International Market

International Marketing Oxford University Press, 2005
All rights reserved
Chapter 1
The Concept of
International Marketing
All rights reserved
Globalization
Globalization of production
Globalization of markets
All rights reserved
Globalization index
economic integration: trade, portfolio, foreign direct investment, and investment income personal integration: telephone, travel, remittances, and personal transfers technology integration: internet users, internet hosts, and secure internet services political integration: international organization, UN peacekeeping, treaties, and government transfers
All rights reserved
Globalization index
Rank
1 2 3 4 5 6 7 8 9 10 61
(contd)
Country
Ireland Singapore Switzerland Netherlands Finland Canada United States New Zealand Austria Denmark India
All rights reserved
Domestic marketing and international marketing decisions

Overseas Environmental Challenges (Uncontrollables) Domestic Environmental Challenges (Uncontrollables) Economic Economic (Controllables) Product Political
Marketing Challenges in country Y
Legal
Competition
Marketing Challenges in country X Place Political Marketing Challenges in country Z Political Competition
Consumer
Price Socio Cultural
Promotion Infrastructure Logistics
Legal
Geography
All rights reserved
Reasons for entering international markets

growth profitability achieving economies of scale risk spread access to imported inputs uniqueness of product or servies marketing opportunities due to life cycle
spreading R&D cost
All rights reserved
Evolutionary process of global marketing

Domestic marketing :
Marketing Focus Orientation domestic ethnocentric
Marketing Mix Decisions
focussed on domestic
customers
All rights reserved
Evolutionary process (contd)

Export marketing:
Marketing Focus overseas (targeting and entering foreign markets) Orientation Marketing Mix Decisions ethnocentric focussed mainly on domestic customers overseas marketing-generally an extension of domestic marketing decisions made at headquarters
All rights reserved
Evolutionary process (contd)

Multinational marketing:
Marketing Focus consolidation of operations on regional basis gains from economies of scale Orientation Marketing Mix Decisions regiocentric product standardization within
regions but not across the region
All rights reserved
Adaptation
Step 1: Step 2:
Step 3:
Step 4:
Strategy to isolate self-reference criteria define the business problem or goal in terms of the home-country traits, habits or norms define the business problem or goal in terms of the foreign country cultural traits, habits, or norms isolate the SRC influence in the problem and examine it carefully to see how it complicates the problem redefine the problem without the SRC influence and solve for the optimum business goal situation
All rights reserved
EPRG concept
ethnocentric orientation polycentric orientation regiocentric orientation geocentric orientation
All rights reserved
Theories of international trade

theory of mercantilism
theory of absolute advantage

theory of comparative advantage factor endowment theory theory of international product life cycle theory of competitive advantage
All rights reserved
Chapter 2
Emerging Opportunities in International Markets
All rights reserved
Trends in world trade

700
Value (Billion US$)
600 500 400 300 200 100 0
China
Exporting Country
Netherlands
United States
Japan
Canada
India
All rights reserved
Trends in world trade (contd)

Value (Billion US$)
1400 1200 1000 800 600 400 200
Germany Canada Japan France China Italy Hong Kong, China United Kingdom United States Netherlands India
Importing Country
All rights reserved
Leading exporters in world trade in commercial Services 2002
300
Value (Billion US$)
250 200 150 100 50 0
All rights reserved
Leading importers in world trade in commercial services 2002

250
Value (Billion US$)
200 150 100 50
Netherlands
United States
France
Japan
Importing Country
Source : World Trade Organization. International Marketing Oxford University Press, 2005
Canada
India
All rights reserved
Composition of world merchandise exports
100% 80% 60% 40% 20% 0% 1965 1970 1980 1995 2000 2001 Years Agricultural raw materials Fuels
Percentag e
Food Ores and metals Manufactured goods
All rights reserved
Direction of world exports
(F.O.B. US$ Million)
5000000 4000000 3000000 2000000 1000000 0 1980 1990 1995 2000 2001 2002
Years
Developed Market Economy Countries Developing Countries & Territories Countries in Central and Eastern Europe
All rights reserved
World Economic Outlook World Trade Outlook

2002
Projections 2004 2005 4.4 5.9
A World Output Other emerging market and developing economies Commonwealth of Independent States (CIS) B World Trade Volume (goods and services)
3.0 4.6 5.1 3.1
4.6 6.0 6.0 6.8
5.2
6.6
C World Trade Prices (in US$ terms) Manufactures Oil Non-fuel primary commodities D Emerging Market and Developing countries; Private capital flows (net) in US$ billion)
2.4 2.5 0.5 47.0
7.7 3.8 7.6
1.4 -10.0 -0.8
162.9
100.9
All rights reserved
An overview of Indias foreign trade

India's Foreign Trade
80000 60000 40000 20000 0
US$ (Million)
1951-52
1955-56
1959-60
1963-64
1967-68
1971-72
1975-76
1979-80
1983-84
1987-88
1991-92
1995-96
1999-
Years
Exports Imports
All rights reserved
2003-04
Composition of Indias trade

