01. Introduction to International Marketing: (4)
02. International Market Research (Political &Commercial risks-ECGC (4)
03. Market Selection & Entry(5)
04. Int’l organization (2)
05. Market Coverage (2)
06. International Product decisions (3)
07. International Pricing (5)
08. International Distribution (3)
09. International Promotion (2)
10. International Advertising(2)
11. Culture, Forex markets, Value addition strategies, int’l payment terms
12. FTP of India: Provisions for export promotion
Books recommended:01. International Marketing – Chirunilam, 02. Global Marketing Management – Keegan
03. International Marketing – Cateora, Graham
I. International Marketing:
Changes in Global Economy:
Changing Demography of Global Economy:
1. US dominance in the world economy & trade, followed by European countries 2. US dominance in Foreign Direct Investment (FDI)
3. Self Centric policies of major markets (communist USSR & East Europe, China) made these relatively inaccessible to industrialized West.
1960s to early 2000s:
1. Emergence of Japan, China & South Korea as significant contributors to world output & consequent decline in US dominance. 2. Better integration of economies of developing countries in world trade 3. Fast economic growth of in Asia, South America, East Europe. 4. Emergence of BRICS
Future outlook: 2020: (World Bank estimates)
1. Developing nations of today are expected to account for 60% world economic activity. 2. Current 55% plus share of world economic activity of rich / developed countries is expected to decline to 38%.
Implication: Future economic activities & potential competition lies in today’s emerging economies.
Changing FDI scene:
1. US share of FDI decreased from 42% in 1980 to 24% in 1999. Developing countries shared 9.9% of total FDI in 1999, up from 3.1% in 1980. Share of Developed countries also increased in the same period.
2. Main FDI destinations are emerging economies- mainly China, since more opportunities lye there.
Recent changes in World order:
1. Chinese embracement of greater economic freedom.
2. Disintegration of USSR into 15 independent states.
3. Collapse of communism in East Europe.
4. Yugoslavia has disintegrated into 5 new states, Czechoslovakia into 2.
5. Many countries in Asia & South America are adopting economic reforms.
6. The Jasmine revolution in Middle East is likely to move dictatorships towards democracies.
7. Terrorism and environmental problems are looming large.
Globalisation: Relatively free international movement of products, services, people & investments; a shift towards removing isolation of individual countries and increasing their integration & inter-dependence.
a. Globalisation of Markets: Multi-country sales
b. Globalisation of production: Multi-country sourcing of basic materials and components & work force, based on low cost availability, better quality.
Drivers of Globalisation:
a. Decline in barriers to free flow of goods, services, capital & people
b. Technological improvements in communication. (Faster, lower cost).
Advantages of Globalisation:
1. Exposure to tough competition lifts quality standards and safety norms
2. Expertise in design, production, operating strategies, brand image in one country can be brought to another
3. Homogeneity across markets leads to increased market size & hence economies of scale for manufacture (convergence of customer preferences).
4. Enables fight local market saturation, offers expansion opportunities.
5. Increased profitability in selected markets
6. The Customer benefits from the increased global competition 7. Economic advances lead...