Existing markets : the market are already serviced by by

existing suppliers and where customers needs are known

Latent markets: the market that have recognized potential
customers but where no company has so far offered a product
to fulfil the latent need; therefore, there is no existing markets.
Incipient markets: there is no existing demand in the market
but the conditions and trend can be identified to indicate
future emergence of needs.
Competitive markets: a competitive product is one which has
no significant advantage over those already on offer.
Improved product: not a unique product, provides some
improvement over the presently available market offering.
Breakthrough products : represent product with significant
differentiation and innovation, and therefore considerable
competitive advantage.
International market selection : the process of the evaluating
various market segment and focusing marketing efforts on a
country, region, or a group of people of the people that has
significant potential to respond.
Tariff barriers : the official constraints on import of certain
good and services in the form of customs duties on products
moving across the borders.
Tariff surcharge: a short term duty by the importing country.
Countervailing duty : duty imposed to offset the subsidies
provided by the exporting countries government.
Countervailing duties are more or less permanent in nature.
Specific duty: duties fixed as a specific amount per unit of
weight or any other measure.
Ad-valorem duties : duties levied on the basis of value
Single stage sales tax: tax collected only at one point in the
manufacturing and distribution chain.
Valued added tax (VAT) : a multi stage non-cumulative tax on
consumption levied at each stage of the production and
distribution system and each stage of value addition.
Cascade tax: taxes levied on the total value of the product at
the each point in the manufacturing and distribution channel
including taxes borne by the product at earlier stages.
Non-tariff barriers: contrary to tariff barriers, which are
straightforward, Non-tariff barriers are non-transparent and
inhibit trade on a discriminatory basis.
Quatas: quantitative restriction on export intended to protect
local industries and to conserve foreign currencies.

Absolute quotas: restricts the quantity imported during the

quota period beyond which no further imported are allowed.
Tariff quotas: allows import of specified quantity of quota
product at reduced rate of duty permitting excess quantities
over the quota to be imported subjects to a higher rate of
import by duty
Voluntary quotas: unilaterally imposed quantitative
restrictions in the form of a formal arrangement between
countries or between a country and an industry.

