Unit 1
International marketing
Q1) What is international marketing?
A1)
Everyone desires items and offerings to fulfil the desires of its people. Resources are hard to produce items and offerings. Everyone has restricted resources. No us of a can produce all the products and offerings you want. You will want to buy from different nations what you cannot produce or what you produce under your requirements. Similarly, it sells the products it has to different nations in surplus. India additionally buys and sells diverse sorts of items and offerings from different nations.
In general, no one is self-sufficient. It need to depend upon different nations to import items that aren't to be had with it or are to be had in insufficient quantities. Similarly, it's miles and immoderate quantity alongside it, and it's miles viable to export excessive call for items to the outside.
International exchange way exchange among or greater nations. International exchange entails specific currencies of various nations and is regulated via way of means of the laws, guidelines and guidelines of these nations. Therefore, global exchange is greater complex.
According to Wasserman and Haltman, “International trade consists of transaction between residents of different countries.”
According to Anatole Malad, “International trade is a trade between nations."
According to Eugeworth, “International trade means a trade between nations."
Industrialization, superior transportation, globalization, multinational corporations, and outsourcing all have a good sized effect at the worldwide buying and selling system. Expansion of worldwide alternate is essential for the continuation of globalization. Without worldwide alternate, international locations are limited to items and offerings produced inside their borders.
International alternate is, in principle, similar to home alternate, because the motivations and behaviours of the events worried withinside the alternate do now no longer exalternate radically, irrespective of whether or not the alternate crosses country wide borders. The principal distinction is that worldwide alternate is commonly greater highly-priced than home alternate.
The motive is that borders commonly impose extra prices which include tariffs, time prices because of border delays, and prices related to USA variations which include language, prison system, and culture. Exports consist of the sale of products and offerings to different international locations. Imports encompass purchases from different international locations.
International or overseas alternate is diagnosed international because the maximum vital determinant of a USA monetary improvement.USA overseas alternate includes inward (import) and outward (export) actions of products and offerings, ensuing withinside the outflow and influx of overseas exchange. Therefore, it's also referred to as EXIM alternate.
Several legal guidelines had been enforced to provide, modify and create the surroundings essential for its orderly growth. India's overseas alternate is ruled through the Foreign Trade (Development and Regulation) Act of 1992 and the policies and orders issued below it. Payments for import and export transactions are problem to the Foreign Exchange Control Act of 1999. Customs Act of 1962 governs the bodily motion of products and offerings thru diverse modes of transportation.
Apart from projecting such a picture to make India a excellent manufacturer and exporter of products and offerings, the vital regulation of 1963-Export (Quality Control and Inspection) Act is in vogue. The tempo of improvement of overseas alternate additionally relies upon at the import and export regulations followed through USA. Even EXIM Policy 2002-2007 specializes in substantially simplifying the technique to in addition lessen transaction prices.
Q2) What is the nature of international marketing?
A2) 1. Broader market is available – Unlike domestic marketing, the market is not restricted to the national population. The population of other countries can also be targeted in international marketing.
2. Involves at least two sets of uncontrollable variables – In domestic marketing the marketers have to interact with only one set of uncontrollable variables. In international marketing at least two sets of uncontrollable variables are involved or more if the marketing organization deals in more countries.
3. Requires broader competence – Special management skills and broader competence are required in international marketing/business.
4. Competition is intense – An international marketing organization has to compete with both domestic competitors and international competitors. Hence, the competition is intense in international marketing.
5. Involve high risk and challenges – International marketing is proving to various kinds of risk and challenge like – political risk, cultural differences, changes in fashion and style of foreign customers, sudden war, changes in government rules and regulations, communication challenges due to language and cultural barriers, etc,.
Q3) Explain the scope of international marketing?
A3)
1. Export – It is a function of international business whereby goods produced in one country are shipped to another country for further sale or trade.
