Sujay on International Marketing

8/10/2019 Sujay on International Marketing

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A BRIEFINTRODUCTION

ON

MARKET,

MARKETING,

INTERNATIONAL BUSINESS,

INTERNATIONAL MARKETING

(ITS NATURE, SCOPE &

BENEFITS)


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INTERNATIONAL MARKETING

(ITS NATURE, SCOPE & BENEFITS)

Made by:

SUJAY VIKRAM SINGH

M.Sc in HOSPITALITY ADMINISTRATION

(SALES AND MARKETING)


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o Market is place where buyer and seller meets for mutual benefits.

o Marketing is the process of identifying the needs of consumers

and satisfying them by providing good quality of goods or

services along with the achieving organizations goals including

profits.

o International business means carrying on business activities

beyond national boundaries which includes transaction of

economic resources such as : goods, capital, services and

international production.

o International marketing comprises of carrying out marketingactivities to promote your brand internationally, market your

products or services beyond your national territory.


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O Global marketing refers to marketing activities

coordinated and integrated across multiple country

markets.

O It focuses upon leveraging a cos assets, experience

& products globally & upon adapting to what is

truly unique & different in each country.

O It is the performance of business activities that

direct the flow of a cos goods & services to

consumers or users in more than one nation for a

profit.O It is the application of mkting concept & its

approach to international business.


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Scope of International Mkting

O The scope of international mkting identifying

needs and wants of customers in different

markets and cultures, providing products,

services, technologies and ideas to give the

firm a competitive mkting advantage plus

distributing & exchanging products and

services internationally through one or acombination of foreign market entry modes.


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Benefits of I.M

O Enhances the domestic competitiveness

O Takes advantage of international trade

technology

O Increase sales & profits

O Extend sales potential of the existing products

O Maintain cost competitiveness in your

domestic market

O Enhance potential for expansion of your

business


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O Gains a global market share

O Reduce dependence on existing markets

O Stabilize seasonal market fluctuations

O It allows significant economies of scale & learning in

production & research and development through

uniform products for global markets.

IM is the performance of business activities that direct a

flow of goods & services to consumers or users in more

than one nation for achieving organizational goals.

Internationalmultinationalglobal marketing


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Role of mkting in

international businessO Identifying & making recommendation about future

trends & opportunities in the markets where the cois already active.-Atlas

O Identifying & making recommendations about newmkting opportunities.

O Providing estimates of the mkting resources(budget) needed to exploit these opportunities.

O Developing & implementing strategies which areconsistent with the overall strategic direction of theco in global markets.


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Ways in which geographically dispersed mktingactivities can be successfully coordinated to gain

competitive advantage

O Performing mkting activities using similar

methods across countries.

O Transferring mkting know-how & skill fromcountry to country.

O Sequencing of marketing programs across

countries.

O Integrating the efforts of various mktinggroups in diff. countries.


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MARKETING This concept was born out of the awareness that a business

should start with the determination of consumer wants and endwith the satisfaction of those wants.

It puts the consumer at both the beginning and at the end of thebusiness cycle.

The entire business has to be seen from the view of customer notcorporate.

O Marketing is the performance of business activities that direct theflow of goods & services from the producer to the consumer.

O It originates with the recognition of a need on the part of a

consumer & terminates with the satisfaction of that need by thedelivery of a usable product at the right time, at the right place, andat the acceptable price. The consumer is found both at the beginning& at the end of the marketing process.


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SALES MARKETING

It starts with the seller & is

preoccupied all the time with the

need of the seller

It starts with the buyer and

focuses constantly on the needs of

the buyer

Emphasises on saleable surplus

available within the corporation

Emphasises on identification of a

market opportunity

Emphasises on quickly convert

product into cash

Emphasises to convert needs into

products

Views business as a goods

producing process.

Views business as a customer

satisfying process.

The firm makes the product first

and then figures out how to sell it

& make profit.

The firm identified the needs of

the consumer and then makes the

products which must satisfied the

needs of both consumers &

organization.


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SALES MARKETING

Emphasis on staying with the

existing technology & reducing

costs.

