshore services direct Complementary (piggybacking) Production in Foreign country

Contractual mode

Investment mode

indirect

Mixing

Joint Venture

Wholly owned foreign subsidiaries

Acquisition

Greenfield operations

PRODUCT STRATEGY
EPRG Model
Ethnocentric: everything is centered on the

domestic market. Polycentric: several important foreign markets exist. Regiocentric: the market is composed of several large economic regions. Geocentric: the world is one large global

PRODUCT LIFE CYCLE

INTRODUCTION GROWTH MATURITY DECLINE

BUILDING BRANDS
THE AMERICAN MARKETING ASSOCIATION

(AMA) defines a brand as a name, term, sign, symbol or design, or a combination of these, intended to identify the goods or services of one seller or a group of seller & to differentiate them from those of competitors.

STRATEGIES FOR BUILDING BRANDS

Brand based on tangible product component

Brand based on intangible product component

Balance brand based on tangible-intangible product

component

LIFE CYCLE CONCEPT

Embryonic Growth

Maturity
Decline

INTERNATIONAL DISTRIBUTION
The procurement of inputs & marketing of the products beyond country boundaries is referred to as international. Distribution channel are: 1. Direct channels 2. Indirect channels

INTERNATIONAL DISTRIBUTION CHANNELS

FIRM

Agent
International border

Merchant intermediary

e-channel

Agent

Merchant intermediary

END USER / CUSTOMER

Three-tier system
Open States
Winery, Supplier

Control States

Tier I
Tier II

Winery, Supplier

Distributor / Wholesaler

Control States

Supermarkets, wine shops, HORECA, bars, transportation, etc

Consumers

Tier III

State controlled retail stores

HORECA, clubs, etc

Consumers

COMMUNICATION DECISION
INTERNATIONAL MARKETING COMMUNICATIONN MIX
SALES PROMOTION

ADVERTISING

CUSTOMER
PERSONAL SELLING PUBLIC RELATIONS

DIRECT & INTERACTIVE MARKETING

PROCESS OF INTERNATIONAL MARKETING COMMUNICATION

HOME COUNTRY CONTEXT ENCODING NOISE FOREIGN COUNTRY CONTEXT DECODING MEDIUM MESSAGE

SENDER (FIRM)

RECEIVER (CUSTOMER)

FEEDBACK