2. Import – Goods or services brought into one country from another for use or sale.
3. Re-export – Import of semi-finished goods, further processing, and export of finished goods.
4. Management of international operations
- Operating marketing and sales facilities abroad,
- Establishing production or assembly facilities in foreign countries, and
- Monitoring the operations and practices of other MNCs and agencies.
Q4) Define international marketing?
A4) Everyone desires items and offerings to fulfil the desires of its people. Resources are hard to produce items and offerings. Everyone has restricted resources. No us of a can produce all the products and offerings you want. You will want to buy from different nations what you cannot produce or what you produce under your requirements. Similarly, it sells the products it has to different nations in surplus. India additionally buys and sells diverse sorts of items and offerings from different nations.
In general, no one is self-sufficient. It need to depend upon different nations to import items that aren't to be had with it or are to be had in insufficient quantities. Similarly, it's miles and immoderate quantity alongside it, and it's miles viable to export excessive call for items to the outside.
International exchange way exchange among or greater nations. International exchange entails specific currencies of various nations and is regulated via way of means of the laws, guidelines and guidelines of these nations. Therefore, global exchange is greater complex.
According to Wasserman and Haltman, “International trade consists of transaction between residents of different countries.”
According to Anatole Malad, “International trade is a trade between nations."
According to Eugeworth, “International trade means a trade between nations."
Industrialization, superior transportation, globalization, multinational corporations, and outsourcing all have a good sized effect at the worldwide buying and selling system. Expansion of worldwide alternate is essential for the continuation of globalization. Without worldwide alternate, international locations are limited to items and offerings produced inside their borders.
International alternate is, in principle, similar to home alternate, because the motivations and behaviours of the events worried withinside the alternate do now no longer exalternate radically, irrespective of whether or not the alternate crosses country wide borders. The principal distinction is that worldwide alternate is commonly greater highly-priced than home alternate.
The motive is that borders commonly impose extra prices which include tariffs, time prices because of border delays, and prices related to USA variations which include language, prison system, and culture. Exports consist of the sale of products and offerings to different international locations. Imports encompass purchases from different international locations.
International or overseas alternate is diagnosed international because the maximum vital determinant of a USA monetary improvement.USA overseas alternate includes inward (import) and outward (export) actions of products and offerings, ensuing withinside the outflow and influx of overseas exchange. Therefore, it's also referred to as EXIM alternate.
Several legal guidelines had been enforced to provide, modify and create the surroundings essential for its orderly growth. India's overseas alternate is ruled through the Foreign Trade (Development and Regulation) Act of 1992 and the policies and orders issued below it. Payments for import and export transactions are problem to the Foreign Exchange Control Act of 1999. Customs Act of 1962 governs the bodily motion of products and offerings thru diverse modes of transportation.
Apart from projecting such a picture to make India a excellent manufacturer and exporter of products and offerings, the vital regulation of 1963-Export (Quality Control and Inspection) Act is in vogue. The tempo of improvement of overseas alternate additionally relies upon at the import and export regulations followed through USA. Even EXIM Policy 2002-2007 specializes in substantially simplifying the technique to in addition lessen transaction prices.
Q5) Explain the objectives of international marketing?
A5) The foremost goals of worldwide advertising and marketing are:
- Strengthen unfastened alternate at the sector degree and attempt to carry all international locations collectively for the motive of alternate.
- Promote globalization via way of means of integrating the economies of various international locations.
- Achieving international peace via way of means of constructing alternate family members among international locations.
- To sell social and cultural exchanges among international locations.
- To assist the monetary and commercial increase of growing international locations via way of means of inviting them to the worldwide marketplace and last the space among evolved and growing international locations.
- To make sure sustainable control of assets globally.
- Promote the import and export of products globally and distribute earnings to all taking part international locations.
- To hold unfastened and honest alternate.
International advertising and marketing pursuits to reap all goals and set up ties among international locations taking part in international alternate. There are constrained regulations and necessities for beginning a commercial enterprise for your very own country, however in relation to advertising and marketing on the worldwide degree, you want to consider the information and related complexity. In such cases, call for will increase as markets make bigger, tastes change, and agencies want to conform with the guidelines and guidelines of a couple of country.