Composition of India's Trade : Export
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Percentage
2000-01
2001-02
2002-03
Years
Agriculture & allied Manufactured goods Others & unclassified items
Ores and minerals Crude & petroleum products
2003-04 (Apr.Jan.)
19992000
All rights reserved
Composition (contd)
Composition of India's Trade : Import
100% 80% 60% 40% 20% 0%
Percent age
1999-2000
Years
Food and allied products Paper board, manufactures & newsprint Others
Fertilizers Capital goods
Unclassified items
2003-04 (Apr.-Jan.)
2000-01
2001-02
2002-03
All rights reserved
Direction of Indias trade : exports

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Percentage
1960-61
1970-71
1980-81
1990-91
1995-96
1998-99
1999-00
2000-01
2001-02
Years
OECD
OPEC
Eastern Europe
Others LDCs**
2002-03
Others
All rights reserved
Direction imports (contd)

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Percentage
1960-61
1970-71
1980-81
1990-91
1995-96
1998-99
1999-00
2000-01
2001-02
Others
Years
OECD
OPEC
Eastern Europe
Others LDCs**
2002-03
All rights reserved
Balance of trade
2000 0
1950-51 1953-54 1956-57 1959-60 1962-63 1965-66 1968-69 1971-72 1974-75 1977-78 1980-81 1983-84 1986-87 1989-90 1992-93 1995-96 1998-99 2001-02
-2000
US$ (Million)
-4000 -6000 -8000 -10000 -12000 -14000 -16000 Years Trade Balance
Source : Based on DGCI&S data
All rights reserved
Gains from international markets

to measure the benefits derived by a nation from exports, terms of trade is a widely used instrument terms of trade : a measure of relative changes in import and export prices of a nation expressed as the ratio of price index of its exports to price index of its imports
All rights reserved
Terms of Trade
Net Terms of Trade : Unit value index of exports expressed as a percentage of unit value index of imports Gross Terms of Trade: Volume index of imports expressed as a percentage of volume index of exports
Income Terms of Trade: Product of net terms of trade and volume index of exports expressed as a percentage
All rights reserved
Terms of Trade (base year 1995= 100)
160 140 120 100 80 60 40 20 0
1995=100
1980
1990
1998
1999
2000
2001
Years
Developed Countries
Developing Countries
All rights reserved
Indias Terms of Trade (base year 1978-79= 100)

900
(Base 1978-79=100)
800 700 600 500 400 300 200 100 0
1970-71 1980-81 1990-91 2000-01 2001-02 2002-03

Years
Gross
International Marketing Oxford University Press, 2005 Source : DGCI&S
Net
Income
All rights reserved
Key issues in Indias export growth

Developing a proactive approach to international trade
Promoting Foreign Direct Investments

Promoting Competitiveness Simplification of procedures
Encouraging large-scale manufacturers

Reducing transaction costs Infrastructure development
All rights reserved
Key issues (contd)

Entrepreneurship facilitation Strengthening SEZs Encouraging SMEs Devolution of power to states
Abolition of indirect taxes for certain sectors

Strategy for promoting services export
All rights reserved
Identifying opportunities in international markets

Extreme focus product strategy Products-country matrix strategy Growth-share matrix of exports
Market focus strategies
All rights reserved
Chapter 3
World Trade Organization: international marketing implications
All rights reserved
Major implications of WTOs multilateral trade regime

Security of access of international markets
Stability of access to international markets Implications for importers of raw materials and other inputs
All rights reserved
From GATT to WTO

Year 1947 1949 Round/Name Geneva Annecy Countries 23 13 Average Tariff Cut (%) 35 NA
1951 1956 1960-61 1964-67 1973-79 1986-94
Torquay Geneva Dillon Kennedy Tokyo Uruguay
38 26 26 62 102 123
25 NA NA 35 33 36
All rights reserved
Functions of WTO
Facilitates the implementation, administration, and operation of the trade agreements Provides a forum for further negotiations among member countries on matters covered by the
agreements as well as on new issues falling within its

mandate Responsible for the settlement of differences and
disputes among its member countries

All rights reserved
Functions
(contd)
Responsible for carrying out periodic review of the
trade policies of its member countries

Assists developing countries in trade policy issues
through technical assistance and training programmes

Encourages cooperation within the international
organization
All rights reserved
Principles of multilateral trading system under WTO

Trade without discrimination
Most-Favoured Nation (MFN) treatment
National treatment
Gradual move towards freer markets through negotiations
Increased predictability of international

marketing environment Promoting fair competition in international markets
All rights reserved
WTO agreements
An umbrella agreement (the agreement establishing WTO)
Agreements for each of the broad areas of trade

covered by WTO
goods services intellectual Property
Dispute settlement Review of governments trade policies

All rights reserved
General Agreement on Tariffs and Trade (GATT)

