International marketing can be defined as marketing of goods and services

outside the firms home country. International marketing has the following two
forms of marketing.
1,Segmentation
Firms that serve global markets can be segregated into several clusters based on
their similarities. . Each such cluster is termed as a segment. Segmentation helps
the firms to serve the markets in an improved way. Markets can be segmented
into nine categories, but the most common method of segmentation is on the
basis of individual characteristics, which include the behavioural,
psychographic, and demographic segmentations
2. International product policy
Some thinkers of the industry tend to draw a distinction between conventional
products and services, stressing on service characteristics such as heterogeneity,
inseparability from consumption, intangibility, and perishability. Typically,
products are composed of some service component like, documentation, a
warranty, and distribution. These service components are an integral part of the
product and its positioning. Thus, it is important to consider the findings of
marketing research and determine customers desires, motives, and expectations
in buying a product. Firms have a choice in marketing their products across
markets. Many a times, firms opt for a strategy which involves customisation,
through which the firm introduces a unique product in each country, believing
that tastes differ so much between countries that it is necessary to create a new
product for each market. Standardization proposes the marketing of one global
product, with the belief that the same product can be sold in different countries
without significant changes.

The basis of behavioural segmentation is the general behavioural aspects of the

customers. Demographic segmentation considers the factors like age, culture,
income, education and gender. Psychographic segmentation takes into account:
beliefs, values, attitudes, personalities, opinions, lifestyles and so on.
3. Market positioning
The next step in the marketing process is, the firms should position their product
in the global market. Product positioning is the process of creating a favourable
image of the product against the competitors products. In global markets
product positioning is categorised as high-tech or hightouch positioning. The
classification of high-tech and high-touch products. One challenge that firms
face is to make a trade-off between adjusting their products to the specific
demands of a country and gaining advantage of standardization such as the
maintenance of a consistent global brand image and cost savings.
1.International pricing decisions
Pricing is the process of ascertaining the value for the product or service that
will be offered for sale. In international markets, making pricing decisions is
entangled in difficulties as it involves trade barriers, multiple currencies,
additional cost considerations, and longer distribution channels. Before
establishing the prices, the firm must know its target market well because when
the firm is clear about the market it is serving, then it can determine the price
appropriately. The pricing policy must be consistent with the firms overall
objectives. Some common pricing objectives are: profit, return on investment,
survival, market share, status quo, and product quality. The strategies for
international pricing can be classified into the following three types:
2. Market penetration:
It is the technique of selling a new product at a lower price than the current
market price.

3..Market holding:
It is a strategy to maintain buy orders in order to maintain stability in a
downward trend
4.Market skimming:
It is a pricing strategy where price of the goods are set high initially to skim the
revenue from the market layer by layer.
5.International advertising
International advertising is usually associated with using the same brand name
all over the world. However, a firm can use different brand names for historic
reasons. The acquisition of local firms by global players has resulted in a
number of local brands. A firm may find it unfavorable to change those names
as these local brands have their own distinctive market. Therefore, the company
may want to come-up with a certain advertising approach or theme that has
been developed as a result of extensive global customer research. Global
advertising themes are advisable for marketing across the world with customers
having similar tastes. The purpose of international advertising is to reach and
communicate to target audiences in more than one country. The target audience
differs from country to country in terms of the response towards humour or
emotional appeals, perception or interpretation of symbols and stimuli and level
of literacy. Standardization is required for products by some firms.
Standardization helps to achieve economies of scale and a consistent image can
be established across markets. Standardisation also assists in utilising creative
talent across markets, and facilitates good ideas to be transplanted from one
market to other
6. International promotion and distribution
of goods from manufacturer to the end user is an important aspect of business.
Companies have their own ways of distribution. Some companies directly
perform the distribution service by contacting others whereas a few companies
take help from other companies who perform the distribution services.

The distribution services include: The purchase of goods. The assembly of an

attractive assortment of goods. Holding stocks. Promoting sale of goods to the
customer. The physical move
1.