im session 2

8/3/2019 IM Session 2

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International marketing

UIAMS, Panjab University

ChandigarhSession 2


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Evolutionary process of global marketing

Domestic marketing :

Marketing Focus domestic

Orientation ethnocentric

MarketingMix Decisions focussed on domestic

customers


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Evolutionary process (contd)

Export marketing:

Marketing Focus overseas (targeting and entering

foreign markets)

Orientation ethnocentric

MarketingMix Decisions focussed mainly on domestic

customers

overseas marketing-generally an

extension of domestic marketing

decisions made at headquarters


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Evolutionary process (contd)

Multinational marketing:

Marketing Focus consolidation of operations on

regional basis

gains from economies of scale

Orientation regiocentric

MarketingMix Decisions product standardization withinregions but not across the region


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Major obstacles of IM

SRC

Unconsciousreference to oneson cultural values,experiences as abasis for decisionmaking

ethnocentrism

The notion thatones own cultureor company knowsbest how to dothings


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Adaptation

Adaptation is conscious effort on part of the

international marketer to anticipate the

influences of both the foreign and domestic

uncontrollable factors on a marketing mix

and then to adjust the marketing mix tominimize the effects.


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Continue Your SRC can prevent you from beingaware of cultural differences or from

recognizing the importance of these

differences.

Example: Esso, the brand name of a

gasoline, was a successful name in the US

and would seem harmless enough forforeign countries, however in Japan, the

name phonetically means stalled car, an

undesirable image for gasoline.


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EPRG concept

ethnocentric orientation

polycentric orientation

regiocentric orientation

geocentric orientation


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Major implications of WTOs multilateral trade

regime

Security of access of international markets

Stability of access to international markets

Implications for importers of raw materials and

other inputs


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From GATT to WTO

Year Round/Name Countries AverageTariffCut (%)

1947 Geneva 23 35

1949 Annecy 13 NA

1951 Torquay 38 25

1956 Geneva 26 NA

1960-61 Dillon 26 NA

1964-67 Kennedy 62 35

1973-79 Tokyo 102 33

1986-94 Uruguay 123 36


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Functions of WTO

Facilitates the implementation, administration, and

operation of the trade agreements

Provides a forum for further negotiations among

member countries on matters covered by the

agreements as well as on new issues falling within its

mandate

Responsible for the settlement of differences and

disputes among its member countries


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Functions (contd)

Responsible for carrying out periodic review of the

trade policies of its member countries

Assists developing countries in trade policy issues

through technical assistance and training programmes

Encourages cooperation within the international

organization


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Principles of multilateral trading systemunder WTO

Trade without discrimination

Most-Favoured Nation (MFN) treatment

National treatment

Gradual move towards freer markets through

negotiations

Increased predictability of international

marketing environment

Promoting fair competition in international

markets


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WTO agreements

An umbrella agreement (the agreement establishingWTO)

Agreements for each of the broad areas of trade

covered by WTO

goods

services

intellectual Property

Dispute settlement

Review of governments trade policies


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GeneralAgreement on Tariffs and Trade (GATT)

Increasing opportunities for goods in international markets Creating marketing opportunities in the industrial section

Reduction in Tariffs

Tariffs Bindings

Creating fairer markets in agriculture sector Elimination of non-tariff measures through the ratifications

process

Binding against further increase of tariffs

Domestic support Export subsidies

Opening up marketing opportunities in textiles


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Standards and safety measures forinternational markets

Agreement on Sanitary and Phytosanitary (SPS)

Measure sets out the basic rules on food safety and

plant health standards Agreement on Technical Barriers to Trade (TBT)

ensures that regulations, standards, testing, and

certification procedures do not create unnecessary

obstacles to trade


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General elements of GATS

General Agreement on Trade in Services (GATS) are first

and only set of multilateral rules governing international

trade in services

The main text containing general obligations and

disciplines

Annexes dealing with rules for specific sectors

Individual countries specific commitments to provide

access to their markets and also indicting sectors where

countries are temporarily not applying the Most-

Favoured-Nation principle of non-discrimination


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Trade in services is much more diverse compared to

trade in goods and GATS address this diversity through

rules governing:

movement of natural persons

financial services

telecommunications

air transport services

Complexity of international trade in services


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Agreement on Trade RelatedAspects of

Intellectual Property Rights (TRIPS)

Lays down minimum standards for the protection of

intellectual property rights as well as the procedures

and remedies for their enforcement. It establishes amechanism for consultations and surveillance at the

international level to ensure compliance with these

standards by member countries at the national level.


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Curbing unfair marketing practices

Agreement on anti-dumping practices (ADP) allows

governments to act against dumping where there is

genuine injury to the competing domestic industry

Procedure to initiate dumping:

- governments should be able to show that

dumping has taken place

- calculate the extent of dumping

- demonstrate that dumping is causing injury or

threatening the local industry


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Top ten users of anti-dumping measures 1995-2003

379 329 274180 166 163 122 109 73 72

2416

0

500

1000

1500

2000

2500

India

European

Union

South

Africa

Canada

Mexico

All

countries

Country


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Emergency protection from imports

A WTO member may restrict imports of a product

temporarily (take safeguard actions) if its domestic

industry is seriously injured or threatened with injury

caused by a surge in imports The WTO agreements on safeguards prohibit grey-

area measures, and it sets time limits ( a sunset clause)

on all safeguard actions


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The implications of WTO on internationalmarketing

Binding of concessions and commitments

Valuation of goods for customs purposes (Agreement

on Customs Valuation)

Use of pre-shipment inspection services (Agreementon Pre-shipment Inspection)

Import licensing procedures (Agreement on Import

Licensing Procedures)

Rules applicable to exports

Anti-dumping and countervailing action


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THANK U!

im session 2

Documents