Emphasis on innovation in every

sphere; on providing better value to

the customer by adopting better

technology

In firms practising selling,

production is the central function

of the business

In firms practising marketing isthe

central function of the business.


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OBJECTIVES OF MODERN

DAYS MARKETING:1. Retaining the customers by handling their

grievances and feedback

2. Computerized customer case history3. Redesigning the customerservice process

4. Throwing out the rule book

5. Encourage customers to communicate

6. Realizations of all organization goalsincluding profits


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CONCEPTUAL FRAMEWORK FOR INTERNATIONALMKTING : NATIONAL MKT V/S OTHER NATIONS

NATIONAL MARKET DIMESIONS

a) Market characteristics

1. Economic

2. Social/cultural

3. Political/legal environment

4. Stage of development

5. Market size, growth rates

6. Consumers characteristics

b) Marketing institutions

1. Channel & physical distributions

2. Communications

3. Services

c) Industry structure

1. Competitive dimensions

2. Technical development

d) Resources

1. Human

2. Monetary

e) Terms of access/financial environment

1. Tariffs, quotas, counter trade etc.

2. Foreign exchange regulations

FOREIGN MARKET

Unique characteristics

Similar characteristics

PLANNING

Domestic

Ethnocentric

Polycentric

Geocentric

Control focus

Domestic

Home country

Host country

Multinational

STRUCTURE IMPLEMENTATION

Domestic

International

Global

Matrix


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CONCEPTUAL FRAMEWORK FOR INTERNATIONALMKTING IN CONSTRAINT ECONOMIES

Environmental analysis

a) Principle constraint analysis

1. Govt attitudes & policies

2. Economic objectives

3. Social objectives

4. Legal & financial

Economic needs analysis

Gather data on appropriate environmental variables

b) Appropriate environmental variable data

1. market characteristics

2. Market institutions3. Industry conditions

4. Resources

Planning

Structure

Operational planning

Controlling the mkting

program


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Levels of international mktingDomestic Export International Global

1. Least intl

commitment

2. Domestic

focus

1. Limited intl

commitment

2. Involves

direct or

indirect

exports

3. Ethnocentric

approach

1. Substantial

international

commitment

2. Focus on

individual

countries or

regions

3. Polycentric

or

Regiocentricapproach

1. Extensive

international

commitment

2. Focus on

segments,

rather than

countries or

regions

3. Geocentric


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Ethnocentric orientationO Guided by domestic market extension concept

O Domestic strategies, techniques & personnel are

perceived as superior

O International customers are considered as

secondary

O International mkting plans are developed in- house

by the international division

O Evaluating other cultures acc. to preconceptions

originating in the standards & customs of ones own

culture.


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Polycentric orientationO Guided by multidomestic market conceptO Focuses on the importance & uniqueness of each intl.

market.

O

Likely to establish business in each target countryO Fully decentralized, minimal coordination with hq.

O Mkting strategies are specific to each country

O Result : no economies of scale, duplicated functions,

higher final product costs

O Meaning : having many centres, especially centres of

authority or control


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Regiocentric orientationO Guided by the global mkting concept

O World regions that share economic, political, and/orcultural traits are perceived as distinct markets

O Divisions are organized based on location

O Regional offices coordinate mkting activitiesO Meaning : a regional market orientation with world mkt

strategies.

O An approach which manages subsidiaries on a regionalrather than stand alone basis and is a cross between anethnocentric and a polycentric approach


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Geocentric orientationO Guided by the global mkting concept

O The world is perceived as a total market withidentifiable, homogenous segments

O Targeted mkting strategies aimed at marketsegments, rather than geographic locations

O Achieve position as low cost manufacturer &marketer of product line

O Provides standardized products or servicesthroughout the world

O Meaning: using the earthly life as the only basisof evaluation./ having or considering the earthas a centre.