Some simple modes observe to go into the worldwide marketplace, and companies making plans to make bigger their commercial enterprise globally want to realize a few simple terms.
Q6) What is the difference between domestic and international marketing?
A6)
Basis of difference | Domestic marketing | Export marketing | |
|
| International marketing covers all countries for marketing purpose. It involves buying and selling activities at the global level. | |
2. Nature | Domestic marketing is easy and simple due to several reasons such as uniform currency system, limited trade restrictions, uniform trade practices and short distances for transport of goods. | International marketing is difficult and complicated due to reasons such as use of different currencies, trade restrictions long distances and absence of uniform trade practices. | |
3. Trading Blocs | Absence of trading blocs and tariff and non-tariff barriers provide ample scope for expansion in domestic marketing activities. | Trading blocs and tariff and non-tariff barriers exist in international marketing and they restrict free trade among the countries of the world. | |
4. Licensing and procedures | It is free from licensing and lengthy procedures and formalities. This brings simple in trading operation. | It involves licensing, permissions and lengthy procedures. This makes marketing operations complicated, time-consuming and difficult. | |
5. environmental changes | Changes in the economic, political or social environment create limited effects on domestic marketing. | Changes in the economic, political or social environment create far-reaching effects on international marketing scenario. | |
6. Risk in trade | The risk involves is limited due to limited area of operations, political stability and uniform rules and laws. | The risk involves is heavy due to vast area of operations, highly sensitive nature of markets and political factors. | |
7. Competition | It is not highly competitive. The scope for competition is restricted due to uniform business environment. | It is highly competitive as different countries involved are in different stages of economic and industrial growth. | |
8. Government Interference | Least interference in the domestic marketing activities. | Maximum interference is observed in international marketing activities. | |
9. Division | It has no division as it is one integrated marketing activity. | It has two broad divisions. Foreign marketing and multinational marketing. | |
10. Quantities involved | Domestic marketing activities are conducted in small quantities with limited profit potentials. | International marketing activities are always in large quantities and profit potentials are also more. | |
11. Incentives | In home marketing, special concessions, facilities and incentives are normally not offered to traders and manufacturers. | In export marketing, special incentives, facilities and concessions are offered to manufacturers of export oriented goods and exporters. | |
12. Agencies Involved | Agencies involved in home marketing include wholesalers, retailers and other trading organizations. | Agencies in export marketing include manufacturer – exporters, merchant exporters, export houses and trading houses. | |
13. Method of payment | In domestic marketing payment is through cash or cheque | Payment in international marketing is through letter of credit and documentary bills of exchange. | |
14. Use of currency | It involves the use of one currency. For example Rupee in India. | It involves the use of multiple currencies particularly US $. |
Q7) Explain internal environment in international marketing?
A7) Every international marketing firm have his own internal marketing. Internal marketing is a combination of components which have control over firm. Internal marketing is controllable.
1.Leadership. Leadership means a manager who is owner of the company r who have a right over all the matters of company. Every leadership has a responsibility to prepare a future leadership which must be better than present Leadership. Vision is important thing to make firm successful, but only vision is an important thing to make a firm successful, but only vision is not able to make a company successful.
2. Financial Resources. Profitability of a company depends upon arrangement and planning of the financial resources. Reliance industry best example of good management of financial resources.
Oil refinery of reliance industries situated in Jamnagar having invest of 20,000. This is the largest oil refinery of Asia.
3. Image of Company. It is saving of marketing: “name 18 same do a company become famous than more customers want to use the productor company. So every country want to establish her brand name.
For example: Every computer has the ad of Intel inside even the ne brand of computer became fail again the Intel inside.
4. Capacity Utilization. Every company working in a field of production have the the capacity of machine. Meant by capacity of machine is maximum production. If the management of company is good than they can use their machines in a best way.
For example: Tata Iron and Steel Co. Ltd, uses his machine capacity in to 112 per cent.