REVIEW QUESTION
1. markets with geographic proximity
are not always the most preferred
markets examine the statement
critically and give suitable examples.
2. Explain segmentation of
international markets on the basis
of marketing opportunities.
3. Explain various type of marketing
barriers.
4. How would you proceed to explore
market potential for the export of
ladies casual wear from india?
5. A US firm identified india as a high
opportunity market but the
company has little competitive
strength in the market explain with
the help of a portfolio matrix, the
types of marketing strategies the
firm should adopt in India.
PROJECT ASSIGNMENT
1. Visit the website of the International
trade centre (ITC), Geneva
(www.intracen.org). List out the
services provided by ITC identity its
limitation and discuss in the class.
2. Work out a market segmentation plan
for exports of fresh fruits from india.
3. Visit a mission of any foreign
country located near you and find
out the services provided by them to
facilitate import to their countries.
What are the limitations of the
missions services? Share your
experiences in the class.
4. Contact a local firm and find out how
it first identified an overseas market.
Explore the types of segmentation
used by the firm, if any.
CASE STUDY
Identifying international marketing
opportunities in medical services
 The global medical travel market is
estimated at US$ 40 billion and is likely
to grow annually at the rate of 20%. A
summary of international markets of
medical tourism is given in exhibit 6.7.
Thailand has emerged as the biggest
destination for medical tourism,
where 600,000 patients,
 Mainly from the UK and the US,
have been treated for cosmetic
surgery, organ transplant, dental
treatment, and joint replacement.
Jordan mainly attract patients from
the middle east primarily for organ
transplant, fertility treatment, and
cardiac care. Malaysia has primarily
specialized in cosmetic surgery ,
attracting about 85, 000 travelers for
treatment in 2002. Travelers from UK
and the US visit south Africa mainly
for cosmetic surgery , eye (lasik)
surgery, and dental treatment.
The International market for medical
trade is likely grow significantly as a
result of the opening up of
international markets under the WTO
regime. Medical travel is the most
visible face of the increasing global
trade in Healthcare services, but the
WTO expects there other modes to
become equally significant over a
period of time.
They include the cross border
delivery of trade. It covers everything
from shipment of laboratory samples,
diagnosis, and clinical consultation via
traditional mail channels, to the
electronic delivery of health services.
This mode of medical trade is expected
to become a significant movement
because of the advance in
telecommunications. Telemedicine
hold out large potential simply
because its allows offering services
without investing very heavily in
infrastructure. Some hospital in the US
have started offering tele-consultation
service to hospitals in central America
and the eastern Mediterranean
region. Some indian hospitals are
offering similar service to their
counterparts in Nepal and
Bangladesh. Another mode covers the
sitting up of the hospital, clinics, and
diagnostic centre in the country by a
medical group that has its base in
another country. It could also involve
the taking over of a hospital chain by a
foreign group.
The final mode of trade involves the
movement of health personnel
physician, specialist, and nurse from
one country to other . It includes the
movement of indian doctors and
nurses to the UK and others
countries.
Indian is emerging as major
destination for cost-effective medical
services . So far, a few organized
efforts have been made to market
india as a Healthcare destinations .
During the late 1980s and they early
1990s, most medical travellers
coming to India were from arab
countries , africa, and south east asia,
but today a significant numbers of
travelers are coming from CIS
countries and Afghanistan for
treatment.
India has an edge over its competitors
as it provides holistic treatment for a
variety of chronic problems. About 20,
000 doctor pass out every year in
India and some of Indias healthcare
facilities are comparable to the best in
the world. India provide medical
treatment facilities comparable to the
best in the world in cardiac surgery,
orthopaedic, neurosurgery, and lasik
(eye) surgeries.
It is estimated that india has the
potential to earn US$ one billion from
medical treatments to international
travellers . The cost of open-heart
surgery in india ranging from US$5,
000-10, 000 compared to the cost of
open-heart surgery of US$150, 000 in
the US . The hip replacement cost
merely US$2, 500 vis-a vis US$ 17, 000
In US and US$.
6671 in south Africa
The International markets demand for
medical services is likely to increase
as the proportion of elderly (60year
and above) population vis--vis total
population is rapidly increasing in the
US, UK, Japan and many other
European countries. the number of
people age 65 years and above is
expected to double in the USA in the
next 15 years. in the UK the people is
60 years and above will form 25%, of
the population in the next 30 years- up
from 16% now. similar trends are
expected in all West European
countries. Beside, the average life
expectancy is steadily growing the
world over. both these factors
combine two result in a big search in
an international demand for
Healthcare.
On the other hand, the health care
systems in US, Japan and UK are under
tremendous pressure to take care of
increasing demand. the number of
doctor and nurses joining the medical
workforce in both are US and the UK is
not keeping pace with the growing
demand of and ageing population.
Is the treatment cost are increasingly
becoming prohibitive in developed
countries, such as japan the US and UK
more and more patients are looking for
destination with cost effective
treatment Thailand, Jordan, Malaysia
South Africa, and Cuba have emerged
as preferred destination for
international medical tourism. the
competency of Indian doctors is
accepted worldwide beside Indian
system of
Exhibit 6. 8 treatment
cost (US$) *

Medicines, for example, Ayurveda are

also viewed with high Esteem around
 the world and medical Travellers from
Around The World are keen to visit
India for a Holistic treatment. However,
it requires a comprehensive
International markets approach to
identify niche service that can be
offered to the international market and
comprehension strategies vis-a-vis
competitors.
Questions
1. Estimate the market size of the top 10
Healthcare service.
2. Prepare a comparative price chart for
treatment in various countries. select
at least one country from each
continent beside India.
3. Compare price of major medicine in
various countries
4. Identifying the area in which India has
a strategic age in health card services.
5. Prepare a checklist of issues that
need to be addressed to make India a
global hub for health care services.

