International Marketing INTRODUCTIONS. Free National Market Free National Market Banking Legislation Banking Legislation Competition Policy Competition

International MarketingInternational Marketing

INTRODUCTIONSINTRODUCTIONS

International MarketingInternational Marketing Free National MarketFree National Market Banking LegislationBanking Legislation Competition PolicyCompetition Policy Social welfareSocial welfare WorkWork Health and Safety LawHealth and Safety Law TradeTrade Industrialization and technologyIndustrialization and technology FDIFDI Political ScenarioPolitical Scenario Foreign SecurityForeign Security Human RightsHuman Rights

Risk in International Risk in International MarketingMarketing

The degree of business risk is higher in The degree of business risk is higher in case of International Marketingcase of International Marketing

There is no safety net. Nothing to fall back There is no safety net. Nothing to fall back when things do not go right. Exp: Coke/IBMwhen things do not go right. Exp: Coke/IBM

Your company may not be treated on par Your company may not be treated on par with local the firmswith local the firms

Your company has lesser credibility than a Your company has lesser credibility than a home grown companyhome grown company

The geographical, intercultural, economic, The geographical, intercultural, economic, social, political and administrative social, political and administrative distances may be far greater for your distances may be far greater for your compamy than the domestic firmscompamy than the domestic firms

Why do you do International Why do you do International Marketing?Marketing?

Why do firms do Business Internationally:Why do firms do Business Internationally: Seek more and larger marketsSeek more and larger markets Seek economic of scales through bigger Seek economic of scales through bigger

operationsoperations Seek economics of global supply chainSeek economics of global supply chain Expand the base of businessExpand the base of business Spread business risk over different Spread business risk over different

locationslocations Seek new Technology and knowledgeSeek new Technology and knowledge

Differences between Differences between International Marketing and International Marketing and

Domestic BusinessDomestic Business Lengthy ProcessLengthy Process Large scale operationsLarge scale operations Role of Multinational CompaniesRole of Multinational Companies International Restrictions and Trading BlockInternational Restrictions and Trading Block Market ResearchMarket Research Long-term marketing PlanLong-term marketing Plan Standard of LivingStandard of Living Foreign ExchangeForeign Exchange CulturesCultures International CompetitorsInternational Competitors Geographical DiversityGeographical Diversity The New Business EnvironmentThe New Business Environment

Way of Doing International Way of Doing International Marketing Marketing

Selection of the MarketSelection of the Market

Identifications of the Market / Identifications of the Market / Countries SelectionsCountries Selections

Industrial Economics MarketIndustrial Economics Market Raw material Exporting MarketRaw material Exporting Market Developing CountriesDeveloping Countries Subsistence EconomicsSubsistence Economics Other Data to be taken into considerations:Other Data to be taken into considerations: Population GrowthPopulation Growth GDP/ Per capita IncomeGDP/ Per capita Income Standard Of livingStandard Of living Government Regulations:Government Regulations: Tariff and Non-Tariff BarriersTariff and Non-Tariff Barriers Exports DutyExports Duty Imports DutyImports Duty

Other data to be taken into Other data to be taken into considerationsconsiderations

Transit DutyTransit Duty Specific DutySpecific Duty Compounded DutyCompounded Duty Revenue TariffRevenue Tariff Protective TariffProtective Tariff Antidumping DutiesAntidumping Duties Quota SystemsQuota Systems Import LicensingImport Licensing Shipping costShipping cost Acute shortage of Foreign ExchangesAcute shortage of Foreign Exchanges

Other data to look for….Other data to look for….

