INTERNATIONAL MARKETING

CONTENTS
 INTERNATIONAL MARKETING
 CHALLENGES OF INTERNATIONAL MARKETING
 ADAPTATION OF MARKETING APPROACHES
 FOREIGN CONDITIONS

INTERNATIONAL MARKETING
 International marketing is the export, franchising, licensing, or full direct entry of an

organization into another country or one nation for profit. In other words,
International marketing is the performance of business activities designed to plan,
price, promote, and direct the flow of a company’s goods and services to consumers or
users in more than one nation for a profit.

DOMESTIC VS NTERNATIONAL MARKETING

 A domestic marketing, also referred to as an internal marketing or domestic trading, is

the supply and demand of goods, services and securities within a single country or
boundary of a country.

DIFFERENCE BETWEEN
DOMESTIC MARKETING INTERNATIONAL MARKETING
It operates domestically or locally. It operates internationally or globally.
There is small culture group. There is culture is divided wide or diverse.
Level of competition is local. Level of competition is global.
Politics & Government systems are easy. Politics & Government systems are difficult.
Technology is homogenous. Technology is heterogeneous.

CHALLENGES OF INTERNATIONAL MARKETING

1. TARIFF BARRIERS:
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Tariff barriers indicate taxes and duties imposed on imports. Marketers of guest countries find it
difficult to earn adequate profits while selling products in the host countries. Sometimes, to
prevent foreign products and/or promote domestic products, strategically tariff policies are
formulated that restricts international marketing activities. Frequent change in tariff rates and variable
tariff rates for various categories of products create uncertainty for traders to trade internationally.
Antidumping duties levied on imports and defensive strategies create difficulty for exporters.
2. ADMINISTRATIVE POLICIES:
ADVERTISEMENTS:
Bureaucratic rules or administrative procedures – both in guest countries and host countries – make
international (export and/or import) marketing harder. Some countries have too lengthy formalities
that exporters and importers have to clear. Unjust dealings to get the formalities/ matters cleared
create many problems to some international players. International marketers have to accustom
with legal formalities of several courtiers where they wants to operate.
3. CONSIDERABLE DIVERSITIES:
Different countries have their own unique civilization and culture. They pose special problems for
international marketers. Global customers exhibit considerable cultural and social diversities in
term of needs, preferences, habits, languages, expectations, buying capacities, buying and
consumption patterns, and so forth. Social and personal characteristics of customers of different
nationalities are real challenges to understand and incorporate. Compared to local and domestic
markets, it is more difficult to understand behaviour of customers of other countries. In the same
way, as against domestic markets, to design and modify marketing mix over time for international
markets seem more difficult. Market segmentation, product design, pricing, and distribution need
more information and efforts. Promoting products in international markets is a formidable task.
Message preparation and execution in suitable media in international markets is not easy game to
play. Language and religious diversities are the real challenge for international business players. There are
6000 languages in the world. China (20%) is the largest in term of native speakers, followed by English
(6%), and followed by Hindi (5%). Yet English is recognized as global business language.
4. POLITICAL INSTABILITY OR ENVIRONMENT:
Different political systems (democracy or dictatorship), different economics systems (market
economy, command economy, and mixed economy), and political instability are some of real
challenges that international markers have to face. Political atmosphere in different courtiers offer
opportunities or pose challenges to international marketers. Governments in different nations have
their priorities, philosophies, and approaches to the international trades. They may adopt
restrictive (protectionist) or liberal approach to international business operations. Especially,
political approaches of dominant nations have more influence in international marketing activities.
Long-term trend of global political environment is unpredictable and uncertain. Economic policies
of different nations (industrial policies, fiscal policies, agricultural policies, export-import policies,
etc.,) do have direct impact on international trade. Drastic change in these policies creates endless
difficulties to international traders. While dealing with international markets, international political
and legal environment needs a special attention.

5. PLACE CONSTRAINTS (DIVERSE GEOGRAPHY):

Trade in foreign countries of far distance itself practically difficult. In case of perishable products, it
is a real challenge. Exporting and importing products via sea route and making arrangements for
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effective selling involves more time as well risks. Segmenting and selecting international markets
require the marketers to be more careful.
6. VARIATIONS IN EXCHANGE RATES:
Every nation has its currency that is to be exchanged with currencies of other nations. Currencies
are traded every day and rates are subject to change. Indian Rupee, European Dollar, US Dollar,
Japanese Yen, etc., are appreciated or discounted at national and international markets against
other currencies. In case of extraordinary and unexpected moves (ups and downs) in
currency/exchange rates between two courtiers create serious settlement problems.
7. NORMS AND ETHICS CHALLENGES:
Ethics refers to moral principles, standards, and norms of conduct governing individual and firm’s
behaviour. They are deeply reflected in formal laws and regulations. In different parts of the world,
different codes of conduct are specified that every international business player has to observe.
However, globalization process has emphasized some common ethics worldwide. Corruption is
another issue relating to business ethics.
8. TERRORISM AND RACISM:
Terrorism is a global issue, a worldwide problem. People of the world are living under constant fear
of terrorists attracts anywhere in the world. To trade internationally is not economically risky, but
there is the threat to life. Racism also restricts international trade activities.
UNCONTROLLABLE FACTORS
1) Political Conditions
2) Economic Conditions
3) Socio-Cultural Conditions
4) Technological Conditions
5) Legal Conditions
6) Competition
7) Marketing Channels

ADAPTATION OF MARKETING APPROACHES

Adaptation is a conscious effort on the part of the international marketer to anticipate the
influences of both the foreign and domestic uncontrollable factors on a marketing mix and
then adjust the marketing mix to minimize the effects. To adjust and adapt marketing
program to foreign markets, marketers must be able to interpret effectively the influence and
impact of each of the uncontrollable environmental elements.
The key to successful international marketing is adaptation to the environmental differences
from one market to another; Primary obstacles to success in international marketing are:
 SRC (THE SELF REFERENCE CRITERION):
 SRC is an unconscious reference to One’s own cultural values,
experiences, and knowledge as a basis for decisions.
 ETHNOCENTRISM:
 Notion that one’s own culture or company knows best.

THE SRC AND ETHNOCENTRISM

 They can influence an evaluation of the appropriateness of a domestically
designed marketing mix for a foreign market.
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 The most effective way to control the influence of them is to recognize
their effects of our behavior.
 In depth know about the culture of country.
 Learn about their norms, traits, habits.
 Consult with the natives of target country.
DEVELOPING A GLOBAL AWARENESS
Tolerance of cultural differences:
 Understanding cultural differences and accepting and working with
others whose behavior may be different from yours; Knowledge of
cultures, history, world market potential, and global economic, social, and
political trends.
TEN BASIC CRITERIA FOR ADAPTATION
In Brief:

1) Open Tolerance

2) Flexibility

3) Humility

4) Justice & Fairness

5) Ability to adjust to varying tempos

6) Curiosity & Interest

7) Knowledge of the country

8) Liking for others

9) Ability to command respect

10) Ability to integrate oneself into the environment