7
 entering
international
market
Learning objectives
1. To explain the concept of
international market entry
2. To discuss mode of entry
involving production in the
home country
3. To learn mode of entry
involving productions in a
foreign country
4. Evaluate various factor
affecting the selection of
entry mode
5. To examine the choice of
right international market
entry mixed
INTRODUCTION
Once a firm has decided to
establish itself in the Global
market, it becomes necessary
for marketer manager to study
and analyse the various option
available to enter the
international Markets and
select the most suitable one.
the selection of entry mode is
one of the most significant
decisions a Firm takes in the
process of internationalisation,
as it involves commitment of
resources with long term
financial and structural
implications.
Traditional economic theories
of trade mainly focus on
analytical understanding of
International Trade at the
country level but this theories
are inadequate at the firm level
however, the behavioural
models of an exporting firms
facility the understanding of
firms entry mode in
international markets. guy
stage model of
internationalisation developed
by Douglas and craig indicates
the following identifiable
stages.
Domestic marketing :before
venturing into International
markets a company focuses
solely on domestic markets.
and marketing mix decisions
are made while keeping in mind
domestic customers. However,
in the present business
environment, even to succeed
in the domestic market firm has
to be internationally
competitive and should be able
to respond to the marketing
strategy of global player in the
domestic market.
export marketing :a firms
entry into International markets
by way of exporting takes place
in sequential manner
depending upon it past learning
experiences. A purely domestic
company may receive
unsolicited export order
through foreign acquaintances,
which it makes execute
reluctantly and occasionally
firm may start exporting its,
product by using the services of
export intermediately from the
home country and thereby
indulge in indirect export. the
positive stimulus in term of
more profit of growth
opportunities motivates a firm
to become an active exporter
and it plunger. Into direct
exports. these approach with
greater focus on the domestic
market wherein all the
marketing mix decisions are
made at the headquarters
located in home country, is
known as and ethnocentric
approach. in order to sustain
the long term interest of a firm
in the overseas market a higher
commitment of organisation
resources is needed.
International marketing : once
a company develops a
significant market share in
international market in order to
complete with other
international operators and
achieve sizeable market growth
it adopts a polycentric
orientation and established
itself in the international
market by setting up a
production facility in the
foreign country it may be either
a contractual
on investment mode of entry.
Multinational marketing: in
order to benefit from
Economics of scale in various
market mix decisions Fm me 1
satellite its Entry on the
regional basis and follower
more integrated approach
within the reason but not
across regions this approach is
known as a regiocentric
approach
Global marketing: in order to
consolidate it came in various
International markets
accompany me adopt and
geocentric approach which is
referred to as a global market
at this stage an atom is made to
reduce the cost of an efficiency
and duplication of effort in the
farm International operation No
over the form is continuously
seeking opportunities for
transfer of production facilities
brands and other ideas across
National boundaries to build a
global customer base and
create a global marketing
infrastructure.
A company often uses different
mode of entry for different
marketing figure 7.1 depending
on the number of factors which
will be discussed in detail in the
chapter.
The Concept of international
market
Mode of entry may be defined
as an institutional mechanism
by which I can make it
production what services
available to consumers in
international markets route
1994 defines the market entry
strategy for international
market as a comprehensive
plan with set forth the objective
goals resource and policy that
guided companies international
business operation over a
future period long enough to
achieve just a minute
sustainable growth in world
markets.
In order to success in
international market the
decision to select an
appropriate and Brie mode is A
Close Shave an integral part of
firm international marketing
strategy the mode of entry into
international market where is
from No commitment indirect
export To Hai commitment
wholly owned subsidiaries in
foreign markets depend upon
the following criteria
1. Stability and willingness of
the firm to commit
resources