IB 0011/MK 0018 International Marketing

Contents Unit 1 Introduction to International Marketing Unit 2 International Marketing Environment Unit 3 International Trade Environment Unit 4 International Market Entry Strategies Unit 5 International Marketing Research Unit 6 International Product Policy and Planning Unit 7 International Pricing Policy Unit 8 International Distribution and Logistics Planning
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Unit 9 International Promotional Strategies Unit 10 Foreign Markets and Export Marketing Process Unit 11 Export Marketing Documentation Unit 12 Foreign Trade Policy Unit 13 Information Related Laws Unit 14 The Patents Act Unit 15 The Copyright Act Acknowledgements, References & Suggested Readings 306 286 267 247 226 210 189 168

Dean Directorate of Distance Education Sikkim Manipal University Board of Studies Chairman HOD Management & Commerce SMU DDE Additional Registrar SMU DDE Controller of Examination SMU DDE Dr. T. V. Narasimha Rao Adjunct Faculty & Advisor SMU DDE Prof. K. V. Varambally Director, Manipal Institute of Management, Manipal Content Preparation Team Content Writing Mr. P. K. Vasudeva Expert Panelist & Visiting Professor in several B-Schools Content Editing Mr. Santosh Excel Books New Delhi 110 028 Mr. Pankaj Khanna Director, HR Fidelity Mutual Fund Mr. Shankar Jagannathan Former Group Treasurer Wipro Technologies Limited Mr. Abraham Mathew Chief Financial Officer Infosys BPO, Bangalore Mr. Sadhna Dash Ex-Senior Manager, HR Microsoft India Corporation (Pvt.) Ltd.

Content Review Vimala Parthasarathy Assistant Professor SMU DDE Instructional Designing Mr. Sharad Chaurasia Excel Books, New Delhi 110 028 Language Editing Ms. Neelam Singh Editor, Excel Books, New Delhi 110 028

Edition Printed

: Spring 2010 : January 2011

This book is a distance education module comprising of collection of learning material for our students. All rights reserved. No part of this work may be reproduced in any form by any means without permission in writing from Sikkim Manipal University of Health, Medical and Technological Sciences, Gangtok, Sikkim. Printed and Published on behalf of Sikkim Manipal University of Health, Medical and Technological Sciences, Gangtok, Sikkim by Mr. Rajkumar Mascreen, GM, Manipal Universal Learning Pvt. Ltd., Manipal 576 104. Printed at Manipal Press Limited, Manipal.

SUBJECT INTRODUCTION
International Marketing (IB 0011/MK 0018) In view of the fast growing Indian economy, International Marketing has become the fastest growing discipline of education as it has the potential for excellent career in both Indian and International Business Enterprises. This course is a comprehensive textual material for international studies and has a handy reference for the students opting for international marketing in the fast changing international business environment of globalisation. This course has been prepared keeping in view the current global economic scenario that is changing fast. This course touches upon the aspects of international marketing and trading environment and will help you familiarize with various market entry strategies. It is very important for any business entering into the international arena, to conduct thorough market research. The process of international market research is given along with other related issues to give you a basic understanding of the topic. This course also covers, in substantial detail, the international marketing mix, i.e. international product planning, pricing, distribution and logistics and promotional strategies. There are other concepts in international marketing that also require attention like knowledge of foreign markets, knowledge of export documentation, knowledge of foreign trade policy, knowledge about everchanging foreign exchange rates and foreign currency values. All these are dealt with, in this course to give you the required knowledge. There are many financial institutions that aid international business to grow their business. A brief introduction to some of the major international financial institutions is also included in this course to give you a basic idea about their objectives and functions. And at last, one of major burning issues, the ethical and legal aspect of international business, is also given some coverage. It includes the basic legal and ethical issues at the international level, and ways to deal with these issues.