5. Marketing Mix. Famous scholar Meakarthi has told that there are four P’s in marketing mix. That firm will be successful in a international marketing if it makes his mix optimum. But Robert has told four Ps and Cs are important for international marketing. These are:
4 Ps 4 Cs
Product Customers’ needs
Price Cost to the customer
Place Convenience
Promotion Communication
6. Human Resources. In International firm human resources plays a vital role. If human resources are well maintained working capacity of firm and customer satisfaction will be increased. Higher management of a firm do the planning and prepare policies, what is the work culture of a firm, what and hon is the behavior of managers towards workers all those things affect human resources.
For example: Tata Iron and Steel Company Ltd. (TISCO) is a best example in this reference. This company have not got any strike since the establishment of this company. So, the result is that the company is going to complete 100 years of establishment.
7. Research and Development. Companies of developed country give more importance to research and development. They used 3% of their gross domestic product for research and development. The changes and continuous development is possible when we give proper attention towards research and development. Successful companies not only prepare a shape of research of state of the art category. Companies higher management monitors the research and development.
Q8) Explain external environment in international marketing?
A8) A company working in international marketing have to work in external From a external environment business mans need and want the economic policy of a nation establish economic outlook a study of elements are as follows:
1 Study of Demography. Demography is a study of characteristics of a population which is living in a particular geographical time limit. The study of demography is a very important tool for a particular companies working in international marketing. Characteristics includes division population, division on the basis of sex, rate of population on ti development, division of age class in population, death rate.
For example: The study of demography shows that present population of India is 1.4 million and it will be 2-6 million in 2020.
2. Geographical Condition. Every country has his own geography. Geography is a god’s gift to any country which cannot control geographical conditions. World can be divided in many parts on geographical basis. It affect the food and clothing and way of living of the particular geographical area. The conditions of a one country can be different.
For example: India have many geographical conditions. Here is the coolest area in Shimla and the desert of Thar also. The mountain area of Himachal Pradesh and Uttarakhand and many states having plains, large sea banks are also in India.
3. Economic Factors. Economic environment can be divided in two parts:
(i) Macro Economic, (ii) Micro Economic.
Macro economic discusses about the economic policy of a country and micro economic environment focuses on the firm’s ability to complete with in a market.
(i) Macro Economic Environment. A macro economic environment is focused on the country’s sources of livelihood and allocation of those resources. All world’s macro economics are not same. Nature of population must be considered by taking useful information. Because consuming capacity depends upon total population. In other words, per capita income depend on population
Country Population Per capita GNP
U.S 2709 9million) 29340 ($)
India 980 (million) 430 ($)
(ii) Micro Economic Environment. Environment encircling a particular product or market is micro economic environment. If micro economic environment is good than a company can successfully enter a specific market.
The micro economic environment relates to competition. An Indian company may face competition when entering into international market from three sources: (1) Local Business, (ii) Other Indian Corporations, and (iii) Foreign Companies.
For Example: If Ford Motor Co. Was considering to enter the German market, it would compete against General Motors, Volkswagen and Honda Motors of Japan.
To take entry in international marketing the knowledge of type of product (Competitive, improved, break through) and type of demand (latent, incipient, existing) is very useful.
4. Political Environment. Political factors affect the external environment. If the political condition of a country is not stable and uncertain the foreign marketer cannot enter in the international marketing even the nation is rich. Political conditions does not remain unchanged political conditions can change after an international marketer has started or made a commitment.
The political situations of both home and host countries are considered in marketing decisions.
Government all over the world help competitiveness of their domestic companies through monetary and fiscal measures.
5. Legal Factors. Legal factors’ have separate importance in international market. A corporation not only has to think laws of home country but also must be responsive to the host country. A clear distinction must be made between agencies and distributorship. Every country must make its laws clear towards other countries because if countries do not do this, those countries will overcome complexity of legal systems.
6. Technology. Technology highly affect the quality of product and completeness of work. Developed nations pay their proper attention towards technology. Technology makes a product better. New technology makes new market and destroy present market. A nation will succeed if he apt latest technology.