Increasing opportunities for goods in international markets Creating marketing opportunities in the industrial section
Reduction in Tariffs
Tariffs Bindings Creating fairer markets in agriculture sector Elimination of non-tariff measures through the ratifications process Binding against further increase of tariffs Domestic support Export subsidies Opening up marketing opportunities in textiles
All rights reserved
Standards and safety measures for international markets

Agreement on Sanitary and Phytosanitary (SPS)
Measure sets out the basic rules on food safety and

plant health standards Agreement on Technical Barriers to Trade (TBT) ensures that regulations, standards, testing, and certification procedures do not create unnecessary obstacles to trade
All rights reserved
General elements of GATS

General Agreement on Trade in Services (GATS) are first and only set of multilateral rules governing international
trade in services
The main text containing general obligations and disciplines Annexes dealing with rules for specific sectors Individual countries specific commitments to provide access to their markets and also indicting sectors where countries are temporarily not applying the MostFavoured-Nation principle of non-discrimination
All rights reserved
Complexity of international trade in services

Trade in services is much more diverse compared to trade in goods and GATS address this diversity through rules governing: movement of natural persons financial services
telecommunications
air transport services
All rights reserved
Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS)

Lays down minimum standards for the protection of intellectual property rights as well as the procedures and remedies for their enforcement. It establishes a mechanism for consultations and surveillance at the international level to ensure compliance with these standards by member countries at the national level.
All rights reserved
Curbing unfair marketing practices

Agreement on anti-dumping practices (ADP) allows governments to act against dumping where there is genuine injury to the competing domestic industry
Procedure to initiate dumping:

- governments should be able to show that dumping has taken place - calculate the extent of dumping - demonstrate that dumping is causing injury or threatening the local industry
All rights reserved
Top ten users of anti-dumping measures 1995-2003
2500 2000 1500 1000 500 0

379 329 274 180 166 163 122 109
2416
73
72
European Union
Canada
South Africa
India
Mexico
Country
All countries
All rights reserved
Emergency protection from imports

A WTO member may restrict imports of a product temporarily (take safeguard actions) if its domestic industry is seriously injured or threatened with injury caused by a surge in imports The WTO agreements on safeguards prohibit greyarea measures, and it sets time limits ( a sunset clause) on all safeguard actions
All rights reserved
Procedure of settlement of international trade disputes

Consultation Panel established Terms of reference composition Panel examination Interim review stage
All rights reserved
Time frame for settlement of international trade disputes

60 days 45 days 6 months 3 weeks 60 days report (if Total 60-90 days 30 days appeals Total Consultations, mediation, etc. Panel set up and panelists appointed Final panel report to parties Final panel report to WTO members Dispute settlement body adopts no appeal) One Year (without appeal) Appeal resort Dispute settlement body adopts report 15 months (with appeal)
All rights reserved
The implications of WTO on international marketing

Binding of concessions and commitments Valuation of goods for customs purposes (Agreement on Customs Valuation) Use of pre-shipment inspection services (Agreement on Pre-shipment Inspection) Import licensing precedures (Agreement on Improt Licensing Procedures) Rules applicable to exports Anti-dumping and countervailing action
All rights reserved
Chapter 4
Scanning the International Economic
Environment
All rights reserved
International economic institutions

World Bank Group International Bank for Reconstruction and
Development (IBRD)
International Development Association (IDA) International Finance Corporation (IFC)
Multilateral Investment Guarantee Agency (MIGA)

International Centre for Settlement of Investment Disputes (ICSID) International Monetary Fund (IMF)
All rights reserved
Special Drawing Right (SDR)
An international reserve asset introduced by the IMF in

1969 SDR are allocated to members countries (as book-keeping entries) as a percentage of their quotas
All rights reserved
The United Nations Conference on Trade and Development (UNCTAD)

Established in 1964 UNCTAD aimed at integrating developing countries into the world economy Basic functions includes: serve as the focal point within the United Nations for the integrated treatment of trade and development issues undertake research, policy analysis, and data collection in order to provide substantive inputs to experts facilitate cooperation with other organisations and donor countries and provide technical assistance to member countries
All rights reserved
Common Fund for Commodities (CFC)

Established in 1989 with the following objectives: To serve as a key instrument in attaining the agreed objectives for the integrated programme for commodities adopted by UNCTAD
To facilitate the conclusion and functioning of ICAs

(international commodity agreements), particularly concerning commodities of special interests to developing countries
All rights reserved
Generalized System of Preferences (GSP)

GSP is a non-contractual instrument by which industrialized countries unilaterally and on the basis of non-reciprocity extend tariff concessions to developing countries
EU GSP Scheme:
Special Incentive Scheme US GSP Scheme
All rights reserved
World Intellectual Property Organization (WIPO)

Established in 1970 as an international organisation to protect the rights of creators and owners of intellectual property the worldover Main functions: Advice and expertise in the drafting and revision of
national legislation important for whose WIPO

member states with obligations under TRIPS agreement
Comprehensive education and training programmes

at national and regional levels
All rights reserved
International Trade Centre (ITC)

