International Marketing

The scope and challenge of

International Marketing
Bindumadhavi P

Apple
Google
Microsoft
IBM
Walmart
Samsung
GE
Coca-Cola
Vodafone
Amazon.com
Global Brands
2 Bindumadhavi P
Indian firms in Global Ranking
Tata
Airtel

State Bank of India
Reliance

Indian Oil Corporation
Infosys
3 Bindumadhavi P
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 groups 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.
4 Bindumadhavi P
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 Jos
12. Santiago Chile
13. Lagos Nigeria
14. Warsaw Poland
15. Stockholm - Sweden


5 Bindumadhavi P
Bindumadhavi P
Chapter Learning Objectives
1. The Distinction between Domestic and Global
Marketing
2. The scope of the Global marketing task
3.The increasing importance of global awareness
4. The progression of becoming a global marketer
5. 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 the
performance of business activities designed to plan,
price, promote, and direct the flow of a companys
goods and services to consumers or users in more
than one nation for a profit
Marketing
concepts,
processes, and
principles are
universally
applicable all
over the world
7 Bindumadhavi P
Why go International?
Domestic Market
constraint
Competition
Government Policies
Monopoly Power
Spin off benefits
Profit Motive
8 Bindumadhavi 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
9 Bindumadhavi P
Marketing V/S International
Marketing
10 Bindumadhavi P
Factors affecting International
Marketing
Trade
practices
Facilities Distance
Culture Economy Law
11 Bindumadhavi 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




12 Bindumadhavi P

EPRG FRAMEWORK
Ethnocentric
- Home
country
orientation
Polycentrism
- Host country
orientation
Regiocentrism
- A regional
orientation
Geocentrism
- A world
orientation
Progression to Global Marketing
13 Bindumadhavi P

EPRG FRAMEWORK
Ethnocentric
- Self
Reference
Criterion
Domestic techniques and
Personnel are considered
superior
14 Bindumadhavi 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
15 Bindumadhavi 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
16 Bindumadhavi P
Surf Super washout in Japan
Unilever 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
19 Bindumadhavi 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.
20 Bindumadhavi 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
21 Bindumadhavi P
Eg. McDonalds Veg
burgers in India
McDonalds does not use multiple 4s 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
22 Bindumadhavi P

EPRG FRAMEWORK
Geocentrism
- A world
orientation
Best man for
the job
irrespective
of national
origin
23 Bindumadhavi 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 developed
24 Bindumadhavi 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
25 Bindumadhavi P
Bindumadhavi P 26
Reference
1. International Marketing by Cateora and
Graham
2. International Marketing by Czinkota and
Ronkainen