INTERNATIONAL MARKETING

Prof. Kiran Sharma

K.J.Somaiya Institute of Management Studies and
Research
 Global Perspective: Recent Events
Information
Information technology
technology boom
boom of
of the
the late
late 1990s
1990s

The
The high-tech
high-tech bust
bust of
of 2001
2001

Enron
Enron scandal
scandal

September
September 11th
11th attacks
attacks on
on the
the World
World Trade
Trade
Center
Center and
and Pentagon
Pentagon

Wars
Wars in
in Afghanistan
Afghanistan and
and Iraq
Iraq
Global Perspective: Recent Events

International
International conflict
conflict among
among China,
China,
Taiwan,
Taiwan, and
and the
the United
United States
States

2003
2003 SARS
SARS outbreak
outbreak in
in Asia
Asia

Global
Global terrorism,
terrorism, e.g.,
e.g., Indonesia,
Indonesia, London,India,
London,India,
and
and Pakistan
Pakistan

Transcending
Transcending these
these events,
events, international
international
commerce
commerce continued
continued
 Global Business Trends
1.
1. The
The rapid
rapid growth
growth ofof the
the 2.
2. General
General acceptance
acceptance ofof the
the
World
World Trade
Trade Organization
Organization free
free market
market system
system among
among
and
and regional
regional free
free trade
trade developing
developing countries
countries in
in Latin
Latin
areas,
areas, e.g.,
e.g., NAFTA
NAFTA and and the
the America,
America, Asia,
Asia, and
and Eastern
Eastern
European
European Union
Union Europe
Europe

3.
3. Impact
Impact of
of the
the Internet
Internet and
and
other
other global
global media
media onon the
the 4.
4. Managing
Managing global
global
dissolution
dissolution of
of national
national environmental
environmental resources
resources
borders
borders
 International Marketing: A Definition

International
International marketing
marketing is is defined
defined as
as the
the
performance
performance of of business
business activities
activities designed
designed to to plan,
plan,
price,
price, promote,
promote, and
and direct
direct the
the flow
flow of
of aa company’s
company’s
goods
goods and
and services
services toto consumers
consumers or or users
users in
in more
more
than
than one
one nation
nation for
for aa profit
profit

Marketing
Marketing concepts,
concepts, processes,
processes, and
and principles
principles are
are universally
universally
applicable
applicable all
all over
over the
the world
world
 The International Marketing Task
Foreign Environment
(Uncontrollables)
7. Structure of 1. Competition
Distribution Domestic environment
(Uncontrollables)

(Controllables) 1. Competition
Price Product 2. Technology
3. Political- Target
7
6. Geography and Legal Market
Infrastructure Promotion Place or
Distribution

2. Economy
5. Political- 3. Economy
Legal
4. Culture
 Environmental Adaptation Needed
Differences
Differences are
are in
in the
the uncontrollable
uncontrollable environment
environment of
of international
international
marketing
marketing

Firms
Firms must
must adapt
adapt to
to uncontrollable
uncontrollable environment
environment of
of international
international
marketing
marketing by
by adjusting
adjusting the
the marketing
marketing mix
mix (product,
(product, price,
price,
promotion,
promotion, and
and distribution)
distribution)

Continuum
Adaptation Standardization
(of Marketing Mix) (of Marketing Mix)
INFLUENCED BY 7 ENVIRONMENTAL FACTORS
 Developing a Global Awareness
To
To be
be globally
globally aware
aware isis to
to have:
have:

1. Tolerance of Cultural Differences, and

2. Knowledgeable of:
(a) Culture, (b) History, (c) World Market Potential,
(d) Global Economic, Social and Political Trends
 Stages of International Marketing
Involvement
In
In general,
general, firms
firms go
go through
through five
five different
different phases
phases in
in going
going
international:
international:

No
No Direct
Direct Foreign
Foreign Marketing
Marketing

Infrequent
Infrequent Foreign
Foreign Marketing
Marketing

Regular
Regular Foreign
Foreign Marketing
Marketing

International
International Marketing
Marketing

Global
Global Marketing
Marketing
 Strategic Orientation: EPRG Schema
Generally, four distinctive approaches dominate strategic thinking in
international marketing:
1. Ethnocentric or Domestic Marketing Extension Concept:
Home country is superior to rest of the world.
Assumes that products and practices will succeed anywhere
in the world as they have been in home country.

2. Polycentric or Multi-Domestic Marketing Concept:

Opposite of ethnocentrism
Management believes that each country is unique and
allows each to develop own marketing strategies locally.
Leads to adaptation approach where products must be
adopted in response to different market conditions.
 Strategic Orientation: EPRG Schema
Generally, four distinctive approaches dominate strategic thinking in
international marketing:
3. Regiocentric:
A region becomes the relevant geographic unit.
Management’s role is to develop an integrated regional
strategy.

4. Geocentric:
Company views the entire world as a potential market and
strives to develop integrated world market wherein a
uniform, standardized marketing strategy is used for
several countries, countries in a region, or the entire
world.