Created by GATT in 1964 ITC works in six areas: Product and market development Development of trade support services Trade information Human resource development International purchasing and supply management Needs assessment and programme design for trade
promotion
All rights reserved
International economic integration

Major reasons for economic integration are: Neighbouring countries generally have a common
history and interest and they are more willing to

cooperate in each others policies Consumer tastes are likely t o be similar and distribution channels can easily be established in adjacent countries The distances that goods need to travel between such countries are shortened
All rights reserved
Types
Preferential Trading Agreement (PTA)
Member countries reduce import tariffs on identified products from one another
Free Trade Area (FTA)

Member countries remove all tariffs and non-tariff barriers among themselves but are free to maintain their own tariffs and non-tariff barriers with non-member countries.
Customs Union
In addition to eliminating trade barriers among member countries, a common external trade policy is adopted for non-members
All rights reserved
Types
Common Market
(contd)
All restrictions on cross-border investment, movement of labour, technology transfer, management, and sharing of capital resources are eliminated to form a common market
Economic Union The member countries in an economic union maintain a fiscal discipline, stability in exchange rates, and stability in interest rates by way of unified monetary and fiscal policy
All rights reserved
Major regional trade blocks (RTAs)

High-income and low and middle-income economies
Asia-Pacific Economic Cooperation (APEC) European Union (EU) North American Free Trade Area (NAFTA)
Latin America and the Caribbean

Association of Caribbean States (ACS) Andean Group Group of Three
Latin American Integration Association (LAIA)

Southern Cone Common Market (MERCOSUR)
All rights reserved
Major RTAs
(contd) Africa
Common Market for Eastern and Southern Africa (COMESA) Economic Community of West African States (ECOWAS) Southern African Development Community (SADC
Middle East and Asia

Association of south-East Asian Nations (ASEAN) Bangkok Agreement East Asian Economic Caucus (EAEC)
Gulf Cooperation Council (GCC)

South Asian Association for Regional Cooperation (SAARC)
All rights reserved
Indias participation in RTAs

Framework Agreement on comprehensive economic cooperation between ASEAN and India Bangladesh-India-Myanmar-Sri Lanka-Thailand economic cooperation (BIMST-EC) Indo-Sri Lanka Free Trade Agreement Bangkok Agreement Framework Agreement for establishing free trade between India and Thailand SAARC preferential trading agreement (SAPTA) South Asian Free Trade Agreement (SAFTA)
All rights reserved
Chapter 5
International Marketing Research
All rights reserved
International marketing research

a study conducted to assist decision-making in more
than one country

research that crosses national borders and involves
respondents and researchers from different countries

and cultures
All rights reserved
Challenges
overlooking cross-cultural market behaviour employing standardized research methodologies across the international markets using English as a standard language for market
communication
inappropriate sample selection misinterpretation of cross-country data failure to use locals to conduct field surveys
All rights reserved
Cross-cultural marketing behaviour and research

The collective programming of the mind which distinguishes the members of one group or category from the other
All rights reserved
Comparison of cross-cultural behaviour

Power distance the degree of inequality among the people that are viewed equitably Individualism vs. collectivism the tendency of people to look after themselves and their immediate familys interests alone Masculinity vs. femininity masculine societies, the dominant values emphasize work goals such as earnings, advancement, and success feminine society are achievement of personal goals such as quality of life, care for others, and friendly atmosphere Uncertainty avoidance lack of tolerance of ambiguity and the need for formal rules
All rights reserved
Comparison of cross-cultural behaviour

Cultural context The context of a culture has crucial implications in communicating and interpreting verbal and non-verbal messages Cultural homogeneity homophilous culture: countries where people share the same beliefs, language, and religion heterophilous culture: countries that have a fair amount of differentiation in language, beliefs, and religion
All rights reserved
Process
Problem dentification Decide Research Methodology Workout Information Requirement Identify Sources of Information (Both Primary and Secondary) Prepare Research Design Collect Primary Information Analyse Information Evaluation and Interpretation
All rights reserved
International marketing research and marketing decisions

Marketing mix decision
product policy
Type of research
focus groups and qualitative research to generate ideas for new product survey research to evaluate new product ideas concept tasting, test marketing product benefit and attitude research product formulation and feature testing
All rights reserved
International marketing research (contd)

Pricing distribution
Type of research
pricing sensitivity studies

Distribution
Type of research
survey of shopping patterns and behaviour consumer attitudes toward different store types
survey of distributor attitudes and policies
All rights reserved

Advertising
(contd)
Type of research
advertising pre-testing

Advertising post-testing, recall scores
Type of research
surveys of media habits
All rights reserved

Sales Promotion
(contd)
Type of research
surveys of response to alternative types of promotion

Sales force
Type of research
tests of alternative sales presentations
All rights reserved
Emic vs. Etic dilemma