7. Competition. International marketing competition is different from domestic marketing. In international marketing, a company face the competition from home country company and from other nations company.
For example: Coca-cola (cold drink) have to compete not only with home country brand Pepsi but it has to compete with other nations brands.
In this cut-throat competition that company will be stable whose product will better than others. The companies have to conscious to face competition effectively.
8. Social Cultural. The socio-customs and traditions are different. Socio values and customs change with the times. But cultural values does not change time-to-time. In other words, these changes are made after a long-time.
The big part of India is vegetarian. Mac-Donald understood this very well and the company did arrangements for vegetarian and non-vegetarian separately.
International companies should have to do their business activities in a country which is near to socio and cultural values.
9. Consumer Behaviour. Consumer behaviour is also a factor which affects the external environment. Consumer behaviour is variable. The consumer’s choice, education, fashion, interest, income etc., affect directly consumer behaviour. Customer are liking the products of American and European. Company.
Q9) Explain international marketing environment?
A9) International marketing environment is a combination of elements and powers, which affect all the marketing firm. Every marketing firm have their own international environment and external environment also affect the firm. In the comparison of domestic marketing the environment of international marketing is more challenging.
The firm can successful by understand is external and internal environment and make their market strategy and policy according to environment. Which firm make their customer satisfied get more successful than others.
1. Internal environment
Every international marketing firm have his own internal marketing. Internal marketing is a combination of components which have control over firm. Internal marketing is controllable.
1.Leadership. Leadership means a manager who is owner of the company r who have a right over all the matters of company. Every leadership has a responsibility to prepare a future leadership which must be better than present Leadership. Vision is important thing to make firm successful, but only vision is an important thing to make a firm successful, but only vision is not able to make a company successful.
2. Financial Resources. Profitability of a company depends upon arrangement and planning of the financial resources. Reliance industry best example of good management of financial resources.
Oil refinery of reliance industries situated in Jamnagar having invest of 20,000. This is the largest oil refinery of Asia.
3. Image of Company. It is saving of marketing: “name 18 same do a company become famous than more customers want to use the productor company. So every country want to establish her brand name.
For example: Every computer have the ad of Intel inside even the ne brand of computer became fail again the Intel inside.
4. Capacity Utilization. Every company working in a field of production have the capacity of machine. Meant by capacity of machine is maximum production. If the management of company is good than they can use their machines in a best way.
For example: Tata Iron and Steel Co. Ltd, uses his machine capacity in to 112 per cent.
5. Marketing Mix. Famous scholar Meakarthi has told that there are four P’s in marketing mix. That firm will be successful in a international marketing if it makes his mix optimum. But Robert has told four Ps and Cs are important for international marketing. These are:
4 Ps 4 Cs
Product Customers’ needs
Price Cost to the customer
Place Convenience
Promotion Communication
6. Human Resources. In International firm human resources plays a vital role. If human resources are well maintained working capacity of firm and customer satisfaction will be increased. Higher management of a firm do the planning and prepare policies, what is the work culture of a firm, what and hon is the behavior of managers towards workers all those things affect human resources.
For example: Tata Iron and Steel Company Ltd. (TISCO) is a best example in this reference. This company have not got any strike since the establishment of this company. So, the result is that the company is going to complete 100 years of establishment.
7. Research and Development. Companies of developed country give more importance to research and development. They used 3% of their gross domestic product for research and development. The changes and continuous development is possible when we give proper attention towards research and development. Successful companies not only prepare a shape of research of state of the art category. Companies higher management monitors the research and development.
2. External environment
A company working in international marketing have to work in external From an external environment business mans need and want the economic policy of a nation establish economic outlook a study of elements are as follows:
1 Study of Demography. Demography is a study of characteristics of a population which is living in a particular geographical time limit. The study of demography is a very important tool for a particular companies working in international marketing. Characteristics includes division population, division on the basis of sex, rate of population on ti development, division of age class in population, death rate.
