Unit 5
International Marketing
Q1) What is international marketing?
A1) Today, marketing organizations aren't limited to borders. the entire world is open for them. New markets are arising in emerging economies like China, Indonesia, India, South Korea, Mexico, Chile, Brazil, Argentina and lots of other economies round the world. Today's global market opportunities are on par with growing economies, with increasing purchasing power and with changing consumer tastes and preferences. Economic, social and political changes affect business practices round the world, and business organizations got to react quickly to changing global trends to be competitive.
The purpose of this text is to assist you understand the term “international marketing" and therefore the nature and scope of international marketing.
International marketing practices are adopted when it involves responding to the worldwide market. Usually, companies start their business in their home country and, after success, try to take their business to a different level, become a transnational company and enter the markets of several countries; therefore the company must be known about the principles and regulations of that country.
International marketing enjoys no boundaries, keeping the main target of worldwide customers. But some shortcomings also are related to it, just like the challenges we face on the trail of expansion and globalization. a number of them are socio-cultural differences, changes in foreign currency, language barriers, differences in customer buying habits, product settings and international prices, etc. the most differences between national and international marketing
Definition of international marketing
It is about integrating and standardizing marketing actions in many geographic markets." Kotler
Performance of a commercial activity are to direct a company's flow of products and services to consumers or users in multiple countries for planning, pricing, promoting, and profit." Cateora and Graham,
It is the character and scale of international marketing that international marketing continues to differ from domestic marketing not only in scope but also in essence.
Q2) Briefly discuss the nature and scope of international marketing.
A2) The nature of international marketing
1. Availability of broader market unlike domestic marketing, the market isn't limited to the national population. Populations in other countries also can be targeted in international marketing.
2. In domestic marketing, marketers got to interact with only a group of uncontrollable variables. International marketing will have a minimum of two sets of control variables, but the union is organized. 3. It requires a good range of capabilities–special management skills and a good range of capabilities required for international marketing/business.
3. Competition is fierce-international marketing organizations must compete with both domestic and international competitors. Therefore, competition is fierce in international marketing.
4. With high risks and challenges–international marketing has proven to be a spread of risks and challenges: political risks, cultural differences, fashion and elegance changes for foreign customers, sudden wars, changes in government rules and regulations, and communication challenges thanks to language and cultural barriers.
Scope of international marketing
1. Export-it may be a function of international business during which goods produced in one country are shipped to a different for further sale or trade.
2. Import-goods or services delivered to one country from another country to be used for sale.
3. Re-export-import of semi-finished products, further processing and export of finished products.
4. International Business Management Operation of overseas marketing and sales facilities, establishment of production or assembly facilities in foreign countries, also as monitoring the operations and practices of other multinational corporations and institutions.
Q3) State the differences between national and international marketing in points.
A3) International marketing practices are adopted when it involves responding to the worldwide market. Usually, companies start their business in their home country and, after success, try to take their business to a different level, become a transnational company and enter the markets of several countries; therefore the company must be known about the principles and regulations of that country.
International marketing enjoys no boundaries, keeping the main target of worldwide customers. But some shortcomings also are related to it.
Conclusion:
After delving into the differences between the 2 themes, we came to the conclusion that the planet itself may be a market, which is why the rules are versatile. It doesn't make changes where the principle applies, that is, within the local or global market. The elemental explanation for the difference between domestic marketing and international marketing is its implication areas and market conditions.
Q4) How do international marketing satisfy customers?
A4) International marketing environment –external and internal
The international marketing environment surrounds and influences the organization. In order to satisfy customers, they need to evaluate the internal and external environments subdivided into micro and macro.
This includes mainly three parts of the international marketing environment:
1. Internal environment
2. External environment
The internal environment refers to factors related to the enterprise. The factors related to the enterprise are that the enterprise controls them and can be appropriately used as functional means such as HR, physical facilities, organization and marketing mix to suit the environment.
The company's internal environment includes all departments, such as management, finance, research and development, purchase, operation and accounting. Each of these divisions affects international marketing decisions. For example, research and development has input on the functions that the product can perform, and accounting approves the financial side of the marketing plan.
The company's ability to do international business depends on a number of internal factors such as the mission and purpose of the company; organizational and management structure and nature; internal relationships between employees, shareholders and board of directors, etc.; Company image and brand equity; physical assets and facilities; R&D and technological capabilities; personnel factors such as technology, quality, morale, commitment, attitude, etc.
Marketing, quality marketing male and distribution network for the organization of marketing factors together with doing; and financial factors such as fiscal policy, financial condition and capital structure.
