INTERNATIONAL MARKETING

Faculty: Kushal Kataria

Before we talk about International Marketing

a little bit about the course: Delivery, Outline & Assessment

Module Objectives:
The module offers an international and global perspective to the marketing of product and services, both in overseas markets and for organizations from overseas seeking to do business in India. It connects the intricacies of marketing with international business. It builds on the knowledge and understanding that the student already has on Marketing and Marketing Management.

Weekly Coverage:
Week 1 2 3 4&5 6 7&8 9 & 10 11 & 12 13 & 14 15 Coverage Introduction to International Marketing International Business Environment Internationalization Potential Market Assessment Market Entry Strategies International Product Strategies International Distribution Strategies International Pricing Strategies International Promotion Strategies Review and Revision

Assessment Structure:
Course Work (Group Assignment): 40%
Case Analysis & Presentation (more details in the workshop)

Tests: 20%
There will be a 1 hour closed-book test with Essay Type Question in week 9. Final dates to be announced by the program office.

End Term Exam: 40%

This would be a two hour closed-book examination with 2 essay type questions / case analysis to be answered within the stipulated time.

What is International Marketing?

Marketing that occurs across one or more national boundaries.

Why go international?
Survival and Growth Profits Achieving economies of scale Diversification Hedging against Inflation & Currency Changes Access to Foreign Inputs including HR Marketing opportunities due to life cycle Open International Markets (ASEAN, EU, NAFTA) Spreading R&D costs

International Marketing
Export Marketing
A marketing approach in which companies sell their product / service directly or indirectly to overseas buyers.

International Marketing
Differentiation in country markets by way of developing or acquiring new brands. Developing local products depending upon country needs.

Multinational Marketing
Consolidation of operations on regional basis to take advantages of economies of scale.
Product standardization is within regions but not across them.

Global Marketing
Refers to the use of a single marketing method across the international markets with little adaptation. Opportunity for transfer of products, brands and other ideas across subsidiaries

Product Planning

Product development for home country customers

Made at / for headquarters

Product development determined primarily by the needs of homecountry customers

Made at headquarters

Local product development based on local needs.

Standardize within region but not across

Global product with local variations

Marketing Mix Decisions

Orientation

Made in each country

Made regionally

Made jointly with mutual consultation

Ethnocentric

Ethnocentric

Polycentric

Regiocentric

Geocentric

Different Orientations
ETHNOCENTRICITY:
Strong orientation towards the home country. Markets and consumers are viewed as unfamiliar and at times inferior in taste, sophistication and opportunity. Usual practice is to use the home base for the production of standardized products for export in order to gain some marginal business. Centralized decision-making

Different Orientations
POLYCENTRICITY:
Strong orientation towards the host country. Emphasis on differences between markets that are caused by variations within, such as income, culture, law, politics, etc. Key assumption is that each market is unique. Managers from host country are employed. Decentralized decision making. Drawback: leads to duplication of effort.

REGIOCENTRICITY.

Different Orientations
GEOCENTRICITY:
Lies between the two extremes of ethnocentricity and polycentricity. Considers the whole world rather than any particular country as the target market. A geocentric company usually does not identify itself with a particular country. It takes the view that even though countries differ, differences can be understood and managed. The company adapts its marketing program to meet needs within the broader framework of its total strategy.

Food for thought

Which are the largest economies in the world?
1 2 3 4 5 6 7 8 9 10 11 12 United States China Japan Germany France United Kingdom Brazil Russia Italy India Canada Australia 15,684,750 8,227,037[n 4] 5,963,969 3,400,579 2,608,699 2,440,505 2,395,968 2,021,960 2,014,079 1,824,832 1,819,081 1,541,797

13
14 15 16 17 18 19 20

Spain
Mexico South Korea Indonesia Turkey Netherlands Saudi Arabia Switzerland

1,352,057
1,177,116 1,155,872 878,198 794,468 773,116 727,307 632,400

Source: IMF (2012)

Food for thought

Which countries are the largest exporters?
1 2 3 4 5 6 7 8 9 10 China United States Germany Japan France South Korea Netherlands Russia Italy United Kingdom Hong Kong $ 2,057,000,000,000 $ 1,564,000,000,000 $ 1,460,000,000,000 $ 773,900,000,000 $ 567,100,000,000 $ 552,600,000,000 $ 538,500,000,000 $ 529,600,000,000 $ 478,900,000,000 $ 474,600,000,000 $ 464,600,000,000

11
12 13 14 15 16 17

Canada
Singapore Saudi Arabia Mexico Switzerland Belgium United Arab Emirates

$ 462,900,000,000
$ 435,800,000,000 $ 395,000,000,000 $ 370,900,000,000 $ 333,400,000,000 $ 315,400,000,000 $ 300,900,000,000

18
19
Source: CIA World Factbook (2012) 20

Taiwan
India Spain

$ 299,800,000,000
$ 298,400,000,000 $ 291,700,000,000