INTERNATIONAL MARKETING

AN INTRODUCTION

Aditi Chakravarty
Nitesh Pandey
Puneet Dalakoti
Pawan Yadav
 MARKETING
• Marketing is the process of planning and
executing the conception, pricing, promotion,
and distribution of ideas, goods, and services
to create exchanges that satisfy individual and
organizational objectives.
• International marketing is the extension of
these activities across national boundaries.
 THE CONTRASTS :
• Marketing • Int’l Marketing
– Process of planning – Focuses resources on
and executing the Int’l market
conception pricing, opportunities and
promotion and threats; the main
distribution of ideas, difference is the scope
goods and services to of activities because
create exchanges that Int’l marketing occurs
satisfy individual and in markets outside the
organization goals organization’s home
country
 DEFINITION
What is International Marketing?
• At its simplest level, international marketing involves the
firm in making one or more marketing mix decisions
across national boundaries. At its most complex level, it
involves the firm in establishing manufacturing facilities
overseas and coordinating marketing strategies across
the globe.
Doole and Lowe (2001)
• The Difference
More than one nation, Competition, Legal constraints,
Govt. Control, Ecological factors, Consumer traditions, or
any uncontrollable elements.
 INTERNATIONAL MARKETING
MIX
International marketing managers must address
four issues:
• how to develop the firm’s product's;
• how to price those products;
• how to sell those products;
• and how to distribute those products to the firm’s
customers.
The elements are collectively known as the
marketing mix (and are also referred to as the
four Ps of marketing).
 Complications for International
Marketing vs Marketing in the
Home Nation
• There will often be differences in laws across
nations. Such differences can affect any and all
portions of the marketing mix
• National culture - Same idea as above
• Geography - Same idea as above
• Economic forces influence income level,
infrastructure, and the composition of goods and
services demanded in a given nation
 Standardization vs Customization
• Compared to their domestic counterparts,
international marketing managers face a more
complex set of issues and decisions related to
the marketing mix. One overriding issue is
whether a firm should standardize its offerings
or customize for each market.
 APPROACHES TO IM :
International marketing managers usually choose
among the following approaches when deciding the
extent to which to standardize their firm’s marketing
mix:
• an ethnocentric approach (market products
internationally the same way it does domestically),
• a polycentric approach (customize the marketing mix
to meet the needs of each target market), or
• a geocentric approach (adopt a standardized
marketing mix for all markets based on an analysis of
customer needs).
 ETHNOCENTRIC APPROACH
• Where goods are produced for one domestic
market but the goods go “International” as a “by
the way” due to surplus.
• The ethnocentric approach is easy to use,
however, it may not be desirable because sales
may be lost as a result of failing to consider the
needs of foreign customers.
• For eg – Footwear Brand Jimmy Choo ,
Ferragamo & Dior
 POLYCENTRIC APPROACH
• Where subsidiaries are located in different
countries and each operates almost independently
in that they set up their own marketing strategies
etc
• The polycentric approach, while costly, may
actually serve to increase a firm’s revenues
because the needs of local customers are being
met.
• For Eg- Mc Donalds , Papa John’s, Benetton
 GEOCENTRIC APPROACH
• where marketing is on a global scale.
• it involves standardization of the marketing mix,
allows a firm to sell essentially the same product
using essentially the same approach in all of its
markets.
• Most firms seek to fall in the middle of a
continuum between standardization and
customization, attempting to follow a policy of
“think locally, act globally.”
• DRIVING FORCES • RESTRAINING FORCES

– Regional economic – Management myopia

agreements
– Market needs and – Organizational culture
wants – National controls
– Technology – Int’l World Order
– Transportation and
communication – Fight against Int’l terrorism
improvements
– Product development
costs
– Quality
– World economic
trends
– Leverage
 TOP 10 U.S PLAYERS IN THE
GLOBAL GAME
Company Foreign
Revenues
Foreign
Revenues
($ Bil) (% of Total)