For example: The study of demography shows that present population of India is 1.4 million and it will be 2-6 million in 2020.
2. Geographical Condition. Every country has his own geography. Geography is a god’s gift to any country which cannot control geographical conditions. World can be divided in many parts on geographical basis. It affect the food and clothing and way of living of the particular geographical area. The conditions of a one country can be different.
For example: India have many geographical conditions. Here is the coolest area in Shimla and the desert of Thar also. The mountain area of Himachal Pradesh and Uttarakhand and many states having plains, large sea banks are also in India.
3. Economic Factors. Economic environment can be divided in two parts:
(i) Macro Economic, (ii) Micro Economic.
Macro economic discusses about the economic policy of a country and micro economic environment focuses on the firm’s ability to complete with in a market.
(i) Macro Economic Environment. A macro economic environment is focused on the country’s sources of livelihood and allocation of those resources. All world’s macro economics are not same. Nature of population must be considered by taking useful information. Because consuming capacity depends upon total population. In other words, per capita income depend on population
Country Population Per capita GNP
U.S 2709 9million) 29340 ($)
India 980 (million) 430 ($)
(ii) Micro Economic Environment. Environment encircling a particular product or market is micro economic environment. If micro economic environment is good than a company can successfully enter a specific market.
The micro economic environment relates to competition. An Indian company may face competition when entering into international market from three sources: (1) Local Business, (ii) Other Indian Corporations, and (iii) Foreign Companies.
For Example: If Ford Motor Co. Was considering to enter the German market, it would compete against General Motors, Volkswagen and Honda Motors of Japan.
To take entry in international marketing the knowledge of type of product (Competitive, improved, break through) and type of demand (latent, incipient, existing) is very useful.
4. Political Environment. Political factors affect the external environment. If the political condition of a country is not stable and uncertain the foreign marketer cannot enter in the international marketing even the nation is rich. Political conditions does not remain unchanged political conditions can change after an international marketer has started or made a commitment.
The political situations of both home and host countries are considered in marketing decisions.
Government all over the world help competitiveness of their domestic companies through monetary and fiscal measures.
5. Legal Factors. Legal factors’ have separate importance in international market. A corporation not only has to think laws of home country but also must be responsive to the host country. A clear distinction must be made between agencies and distributorship. Every country must make its laws clear towards other countries because if countries do not do this, those countries will overcome complexity of legal systems.
6. Technology. Technology highly affect the quality of product and completeness of work. Developed nations pay their proper attention towards technology. Technology makes a product better. New technology makes new market and destroy present market. A nation will succeed if he apt latest technology.
7. Competition. International marketing competition is different from domestic marketing. In international marketing, a company face the competition from home country company and from other nations company.
For example: Coca-cola (cold drink) have to compete not only with home country brand Pepsi but it has to compete with other nations brands.
In this cut-throat competition that company will be stable whose product will better than others. The companies have to conscious to face competition effectively.
8. Social Cultural. The socio-customs and traditions are different. Socio values and customs change with the times. But cultural values does not change time-to-time. In other words, these changes are made after a long-time.
The big part of India is vegetarian. Mac-Donald understood this very well and the company did arrangements for vegetarian and non-vegetarian separately.
International companies should have to do their business activities in a country which is near to socio and cultural values.
9. Consumer Behaviour. Consumer behaviour is also a factor which affects the external environment. Consumer behaviour is variable. The consumer’s choice, education, fashion, interest, income etc., affect directly consumer behaviour. Customer are liking the products of American and European. Company.
Q10) Explain economic environment?
A10) Economic environment can be divided in two parts:
(i) Macro Economic, (ii) Micro Economic.
Macro economic discusses about the economic policy of a country and micro economic environment focuses on the firm’s ability to complete with in a market.