EMIC Holds that attitudes, interests, and behaviour are unique to a culture and best understood in their own terms, and emphasizes studying the research problem in each countrys specific context ETIC Emphasizes identifying and assessing universal attitudinal and behavioural concepts and developing pan-cultural measures
All rights reserved
Chapter 6
Decision-making Process for
International Markets
All rights reserved
Segmentation of international markets

division of the market of potential customers into homogeneous sub-groups a small firm can compete more effectively in specific market segments as it concentrates its resources on the target segment for a market segment to be effective, it must be: - measurable - substantial - accessible - differentiable - actionable
All rights reserved
Types
geographic segmentation: dividing markets into
geographical subsets
demographic segmentation: dividing markets on the basis of demographic characteristics (age, gender, family size, education, etc.)
All rights reserved
Country segmentation on the basis of income

World Banks classification on the basis of 2002 per capita gross national income (GNI)
Low-income countries : US$ 735 or less US$ 736-2935
Lower middle-income countries:
Upper middle-income countries :

High-income countries :
US$ 2936-9075
US$ 9076 or more
All rights reserved
Segmentation of Indian market on the basis of household income

Group
Rich Consuming Climbers Aspirants Destitutes : : : : :
Annual Income
Above Rs. 2,15,000 Rs.45,000 2,15,000 Rs. 22,000 45,000 Rs. 16,000 22,000 Less than Rs. 16,000
All rights reserved
Segmentation of international markets on the basis of core values

Strivers (12%): place higher emphasis on material and professional goals
Devouts (22%): place more value on traditions and duty

Altruists (18%): more interested in social issues and social welfare Intimates (15%): place more value on close personal relationships and family above all Fun Seekers (12%): pays more emphasis on fun and enjoyment in life
Creatives (10%): this market segment has strong interest in education, knowledge, and technology
All rights reserved
Segmentation on the basis of international marketing opportunity

Existing markets
Latent markets Incipient markets
All rights reserved
Segmentation on the basis of market attractiveness

Platform countries Emerging markets Growth markets Maturing markets Established markets
All rights reserved
Selection of international markets

preliminary screening of international markets - market size
- accessibility to international markets

tariff barriers - on the basis direction of trade tariff - on the basis of purpose: protective vs. revenue tariffs
- on the basis of time length: tariff surcharge vs.

countervailing duty
All rights reserved
Selection (contd)
-on the basis of tariff rates : specific, ad valorem, and combined - on the basis of production and distribution points: (i) single stage sales tax (ii) value added tax (VAT) (iv) cascade tax (v) excise tax (vi) turnover tax
All rights reserved
Selection (contd)
Non-tariff marketing barriers - government participation in trade - customs and entry procedure - product requirements Quotas - absolute quota tariff quota
voluntary quota
All rights reserved
Selection and targeting international markets

Trade analysis method
Analogy method
All rights reserved
Tools for international market analysis
Growth-share (Boston Consulting Group) matrix

Market attractiveness / company strength matrix
All rights reserved
Chapter 7
Entering International Markets
All rights reserved
Concept of international market entry

mode of entry: an institutional mechanism by which a firm makes its products or services available
consumers in international markets.

mode of entry determined by: - the ability and willingness of the firm to commit resources - the firms desire to have a level of control over
international operations
- the level of risk the firm is willing to take
All rights reserved
Modes of international market entry

Production in home country
exports: production is carried out in home country and finished goods are shipped to the overseas markets for sale indirect exports: process of selling products to an export intermediary in the companys home country who in turn sells the products in the overseas markets direct exports: process of selling the firms products directly to an importer in the overseas market
All rights reserved
Modes (contd)
complementary exporting: use of distribution channels of an overseas firm to make the product available in the overseas market
provide offshore services: to overseas clients with the help of information and communication technology
All rights reserved
Modes (contd)
Production in a foreign country
contractual entry modes
international licensing: process by which a domestic company allows a foreign company to use its intellectual property and specific business skills for a compensation (royalty) international franchising: transfer of intellectual property and other assistance over an extended period of time with greater control compared to licensing
All rights reserved
Modes (contd)
overseas turnkey projects: conceptualize, design, install, construct, and carry out primary testing of manufacturing facilities or engineering structures for an overseas client organisation types : built and transfer (BT), built, operate, and transfer (BOT), built, operate, own (BOO) international management contracts: a company provides its technical and managerial expertise for a specific duration to an overseas firm
All rights reserved
Modes (contd)
international strategic alliance: the relationship between two or more firms that cooperate with each other t o achieve common strategic goals but do not form a separate company international contract manufacturing: a contractual arrangement under which a firms manufacturing operations are carried out in a foreign countries
All rights reserved
Modes (contd)
Investment entry modes
assembly in overseas markets: refers to exporting various
components of the product in completely knocked down
(CKD) condition and assembles them overseas
international joint ventures: equity participation of two or

more firms resulting into formation of a new entity
All rights reserved
Factors for selecting partners for cooperation

the alliance partner should have some strength which
can be translated into business values for the alliance

the alliance partners should be committed to
cooperative goals
it is preferable that the alliance partner should have
multi-cultural business environment
All rights reserved
Factors
(contd)
Wholly owned foreign subsidiaries

to have complete control and ownership of international operations a firm opts for foreign direct investment through: 1. acquiring a foreign company and all its resources in a foreign market (acquistion) 2. the establishment of production and marketing
facilities by a firm on its own from scratch (green field)
All rights reserved
Factors affecting the selection of entry mode