This courseware comprises 15 units Unit 1: Introduction to International Marketing States the scope of international marketing, Differentiates between international and domestic marketing, Lists the principles of international marketing, Discusses the management orientations and emergence of MNCs and TNCs, Identifies the benefits of international marketing Unit 2: International Marketing Environment Assesses the importance of political, legal and regulatory environment, Discusses the socio-cultural framework, Examines the relevant aspects of the economic environment, Evaluates the role of technological developments, Identifies the challenges in global marketing Unit 3: International Trade Environment Discusses the classical and modern trade theories, Examines the effect of trade barriers and quotas, Lists the implications of tariffs and types of agreements, States the functions and objectives of WTO, Lists the implications of WTO on international marketing, Examines the role of India in international trade theories Unit 4: International Market Entry Strategies Discusses the strategic decisions an international business makes while entering foreign markets, States the benefits and limitations of: (a) Joint Ventures, (b) Strategic Alliances, (c) Direct Investment, (d) Contract Manufacturing and (e) Franchising Unit 5: International Marketing Research Recognises the sources and need for international marketing research, Lists the approaches to marketing research, Identifies the scope of international marketing research, States the international marketing research process, Discusses the concept of market surveys and marketing information systems Unit 6: International Product Policy and Planning Differentiates between national and international products, Discusses concepts of new product development, product planning and product adoption & standardization, Identifies the bases for international market

segmentation, States product influences on marketing plan and budget, Compares international product and service marketing Unit 7: International Pricing Policy Compares price and non-price factors, Lists the methods of pricing, Discusses the international pricing strategy, Criticizes the concept of dumping and price distortion, Explains what counter-trade is Unit 8: International Distribution and Logistics Planning Recognizes the components of international logistics system, Defines distribution and states its relevance, Compares direct and indirect channels, Lists the factors affecting distribution and modes of transportation, Discusses the need for packaging and problems associated with packaging Unit 9: International Promotional Strategies Discusses the communication process, Assesses the status of promotions around the world, Describes the promotional appeals used in international promotions, Identifies the ways to select media for international promotions, Summarizes the concepts of personal selling, PR, publicity, sales promotions, advertising and e-marketing. Unit 10: Foreign Markets and Export Marketing Process Identifies the major modes of operations, Discusses major issues in exports, Explains aspects of export pricing and costing, Assesses the EXIM policy, 2002-2007 Unit 11: Export Marketing Documentation States the significance of documentation, Lists types of declaration forms, Explains disposal of export documentation forms, Discusses major export documents Unit 12: Foreign Trade Policy Discusses EPCG, Duty Exemption/Remission and Gem and Jewellery Export Promotion Schemes, Explains the rationale of creating SEZs and FTWZs, States the concept of Star Export Houses and Deemed Exports, Finds the rationale behind creating Agri export Zones, Describes the concept of Target Plus Scheme

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Unit 13: Foreign Exchange and Foreign Currency States the functions and organisation of foreign exchange markets, Assesses exchange rate policy and its management, Explains triangular arbitrage, Contrast futures and forwards market, Lists the types of foreign currency options, Discusses methods and problems of foreign exchange forecasting Unit 14: International Financial Institutions Discusses about International Monetary Fund, Explains the role of the World Bank, Identifies the role of International Finance Corporation, Discusses about Organisation for Economic Cooperation and Development Unit 15: Legal and Ethical Issues in International Marketing States the nature of international disputes, Recognises some legal concepts related to international business, Discusses the international dispute settlement machinery, Identifies the ethical issues in international marketing and marketing communications Objectives of studying the subject After studying this subject, you should be able to: Explain the importance of international marketing Recognise the elements of international marketing Assess the factors in international marketing environment Discuss the components of international marketing mix Discuss the international exporting process State the highlights of Foreign Trade Policy of India Identify the components of foreign exchange market Recognise the relevance of international financial institutions Explain the procedure of international business dispute settlement A substantial knowledge of general marketing will be very useful in understanding this subject. You should also read current international marketing journals and articles to relate the theory to real life situations.