Let's take an example of how the internal environment affects a company like Wal-Mart. In this case, the impact of other features such as marketing planning, how customer relationship management is implemented, strategies from top management, research and development into new logistics solutions, how to buy high-quality products at the lowest possible price, how accounting is done efficiently and effectively, and of course Walmart is famous for local supply chain management. This includes the direct impact of the network infrastructure and logistics.
Useful tools for quickly auditing the internal environment are known as five Ms, which are men, money, machines, materials and markets. Some may include the sixth M, which is a minute, because time is a valuable internal resource. All these factors are company-related factors that are completely controllable. All these must be taken into account when entering the international market.
2. External environment:
It means those factors which are outside the company. We can say that these factors are out of control or these are beyond the control of the company. External factors such as economic, socio-cultural, government and legal, demographic and geographical factors are generally considered an uncontrollable factor.
The external environment can be further divided into two parts:
Q5) Explain Micro Environment.
A5) Micro-environment-
Micro environments are created from individuals and organizations that are close to the company and have a direct impact on the customer experience. They can be defined as actors in the immediate environment of a company that directly affects the company's decisions and operations. These include suppliers, various market intermediaries and service organizations, competitors, customers, and the public. The micro-environment is relatively controllable because business behavior can affect such stakeholders.
Wal-Mart's micro-environment will be very focused on the immediate local issues. It will consider ways to recruit, retain and extend products and services to customers. It will pay close attention to the actions and reactions of direct competitors. Wal-Mart will build and nurture close relationships with major suppliers. Business must communicate and communicate with the public, such as neighbors close to the store, or other road users. There will also be intermediaries such as advertising agencies and trade unions.
i. Suppliers:
The marketing manager is responsible for the supply availability and supply chain management to ensure that products are delivered to customers in the time frame required to maintain strong customer relationships.
ii. Marketing intermediaries:
Marketing intermediaries are resellers, logistics companies, marketing service agents, and financial intermediaries. These are the people who help companies promote, sell and distribute their products to the final buyer. Resellers are those who hold and sell the company's products. They match distribution to customers and include sites such as Wal-Mart, Target and Best Buy.
A logistics company is a place such as a warehouse where a company's products are stored and transported from place of origin to destination. Marketing, advertising and consulting to provide services for companies related to marketing services.
iii. Customer:
Another aspect of Microenvironment is the customer. There are different types of customer markets, including consumer market, business market, government market, international market, and reseller market. The consumer market consists of individuals who purchase goods and services for their own personal use or home use. The business market includes those that purchase goods or services to produce products for sale.
This is different from the reseller market, which includes the business of purchasing goods to resell so that they are for profit. These are the same companies that were mentioned as market intermediaries.
iv. Competitors:
Competitors are also micro-environmental factors, and include companies with similar products for goods and services. To remain competitive, companies need to consider who their biggest competitors are, while taking into account their own size and position in the industry. The company must develop a strategic advantage over its competitors.
v. Public:
The final aspect of the microenvironment is the public, which is any group that has an interest or influence on the organization's ability to achieve its goals. For example, financial public companies can interfere with the ability of the company to obtain funds that affect the level of credit the company has. Media publishing can include newspapers and magazines that can publish articles of interest about the company, editorials that can influence your opinion.
The government public can influence the company by passing laws and laws that place restrictions on the conduct of the company. Civil and action rights, such as environmental groups and minority groups, can be questioned by the company in the form of public support. The local public is a neighborhood and community organization, and it also questions the company's impact in the local area and the level of action commitment.
Since the general public is the customer base of the company, ultimately employed within the company and those who deal with the organization and construction of the company's products, it can have a huge impact on the company, whether positive or negative, because a change in their attitude can drive up or down sales.
Q6) Write short note on Macro environment.
A6) The macro environment is not very controllable. The macro environment consists of a much greater comprehensive impact (affecting the micro environment) from the broader global society. The macro environment includes cultural, political, technological, natural, economic and demographic factors.
Walmart trades primarily in the United States as well as international markets. In the UK, for example, Walmart trades as ASDA.
Many factors make up the international environment: social, cultural, political, legal, competitive, economic and technological. Each should be evaluated before the company decides to go international.
i. Social and cultural environment:
Marketers who intend to sell their products abroad may be very sensitive to foreign cultures the differences between their home country and foreign countries may seem small, but marketers who ignore these differences, not considering differences in marketing program culture is one of the main reasons for overseas marketing failure. This task is not so simple that different features of culture can create the illusion of similarity. Even a common language does not guarantee the similarity of interpretations.
ii. Political environment:
The political environment abroad is quite different from India. Most countries want to become independent and raise their status in the eyes of the rest of the world. This is the essence of nationalism.
iii. Legal environment:
Companies are in many ways influenced by the legal environment of the country. The legal environment is not only based on a variety of laws and regulations related to business, but also the essential legal environment such as the rule of law, access by foreigners to legal systems, litigation systems, and changes in the rule of law, laws and legal systems affect foreign companies in many regions or regions.
iv. Technical environment:
Know-how of technology in all aspects of the impact production Information Systems, Marketing, etc., including the work of international marketing companies international marketers need to understand technology development and its impact on the total work. Marketing intelligence systems have a critical role to play in the company's increasing scientific and technological capabilities in research and development (R&D), which helps international companies to know the technical orientation of other companies and update their own technologies to maintain competitiveness.