Wal-Mart 285.2 19.7

Ford Motor 171.6 49.2
General Electric 152.4 46.8
Citi Group 86.2 58.1
Hewlett-Packard 73.1 60.30
Boeing 52.5 28.7
Intel 34.2 76.8
Disney 30.8 28.8
Coca-Cola 22.0 73.1
Apple Computer 8.3 40.7.0
 INDIA’S INTERNATIONAL
MARKET:
• Currently in India, the national economy and
marketplace are undergoing rapid changes and
transformation.
• A large number of reasons could be attributed to
these changes. One of the reasons
-Globalization,resulting explosive growth of
global trade and the international competition.
• Currently India has a share of total world trade of
less than 1% - a measure of the vast
opportunities that lie ahead as we move forward
in the 21st century.
 THE INDIA ADVANTAGE
• India’s vast pool of technical and scientific personnel-
information technology and bio-technology
• India’s huge home market, with a large middle-class and
its rapidly growing buying power, This allows International
cos to reap economies of scale and reduce costs within
the domestic market, position themselves to penetrate
global market.
• The power of ideas, Innovation and outward oriented
ambition among the business magnates of India to
expand and Invest in new ventures.
 WHY AND HOW ?
• The exciting aspect of •Indian companies are
India’s recent export leveraging their low-cost
performance is the advantage to create efficient
dramatic growth in export global business models; they
of services. are seeking entry into fast-
• The share of services has growing emerging markets
risen from about 1/5th to and market share in
1/3rd of India’s total profitable developed
exports in the past 10 economies; they are looking
years, especially thanks to augment their knowledge,
to the IT revolution and
the dramatic growth in reach and capabilities
exports of IT-enabled through acquisitions of
services. companies for their brands,
technology, talent and
product portfolios.
 FDI IN INDIA
• Investment in India - Foreign Direct Investment -
Introduction

Foreign Direct Investment (FDI) is permited as

under the following forms of investments.
• Through financial collaborations.
• Through joint ventures and technical collaborations.
• Through capital markets via Euro issues.
• Through private placements or preferential allotments
 MARKET DYNAMICS
The other reason :
• technological change. This is an important factor because
the technological competitiveness is making, not only the
Indian market, but also the global marketplace cutthroat.
• survival of the fittest is the law .
• In order to win, the companies are coming out with
various new and evolving strategies because the Indian
market is also changing very fast. It is to capture the
Indian market, that the Indian and the Multi National
Companies are using all of their resources.
 MARKET POTENTIAL
• The Indian market is no longer a sellers market.
The winner is the one who provides value for
money .
• Coca-Cola is the
most valued brand name on the face of the earth,
far surpassing its rival Pepsi. The world's number
one soft-drink company,
• India and Mexico may well be the
two most dramatic growth stories for America's most well-
.
• US-based music magazine Rolling Stone and
Condé Nast Publications’ magazine for women,
Glamour, are among the dozen-odd global players
planning to launch India editions.
PHARMA GOES GLOBAL
• Indian biotechnology firms are steadily moving up the
value chain by offering research and development (R&D
services for global pharma companies to aid drug
discovery and manufacture.
• Pharma companies across the world, see these India-
based services as complementing their outsourcing mod
They are, therefore, entering into partnerships, involving
significant cost arbitrage and quick turnaround time.
• Biocon’s contract research subsidiary, Syngene
International, has set up a dedicated centre for Bristol-
Myers Squibb (BMS)
 INTERNATIONAL MKT IN INDIA
• Global real estate majors - Dubai World, Trump
Organisation of US, Smart City of Dubai, Kishimoto
Gordon Dalaya, Khuyool Investments, Bonyan Holding,
Plus Properties, ABG Group and Al Fara’s Properties are
descending on the Indian real estate market with an
investment of around $20-25 billion.
• number of global financial services players are gearing up
for acquisitions and they have identified Asia-Pacific
region as the ‘hot zone’ for private banking acquisitions.
• Based on a survey of 186 private banks and wealth
management firms around the world, management
consultants KPMG on Wednesday indicated that global
financial giants are keenly looking at Indian banks for
establishing their footprints.
 INDIA EXPANDS
• Infrastructure sector dominated the deal street
with transactions worth $12 billion, followed by
power, oil and gas that saw M&As worth $5
billion.
• Major M&As clinched by Indian firms in the past
nine months include acquisition of Citigroup’s
captive business process outsourcing (BPO) arm
Citigroup Global Services (CGSL) for $505
million by India’s leading IT services exporter
Tata Consultancy Services.
 Contd :
• Tata Communications, Tata Steel ( Corus deal)
,Bharti Airtel, Suzlon Energy have all set
examples of how Indian players are going
international by starting new businesses in
varied parts of the globe.
• Indian telecommunications major Hutchison
Essar Ltd was acquired by Vodafone Group Plc
for $12.7 billion, and the deal is ranked 16 in
terms of size(one of 25 largest cross-border
M&A deals in infrastructure)
 INDIA SHINING
• The change in domestic mindset is one of the most significant trends
that is driving the tide of change in India
• From a tentative mindset that questioned our entrepreneurial
capability to survive against global competition, Indian businesses
and people are embracing globalization .
• Indian companies seeking to be listed on the New York Stock
Exchange do not make headlines any longer. The hunger to be
globally benchmarked has spread across sectors and regions.
• The intrinsic worth of India’s strong macro-economic fundamentals
was being recognised by international investors. FDI equity inflows
alone this fiscal (2006-7), were expected to touch US $ 12 billion,
which was more than double the equity inflows of US $ 5.5 billion last
year.
THANK YOU.