Download - International Marketing Management,VTU
![Page 1: International Marketing Management,VTU](https://reader035.vdocuments.net/reader035/viewer/2022081414/54bcd5904a79595b138b45c2/html5/thumbnails/1.jpg)
International Marketing Management
By Prof. Raghavendran Venugopal
![Page 2: International Marketing Management,VTU](https://reader035.vdocuments.net/reader035/viewer/2022081414/54bcd5904a79595b138b45c2/html5/thumbnails/2.jpg)
Prof. Raghavendran Venugopal 2
Meaning & Definition of International marketing
• Marketing activity carried on across the nation boundaries.
• According to AMA: “International Marketing is the multinational process of planning, executing, conception, pricing, promotion and distribution of ideas, goods and services create exchanges that satisfy individual and organizational objectives.”
![Page 3: International Marketing Management,VTU](https://reader035.vdocuments.net/reader035/viewer/2022081414/54bcd5904a79595b138b45c2/html5/thumbnails/3.jpg)
Prof. Raghavendran Venugopal 3
International Marketing involves:
• Identifying the needs and wants of the customers in international markets.
• To take market mix decisions keeping in the view the diverse customers and market behavior.
• Penetrating into International Markets using the various modes
• Decisions in view of IBE
![Page 4: International Marketing Management,VTU](https://reader035.vdocuments.net/reader035/viewer/2022081414/54bcd5904a79595b138b45c2/html5/thumbnails/4.jpg)
Prof. Raghavendran Venugopal 4
Characteristics Of International Marketing
• Dominance of Multinationals• Large Scale Operations• Boundary Restrictions & Trade Blocks• Marketing Research• Importance of Advanced Technology• Precise competition• Sensitive character.• Want for Specialized institutions• Long term planning• Cultural relations
![Page 5: International Marketing Management,VTU](https://reader035.vdocuments.net/reader035/viewer/2022081414/54bcd5904a79595b138b45c2/html5/thumbnails/5.jpg)
Prof. Raghavendran Venugopal 5
Scope of International Marketing
• Exporting– Establishing– JV & Collaborations– Licensing– Consultancy– Know-how(Technical & Managerial)
• Importing• Managing of international operations• Re-exporting
![Page 6: International Marketing Management,VTU](https://reader035.vdocuments.net/reader035/viewer/2022081414/54bcd5904a79595b138b45c2/html5/thumbnails/6.jpg)
Prof. Raghavendran Venugopal 6
Objective of International Marketing
• To develop skills, creating marketing challenges & Opportunities.
• To gain experience in developing marketing strategies.
• To gain verbal, written skills for communication• To have decision making ability• To be ethical in practice and urge to learn more
on marketing management.
![Page 7: International Marketing Management,VTU](https://reader035.vdocuments.net/reader035/viewer/2022081414/54bcd5904a79595b138b45c2/html5/thumbnails/7.jpg)
Prof. Raghavendran Venugopal 7
Why Firms go international
• Reasons for the firms going international• Profitability• Growth• Economies of Scale• Access to imported inputs/Resources• Marketing Opportunities• USP of product & services• R& D Costs.