Climatic conditionsClimatic conditions Income level Income level Work habits or culturesWork habits or cultures Political InfluencesPolitical Influences Level of literacyLevel of literacy Level of technical skill of productsLevel of technical skill of products BrandingBranding Packaging and Color Packaging and Color Sales PromotionsSales Promotions Media AllocationsMedia Allocations Distributions Strategies or length of distributions Distributions Strategies or length of distributions

channelchannel

Exports Procedures and Exports Procedures and DocumentsDocuments

International Pricing - Quotations: International Pricing - Quotations: CIF/C&F/FOB/Ex./FAS CIF/C&F/FOB/Ex./FAS

Types of Pricing- Skimming Pricing Types of Pricing- Skimming Pricing Penetration Pricing, Full cost Pricing, Penetration Pricing, Full cost Pricing, Exchange Rate Fluctuations, SEZ-Exchange Rate Fluctuations, SEZ-Sales, Counter Trade, Transfer Pricing, Sales, Counter Trade, Transfer Pricing, Over Invoicing, Under invoicingOver Invoicing, Under invoicing

Cartels Pricing – OPECCartels Pricing – OPECAdministered Pricing – Govt. Administered Pricing – Govt.

controlledcontrolled


Contracts – Agreement – SAMCHEM Contracts – Agreement – SAMCHEM AgreementAgreement

Types of Payments – D.A/D.P/LC/TTTypes of Payments – D.A/D.P/LC/TT LC: Exporters and Importers agree on termsLC: Exporters and Importers agree on terms

Buyer requests its foreign Bank to open L/CBuyer requests its foreign Bank to open L/CThe Buyer’s Bank prepares an irrevocable Letter of The Buyer’s Bank prepares an irrevocable Letter of

Credit to HSBC BankCredit to HSBC BankHSBC Local Bank prepares letter of confirmationHSBC Local Bank prepares letter of confirmationExporter reviews LCExporter reviews LCThe Goods are loaded and shippedThe Goods are loaded and shippedExporter presents documentsExporter presents documentsSBI sends documents to BuyerSBI sends documents to BuyerTo claim goods, Buyer presents documents to customTo claim goods, Buyer presents documents to customGoods are released to BuyerGoods are released to Buyer


Exports Documentations:Exports Documentations:-Custom documents for noting-Custom documents for noting-Exports declaration-Exports declaration-Commercial Invoice-Commercial Invoice-Bill of Lading-Bill of Lading-Special Certificates-Special Certificates-Packing Certificates-Packing Certificates-Insurance Certificates-Insurance Certificates-Custom Manifest-Custom Manifest-Vessel Management-Vessel Management

International Distribution International Distribution StrategiesStrategies

-Direct Marketing-Direct Marketing-Trading Company-Trading Company-Manufacturer’s Representatives-Manufacturer’s Representatives-Distributors-Distributors-Foreign Country Brokers-Foreign Country Brokers-Dealers-Dealers-Government Affiliated Middlemen-Government Affiliated Middlemen-E-Commerce / Internet – B2B-E-Commerce / Internet – B2B

Factors Affecting Choice of Factors Affecting Choice of ChannelsChannels

1.1. Identify Specific Target marketsIdentify Specific Target markets

2.2. Specify marketing goals in terms of Specify marketing goals in terms of volume, market sharevolume, market share

3.3. Specify financial and personal Specify financial and personal commitments to the distributorscommitments to the distributors

4.4. Identify control, length of channels, Identify control, length of channels, terms of sale and channel terms of sale and channel ownershipownership

International BrandingInternational Branding A global Brand is defined as the worldwide use of a name, A global Brand is defined as the worldwide use of a name,

term, sign, symbol, design or combination thereof term, sign, symbol, design or combination thereof intended to identify goods or services of one seller and to intended to identify goods or services of one seller and to differentiate them from those of competitors.differentiate them from those of competitors.

