demodec10th2012-intmarketing-121214074541-phpapp02.pptx

8/11/2019 demodec10th2012-intmarketing-121214074541-phpapp02.pptx

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International Marketing

The scope and challenge ofInternational Marketing

Bindumadhavi P


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Apple

Google

Microsoft

IBM

Walmart

Samsung

GE

Coca-Cola

Vodafone

Amazon.com

Global Brands

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http://brandirectory.com/profile/googlehttp://brandirectory.com/profile/googlehttp://brandirectory.com/profile/microsofthttp://brandirectory.com/profile/microsofthttp://brandirectory.com/profile/ibmhttp://brandirectory.com/profile/walmarthttp://brandirectory.com/profile/walmarthttp://brandirectory.com/profile/gehttp://brandirectory.com/profile/coca-colahttp://brandirectory.com/profile/coca-colahttp://brandirectory.com/profile/vodafonehttp://brandirectory.com/profile/amazoncomhttp://brandirectory.com/profile/amazoncomhttp://brandirectory.com/profile/amazoncomhttp://brandirectory.com/profile/vodafonehttp://brandirectory.com/profile/coca-colahttp://brandirectory.com/profile/coca-colahttp://brandirectory.com/profile/coca-colahttp://brandirectory.com/profile/gehttp://brandirectory.com/profile/samsunghttp://brandirectory.com/profile/walmarthttp://brandirectory.com/profile/ibmhttp://brandirectory.com/profile/microsofthttp://brandirectory.com/profile/googlehttp://brandirectory.com/profile/apple


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Indian firms in Global Ranking

Tata

Airtel

State Bank of India

Reliance

Indian Oil Corporation

Infosys

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http://brandirectory.com/profile/state-bank-of-indiahttp://brandirectory.com/profile/infosyshttp://brandirectory.com/profile/indian-oil-corporationhttp://brandirectory.com/profile/indian-oil-corporationhttp://brandirectory.com/profile/indian-oil-corporationhttp://brandirectory.com/profile/reliancehttp://brandirectory.com/profile/state-bank-of-indiahttp://brandirectory.com/profile/state-bank-of-indiahttp://brandirectory.com/profile/state-bank-of-indiahttp://brandirectory.com/profile/airtelhttp://brandirectory.com/profile/tata


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Indian international companies

The Tata group operatesin more than 80 countriesand 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 ourwings 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

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http://www.tata.com/tataworldwide/index.aspx?sectid=VOLF7C3VlAo=http://www.tata.com/tataworldwide/index.aspx?sectid=pDyAqI8KY+k=http://www.tata.com/tataworldwide/index.aspx?sectid=nXvito27E5Q=http://www.tata.com/tataworldwide/index.aspx?sectid=v0ExmWAVW1Q=http://www.tata.com/tataworldwide/index.aspx?sectid=Ll+B79amk2U=http://www.tata.com/tataworldwide/index.aspx?sectid=TmZeHuo8vyg=http://www.tata.com/tataworldwide/index.aspx?sectid=TmZeHuo8vyg=http://www.tata.com/tataworldwide/index.aspx?sectid=Ll+B79amk2U=http://www.tata.com/tataworldwide/index.aspx?sectid=v0ExmWAVW1Q=http://www.tata.com/tataworldwide/index.aspx?sectid=nXvito27E5Q=http://www.tata.com/tataworldwide/index.aspx?sectid=pDyAqI8KY+k=http://www.tata.com/tataworldwide/index.aspx?sectid=VOLF7C3VlAo=


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Top 15 cities to do business

Top 15 cities in the world to do Business

1. AhmedabadIndia

2. GurgaoIndia3. Chengdu - china

4. Changquingchina

5. AustinUS

6. Salt lake cityUS

7. VancouverCanada

8. Doha - Qatar

9. Melbourne10. Bogota

11. San Jos

12. SantiagoChile

13. LagosNigeria14. WarsawPoland

15. Stockholm - Sweden

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Bindumadhavi P

Chapter Learning Objectives

1. The Distinction between Domestic and GlobalMarketing

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

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What is International Marketing

It is an approach of a companywith truly global outlook, seeking

its profit impartially around theworld, on a planned andsystematic basis.

International marketing is defined as theperformance 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 profitMarketingconcepts,

processes, andprinciples are

universallyapplicable allover the world

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Why go International?

Domestic Market

constraint

Competition

Government Policies

Monopoly Power

Spin off benefits

Profit Motive

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Factors Influencing Global

Business

Rapid growth of worldtrade organization

Trend towards acceptanceof free market system

among developingcountries

Impact of Internet, Mobilephones and other global

media

North American freetrade area

European Union

Asia

Europe

Global channels

Global customers

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Marketing V/S International

Marketing

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Factors affecting International

Marketing

Trade

practicesFacilities Distance

Culture Economy Law

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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

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EPRG FRAMEWORK

Ethnocentric

- Homecountry

orientation

Polycentrism

- Host country

orientation

Regiocentrism

- A regional

orientation

Geocentrism

- A world

orientation

Progression to Global Marketing

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EPRG FRAMEWORK

Ethnocentric

- SelfReference

Criterion

Domestic techniques and

Personnel are considered

superior

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Ethnocentric

Overseas operations are viewed as secondary todomestic operations

Considered as a means to dispose of surplus

domestic production Plans for overseas market are developed in the

home office, utilizing policies and proceduresidentical to those employed in the domestic

market Overseas marketing is looked after by home

country nationals

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Surf Super washout in JapanUnilever enters Japan Detergent Market

It releases Surf Super concentrate washing powder in

Japan

Measured sachets for Convenience

Fresh Smell

WHAT WENT WRONG??


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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


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EPRG FRAMEWORK

Polycentrism

- Hostcountry

orientation

Local Personnel and

Techniques are best

suited to deal with local

market conditions

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Polycentric orientation

Subsidiaries are established in overseas market

Each subsidiary operates independently with its ownmarketing objectives and plans

Marketing activities are organized on country bycountry basis

Marketing research is conducted independently in eachcountry

Separate product lines are developed in each country Home country products are modified to meet local

needs.

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Polycentric continued

Each subsidiary will have its own pricing and

promotion policy

Sales personnel from those countries

Traditional channels of distribution of those

countries

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Eg. McDonaldsVeg

burgers in India

McDonalds does not use multiple 4s in

advertising prices in China; foursounds like the

word death.


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EPRG FRAMEWORK

Regiocentrism

- A regional

orientation

Recognizesregional

commonalities

and leads to

the design of

regional

strategies

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EPRG FRAMEWORK

Geocentrism

- A worldorientation

Best man forthe job

irrespective

of national

origin

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Regiocentric and

Geocentric

Region or entire world as potential market

Firm develops policies and organizes activitieson a regional or worldwide basis

Marketing personnel from the region or fromany country

Standardized product lines for regional or

worldwide markets Regional or Global channels of distribution are

also developed

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Conclusion

The globalisation of Markets has necessitatedall managers to pay attention to Internationalmarketing.

Other than Environmental factors, selfreference criterion are considered obstacles toInternational Marketing.

Global awareness and sensitivity are the bestsolutions challenges faced in Internationalmarketing

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Bindumadhavi P 26

Reference1. International Marketing by Cateora and

Graham

2. International Marketing by Czinkota and

Ronkainen

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