What is international marketing?

• International marketing is the process of promoting and selling

products or services to a global customer base. It involves tailoring
offerings to meet the varied needs, preferences, and language
differences of target audiences around the world.

• International brands may adjust their messaging, product features,

and distribution channels to match local practices. By doing so, they
can effectively grow foreign operations, build global brand
recognition, and achieve international marketing success.
The characteristics of international
marketing
• Characteristics of international marketing can include a wide range of different
practices to meet the needs of global customers.

• International marketing characteristics can include:

• It involves at least two different countries

• It needs to be flexible and adaptable
• Requires a high level of expertise, as it needs to adapt to different circumstances
• Faces uncontrollable variables, including political and cultural factors
• Requires unique strategies for every country
• Needs to abide by international restrictions and policies
Definitions

International marketing is the multinational process of

planning and executing the conception, pricing,
promotion and distribution of ideas, goods and services
to create exchanges that satisfy individual and
organizational objectives.-
American Marketing Association (AMA)

• Global marketing is concerned with integrating and

standardizing marketing actions across a number of
geographic markets –
• Kotler
Objectives of International
Marketing
• Bringing countries closer for trading purpose and to encourage large
scale-free trade among the countries of the world and integration of
economies of different countries and thereby to facilitate the process
of globalization of trade.
For Ex: A free trade agreement (NAFTA) between US, Canada and
Mexico has removed most of the barriers to trade and investments.
• Establishing and strengthening trade relations among the nations and
thereby to maintain cordial relations among nations for maintaining
world peace.
Objectives contd……
• To facilitates and encourage social and cultural exchange among different countries
of the world. For example in country like India we love to consume Mexican,
Chinese, Italian food which is a fine example of socio-cultural exchange.
• To provide better life and welfare to people from different countries of the world. In
addition, to provide assistance to countries facing natural calamities and other
emergency situations.
• To provide assistance to developing countries in their economic and industrial
growth and thereby to remove the gap between the developed and developing
countries.
• To ensure optimum utilization of resources (including surplus production) at global
level.
• To encourage world export trade and to provide benefits of the same to all
participating countries.
• To offer the benefits of comparative cost advantage to all countries participating in
international marketing.
• To keep international trade free and fair to all countries by avoiding trade barriers.
Domestic marketing
• It refers to those marketing activities that are carried out in marketers
country.it takes place in the home country, keeping in mind all the
requirements of consumers.
• Foreign marketing:
• The company operates in other country other than the home nation.
The goods and services produced are based on the tastes and
preferences of that particular country.
• Ex:if any Indian company does marketing in India then it is called as
domestic marketing ,o the other hand Indian company is conducting
marketing in US and UK then it is termed as foreign marketing
• Comparitive marketing
• Comparison between two or more marketing systems.this is done by
companies inorder to analyse a specific country more effectively .
• International trade
• It refers to the flow of goods and services across different nations.the
main aim of international trade is to enhance the commercial and
monetary conditions of a country which influences the balance of
payment and foreign exchange scenario
Modes of Entry into
International Business
1. Exporting and Importing
• Exporting and Importing is a very common mode to
enter into International business. Selling goods and
services to a company in a foreign country is referred to
as Exporting. For instance, Gulab sold sweets to a
store in Canada. Purchasing goods from a foreign
company is known as Importing.
Important Ways to Export and Import

i) Direct Importing/ Exporting: The company handles

all of the necessary paperwork for the shipment and
financing of goods and services and deals directly with
foreign suppliers or purchasers.
• ii) Indirect Importing/ Exporting: The company uses
a middleman to handle all the paperwork and negotiate
with foreign suppliers or customers. The firm’s
involvement is limited.
2. Contract manufacturing
It is a type of international business, in which a firm enters into
a contract with another firm in a foreign country to
manufacture certain components or goods as per its
specifications.
like Maybelline, Loreal, Levis, and others use contract
manufacturing to have their products or component parts
produced in developing nations. Contract manufacturing is
also known as international outsourcing.
3. Licensing
• When a corporation from one country (the Licensor) grants a
license to a company from another country (the Licensee) to use
its brand, patent, trademark, technology, copyright, marketing
skills; etc., to assist the other firm sell its products, this
contractual agreement is referred to as Licensing. The licensor
corporation receives returns in proportion to sales. Returns may
take the form of royalties or fees. In other nations, the
government determines how the returns are fixed. This cannot
exceed 5% of revenues in several developing nations
• For instance, Pepsi and Fanta are made and distributed globally
by local bottlers in other nations under the licensing system.
• The company that provides such authorisation is known as the
Licensor while the other company in a different country that
receives these rights is known as the Licensee. The mutual
sharing of knowledge, technology, and/or patents between the
companies is called Cross-licensing.
4. Franchising
• It is a contractual agreement that involves the grant of
rights by one party to another for use of technology,
trademark, and patents in return for the agreed
payment for a certain period of time.
• The business that gives the rights (i.e., the parent
company) is referred to as the Franchisor, and the
business that purchases the rights is referred to as
the Franchisee.
5. Joint Ventures

• A joint venture is formed when two or more

businesses decide to work together for a common goal
and mutual benefit. These two commercial entities
could be private, public, or foreign-owned. Joint
ventures are those types of businesses that are
established in international trade where both domestic
and foreign entrepreneurs are partners in ownership
and management. The trade is carried out in
collaboration with the importing nation’s firm. For
instance, the Joint venture of the Indian company
Maruti with the Japanese Company Suzuki.
6. Wholly Owned Subsidiary

When a foreign company establishes a business unit or

acquires a full stake in any domestic company, then they are
called a Wholly-owned Subsidiary. Wholly owned
subsidiaries are set by a foreign company to enjoy full control
over their overseas operations. A wholly-owned subsidiary in
a foreign country may be established in two ways:
• Setting up of wholly-owned new firm in the foreign land, also
called Green Field Venture.

• Acquiring an established firm in a foreign country and using

that firm to do business in a foreign country.
7. Turnkey Projects:
• This system involves a company offering
comprehensive services to a foreign company, starting
from the initial stages of a project and continuing until it
becomes operational. These services include design,
construction, operation, and personnel training,
providing a complete package to the client.
8.Management Contract:
• In this type of contract, a company operating in a
foreign country agrees to provide managerial talent to
firms in less developed nations. This allows for the
exchange of managerial expertise, with Indian
companies, for example, offering their managerial skills
to businesses in the Middle East and Africa.
9. Foreign Subsidiaries:
• Wholly owned branches of a parent company that
operates in different host countries fall under this
category. While the parent company’s headquarters are
located in the home country, the subsidiaries conduct
day-to-day operations in a relatively independent
manner. Policies are typically set by the headquarters,
but local managers are appointed to act as contacts and
liaisons with the subsidiaries. These subsidiaries are
regarded as integral parts of the parent company.