Top 20 Global Brands and its value:Top 20 Global Brands and its value: COCA-COLACOCA-COLA US$ 70 BNUS$ 70 BN MicrosoftMicrosoft US$65 BNUS$65 BN IBMIBM US$55BNUS$55BN GEGE US$45BNUS$45BN NokiaNokia US$30BNUS$30BN DisneyDisney US$30BNUS$30BN McDonald’sMcDonald’s US$25BNUS$25BN MercedesMercedes US$22BNUS$22BN ToyotaToyota US$20BNUS$20BN CITIBANKCITIBANK US$18BNUS$18BN

International BrandingInternational Branding

Global Branding – McDonalds, Sony, Global Branding – McDonalds, Sony, Kodak, MarlboroKodak, Marlboro

National Branding – Nestle, Unilever, National Branding – Nestle, Unilever, Procter & GambleProcter & Gamble

Country of Origin Brands – Made in Country of Origin Brands – Made in China, Made in Italy, Japanese China, Made in Italy, Japanese Electronics, Jamaican Rum, French Electronics, Jamaican Rum, French winewine

Private Brands – Choitaram , Lals, Private Brands – Choitaram , Lals, More, Reliance FreshMore, Reliance Fresh

Gender Bias in International Gender Bias in International MarketingMarketing

Asia / Middle East / Latin America : Asia / Middle East / Latin America : Women not in upper levelsWomen not in upper levels

USA – 43% Britain-33% Switzerland USA – 43% Britain-33% Switzerland 28%28%

India -7% of Women employeeIndia -7% of Women employee Jobs in International Marketing: Jobs in International Marketing:

Documentations / Finance / Documentations / Finance / Logistics / MarketingLogistics / Marketing

Business Ethics in International Business Ethics in International MarketingMarketing

ENRON / WORLDCOM / DAEWOO / ENRON / WORLDCOM / DAEWOO / SATYAMSATYAM

FORM OF CORRUPTIONS : FORM OF CORRUPTIONS : Commissions / Bribery / Extortions / Commissions / Bribery / Extortions / Lubrications – Gift and small some of Lubrications – Gift and small some of money / Subornation – Giving large money / Subornation – Giving large sums of money for not doing the jobs sums of money for not doing the jobs against your competitors.against your competitors.

AGENT FEESAGENT FEES

Transparency International Transparency International Corruption IndexCorruption Index

Finland, Denmark, New Zealand, Iceland,Finland, Denmark, New Zealand, Iceland,Singapore, Sweden, Canada, Luxembourg,Singapore, Sweden, Canada, Luxembourg,Netherlands, United Kingdom, Australia, Netherlands, United Kingdom, Australia,

Norway, Switzerland, Hong Kong, Austria, Norway, Switzerland, Hong Kong, Austria, USA, Chile, Germany, Israel , Belgium, USA, Chile, Germany, Israel , Belgium, Japan, Spain, Albania, Guatemala, Japan, Spain, Albania, Guatemala, Nicaragua, Venezuela, Georgia, Ukraine, Nicaragua, Venezuela, Georgia, Ukraine, Vietnam, Kazakhstan, Bolivia, Cameroon, Vietnam, Kazakhstan, Bolivia, Cameroon, Ecuador, Haiti, Moldova, Uganda, Ecuador, Haiti, Moldova, Uganda, Azerbaijan, Indonesia, Kenya, Angola, Azerbaijan, Indonesia, Kenya, Angola, Madagascar, Paraguay, Nigeria, Bangladesh.Madagascar, Paraguay, Nigeria, Bangladesh.

International Dispute Resolution International Dispute Resolution in International Marketingin International Marketing

Reasons for the disputes: Refuses to pay, Product is of Reasons for the disputes: Refuses to pay, Product is of inferior quality, arrival of late shipments etc. inferior quality, arrival of late shipments etc.

