Concept and Process of

International Marketing
Chapter 1
• International Marketing vis-à-vis Domestic Marketing
• Evolution process and stages of International Marketing
growth of the firm
• The reasons for firms/manufacturers/service providers for
taking to international marketing.
• Challenges that firms face during the growth of International
Marketing activities of the firm

1.2
Introduction
• International market offers unlimited opportunities to
companies like Infosys, Wipro, Microsoft, Toyota etc.,
• These firms look to gain global competitiveness through
technological advancement, superior marketing strategies and
continuous product and service innovations.
• Growth in the world trade benefits local consumers with a
higher standards of living.
• Development in the means of communication and travel has
enabled even small and medium sized businesses to access
international markets
1.3
 Year Value of Merchandise Exports in
Billion US $
1950 55
1960 113
1970 280
1980 1846
1990 3311
2000 6350
2002 6455
2005 7875

World Exports have grown over one hundred times in the last half century.
1.4
Definition :
“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
organisational objectives.
Domestic Marketing Vs. International Marketing
• Firms follow the same basic principles of marketing
– Adhere to the rules for selecting products
– Fix the price band according to the segment they want to cater to
– Look for Logistics and distribution channels
– In international marketing, the companies undertake country-specific
promotional efforts.
1.5
• Political and legal environment –
– Countries will follow their own systems and laws devised
– Local administration of a country would prefer controlling the international imports
– Political ideologies of the nations may differ

• Cultural environment –
– Variations in Semiotics, values, ideas, attitudes, beliefs, assumptions and
traditions pose a challenge in international marketing

• Competitive environment

1.6
• Domestic Marketing Company
• Export Marketing Company (Eg., Export by Birla Tyres,)
• Multinational or International Marketing Company. (Eg., LG
Electronics, Samsung, Hyundai, GE, National Panasonic, Suzuki and Honda are
some.)
• Global or Worldwide Marketing Company (Eg., Ranbaxy,)

1.7
• Ethnocentric Approach (Eg.,Hero Cycles, Metro Tyres, Atlas Cycles, etc.)
• Polycentric Approach (Eg., Ford Motors, Suzuki, Toyota, General Motors
etc)
• Regiocentric Approach (Eg., Pepsi, Coke etc)
• Geocentric Approach (Eg., McDonald’s, Pizza Hut etc)

1.8
 Environment Motivation Factors
• Competitive Edge
• Worldwide Integration of Economies
• Technological Edge (Eg.,A world market leader – GE)
• Purchasing Power
• Emergence of Demanding Consumers

1.9
Firm - specific motivators
Capacity Utilisation and Economic Advantages :
Since the break evens are moving up due to higher cost, manufacturers
prepare themselves to compete against global giants.
Product Life Cycle (PLC) Extension :
When products on the verge of declining trends, may get a new lease of
life by opening up internationally.
Experiences Transfer/Benchmarking :
The experiences earned in one economy are utilised in establishing
new businesses at a low cost in lesser time.(E.g.,Coca-Cola –
Experience Transfer)

1.10
 Points discussed in this chapter :
• Introduction to International Marketing
• International Marketing Vs. Domestic Marketing
• Challenges faced in International Marketing
• Stages of International Marketing
• International Marketing Orientation
• Motivating factors of International Marketing

1.11
• Product Life Cycle
• Tariff Barriers
• Non Tariff Barriers
• Capacity Utilization

1.12
Star Network’s Adaptation to Indian
Culture
- A Media Success Story

1.13