1. International Marketing
Management
By Nagendra R
CIT, Gubbi

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, prom
otion and distribution of ideas, goods and
services create exchanges that satisfy
individual and organizational objectives.”
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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
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4. Characteristics Of International
Marketing
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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
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5. Scope of International Marketing
• Exporting
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Establishing
JV & Collaborations
Licensing
Consultancy
Know-how(Technical & Managerial)
• Importing
• Managing of international operations
• Re-exporting
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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.
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7. Why Firms go international
• Reasons for the firms going international
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Profitability
Growth
Economies of Scale
Access to imported inputs/Resources
Marketing Opportunities
USP of product & services
R& D Costs.
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8. Challenges in International Marketing
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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
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9. Difference B/w Domestic and International
Difference 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
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10. Differences between domestic and
international marketing
Domestic
International
Research data is available in a
single language and is usually
easily accessed
Research data is generally in foreign
languages and may be extremely
difficult to obtain and interpret
Business is transacted in a single
currency
Many currencies are involved, with
wide exchange rate fluctuations
Head office employees will
normally possess detailed
knowledge of the home market
Head office employees might only
possess and outline knowledge of the
characteristic foreign markets
Promotional messages need to
consider just a single national
culture
Numerous cultural differences must
be taken into account
Market segmentation occurs within Market segments might be defined
a single country
across the same type of consumer in
many different countries.

11. Differences between domestic and
international marketing (continued)
Domestic
International
Communication and control are
immediate and direct
International communication and
control might be difficult
Business laws and regulations are
clearly understood
Foreign laws and regulations might
not be clear
Business is conducted in a single
language
Multilingual communication is
requires
Business risks can usually identified
and assessed
Environments may be so unstable
that it is extremely difficult to identify
and assess risks
Planning and organizational control
systems can be simple and direct
The complexity of international trade
often necessitates the adoption of
complex and sophisticated planning,
organization and control systems

12. Differences between domestic and
international marketing (continued)
Domestic
International
Functional specialization within a
marketing department is possible
International marketing managers require a
wide range og marketing skills
Distribution and credit control are
straightforward
Distribution and credit control may be
extremely complex
Selling and delivery
documentation is routine and
easy to understand
Documentation is often diverse and
complicated due to meeting different
border regulations
Distribution channels are easy to
monitor and control
Distribution is often carried out by
intermediaries, so is much harder to
monitor
Competitors’ behavior is easily
predicted
Competitors’ behavior is harder to observe,
therefore less predictable
New product development can be New product development must take
geared to the needs of the home account of all the markets the product is
sold in.

13. International Expansion Drivers
Business Environment
Drivers
Competition
Regional Economic and Political
Integration
Technology
Improvements in Transportation
and Telecommunication
Economic Growth
Transition to Market Economy
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Converging Consumer Needs
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Firm specific Drivers
Product Life Cycle
High New Product
Development Costs
Standardization
Economies of Scale
Cheap Labor
Experience Transfers
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14. Process of Internationalization
FDI
License
Export
through
Export Via own sales
representat
Agent/
Distributor ive/ Sales
Subsidiary
Local
Packaging/
Assembly
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15. Transition from Domestic to
International Markets
• Pre-Export Behavior
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Company characteristics
Perceived Export
Perceived Import
Organizational commitment
• Economic Reasons
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Relative profitability
Insufficiency of domestic demand
Reduce Business risks
Legal restrictions
Obtaining Imported inputs
Social Responsibility
Increased Productivity
Technological Improvement
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16. Process of International Marketing
Growth
Profitability
Risk Spread
Marketing
Opportunities
USP of
product/Services
Access to
imported inputs
SWOT Analysis
Decision to Enter
into International
Markets
Motivation for
International
Marketing
Spreading R & D
Costs
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17. Orientation of management
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ETHNOCENTRIC
POLYCENTRIC
REGIOCENTRIC
GEOCENTRIC
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18. Ethno centric approach
• Guided by domestic market extension concept
• Domestic strategies, techniques, and
personnel are perceived as superior.
• International markets are secondary, regarded
primarily as outlets for surplus domestic
production.
• International marketing plans are developed
in-house by the international division.
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19. Poly centric approach
• Guided by the multi-domestic marketing concept
• Focuses on the importance and uniqueness of each
international market
• Firms establish independent businesses in each target
country.
• Fully decentralized, minimal coordination with
headquarters
• Marketing strategies are specific to each country.
• Outcomes:
– No economies of scale
– Duplicated functions
– Higher final product costs
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20. Regio centric approach
• Guided by the global marketing concept
• World regions that share economic, political, and/or
cultural traits are perceived as distinct markets. (e.g.
EU, NAFTA*)
• Divisions are organized based on location.
• Regional offices coordinate marketing activities.
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21. Geo centric approach
• Guided by the global marketing concept
• Marketing strategies aimed at market segments,
rather than geographic locations
• Maximizes efficiencies worldwide and provides
standardized product or service throughout the
world
• E.g. McDonalds
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22. Stages of International Marketing
Involvement
• No Direct Foreign Marketing
• Infrequent Foreign Marketing
• Regular Foreign Marketing
• International Marketing
• Global Marketing
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23. Trade in International Marketing
• International Trade is exchange of
capital, goods and services across
international borders or territories.
TRADE
DOMESTIC TRADE
INTERNATIONAL TRADE
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24. Need for international trade
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Large scale production
Degree of self- sufficiency
Geographic Factors
Occupational Distribution
Means of Transportation
Compensating the production
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25. Dynamic Environment of International
Trade
• Comparative Advantages
• Impact of National Policies
• Impact of Countries
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26. Global e-Marketing
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Search of convenience
Internet into purchase process.
Shift loyalties.
Future buying plans.
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27. Death of distance
• Potential of e-commerce
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Lower transactions costs
Reduce inventory costs
Competitive business advantage
Expands market
Reduce the supply chain management.
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28. Major benefits of e-Marketing
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Global reach
– No physical limitations
– Access to unknown buyers
– Own virtual office
– Always accessible
Easy marketing
– Classified information on competitive products
– Acquire product knowledge
– Compare product & service
Economics
– Cost effective strategy
– Saves money on customer interaction
Updates
– Easy to change content
– Addition of product
– Updated communication to customers
More attractive presentation
– GUI
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29. Communications
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Building relationships,
Individual attention
Instant , cheap
Easy transactions
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30. Targeting an Individual customers
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Customer access
Insight
Dialogue
Emotions
Customers transactions
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31. 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
• Maximizing life time value Customers segments to
customers satisfaction
• Working , developing and enhancing relationship in
internal markets and building strong external markets
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