External factors
Market size
Market growth Government regulations Level of competition Level of risk
political economic
operational
Production and shipping costs

All rights reserved
Factors affecting the selection of entry mode (contd)

Internal factors
ompany objectives availability of company resources
level of commitment
international experience flexibility
All rights reserved
Chapter 8
Product Strategy for International Markets
All rights reserved
Product
core : the core benefit or problem solving services
offered by the product
packaging : the features, quality, design, packaging,

branding, and other attributes integral to a products
core benefit
augmented : the support services and other

augmented components such as warranties,
guarantees and after sales service
All rights reserved
Identification of products for international markets

a firm has to carry out preliminary screening for markets and products by conducting market research poorly conceived product often leads to marketing failures
All rights reserved
Developing products for international markets

ethnocentric approach polycentric approach regiocentric approach
geocentric approach
All rights reserved
Product standardization
product standardization : the process of marketing a
product in overseas markets with little change except for some cosmetic changes such as modified packaging and labelling
benefits - projecting a global product image

- catering to customers globally - cost savings in terms of economies of scale in production - designing and monitoring various components of marketing mix economically - facilitating the development of a product as a global brand
All rights reserved
Factors favouring product standardisation in international markets

high level of technology intensity formidable adaptation costs convergence of customer needs worldwide country of origin impact
All rights reserved
Product adaptation
product adaptation: making changes in a product in
response to the needs of the target market is termed
product adaptation or customization
benefits
enables a firm to tap markets, which are not
accessible due to mandatory requirements
fulfills the needs and expectations of customers in varied cultures and environments
helps in gaining market share

increases sales leading to economies of scale
All rights reserved
Factors influencing product adaptation in international markets

Mandatory factors
government regulations standards for electric current
operating systems
measurement systems packaging and labelling regulations
All rights reserved
Factors
Voluntary
consumer demographics
culture local customs and traditions
(contd)
condition of use
price
All rights reserved
New product launch

waterfall approach: the launch of a new product in international markets in a phased manner sprinkler approach: simultaneous product launch in various international markets
All rights reserved
International product strategy

International competitive posture matrix
kings
barons crusaders commoners
All rights reserved
International product strategies

Product
Do not change product Adapt product Product adaptation Dual adaptation Develop new product
Promotion
Do not change promotion Adapt promotion
Straight adaptation Communication adaptation
Product Invention
All rights reserved
Chapter 9
Building Brands in International Markets
All rights reserved
Benefits of branding
provides a marketing edge to the brands so as to
maintain their prices at relatively higher levels than the
competitors
secure better margins facilitate coping with market competition
increase the life of a product

serve as an important tool in international marketing as the image of the brand crosses national boundaries
facilitates the forging of an emotional relationship

between consumers and products
All rights reserved
Brands in international marketing

it is important to understand the cultural traits of the target markets
the failure to recognize the repercussions of the

brand name in international markets proved detrimental to brand image. a firm should carefully research the linguistic and cultural repercussions while taking a decision on ext ending its brand name in international markets
All rights reserved
Strategies for building brands

brand based on a tangible product component brand based on an intangible product component
- feature based - user imagery based
balance brand based on tangible-intangible product component
All rights reserved
Strategy for building global brands

dominates the domestic market, which generates cash flow to enter new markets meets a universal consumer need demonstrates balanced country-market coverage
reflects a consistent positioning worldwide

benefits from positive country of origin effect focus is on the product category
All rights reserved
The World's 10 Most Valuable Brands (2004)

70.0
67.4 61.4
60.0
53.8
50.0
44.1
US$ (Billions)
40.0
33.5
30.0
27.1
25.0
24.0
22.7
22.1
20.0
10.0
McDonald's
GE
0.0
Coca-Cola IBM Microsoft
Brands
pP. Chase & Co. of the Morgan Stanley Group

Marlboro
Disney
Nokia
Intel
Toyota
All rights reserved
International brand building strategy

Build Category Maintain leadership
Brand Development Index
Secure trial
Low
Build market share
Low Category Development Index

All rights reserved
Chapter 10
Pricing Decision for International Markets
All rights reserved
Pricing in developing countries

lower production and technology base relatively low share in international markets makes them marginal suppliers in most product categories with little bargaining power majority of products sold as commodities with marginal value addition
All rights reserved
Factors influencing pricing decisions in international markets

cost competition irregular or unaccounted payments in exportsimports purchasing power of customers buyers behaviour
foreign exchange fluctuations
All rights reserved
Terms of payment in international transactions

advance payment open account consignment documentary credit documentary credit without letter of credit
- sight draft (documents against payment)
- usance or time draft (documents against

acceptance)
All rights reserved
Terms of payment (contd)

documentary credit with letter of credit
- revocable
- confirmed - unconfirmed
All rights reserved
Types of credit
sight term credits
- acceptance credit
- deferred payment credit
revolving
back to back
All rights reserved
Important terms of delivery