(i) Macro Economic Environment. A macro economic environment is focused on the country’s sources of livelihood and allocation of those resources. All world’s macro economics are not same. Nature of population must be considered by taking useful information. Because consuming capacity depends upon total population. In other words, per capita income depend on population
Country Population Per capita GNP
U.S 2709 9million) 29340 ($)
India 980 (million) 430 ($)
(ii) Micro Economic Environment. Environment encircling a particular product or market is micro economic environment. If micro economic environment is good than a company can successfully enter a specific market.
The micro economic environment relates to competition. An Indian company may face competition when entering into international market from three sources: (1) Local Business, (ii) Other Indian Corporations, and (iii) Foreign Companies.
For Example: If Ford Motor Co. Was considering to enter the German market, it would compete against General Motors, Volkswagen and Honda Motors of Japan.
To take entry in international marketing the knowledge of type of product (Competitive, improved, break through) and type of demand (latent, incipient, existing) is very useful.
Q11) What is socio cultural environment?
A11) The socio-customs and traditions are different. Socio values and customs change with the times. But cultural values does not change time-to-time. In other words, these changes are made after a long-time.
The big part of India is vegetarian. Mac-Donald understood this very well and the company did arrangements for vegetarian and non-vegetarian separately.
International companies should have to do their business activities in a country which is near to socio and cultural values.
Q12) What is political environment?
A12) Political factors affect the external environment. If the political condition of a country is not stable and uncertain the foreign marketer cannot enter in the international marketing even the nation is rich. Political conditions does not remain unchanged political conditions can change after an international marketer has started or made a commitment
Q13) Define international marketing?
A13) Everyone desires items and offerings to fulfil the desires of its people. Resources are hard to produce items and offerings. Everyone has restricted resources. No us of a can produce all the products and offerings you want. You will want to buy from different nations what you cannot produce or what you produce under your requirements. Similarly, it sells the products it has to different nations in surplus. India additionally buys and sells diverse sorts of items and offerings from different nations.
In general, no one is self-sufficient. It need to depend upon different nations to import items that aren't to be had with it or are to be had in insufficient quantities. Similarly, it's miles and immoderate quantity alongside it, and it's miles viable to export excessive call for items to the outside.
International exchange way exchange among or greater nations. International exchange entails specific currencies of various nations and is regulated via way of means of the laws, guidelines and guidelines of these nations. Therefore, global exchange is greater complex.
According to Wasserman and Haltman, “International trade consists of transaction between residents of different countries.”
According to Anatole Malad, “International trade is a trade between nations."
According to Eugeworth, “International trade means a trade between nations."
Q14) What is the goal of worldwide marketing
A14) The foremost goals of worldwide advertising and marketing are:
- Strengthen unfastened alternate at the sector degree and attempt to carry all international locations collectively for the motive of alternate.
- Promote globalization via way of means of integrating the economies of various international locations.
- Achieving international peace via way of means of constructing alternate family members among international locations.
- To sell social and cultural exchanges among international locations.
- To assist the monetary and commercial increase of growing international locations via way of means of inviting them to the worldwide marketplace and last the space among evolved and growing international locations.
- To make sure sustainable control of assets globally.
- Promote the import and export of products globally and distribute earnings to all taking part international locations.
- To hold unfastened and honest alternate.
Q15) What is the characteristics of international marketing?
A15) 1. Broader market is available – Unlike domestic marketing, the market is not restricted to the national population. The population of other countries can also be targeted in international marketing.
2. Involves at least two sets of uncontrollable variables – In domestic marketing the marketers have to interact with only one set of uncontrollable variables. In international marketing at least two sets of uncontrollable variables are involved or more if the marketing organization deals in more countries.
3. Requires broader competence – Special management skills and broader competence are required in international marketing/business.
4. Competition is intense – An international marketing organization has to compete with both domestic competitors and international competitors. Hence, the competition is intense in international marketing.
5. Involve high risk and challenges – International marketing is proving to various kinds of risk and challenge like – political risk, cultural differences, changes in fashion and style of foreign customers, sudden war, changes in government rules and regulations, communication challenges due to language and cultural barriers, etc,.
Q16) Explain internal environment with example?