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OBSTACLE TO

INTERNATIONALISATIONO Self-reference criterion:

a. Conscious & unconscious reference to own

national culture while operating in the hostcountry.

b. To counter the impact of the self-reference

criterion, the corporation must select

appropriate personnel for internationalassignment & engage in sensitivity training


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O Government barriers:

a. Restrictions placed on foreign corporations byimposing tariffs, import quotas & other

limitations, such as restrictive import license

awards

O Barriers imposed by international competition:

a. Blocked channels of distribution

b. Exclusive retailer agreements

c. Price reductions at the time of market entry

d. Advertising blitzes


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Institutional frameworkO It refers to a law or other formal provision

that assign primary responsibility as well asthe authority to an agency for the collection,

processing & dissemination of the stats; italso includes arrangements or proceduresto facilitate data sharing & coordination.

O The system of formal laws, regulations &procedures & informal conventions, customs& norms that shape socioeconomic activity& behavior.


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MKTING ENVIRONMENT

MARKETING PROCESS

MKTING MIX


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O Mkting mix is internal to firm while

environment is external and by using themkting mix the firm tackles withenvironment.

O The firm has to know where the environmentis heading, what trends are emergingtherein and what should be its response tothe environment changes. Only by analysingthe environment the firm can cope with thechange and able to sustain in the market or

grow further.

O The one thing which is constant--


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Purpose of environment

analysisO To know where the environment is heading; toobserve the relevant trends in the environment.

O To discern which events & trends are favourable fromfirms viewpoint and which are unfavourable; to figure

out the opportunities & threats hidden in theenvironmental events & trends (swot)

O To help secure the right fit between the environmentand the business unit, which is the main objective ofthe mkting; to help the business unit respond withmatching product-mkt strategies in the right way-in

line with the trends in the environment and theopportunities emerging therein.


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MACRO ENVIRONMENTO Demographic

O Socio cultural

O

EconomicO Political

O Natural-ecology, climate

O Technological (its availability, governapproach towards it & selection oftechnology)

O Legal


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DemographicO Business depends on consumers/people, it is

obvious that demographics is a major elementto be studied in environment analysis. As a

matter of fact, several factors relating topopulation, such as size, growth rate, agedistribution, religious composition & literacylevels, need to be studied. Aspects such ascomposition of workforce, household patterns,regional characteristics, population shifts, etc.,also need to be studied, as they all are part ofthe demographic environment.


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Socio-culturalO It is another important component of the mega

environment. Culture, traditions, beliefs, values &lifestyles of the people in a given society constitute it.

O Culture: it is the combined results of factors like religion,language, education & upbringing. In any society somecultural values are deep rooted; they do not changeeasily and are termed as core cultural values. There arealso values & practices, which constitute sec. culturalvalues; they can be change & can be moulded &manipulated relatively more easily. Meaningfulconsumption habits, lifestyle and buying behaviour ofthe people can be obtained through a survey of thisstudy.

O Social class: any society is composed of different social

classes. It is determined by income, occupation, locationof residence, etc., of its members. Each class has itsown standards with respect to lifestyle, behaviour, etc.


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EconomicO General economic conditionsO Economic conditions of diff segments of the

population; their disposal income, purchasingpower, etc.

O Rate of growth of the economy, rate of growth ofeach sector of the economy. Agriculture,industry, consumer goods, capital goods,services, infrastructure, imports &

exports.(4.7%/ 2013-14, it was averagely over

5% since 1950)O Income, prices & consumption expenditure

O Credit availability & interest rate(6.6 avg with themax of 14.5 %)


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O

Savings rate/capital formation (from thepeak of 38.1% of GDP in 2008, in 2012-13,

the savings rate has fallen to 30.1% of GDP

from 31.3% in 2011-12.

O Inflation rate(6.75%- current, 9.13%-13)

O Behaviour of capital markets

O Foreign exchange reserves

O Exchange rates

O Tax rate (income tax, sales, service tax)O Prices of important/raw materials

O Labour scenes (cost, skill availability, etc.)


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LegalO Corporate affairs

O Consumer protection

O

Employee protectionO Sectoral protection

O Corporate protection (protecting cos fromeach other, preventing unfair competition)

O Protection of the society as a whole

O Regulations on products, prices &distribution


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Environmental factors specific

to the business concernedO MARKET/DEMAND

O THE CONSUMER

O INDUSTRY & COMPETITIONO GOVERNMENT POLICIES

O SUPPLIERS RELATED FACTORS


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CONCLUSION


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THANK YOU

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Sujay on International Marketing