New technologies create new markets and opportunities. But every new technology replaces the old technology. Zerography hurts the carbon paper industry, and computers hurt the typewriter industry, examples are so. New technology businesses that other international marketers have ignored or forgotten are falling. Therefore, marketers should closely monitor the technical environment. No company has the technology to change, and soon the product will be added.
Scientists today are researching a wide range of promising new products and services ranging from solar energy, electric vehicles and cancer treatments. All these studies give marketers the opportunity to set up their products according to the current desired standard. The challenge in each case is not just technology, but commercial, which means manufacturing a product that can be given by a large crowd. Marketers in developed countries can't take much technology progress for granted. They may not be available in underdeveloped countries.
v. Competitive environment:
To effectively plan an international marketing strategy, international marketers should be well informed about the competitive landscape in the international market.
vi. Economic environment:
International marketer tries to understand the economic environment variables of the global market for identifying the right marketing opportunities for the industry.
Q7) What is the Criteria for eliminating the market?
A7) Criteria for eliminating the market:
Below are some of the points that could serve as a criterion for eliminating the market from the point of view of the exporting country of India:
(i) The government of India has banned exports to some countries.
(ii) There may be some goods whose exports are restricted or prohibited in full or in some countries only.
(iii) Incompatibility of technical standards may eliminate some markets.
(iv) In some cases, the cost of product adaptation is very high and the exporting country cannot afford it.
(v) Some importers may impose quotas on imports of certain products from certain countries. In such cases, export is impossible.
(VI) If a country imposes a formidable tariff barrier that makes a product expensive in that country, such goods may not be exported to those countries.
(vii) There may be non-tariff barriers that may make the export of some products to some countries virtually impossible or difficult.
(viii) In some cases, the shipping cost may be too high. Therefore, export in such cases is impossible.
(ix) If the competition is quite severe, it may not be easy to enter the market and it may not be profitable to sell products in such markets without high costs
(X) For technically sophisticated products, you should make too much promotional spending and make it difficult to export them.
In this way, the selection process of overseas markets usually begins with the screening process of collecting relevant information for each country and eliminating the countries that make losses after screening. therefore, when choosing overseas markets, you need to keep in mind the above facts and carefully analyze the next steps.
Q8) Explain the steps for overseas market selection.
A8) Steps for overseas market selection:
The first step:
The first step in the foreign market selection process is to use macro variables to distinguish between countries with basic opportunities and those with no or little opportunities. Macro variables of the country describe the total market in terms of social, economic, geographical and political information. For example, the country's economic statistics disclose gross national product, population size, per capita income, personal disposable income, etc. Political stability, political relations with the exporter, geographical distance, climatic conditions, etc., also affect the choice of country.
Second step:
The second stage of the process focuses on factors that indicate the potential market size and acceptance of the product. General proxy variables are used to evaluate. Proxy variables are similar or related products that indicate the demand for a company's products. Other factors such as the stage of economic development of the country, taxes, tariffs, etc when choosing a country, it is also taken into account.
Third step:
The third stage of the selection process focuses on micro-level considerations such as competition, entry costs and profit potential. In other words, in this process, the main focus is given to profitability.
Fourth step:
The fourth and final step in the screening process is the assessment of the potential target market based on the company's resources, objectives and strategy.
Q9) Explain the criteria for selecting the target country.
A9) criteria for selecting the target country:
The process of selecting a target country through the screening process involves identifying the criteria that an exporter uses to select a country, or comparing one country to the other.
International marketing market research has shown that the following major factors are responsible for market selection:
1. Market size
2. Political environment.
3. Social and cultural environment.
4. Legal environment.
Market size is an important factor in choosing overseas markets. Various factors affect the market size and growth. Some important factors include:
Economic factors:
Population factors:
(B) Total population
(II) Population growth rate
(iii) Distribution of population
2. Geographical factors:
(i) Country size.
(ii) Climate.
(iii) Topographical features.
3. Political environment:
The impact of the political environment of the importing country on market selection is clear. Exporters must consider the political implications that affect consumers, current and potential customers or suppliers, International Trade Policy and the economy with respect to business cycles, financial stability, and taxation, etc. This means that government policies and their impact on the national economy should also be carefully analyzed.
