15.2. Nature of International marketing concept
15.3. International marketing concept.
15.4. International market entry strategies.
15.5. Approaches to international marketing
15.6. International product policy
15.7. International promotions policy
15.8. International branding
15.9. Country of origin effects
15.10. International pricing
Answers to SAQs and TQs
In the previous chapters our study was focused on how marketing strategies are formulated, implemented and controlled in the Indian marketing. After the globalization and liberalization of the Indian economy in the year 1991, Indian enterprises started facing the competition from the global brands. In this context it has become inevitable for all the companies small or big to analyze the international marketing environment and strategies to adapt to it. The companies which were operating in the domestic market are also aggressively redrafting their policies and strategies to suit the global needs. Companies express their desire to enter into the international market because of the following reasons 1. It identified potential in the foreign markets for its products. 2. The domestic market is matured.
Marketing Management Unit 15
Sikkim Manipal University 276
3. Existing customers demand for the international availability of organization’s products and services.
After studying this unit, you will be able to
1. Understand the nature of international market.
2. Analyze the appropriate entry strategies for the firm in international market. 3. Examine the approaches to the international market.
4. Asses the importance of components of marketing mixes in the international market. 5. Bring out the importance of country of origin effects.
15.2. Nature Of International Marketing Concept
International marketing is defined as “The performance of business activities designed to plan, price, promote and direct the company’s flow of goods and services to consumers or users in more than one nation for a profit”. A company that wants to sell their product in other than domestic market should understand the environmental factors, consumer behavior, market forces and other characters relevant to the international market. After understanding the definition several questions may arise in your mind like why marketer should go the international market? And what is the difference between international marketing and domestic marketing. As we discussed in the introduction part companies enter into the international market to tap the potential, to support the customer requirements or to avoid the unprofitable domestic market. The difference between domestic marketing and international marketing are listed below. Characteristics International Marketing Domestic Marketing
1. Culture Multi culture Single culture and in some
cases multi culture.
2. Data Very difficult Easy
3. Data reliability Very Low High
4. Control difficult Relatively easy.
5. Consumer preferences
Vary from country to country Vary in small extent
6. Product mix Adaptability required Standardization required. 7. Business operation
More than one country Home country only
8. Currency exposure
Required Required only if it into the importing.
Advantages of international marketing:
1. International marketing provides growth opportunities for the companies whose domestic market is maturing. For example, General motors focusing its strategies on the emerging markets like India 2. It brings the major portion of sales and profits to the company. For example, Unilever’s major revenue comes from the Asian markets.
3. It generates employment: Indian textile sector which exports majority of the product produced is large employer after agriculture and retail. 4. International market also acts as survival place for the companies. If one market...