ou ' Introduction to Internavional Morketing and Trode | CHAPTER Introduction to International Marketing and 1 Trade ! San The aim of selling is to satisfy a customer need; the ain of marketing is to figure out his need. — Philip Kotler — 82-161 (A) Introduction of International International Morketng ~ Need and. Driers International Marketing — Phases of 162-235 236-280 281-292 293-296nod to Iterator! Marking ond Trade woe 5 (@) Contributes positively for global economi¢ development, employ sneration, social weltare and global peace (©) Long term product and marketing planning is necessary and useful knowledge of such ing research o ternational jc and (b) Needs the services of exprtenced profesionals and 6 between different counties. This is the way experts for managing import-exp Soe mesa epee an eernent policies, | (5) Problem of surplus/shortage of production in countries: Some countries have huge unused production capacity while wen their domestic needs. This be utilised fully at the participati relations among eat aod cause for large seale imports from abroad. "9 athens, (6) Economic growth and world peace: Intemational marketing is needed for rapid growth and development of all countries. According to Late Shri Dinesh Singh, ing, Even pricecompared. foreign markets, Thus, limited home market acts as a entry in international portant drivers of international marketing Limited ome Market. ‘of Goods and Senvces, Easy Accesso Global Market Pace “ a driver for promoting international mar Ir Spread of Information Revolution india exports variety of goods to European countries, 1h aa ing Asian countries, middle east countries and s0 on 2) Growth of Technology Here, excess production of goods and services acts is one useful river of intemational marketing. unicaion Facilities (3) Easy Access to Global Market Place: The present world (10) Trading Blocs, acts as a global marketplace. Countries participate in global Brief Details of Drivers of Internati marketing easily and quickly. The advent of the internet and (1) Limited Home Market wae Marketing. ‘emergence of E-business facilitates international marketing. ted do ted population ft he mara shemetoe bet 1S canaries | rotten Power of thee products to force eattt tht Opeatang Ms no ‘Such companies get good export market if they are willing to nies. Similarly. ied export accept a risk at the global market-place. In India, we have many “a ange such companies and they take keen interest in export marketing. (8) Expansion of Transportati nsportation and Co (9) Goverment Aasstnce and heenies and growing such emerging markets arg ional markets into a single ition technology (also known as Inf ped international See rable factor for business regarded a5 one driver of international ‘iy Isto earn adequate profits, Such marketing as compared to facilities the growth of international business. There is 54 time in the transportation of goods. This also fasiliies easy, quick ‘and safe transportation. Marketing activities can be undertaken communication facilites are useful as drivers of international marketing. (9) Government Incentives: Our government provides a large ‘number of incentives to exporters so as to eam valuable foreign ‘exchange. This results in many, companies entering overseas markets they would otherwise not have entered. Indian exporters often face problems due to high cost of production. Export incentives neutralise the price imbalance. This encourages Indian manufactures to promote exports to. many other countries. Incentives act is a favourable factor for the growth ofand amos ‘ight treated as the divers of intemational marketing, PROCESS OF INTERNATIONAL MARKETING:adjust marketing mix. to accommé re ter changes in consumer wants can be handled through, sorting out who are p cece ae = introducing a new product n strategy. In addition, marketing) the implementation and control of composition, it is based on primary and @ and potential demand, a A ee eeideaea a tation and so on, Review of performance in each oe as collected must be analysed to decide which Te aah OF seek ae nter. Export fim should concentrate on such markets sone i necessary and useful for successful entry in foreign markets for rightly select “export Jong term marketing. Even appropriate adjustment in the marketing mix can be introduced for sales promotion. avay although he may wel PHASES OF INTERNATIONAL MARKETING: Imeel local conditions and preference met ‘A domestic company becomes global company after 30 or 40 seopiaion costs, With exteneng renee the fim has to i years of its regular working. Such company moves from one level positive attitude of he phase/stage to another in a progressive way. This is a path of growth and expansion. Every company grows when the situation/environment is favourable. This growth may be internal growth followed by external growth. A small company startseran! Marketi wisi vipers ere Mee MS gtr te tnavona Meretng ad Ted woe Is marketing: A fim may decide surplus production to foreign buyers. ‘A company without any kind of dire jobal company in yhases of International Marketing ae os nod and explained below: (1) Absence marketing: Absence 9 of its financial soundness in the home country, transactions in the domestic market are done o ee is fourth phase, foreign nn on regular basis. The firm has well established the domestic and foreign markets. Gradually, ‘up production units in different cour te marketing plan for each target market accordingly work out prices, quality of product, advertising ‘om abroad and thus obtain the ¥ avoid direct participation it Their products are a result of planned production for different '/form or manner,St Sonerte tre 2d ral competion snot 8 matter choice. ra (9) Brings rapid industrial git freates new demand, This facilitates oat fears oem in many counties, a to nation borden, Ath ther goods ant13) Tnieman marketing. Precisely, intemational marketing is viewed as an highly competing. and extension of the domestic market. Foreign marketing semetion is betwee ions a ti job is handed over to foreign agents, operating in different countries.‘company to the regional headquarters. Nike Inc., the lds largest athletic-shoe maker has reorganised its brand into (vi) Japan and Emerging Markets. = oom with similar needs are “eb san matting plan,tion as well as exporting.bring down the (3) Dependence on middl Indirect exporting ‘exporting with less capital investment and bothere ‘matketing process comes to. middlemen within the home tic , b ym actual exporting: indirect exporting ive: 1d hand information. Thi facturing fm from the botheration about actu f eae The fim concentraies all’ attention on th exporter gets lower price as cites, fe exporter has to pay As a result, actual price(2) LICENSING METHOD OF ENTERING 11 ‘MARKET / MARKETING: INTERNAT 9, Disadva in licensing, the profit eared by the compared tothe fees oc royally payments of symt and br requirements of the country the franchisor allows product adaptation eg, MeDonald sells beef burgers in East European countries butMERGER AND ACQUIS! ENTRY IN FOREIGN MARI helps companies to grow and ext he paeeragl i iw enece We (8) The combined ascels of the merged company help to Increase Wation products throug pr a) fy irk may fs tr on ©). aris abs in increasing the market share of the merged ndertanding bauer ye Sees le 4 the pats, "9 !0 conflicts a (7) Merger improves R&D activites of the merged company: tis not(8) Merging info another company complex and complicated procedure, ‘buys an interest, in a manufacturing unit county investor and an investor of a foreign country jointlylem of poor integration in management (3) They face unforeseen problems due to cha They are known to face conflicts between the partners, The ‘signing of joint venture agreements is ) STRATEGIC ALLIANCE METHOD OF INTERNATIONAL MARKETMARKETING. MEANING OF STRATEGIC ALLIANCE:Ces to or a partne ‘amount while the other partner (4) Loss of autonomy: Loss of autonomy is a potential drawback of strategic alliance. Most attempts to introduce new products or services change the way the alliance does business. Changes of any kind to be introduced may it be organisational or marketing,vor rt mt an e tr met fst be dacused ond reposted between the 7) WHOLLY-OWNED SUBSIDIARIES METHOD: form of business because coms 10 pay for machinery, tools, staff train 4 subsidiaries are separate companies and follow the instruction their holding company, (8) CONTRACT MANUFACTURING METHOD ENTERING INTERNATIONAL MARKET: INTERNATIONAL MARKETS: Meaning of Turnkey Project: Tumkey projects take place between a technologically advanced ‘country and an industrially backward county. The county providing | tlvanced technology is involved from inception to completion. It ; Jk