4. Legal environment:
In different countries, the rules of business are not only different, but also different ways of applying them? This variation presents a very difficult environment for international marketing, so it is necessary to understand the legal complexities before determining the choice of overseas markets.
Q10) What are the different types of preferences available to Indian exporters?
A10) The different types of preferences available to Indian exporters are:
1. Generalized System of preferences or GSP:
Under a system of generalized preference, developed countries allow imports from developing countries such as India at duty-free or concessional rates. It naturally helped India's export to such countries. GSP makes imports cheaper in comparison to products coming from countries that are not entitled to gsp.
In order to utilize Gsp, exporters must: (i)whether the product is covered by the GSP; (ii)the preference margin enjoyed by the product; (iii)the quota of imports in the country; and(iv)procedural formation in this regard can be collected from the India Institute for Foreign Trade, Trade Development Agency, Ministry of Commerce and the Export Promotion Council.
2. Exchange of preferences among developing countries:
16 developing countries, including India, have exchanged preferences among themselves under the 1972 pact Brazil, Chile, South Korea, Spain, Mexico, Pakistan, the Philippines, Tunisia, Turkey, Uruguay, Yugoslavia, Israel, Egypt, Paraguay, Bangladesh and India. India is also a member of ESCAP. ESCAP members have extended their preferences to each other with 93 products. The exporter must be aware of the products listed in the list of those 93 products.
3. Import Promotion Center for some countries:
Some countries have established import Promotion Centers for imports from developing countries to provide assistance to exporters. The directory of such import Promotion Center (IPC) is compiled by the International Trade Center UNCTAD/GATT and can be obtained from them. The countries in which such centers were established include Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hungary, Israel, Italy, Japan, New Zealand, Norway, Poland, Sweden, Germany, Germany, Italy, Italy, Japan, Japan, Japan, Japan, Japan, Japan, Japan, the United States, the United States, the United States, the United States, the United States, the United States, the United States, the United States, the United States, the United States,
4. Other advantages:
Indian exporters also need to find out if India has certain advantages in the market. Such advantages may be:
(a) Proximity,
(b) Trade governed by persons of Indian origin,
(c) The presence of shipping facilities,
(d) political relations, if they are not good, business may retreat, even if the conditions offered are more attractive, and
(e) The presence of rupee payment contracts.
Therefore, after conducting market research, some markets where entry is impossible or difficult should be rejected, and in other cases where some additional preferences are available, those markets should be considered favorably.
Sources of information available to exporters:
As a short wavelength coherent X-ray source:
(i)Export Promotion Council, commodity Commission, Trade Development Agency, and various chambers of Commerce.
(ii) The library maintained by foreign embassies in India provides many references to assist exporters.
(iii) The United Nations publishes detailed international trade statistics to help exporters find markets for their products.
(iv) Commercial banks and India Export Credit Guarantee Co., Ltd. may provide information on foreign exchange and payment terms of different countries, as well as credit ratings and risks.
(V) The import / export bank may provide information on the assistance provided by the bank to Indian exporters and foreign importers of Indian goods.
(vi) The Reserve Bank of India publishes a bulletin of the Reserve Bank of India that includes currency control rules and other credit information policies.
Q11) What are the proposals are considered necessary for promoting Indian exports?
A11) The following proposals are considered necessary for promoting Indian exports:
1. The government should set up a control room in the Ministry of trade to encourage exporters. The task of this control room is to increase the equipment of export and solve the problems we face in export. This should work towards streamlining exports.
2. It is necessary for the government to increase exports to set up training institutions. Export training should be popular in countries. The Indian Trade Promotion Organization should make special efforts. It should arrange for foreign trade courses to be taught in various universities. Gandhi
3. The government must arrange the production of goods in demand abroad. Proper planning should be prepared for the export of goods. Export goods should be produced constantly. Goods that are in demand in the domestic market should be exported only when domestic demand is met. These goods should be high quality and should be competitively priced.
4. It needs to be public about what is in demand abroad Country doctor, technician etc. You should be encouraged to work abroad on the basis of a business contract. Foreign tourism should be given facilities based on priorities.
5. However, in our country it has not proven to be very effective and beneficial. The government sector needs to adopt a private sector-like approach towards exports. For exports to increase, it is important for the government to make bilateral trade agreements with other countries. Foreign trade must be successful.
6. Indian businessmen should set up joint ventures in India, and governments should do so abroad. In addition, foreign businesspeople should be encouraged to set up more and more export-oriented units in India.
7. It is necessary for the government to provide the people with the necessary information on exports. People should know what to export. A country-by-country export survey should be conducted. It is necessary to study the possibility of export. People should know about the facilities the government gives to exporters.