EXW (Ex Works) named place FCA (Free Carriers) named place FAS (Free Alongside Ship) named port of shipment FOB (Free on Board) named port of shipment CFR (Cost and Freight) named port of destination CIF (cost, Insurance, and Freight) named port of destination CIP (Carriage and Insurance Paid to) named place of
destination
All rights reserved
Terms of delivery (contd)

CPT (carriage Paid To) named place of destination DAF (Delivered at Frontier) named place DES (Delivered Ex Ship) named port of destination DEQ (Delivered Quay) named port of destination DDU (Delivered Duty Unpaid) named place of destination DDP (Delivered Duty Paid) named place of destination
All rights reserved
Dumping
selling a product or commodity below the cost of production or at a lower price in overseas markets as compared to its price in domestic markets. types of dumping
- sporadic dumping
- predatory dumping - persistent dumping
All rights reserved
Counter trade
price setting and trade financing are tied together in one transaction involving reciprocal commitments other than cash payments importing countrys inability to pay in hard currency importing countrys regulations to conserve hard currency importing countrys concern about balance of trade exploring opportunities in new markets gaining access to capital goods markets in countries with shortage of hard currency
All rights reserved
Types of counter trade

barter simple Barter clearing Arrangement switch Trading counter Purchased buy-back (compensation)
offset
All rights reserved
Transfer pricing
price of an international
parties
market based (Arms Length) transfer pricing non-market pricing pricing at direct manufacturing cost transaction between related
All rights reserved
Grey marketing
import or export of goods and marketing them through unauthorized channels parallel importing re-importing lateral re-importing
All rights reserved
Chapter 11
International Logistics and Distribution
All rights reserved
International logistics
conceptulization, design, and implementation of a system to direct flow of goods and services across national border components
- materials management
- physical distribution
All rights reserved
Channels of international distribution

a set of interdependent organisations networked
together to make the products or services available to the end consumers in international markets
All rights reserved
International marketing channels

agents
- broker/commission agent - importers buying agent - country controlled buying agent - buying office
merchant intermediaries
- merchant exporter - international trading companies - export / trading house
All rights reserved
Criteria for selection of international distribution channels

international marketing objectives of the firm
financial resources
organisational structure experience in international Markets firms marketing image existing marketing channels of the firm channel availability in the target market speed of market entry required legal implications
All rights reserved
International retailing
Top 200 retailers : by country of origin
0.07 0.125 0.035 0.055 0.065 0.095 0.13 0.425
All rights reserved
Retail outlets in international markets

department stores
supermarkets convenience stores specialty stores discount stores superstores hypermarkets

All rights reserved
Cross-country comparison of organized retail sector

Country Size (US$ Billion) 2325 115 20 22 100 75 55 325 180 Traditional channel (In percentage) 15 19 45 60 64 70 80 80 98 Modern channel (In percentage) 85 81 55 40 36 30 20 20 2
All rights reserved
US Taiwan Malaysia Thailand Brazil Indonesia Poland China India
Managing international logistics

managing logistics in international markets is
complex due to:

- physical distance - differences in logistics systems - compatibility of logistics systems - differences in legal systems - number of intermediaries involved
All rights reserved
Constituents of physical distribution

warehousing
inventory
packing and unitisation
information and communication technology

transportation
All rights reserved
Transportation
modes of transport
- air transportation
- road transportation - rail transportation - ocean transportation
All rights reserved
Ocean transportation
types of ocean cargo
- bulk
- break bulk
- neo-bulk
- containerized
All rights reserved
Types of commercial vessels

on the basis of decks
- single deck vessel
- tween-deck vessel
- shelter deck vessels
- container vessels on the basis of vessel size

- handy-size - handy-max - panamax - cape-size
All rights reserved
Types of commercial vessels

on the basis of type of cargo
- tankers - bulk carriers - neo-bulk carriers - general cargo vessels - barges - combination carriers
(contd)
All rights reserved
Charter shipping
charter vessels do not have any fixed itinerary or fixed
sailing schedule
these can be hired or engaged to ship a firms cargo on charter basis as per the terms and conditions of the charter party the contract made between the charterer and the ship owner is known as charter party that contains details of the ship, routes, met hods of cargo handling, port of call
All rights reserved
Forms of chartering
voyage charter
time charter
bare boat charter back-to-back charter trip time charter contract of affreightment
All rights reserved
Contract terms used in vessel chartering

gross terms: the ship owner is responsible for the cost of loading, stowing, trimming, and unloading of the vessel net terms: The ship owner is not responsible for cost of
loading and discharge