Remedies: Conciliation (also know as mediation)Remedies: Conciliation (also know as mediation) Arbitrations: - The Inter-American Arbitration commission, Arbitrations: - The Inter-American Arbitration commission,

- The London Court of Arbitration- The London Court of Arbitration - The American Arbitration Association- The American Arbitration Association - The International Chamber of Commerce- The International Chamber of CommerceLitigation : Lawsuits in public courts.Litigation : Lawsuits in public courts.International Conventions: The Paris Convention CentreInternational Conventions: The Paris Convention CentreThe Inter-American Convention CentreThe Inter-American Convention CentreThe World Intellectual Property OrganizationThe World Intellectual Property OrganizationThe European Patent ConventionsThe European Patent ConventionsAntitrust Law: Price discrimination, supply restrictions etc. Antitrust Law: Price discrimination, supply restrictions etc. Foreign Corrupt Practices Law: Bribing etc.Foreign Corrupt Practices Law: Bribing etc.

Emerging Markets in Emerging Markets in International Marketing – ProjectInternational Marketing – Project

ChinaChina TaiwanTaiwan India India BrazilBrazil ChileChile ColombiaColombia PeruPeru IndonesiaIndonesia South KoreaSouth Korea ThailandThailand VietnamVietnam MexicoMexico AzerbaijanAzerbaijan MalaysiaMalaysia South AfricaSouth Africa RussiaRussia

Setting up of Business with other Setting up of Business with other countriescountries

Official Name, Capital, Area, Official Name, Capital, Area, Population, Languages, Religious Population, Languages, Religious Affiliations, Currency, Major Trade Affiliations, Currency, Major Trade Partners, Economic Indicators, Partners, Economic Indicators, Objectives for setting up an Objectives for setting up an Enterprises, Action Plan, Anticipated Enterprises, Action Plan, Anticipated risks and hurdles, End Result, risks and hurdles, End Result, Exports to India, Imports from India Exports to India, Imports from India


Take any one co. of your choiceTake any one co. of your choice One product line or one sub product lineOne product line or one sub product line Primary Market : One country or Market Primary Market : One country or Market

where they exportwhere they export Secondary Market: Second MarketSecondary Market: Second Market Take Two co. a and b ( competitors)Take Two co. a and b ( competitors) One product lineOne product line One market One market


Key Elements of plan:Key Elements of plan:A brief description of Management teamA brief description of Management teamPro / Services offered and their unique Pro / Services offered and their unique

advt.advt.Industry structures and competitionIndustry structures and competitionDomestic market experienceDomestic market experienceForeign Market experienceForeign Market experience


Marketing ResearchMarketing ResearchTarget MarketTarget MarketPrimary Market Primary Market Secondary MarketSecondary MarketEntry BarriersEntry BarriersForeign Exchange RegulationsForeign Exchange RegulationsPest FactorsPest FactorsPorter’s ModelPorter’s ModelCurrency FluctuationsCurrency Fluctuations


Marketing DecisionsMarketing DecisionsDistribution StrategiesDistribution StrategiesDirect ExportsDirect ExportsIndirect ExportsIndirect ExportsPricing DecisionsPricing DecisionsPromotions DecisionsPromotions DecisionsStrategies AlliancesStrategies AlliancesImport DutyImport Duty


Legal DecisionsLegal DecisionsAgents / Distributor AgreementAgents / Distributor AgreementPatent / Logo / Copy RightPatent / Logo / Copy RightDisputes ResolutionDisputes ResolutionArbitrationsArbitrations


Manufacturing DecisionsManufacturing DecisionsLocations of Export Facility in IndiaLocations of Export Facility in IndiaCapacity of existing facilityCapacity of existing facilityExpansion plans if anyExpansion plans if anyIncentive given by government Incentive given by government


Personnel Decisions:Personnel Decisions:Personnel needed to manage exportPersonnel needed to manage exportTraining needs of existing personnelTraining needs of existing personnelHiring needs in both short and long-termHiring needs in both short and long-term


Discussions on IMFDiscussions on IMFDiscussions on World BankDiscussions on World BankDiscussions on RBIDiscussions on RBIDiscussions on ECGCDiscussions on ECGCDiscussions on EXIM BANKDiscussions on EXIM BANK
