International MarketingThe scope and challenge of

International Marketing

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AppleGoogle

MicrosoftIBM

Walmart

SamsungGE

Coca-ColaVodafone

Amazon.com

Global Brands

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Indian firms in Global RankingTata

Airtel

State Bank of India

Reliance

Indian Oil Corporation

Infosys

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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 group’s 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.”

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 José

12. Santiago – Chile

13. Lagos – Nigeria

14. Warsaw – Poland

15. Stockholm - Sweden

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Chapter Learning Objectives

1. The Distinction between Domestic and Global Marketing

1. The Distinction between Domestic and Global Marketing

2. The scope of the Global marketing task2. The scope of the Global marketing task

3.The increasing importance of global awareness3.The increasing importance of global awareness

4. The progression of becoming a global marketer4. The progression of becoming a global marketer

5. Major Concerns of International Marketers5. Major Concerns of International Marketers

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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 theperformance of business activities designed to plan,price, promote, and direct the flow of a company’sgoods and services to consumers or users in morethan one nation for a profit

International marketing is defined as theperformance of business activities designed to plan,price, promote, and direct the flow of a company’sgoods and services to consumers or users in morethan one nation for a profit

Marketing concepts, processes, and principles are universally applicable all over the world

Marketing concepts, processes, and principles are universally applicable all over 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 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

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Marketing V/S International MarketingProduct

Price

Promotion

Place

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Factors affecting International Marketing

Trade practices Facilities 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

- Home country

orientation

Polycentrism

- Host country orientation

Regiocentrism

- A regional orientation

Geocentrism

- A world orientation

Progression to Global Marketing

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EPRG FRAMEWORK

Ethnocentric

- Self Reference Criterion

Domestic techniques and Personnel are considered

superior

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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

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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

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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??

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

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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.

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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. McDonalds – Veg burgers in India

McDonald’s does not use multiple 4’s 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

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EPRG FRAMEWORK

Geocentrism

- A world orientation

Best man for the job irrespective of national origin

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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

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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

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THANK YOU

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Reference – 1. International Marketing by Cateora and

Graham2. International Marketing by Czinkota and

Ronkainen