Meaning
of marketing:
It is the process of
planning and executing the conception, pricing, promotion and distribution of ideas,
goals and services to creates exchanges that satisfied individual and
organizational objectives.
Definition
of international marketing
According to
American marketing associations (AMA): international marketing is the multi
national process of planning and executing the development of product or
services, pricing , advertising and distributing the goods and services to
create exchange that satisfied the individual and organizational objectives
overseas.
Special
problems in international business marketing.
-
Transportation issues due to geographical
location
-
Exchange problems due to usage of different currencies
-
Communication issues (languages different)
-
Cultural (traditional, religions, customers) deference.
-
Political and legal differences
-
Trade and investment restrictions
-
Economic structure and situations
-
Human resource and natural resources
limitations
-
Unavailability of technology and technical
knowledge
-
Differences in marketing infrastructures and
business practices.
Reasons
for giving international market
1. Profit margin
2. Cheap labor
3. Growth opportunities
4. Demotic market constrains
5. High competition
6. Government policies and regulation
7. Monopoly power ( either to acquire or to
break)
8. Spin off ( incidental benefits apart from
profit)
9. Strategic vision
10. Standardization
International
orientation
Meaning:
The degree or the
extent to which an organization is perdorming its international business in the
internatuiona market is known an international orientation. It also include the
attitude plans and strategies of the top level management of the organization.
EPRG
scheme
1. Ethnocentrism
2. Polycentrism
3. Regiocentrism
4. Geocentrism
Ethnocentrism
It is also known ad
have country orientation. It is the method of doing business where the
managenment ot the organization believes that there products is superior and
there is no need for a change when bringing that product to the international
market. In other words we can simply say it is the usage of same methodology ,
strategy, resources and products used in the new market which can be also used
in international market.
Polycentrism
It is also known as
host country orientation in this orientation the organization establishes its
business according to the methodology strategy , resources and product in the
host country market. In other words the management first understands the market
situation of the host country and develops their products according to the host
country requirement.
Regiocentrism
It is simply doing
the business according to the needs of the regional market. The business
methodology and the product will be the same within the region and make differ
between the regions. Most of the multinational business in election product
produce their products and offer their services according to the regional needs
and they differentiate their products between their regions.
Geocentrism
The business
implements the same business strategy and offers the same product to the global
market. The business considers the whole world as the market and usual luxury
product are offered by this types of business. This products can be said as
unique and its offered to the international market.
Globalization
Meaning
The stage in which
there are few or no trade restriction is known as globalization. In other
words, it is the process of integration various economics across the world.
Advantages
of globalization
-
Sustained economic growth
-
Availability of different and brand of products
of cheap prices
-
The living slandered of nation will be increase
-
Foreign investment will increase
-
Inflow of more foreign currency will stabilize
the local market
-
Product should be highest quality of lower
prices
-
Guarantee more employment opportunities
-
Proper utilization of natural resources
Disadvantages
of globalization
-
It affects the local, small and medium scale
business and infant industries
-
Affect the local language, culture, society,
religions etc
-
More foreign investment and out flow of more
work force
-
Traditional products will go absolute
-
Possible of duplicate dumb products in the
local market
-
Economic crises in one region or nation effects
the economy of all nation
-
The strength of the local currency reduce as
demand for foreign currency increase
International
marketing decisions
1. Overseas marketing decision
2. Market selection decision
3. Entry and operating decision
4. Marketing mix decision
1. Overseas marketing
decision
The decision a company has to make is whether to take up
international marketing or not. This decision is based on a serious
consideration of a no. of factors such as present and future domestic market
opportunities. The resources of the company in terms of skills, experience ,
production and marketing capabilities, finance and company objectives etc
2. Market selection
decision
Once it has been decided to do international marketing the next
important step is the selection of the most appropriate market. For this purpose a detail study of potentials of
the various overseas market and their respective marketing environment is
essential . therefore a proper selection of the overseas market is very
important.
3. Entry and operation decision
Once the market selection decision has been made the next important
task is to determine the appropriate mode of entering the foreign market such
as export contract manufacturing , direct manufacturing etc. on the basis of this decision proper
arrangement must be made to continue the activities of marketing.
4. Marketing mix
decision
As in the domestic marketing the success highly depends upon the
applicability of proper marketing mix, international marketing also the decisions
regarding marketing mix place a major role. The elements of marketing mix (
product, promotion , price, and physical distribution) should be suitably
designed so that it can be adopted to the characteristics of the overseas
market.
Factors effecting international marketing practices
1. Social environment factors
2. Cultural environment factors
3. Legal environment factors
4. Economic environment factors
5. Political environment factors
6. Technological environment factors
1. Social environment
factors
Difference in social condition, religion determines whether the
customers are similar or dissimilar across the globe.
Eg; the Mc Donald company when they have
introduced their burger in India market in the year 1995 where almost 40% of
the population prefers vegetarian food which made the Mc Donald’s company to
modify its regular non-vegi burgers to the vegetarian ones.
2. Cultural environment
factors
Culture describes the kind of behavior considered or acceptable in
society. the characteristics of culture simplify a consumers decision making
process by limiting product choices to those which are society acceptable . and
the same feature creates problems for those products which are nit in time with
culture.
Eg; a coca cola company have to withdraw its 2 liter bottle from
supermarket as Spain yards, were not having refrigerator with larger
compartment.
3. Legal environment
factors
Legal systems vary both in content and interpretations and
successful marketer or will always modify his marketing strategies in
accordance with such variations. Law affect the marketing mix in terms of
products, price, distribution and promotional activities quit dramatically.
Eg; in Germany environmental laws makes a firm responsible for the
retrieval (collect) and disposal of packaging waste it creates and must
produced packaging which is recyclable.
4. Economic environment
factors
The economic situation varies from one country to another country .
there are variations in the levels of income, living standards, interpersonal
distribution of income and occupational structure etc. these factors effect
market conditions and the level of development in a country and the nature of
its economy will indicate the type of product that may be marketed in it.
5. Political environment factors
The political environment of international marketing includes any
national or international political factor that can effect the organization
operations or its decision making. An unstable political climate can expose the
firms to many commercial economic and legal risks.
6. Technological environment factors
The technological environment is perhaps the most dramatic force,
now shaping the destiny of all organizations. An international marketer should
very will keep in his mind the changes taking place in technology and there by
effecting the product. New technologies create new markets of opportunities and
replace and old technology.
