Basic Concept Of Basic Concept Of International MarketingInternational Marketing

Amit Amit DuhanDuhan

What to discuss?What to discuss?IntroductionDefinitionDifference & similarity between domestic

and international marketingConcept of international marketing a) Domestic market extension b) Multi domestic market concept c) Global market conceptFactors influencing international marketing

IntroductionIntroduction

•International marketing refers to buying or selling of goods and service beyond the boundaries of a country. When a country crosses its national frontiers to market its products it is indulging in international marketing.

International marketing is the performance of business activities designed to plan, price, promote & direct the flow of a country’s goods & services to consumers in more than one nation for a profit.

•Competition, legal restraints, government, weather, fickle, consumer and any number of other uncontrollable elements can and frequently do, affect the profitable outcome of good, sound marketing plans. GenerallySpeaking, the marketer cannot control or influence these uncontrollable elements, but instead must adjust or adopt to them in a manner consistent with a successful outcome.

DefinitionDefinition

•Philip Cateora, “to make available company’s

product& services to more than one country’s

customers for use is known as international marketing.”

• Van Terpestra, “the process of marketing beyond the country’s border is called international marketing.”

Difference between Difference between international and domestic international and domestic

marketingmarketingMeaningRequirementsLanguage problemsCurrency problemsEconomic policyPolitical problemsMarket researchRiskGovernment control

SimilaritySimilarityObjectCreation of goodwillResearch & developmentTechnique of marketing

Concept of international Concept of international marketingmarketing

Domestic market orientation Global market orientation

• Ethnocentric concept • Regiocentric concept• Geocentric concept

Multi domestic market

•Polycentric concept

Domestic market extensionDomestic market extension

The domestic company seeking sales extension of its domestic products into foreign markets illustrates this concept to international marketing. It views its international operations as secondary to and an extension of its domestic operations; the primary motive is to market excess domestic production. Domestic business is its priority and foreign sales as a profitable extension of domestic extension. Even through foreign markets may be vigorously pursued, the firm’s orientation remains basically domestic.

Multi domestic market Multi domestic market orientationorientation

Once a company recognizes the importance of difference in overSeas market and the importance of offshore business to the organization, its orientation toward international business may shift to a multi domestic marketing strategy. A company guided by this concept has a strong sense that country markets success requires an almost independent program For each country subsidiaries operate independent of one another in establishing marketing objective & plans, and the domestic market &each of the country market have separate marketing mix with little interaction among them.

Global Market OrientationGlobal Market Orientation

A company guided by this global market or philosophy is generally referred to as a global and its marketing activity is global and its market coverage is the world. A company employing a global marketing strategy strives for efficiencies of scale by developing a standardized marketing mix applicable across national boundaries. Markets are still segmented, but country or region is considered side by side with a variety of other segments.

Factors influencing Factors influencing international marketinginternational marketing

•Internal factors•External factors

Internal factorsInternal factors

•May include the strength of a business organization to operate in an allien country. Its knowledge about the customers wants & needs in that country. The investment capacity of the

company to pursue its goals to make the products as per the requirement of the customers. It may have to evaluate its production capacity & strength to with stand the competition in that country.

External factorsExternal factors

•Economic environment•Political environment•Legal environment•Physical environment•Technological environment•Cultural environment

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