Scribd
Upload
48 views13 pages

International Marketing and International Business

This document provides an overview of international marketing and business. It discusses the early phases of international trade dating back to 3000 BC. Breakthroughs in transportation and ICT in the 20th century led to more globalized tastes and the rise of multinational corporations. Other drivers of international marketing included income growth, lower trade barriers, and technological progress. Globalization impacts firms through the globalization of production, markets, and financial systems. International marketing involves identifying global customer needs and making marketing mix decisions in dynamic international environments.

Uploaded by

Bibek Ray Chaudhuri
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
48 views13 pages

International Marketing and International Business

This document provides an overview of international marketing and business. It discusses the early phases of international trade dating back to 3000 BC. Breakthroughs in transportation and ICT in the 20th century led to more globalized tastes and the rise of multinational corporations. Other drivers of international marketing included income growth, lower trade barriers, and technological progress. Globalization impacts firms through the globalization of production, markets, and financial systems. International marketing involves identifying global customer needs and making marketing mix decisions in dynamic international environments.

Uploaded by

Bibek Ray Chaudhuri
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 13

International Marketing and

International Business
Lecture 1
Early Phase of International Marketing
• Existence of International Trade can be traced
3000 BC in India when Indian goods reached
markets of Persia, Mesopotamia, Egypt and
other parts of South East Asia
• Breakthroughs in ICT and transportation have
led to convergence in tastes and preferences
of the consumers during the latter half of 20th
Century giving rise to US, European and
Japanese MNCs
Other triggers of International
Marketing
• Income growth
• Lower trade barriers
• Technological Progress
Globalization
• Economic Globalization
• Cultural Globalization
• Financial Globalization
• Political Globalization
Globalization for a Firm
• Globalization of Production: has led to
multinational origin of product components,
services, and capital as a result of
transnational collaborations among business
enterprises
• Globalization of Markets: convergence in
tastes and preferences across borders have
given rise to increasing opportunities for
marketeers
Measuring Globalization
• Trade openness: (Exports+Imports)/GDP
Small countries like Thailand and Singapore
have very high openness. Whereas large
countries high internal trade have low
openness
• Globalization Index: Economic (36%)+Social
(38%)+Political Globalization (22%). Belgium
ranks number 1, China 73rd and India 110th.
Impact of Globalization on Marketing
• Breaking down of Marketing Boundaries
• Intensifying competition
• Rising economic instability and market volatility
• Increasing customer sophistication
• Simultaneous fragmentation of markets
• Increased product diversification
• Shortening of Product Lifecycles
• Proliferation of global brands
• Growing e-marketing
International Marketing: Concept
• Definition: performance of business activities designed
to plan, price, promote and direct the flow of
company’s goods and services to consumers or users in
more than one nation for a profit.
• It involves
 identifying needs of customers in international
markets
 Taking marketing mix decisions for globalized World
 deciding on modes of entry
 Taking decisions in view of dynamic international
marketing environment
Domestic vs. International Markets
Uncontrollable for the firms
Domestic Environment
• Economic environment
• Legal Environment
• Infrastructure
• Competition
• Political
Domestic vs. International Markets
International Markets
• Political
• Economic
• Legal
• Socio-cultural
• Competition
• Geography
• Logistics
Evolutionary Process of Global Marketing
Stages Market Focus Orientation Market Mix Decisions
Domestic Marketing Domestic Ethnocentric Focussed on Domestic customers
•Focused on mainly on Domestic
Export Marketing Overseas Ethnocentric customers
•Overseas marketing an extension of
domestic marketing
•Decisions made at headquarters

Differentiation in
country markets by Developing local products depending upon
International Marketing Polycentric
way of developing or country needs
acquiring new brands

Decisions by individual subsidiaries

•Consolidation of
operations on •Product standardization within regions
Multinational Marketing Regiocentric
regional basis but not across them
•Gains from •On regional basis
economies of scale

Consolidating firm's •Globalization of marketing mix decisions


Global Marketing operation on global Geocentric with local variations
basis •Joint-decision making across firm's global
operations

Global focus with customer expectations across locations


Glocal Geocentric with local focus
local improvisation become important to sustain profitability
Reasons for Entering International
Markets
• Growth
• Profitability
• Reverse Learning
• Economies of Scale
• Risk Spread
• Access to imported inputs
• Uniqueness of Product or service
• Marketing Opportunities due to Lifecycles
• Spreading R&D Costs
International Marketing Framework
• Decision to enter International Market
• Set Objectives
• Scanning International Marketing Environment
• Market Identification Evaluation and Targeting
• Entry Mode decision
• Marketing-Mix decisions
• Export-Import Management
• Implement decisions to market internationally
• Review Performance
• Consolidate International Marketing operations

You might also like