international marketing - an introduction
DESCRIPTION
This chapter is an introduction to International marketing. It covers the need for International Marketing, Difference between Domestic and International Marketing, The EPRG frame work, Challenges for International Marketing.TRANSCRIPT
International MarketingThe scope and challenge of
International Marketing
Bindumadhavi P
AppleGoogle
MicrosoftIBM
Walmart
SamsungGE
Coca-ColaVodafone
Amazon.com
Global Brands
2Bindumadhavi P
Indian firms in Global RankingTata
Airtel
State Bank of India
Reliance
Indian Oil Corporation
Infosys
3Bindumadhavi P
Bindumadhavi P 4
Indian international companies
• The Tata group operates in more than 80 countries and markets across:– AFRICA– ASIA– AUSTRALIA– NORTH AMERICA– SOUTH AMERICA– EUROPE
Ratan Tata, Chairman, Tata Sons, sums up the Tata group’s efforts to
internationalise its operations thus: “I hope that a hundred years
from now we will spread our wings far beyond India, that we
become a global group, operating in many countries, an Indian
business conglomerate that is at home in the world, carrying the same sense of trust that we do
today.”
Top 15 cities to do business
Top 15 cities in the world to do Business
1. Ahmedabad – India
2. Gurgao – India
3. Chengdu - china
4. Changquing – china
5. Austin – US
6. Salt lake city – US
7. Vancouver – Canada
8. Doha - Qatar
9. Melbourne
10. Bogota
11. San José
12. Santiago – Chile
13. Lagos – Nigeria
14. Warsaw – Poland
15. Stockholm - Sweden
5Bindumadhavi P
Bindumadhavi P
Chapter Learning Objectives
1. The Distinction between Domestic and Global Marketing
1. The Distinction between Domestic and Global Marketing
2. The scope of the Global marketing task2. The scope of the Global marketing task
3.The increasing importance of global awareness3.The increasing importance of global awareness
4. The progression of becoming a global marketer4. The progression of becoming a global marketer
5. Major Concerns of International Marketers5. Major Concerns of International Marketers
6
What is International Marketing
It is an approach of a company with truly global outlook, seeking its profit impartially around the world, on a planned and systematic basis.
International marketing is defined as theperformance of business activities designed to plan,price, promote, and direct the flow of a company’sgoods and services to consumers or users in morethan one nation for a profit
International marketing is defined as theperformance of business activities designed to plan,price, promote, and direct the flow of a company’sgoods and services to consumers or users in morethan one nation for a profit
Marketing concepts, processes, and principles are universally applicable all over the world
Marketing concepts, processes, and principles are universally applicable all over the world
7Bindumadhavi P
Why go International?
Domestic Market constraint
Competition
Government Policies
Monopoly Power
Spin off benefits
Profit Motive
8Bindumadhavi P
Factors Influencing Global Business
Rapid growth of world trade organization
Trend towards acceptance of free market system
among developing countries
Impact of Internet, Mobile phones and other global
media
• North American free trade area
• European Union
• Asia • Europe
• Global channels• Global customers
9Bindumadhavi P
Marketing V/S International MarketingProduct
Price
Promotion
Place
10Bindumadhavi P
Factors affecting International Marketing
Trade practices Facilities Distance
Culture Economy Law
11Bindumadhavi P
Domestic v/s International
Similarities
• Understanding buyers needs
• Building Goodwill• Research Development
Differences
• Political Entities• Legal systems• Cultural differences• Different monetary systems• Marketing infrastructure• Trade Restrictions• Procedures and
documentations• Highly unpredictable
12Bindumadhavi P
EPRG FRAMEWORK
Ethnocentric
- Home country
orientation
Polycentrism
- Host country orientation
Regiocentrism
- A regional orientation
Geocentrism
- A world orientation
Progression to Global Marketing
13Bindumadhavi P
EPRG FRAMEWORK
Ethnocentric
- Self Reference Criterion
Domestic techniques and Personnel are considered
superior
14Bindumadhavi P
Ethnocentric
• Overseas operations are viewed as secondary to domestic operations
• Considered as a means to dispose of surplus domestic production
• Plans for overseas market are developed in the home office, utilizing policies and procedures identical to those employed in the domestic market
• Overseas marketing is looked after by home country nationals
15Bindumadhavi P
Ethnocentric continued
• No systematic research is conducted overseas• No major modifications are made to products sold
in overseas markets• Prices are calculated on the same basis as in the
home market with the addition of overseas distribution costs
• Promotion and distribution strategies are similar to that employed in the home country
• Strong reliance on export agents
16Bindumadhavi P
Surf – Super washout in JapanUnilever enters Japan Detergent Market
• It releases Surf Super concentrate washing powder in Japan• Measured sachets for Convenience • Fresh Smell
WHAT WENT WRONG??
Un explored market
• Washing powder did not dissolve completely due to weather conditions
• Low agitation washing machines were more popular in Japan, in which the super concentrate surf washing powder did not wash completely
• Fresh smell was not very significant
EPRG FRAMEWORK
Polycentrism
- Host country
orientation
Local Personnel and Techniques are best
suited to deal with local market conditions
19Bindumadhavi P
Polycentric orientation
• Subsidiaries are established in overseas market• Each subsidiary operates independently with its own
marketing objectives and plans• Marketing activities are organized on country by
country basis• Marketing research is conducted independently in each
country• Separate product lines are developed in each country• Home country products are modified to meet local
needs.
20Bindumadhavi P
Polycentric continued
• Each subsidiary will have its own pricing and promotion policy
• Sales personnel from those countries• Traditional channels of distribution of those
countries
21Bindumadhavi P
Eg. McDonalds – Veg burgers in India
McDonald’s does not use multiple 4’s in advertising prices in China; four sounds like
the word death.
EPRG FRAMEWORK
Regiocentrism
- A regional orientation
Recognizes regional
commonalities and leads to the design of
regional strategies
22Bindumadhavi P
EPRG FRAMEWORK
Geocentrism
- A world orientation
Best man for the job irrespective of national origin
23Bindumadhavi P
Regiocentric and Geocentric
• Region or entire world as potential market• Firm develops policies and organizes activities
on a regional or worldwide basis• Marketing personnel from the region or from
any country• Standardized product lines for regional or
worldwide markets• Regional or Global channels of distribution are
also developed24Bindumadhavi P
Conclusion
The globalisation of Markets has necessitated all managers to pay attention to International marketing.
Other than Environmental factors, self reference criterion are considered obstacles to International Marketing.
Global awareness and sensitivity are the best solutions challenges faced in International marketing
25Bindumadhavi P
THANK YOU
Bindumadhavi P 26
Reference – 1. International Marketing by Cateora and
Graham2. International Marketing by Czinkota and
Ronkainen