![Page 8: International Marketing Management,VTU](https://reader035.vdocuments.net/reader035/viewer/2022081414/54bcd5904a79595b138b45c2/html5/thumbnails/8.jpg)
Prof. Raghavendran Venugopal 8
Orientation of management
• ETHNOCENTRIC• POLYCENTRIC• REGIOCENTRIC• GEOCENTRIC
![Page 9: International Marketing Management,VTU](https://reader035.vdocuments.net/reader035/viewer/2022081414/54bcd5904a79595b138b45c2/html5/thumbnails/9.jpg)
Prof. Raghavendran Venugopal 9
Process of Internationalization
License
Export Via Agent/ Distributor
Export through own sales representative/ Sales Subsidiary
Local Packaging/ Assembly
FDI
![Page 10: International Marketing Management,VTU](https://reader035.vdocuments.net/reader035/viewer/2022081414/54bcd5904a79595b138b45c2/html5/thumbnails/10.jpg)
Prof. Raghavendran Venugopal 10
Transition from Domestic to International Markets
• Pre-Export Behavior• Company characteristics• Perceived Export• Perceived Import• Organizational commitment
• Economic Reasons• Relative profitability• Insufficiency of domestic demand• Reduce Business risks• Legal restrictions• Obtaining Imported inputs• Social Responsibility• Increased Productivity• Technological Improvement
![Page 11: International Marketing Management,VTU](https://reader035.vdocuments.net/reader035/viewer/2022081414/54bcd5904a79595b138b45c2/html5/thumbnails/11.jpg)
Prof. Raghavendran Venugopal 11
Process of International Marketing
Growth Profitability Risk Spread
Access to imported inputs
USP of product/Services
Marketing Opportunities
Spreading R & D Costs SWOT Analysis
Decision to Enter into International
Markets
Motivation for International Marketing
![Page 12: International Marketing Management,VTU](https://reader035.vdocuments.net/reader035/viewer/2022081414/54bcd5904a79595b138b45c2/html5/thumbnails/12.jpg)
Prof. Raghavendran Venugopal 12
Stages of International Marketing Involvement
• No Direct Foreign Marketing• Infrequent Foreign Marketing• Regular Foreign Marketing• International Marketing• Global Marketing
![Page 13: International Marketing Management,VTU](https://reader035.vdocuments.net/reader035/viewer/2022081414/54bcd5904a79595b138b45c2/html5/thumbnails/13.jpg)
Prof. Raghavendran Venugopal 13
Challenges in International Marketing
• Self- reference• Political & Legal Difference• Cultural Difference• Economic Difference• Difference in the currency unit• Differences in the language.• Difference in Marketing Infrastructure• Trade restrictions• High cost of distance• Difference in trade practices
![Page 14: International Marketing Management,VTU](https://reader035.vdocuments.net/reader035/viewer/2022081414/54bcd5904a79595b138b45c2/html5/thumbnails/14.jpg)
Prof. Raghavendran Venugopal 14
Difference B/w Domestic and InternationalDifference Point Domestic Marketing International Marketing
Operation Conditions One nation language & culture
Many Nations, Languages & Culture
Transportation cost Major extent Some Extent
Currency One Multiple
Political Same Differ
Nature of market Relatively homogenous Diverse & Heterogeneous
Change control & Tariffs No Problems Obstacles
Data Availability Accurate Formidable, But doubted
Government interferences Relative free Influences
Environmental Effects Little effect Distortion by large companies
Business Environment Stable Unstable
Climate & Nature of Business
Uniform & Understood Varies & Unclear
![Page 15: International Marketing Management,VTU](https://reader035.vdocuments.net/reader035/viewer/2022081414/54bcd5904a79595b138b45c2/html5/thumbnails/15.jpg)
Prof. Raghavendran Venugopal 15
Trade in International Marketing
• International Trade is exchange of capital, goods and services across international borders or territories.
TRADEDOMESTIC TRADE
INTERNATIONAL TRADE
![Page 16: International Marketing Management,VTU](https://reader035.vdocuments.net/reader035/viewer/2022081414/54bcd5904a79595b138b45c2/html5/thumbnails/16.jpg)
Prof. Raghavendran Venugopal 16
Need for international trade
• Large scale production• Degree of self- sufficiency• Geographic Factors• Occupational Distribution• Means of Transportation• Compensating the production
![Page 17: International Marketing Management,VTU](https://reader035.vdocuments.net/reader035/viewer/2022081414/54bcd5904a79595b138b45c2/html5/thumbnails/17.jpg)
Prof. Raghavendran Venugopal 17
Dynamic Environment of International Trade
• Comparative Advantages• Impact of National Policies• Impact of Countries
![Page 18: International Marketing Management,VTU](https://reader035.vdocuments.net/reader035/viewer/2022081414/54bcd5904a79595b138b45c2/html5/thumbnails/18.jpg)
Prof. Raghavendran Venugopal 18
Balance of Payment
• It refers to the net results that are drawn recording all the visible and invisible items that are exported and imported from the country.
• Balance of Payments is comprehensive record of economic transactions between residents of home country & residents of the other countries.
• It includes• Current Account• Capital Account• Reserves Account
![Page 19: International Marketing Management,VTU](https://reader035.vdocuments.net/reader035/viewer/2022081414/54bcd5904a79595b138b45c2/html5/thumbnails/19.jpg)
Prof. Raghavendran Venugopal 19
Characteristics of Balance of Payment
• It is statement of systematic record of all economic transactions between one country & rest of the world.
