1. International Marketing
Prof. Shrikant Diwan

2. Introduction to International Marketing
Chapter 1
Introduction to International Marketing

3. Globalization Globalization of production Globalization of markets
Own Production Facilities
Contracting
Outsourcing
Globalization of markets
Developed Countries
Developing Countries
WTO

4. Trends in International Trade
Year
Value of Merchandise Exports
(in Billions USD)
1950 55
1960
113
1970
280
1980
1,846
1990
3,311
2000
6,350
2010
10,120
Source: IMF and WTO, World Trade Report, 2010

5. YOY growth - International Trade

6. Top 5 Exporters Source: WTO Year: 2011
Value (Billion USD)
European Union
2,131
China
1,898
USA
1,481
Japan
823
Republic of Korea
555
Source: WTO Year: 2011
India ranks 13h in the world with exports of 297 Billion USD in Merchandise export but ranks fourth in the world (148) just behind EU (789), USA (578), China (182) in exports of commercial service.

7. Top 5 Importers Source: WTO Year: 2011
Exporter
Value (Billion USD)
European Union
2,344
USA
2,265
China
1,743
Japan
854
Republic of Korea
524
Source: WTO Year: 2011
India ranks 8th in the world with imports of 451 Billion USD of Merchandising and 5th in the world as importer of commercial services (130 Billion USD)

8. Reasons for entering international markets
Growth
Profitability
Achieving economies of scale
Risk spread
Access to imported inputs
Uniqueness of product or services
Marketing opportunities due to life cycle
Spreading R&D cost

9. Special Problems in International Marketing
Political and Legal difference
Cultural Difference
Economic Difference
Difference in currency Unit
Language Difference
Marketing Infrastructure difference
Trade Restrictions
High cost of distance
Differences in Trade practices

10. EPRG Fraework Ethnocentric orientation (Home Country)
The EPRG framework identifies four types of attitudes or orientation towards internationalisation that are associated with successive stages in evolution of International operations
Ethnocentric orientation (Home Country)
Polycentric orientation (Host Country)
Regiocentric orientation (Regional Orientation)
Geocentric orientation (World Orientation)

11. Evolutionary process of global marketing
Domestic marketing :
Marketing Focus domestic
Orientation ethnocentric
Marketing Mix Decisions focussed on domestic customers Decisions made at headquarters
International Business is just an extension for selling excess capacity

12. Evolutionary process (contd)
Export marketing:
Marketing Focus Host Country
Orientation Polycentric
Marketing Mix Decisions Separate decision for each country
Decisions made at subsidiaries
International Business is independent of the Home country business

13. Evolutionary process (contd)
Multinational marketing:
Marketing Focus consolidation of operations on regional basis gains from economies of scale Orientation regiocentric Marketing Mix Decisions product standardization within regions but not across the region International Business is centred at regions and regions are independent of each other

14. Evolutionary process (contd)
Multinational marketing:
Marketing Focus consolidation of operations on global basis gains from economies of scale Orientation Geocentric Marketing Mix Decisions product standardization across world International Business is in integration across the world

15. Market Entry Strategy C O R N I T S R K L Indirect exporting
Licensing
Franchising
Contract manufacturing
Strategic alliance
Joint venture
Wholly owned subsidiary

16. International Markerting Decision
International mkt decision ( Objectives Resources, Potential , Environmental Factors)
Market Selection
Entry & Operating Decicion
Marketing Mix Decision ( 4 P’s)

17. SCOPE OF INDIAN PRODUCTS ABROAD SouthEast Asian Countries
Product Modification
Vocation of Certain Industries /Segments
Current suppliers to foreign firms turning to selling to their own products
Jems n Jewellry, Leather,Texttiles, Seafood
Phramcy Products(off patent product)
Sell value added product (leather, Spices) .

18. Participants in International Marketing 1) MULTINATIONAL IN INDIA 2)Other Large Firms 3)SME’s 4) PSU 5) Trading Companies 6) Individuals

19. Future Of International Marketing
No More International
Global Supply Chain Management
Information Surge & Consumer Choice
World Growth
Multipolar World
Pervasiveness of Free Market

20. Multinationals in India
Very Little Investment in India before 1970’s
Foreign Exchange Regulation Act(1973)
Myth- Cos investing in low priority sectors n high profit sectors
Discriminate Policies against Exporting
Highly Protected market, Unrealistic Exchange Rates
NEW POLICY

21. IMPORTANCE OF CULTURE IN INTERNATIONAL MARKETING

22. LEVELS OF CULTURE National Culture Business Culture
Occupational Culture
Organizational Culture
ELEMENTS OF CULTURE
Belief
Language
Attitude
Customs & Manners
Aesthtics
Religion
Education
Supernatural Belief

23. Implication for International Business
Spread Cross-Cultural Litercay
Multiculture
Culture & Competitive Advantage
Compatibility between Strategy & Culture
Managing Diversity