A16) Every international marketing firm have his own internal marketing. Internal marketing is a combination of components which have control over firm. Internal marketing is controllable.
1.Leadership. Leadership means a manager who is owner of the company r who have a right over all the matters of company. Every leadership has a responsibility to prepare a future leadership which must be better than present Leadership. Vision is important thing to make firm successful, but only vision is an important thing to make a firm successful, but only vision is not able to make a company successful.
2. Financial Resources. Profitability of a company depends upon arrangement and planning of the financial resources. Reliance industry best example of good management of financial resources.
Oil refinery of reliance industries situated in Jamnagar having invest of 20,000. This is the largest oil refinery of Asia.
3. Image of Company. It is saving of marketing: “name 18 same do a company become famous than more customers want to use the productor company. So every country want to establish her brand name.
For example : Every computer have the ad of Intel inside even the new brand of computer became fail again the Intel inside
.
4. Capacity Utilization. Every company working in a field of production have the capacity of machine. Meant by capacity of machine is maximum production. If the management of company is good than they can use their machines in a best way.
For example: Tata Iron and Steel Co. Ltd, uses his machine capacity in to 112 per cent.
5. Marketing Mix. Famous scholar Meakarthi has told that there are four P’s in marketing mix. That firm will be successful in an international marketing if it makes his mix optimum. But Robert has told four Ps and Cs are important for international marketing. These are:
4 Ps 4 Cs
Product Customers’ needs
Price Cost to the customer
Place Convenience
Promotion Communication
6. Human Resources. In International firm human resources plays a vital role. If human resources are well maintained working capacity of firm and customer satisfaction will be increased. Higher management of a firm do the planning and prepare policies, what is the work culture of a firm, what and hon is the behavior of managers towards workers all those things affect human resources.
For example: Tata Iron and Steel Company Ltd. (TISCO) is a best example in this reference. This company have not got any strike since the establishment of this company. So, the result is that the company is going to complete 100 years of establishment.
7. Research and Development. Companies of developed country give more importance to research and development. They used 3% of their gross domestic product for research and development. The changes and continuous development is possible when we give proper attention towards research and development. Successful companies not only prepare a shape of research of state of the art category. Companies higher management monitors the research and development.
Q17) Explain demography with example?
A17) Demography is a study of characteristics of a population which is living in a particular geographical time limit. The study of demography is a very important tool for a particular companies working in international marketing. Characteristics includes division population, division on the basis of sex, rate of population on ti development, division of age class in population, death rate.
For example: The study of demography shows that present population of India is 1.4 million and it will be 2-6 million in 2020.
Q18) Explain micro environment with example?
A18) Environment encircling a particular product or market is micro economic environment. If micro economic environment is good than a company can successfully enter a specific market.
The micro economic environment relates to competition. An Indian company may face competition when entering into international market from three sources : (1) Local Business, (ii) Other Indian Corporations, and (iii) Foreign Companies.
For Example: If Ford Motor Co. Was considering to enter the German market, it would compete against General Motors, Volkswagen and Honda Motors of Japan.
To take entry in international marketing the knowledge of type of product (Competitive, improved, break through) and type of demand (latent, incipient, existing) is very useful.
Q19) Explain competition factor with example?
A19) International marketing competition is different from domestic marketing. In international marketing, a company face the competition from home country company and from other nations company.
For example: Coca-cola (cold drink) have to compete not only with home country brand Pepsi but it has to compete with other nations brands.
In this cut-throat competition that company will be stable whose product will better than others. The companies have to conscious to face competition effectively.
Q20) What is human resource with example
A20) In International firm human resources plays a vital role. If human resources are well maintained working capacity of firm and customer satisfaction will be increased. Higher management of a firm do the planning and prepare policies, what is the work culture of a firm, what and hon is the behavior of managers towards workers all those things affect human resources.
For example: Tata Iron and Steel Company Ltd. (TISCO) is a best example in this reference. This company have not got any strike since the establishment of this company. So, the result is that the company is going to complete 100 years of establishment.