• It is a annual statement & pertaining to time.• Listing receipts & payments in international
transactions of a country.• Double entry book keeping system.
![Page 20: International Marketing Management,VTU](https://reader035.vdocuments.net/reader035/viewer/2022081414/54bcd5904a79595b138b45c2/html5/thumbnails/20.jpg)
Prof. Raghavendran Venugopal 20
Fundamental of BOP
• Identifying an International Economic Transactions.
• Understanding the flow of goods, services, money & assets.
• Real assets• Financial assets
• Book keeping procedures for accounting.
![Page 21: International Marketing Management,VTU](https://reader035.vdocuments.net/reader035/viewer/2022081414/54bcd5904a79595b138b45c2/html5/thumbnails/21.jpg)
Prof. Raghavendran Venugopal 21
Factors Affecting BOP
• Cost of production• Demand of the supply• Cost & availability• Exchange rate movements• Domestic business• Trade agreements• External pressures• Price
![Page 22: International Marketing Management,VTU](https://reader035.vdocuments.net/reader035/viewer/2022081414/54bcd5904a79595b138b45c2/html5/thumbnails/22.jpg)
Prof. Raghavendran Venugopal 22
Protectionism
• It is the economic policy of restraining trade between states through methods such as tariffs on imported goods, restrictive quotas and a variety of government regulations designed to discourage imports and prevent foreign take over of domestic markets and companies.
![Page 23: International Marketing Management,VTU](https://reader035.vdocuments.net/reader035/viewer/2022081414/54bcd5904a79595b138b45c2/html5/thumbnails/23.jpg)
Prof. Raghavendran Venugopal 23
Reasons for trade barriers
• To protect domestic companies.• BOP position favorable.• To curb prominent consumption.• To mobilize revenue for the government.• To discriminate against certain countries.
![Page 24: International Marketing Management,VTU](https://reader035.vdocuments.net/reader035/viewer/2022081414/54bcd5904a79595b138b45c2/html5/thumbnails/24.jpg)
Prof. Raghavendran Venugopal 24
Types of international barriers
• Tariff barrier• Non- tariff barrier• Intended constraint
![Page 25: International Marketing Management,VTU](https://reader035.vdocuments.net/reader035/viewer/2022081414/54bcd5904a79595b138b45c2/html5/thumbnails/25.jpg)
Prof. Raghavendran Venugopal 25
Global e-Marketing
• Search of convenience• Internet into purchase process.• Shift loyalties.• Future buying plans.
![Page 26: International Marketing Management,VTU](https://reader035.vdocuments.net/reader035/viewer/2022081414/54bcd5904a79595b138b45c2/html5/thumbnails/26.jpg)
Prof. Raghavendran Venugopal 26
Death of distance
• Potential of e-commerce• Lower transactions costs• Reduce inventory costs• Competitive business advantage• Expands market• Reduce the supply chain management.
![Page 27: International Marketing Management,VTU](https://reader035.vdocuments.net/reader035/viewer/2022081414/54bcd5904a79595b138b45c2/html5/thumbnails/27.jpg)
Prof. Raghavendran Venugopal 27
Major benefits of e-Marketing
• Global reach• Easy marketing• Economics• Updates• More attractive presentation
![Page 28: International Marketing Management,VTU](https://reader035.vdocuments.net/reader035/viewer/2022081414/54bcd5904a79595b138b45c2/html5/thumbnails/28.jpg)
Prof. Raghavendran Venugopal 28
Communications
• Building relationships,• Individual attention• Instant , cheap• Easy transactions
![Page 29: International Marketing Management,VTU](https://reader035.vdocuments.net/reader035/viewer/2022081414/54bcd5904a79595b138b45c2/html5/thumbnails/29.jpg)
Prof. Raghavendran Venugopal 29
Targeting an Individual customers
• Customer access• Insight• Dialogue• Emotions• Customers transactions
![Page 30: International Marketing Management,VTU](https://reader035.vdocuments.net/reader035/viewer/2022081414/54bcd5904a79595b138b45c2/html5/thumbnails/30.jpg)
Prof. Raghavendran Venugopal 30
Relationship marketing
• It is the process of building the long term, trusting, win-win relationships with customers, distributors, retailers and suppliers.
– Key elements are» Interactions between suppliers and customers» Customers segments to customers satisfaction» Working , developing and enhancing relationship in
internal markets and building strong external markets