free in and out: the charterer has to arrange the stevedores and to load/discharge the cargo on his own
account
liner shipping: regular scheduled vessel services between two ports
container: transport equipment to facilitate handling and

carriage of goods by one or more modes of transport
All rights reserved
Containerisation and multimodal transportation

benefits of transporting the cargo by containers
- facilitates door-to-door delivery - reduces cost of packing as the container acts as a strong protective cover - reduces the documentation work - lowers warehousing and inventory costs - prevents pilferage and theft - reduces susceptibility to cargo damage
All rights reserved
Chapter 12
Communication Decision for International Markets
All rights reserved
Marketing communication
effective communication is crucial to a firms success
in international markets
marketing communication mix involves advertising, sales promotion, public relation, personal selling, and direct and interactive marketing
All rights reserved
Factors influencing international marketing communication mix

market size
cost of promotional activity

resource availability media availability type of product and its price sensitivity mode of entry into international market market characteristics
All rights reserved
Consumer response hierarchy models

AIDA model
Attention
Interest
Desire
Action
All rights reserved
Adoption model
Awareness
Interest Evaluation
Trial
Adoption
All rights reserved
Standardized advertising
using the same advertising strategy across the
country
advertisement with no change advertisement with changes in illustration benefits economies of scale
projection of uniform image in international markets
All rights reserved
Communication adaptation
modification in the advertisement message, copy or content
helps to reduce difference in cultural values

among the countries difficulties in language translation
variations in the level of education of the target

groups media availability
social attitudes towards advertising

regulatory framework of the target market
All rights reserved
Tools of international marketing communication

direct marketing: selling products and services to the customers without using any market intermediary direct mailing: sending letters, brochures or catalogues, emails, faxes, or even product samples directly to the consumers, who may, in turn, purchase the product through mail door-to-door marketing: selling door to door
multi-level marketing: involves a revolutionary

distribution system with little spending on advertising and infrastructure
personal selling: involves personal meeting of a firms representatives with the customer
All rights reserved
Tools (contd)
international trade fairs are organized gatherings where the buyers and the sellers meet and establish communication
types
- general trade fairs
- specialized trade fairs - consumer fairs - minor trade fairs - solo exhibitions
All rights reserved
Tools (contd)
catalogue shows: display of catalogues generally
accompanied by trade samples often organised by government organisations or industry association
trade missions: groups of business people travelling

abroad to promote their business by meeting foreign companies or foreign government officials
sales promotion: tools used as short-term incentives

to induce a purchase decision such as trade and consumer promotion
public relations: aim at building corporate image and

influencing media and other target groups to have a
favourable publicity
All rights reserved
Factors influencing international communication decisions

culture
language education
media Infrastructure
government regulations
All rights reserved
Framework for international productpromotion strategies

provides a good insight into marketing
decisions offers adapation alternatives: - straight adaptation
- product extension-promotion adaptation - product adaptation-promotion extension - dual adaptation
All rights reserved
Chapter 13
Framework of Export-import Policy
All rights reserved
Indias Export-Import (EXIM) Policy

formulated and implemented by the Ministry of
Commerce and Industry,Government of India

other concerned ministries include Finance, Agriculture, and Textiles, and Reserve Bank of India
All rights reserved
Principal objectives of Indias Exim policy

to facilitate sustained growth in exports in order to attain a share of at least 1% of global merchandise
trade
to stimulate sustained economic growth by providing firms an access to essential raw materials, intermediates, components, consumables, and capital goods required for augmenting production and providing services
All rights reserved
Principal objectives (contd)

to enhance the technological strength and efficiency of the Indian agriculture sector, industry, and services, to improve their competitive strength while generating new employment opportunities, and to encourage the attainment of internationally accepted standards of quality to provide consumers with good quality products and services at internationally competitive prices while at the same time create a level playing field for the domestic producers
All rights reserved
Items prohibited for imports

tallow, fat, and / or oils, rendered or unrendered of any animal origin animal rennet wild animals, including their body parts and products and ivory beef and products containing beef in any form
All rights reserved
Items prohibited for exports

wild animals birds tallow wood products beef sandalwood products certain species of sea shells peacock feathers including handicrafts and other articles made from the feathers manufactured articles shavings of shed antlers of deer human skeleton
All rights reserved
Export promotion schemes and incentives

schemes for concessional imports are aimed at removing the anti-export bias inherent in the system of indirect taxation and to encourage exports several schemes have been established which allow importers to benefit from tariff exemptions, especially on inputs
All rights reserved
Export promotion schemes

duty drawback is an export incentive to refund customs
duty paid on imports of inputs used in manufacture of goods subsequently exported drawback comprises: - customs allocation
- central excise allocation

export promotion capital goods (EPCG) scheme allows for the import of capital goods at concessional rate of duty subject to an appropriate export obligation accepted by the exporter
All rights reserved
Types
all industry rate: average industry drawback rates
fixed by Ministry of Finance from time to time
brand rates: drawback incentive for exporters of

manufactured goods determined on case to case basis for individual exporters on particular brands
All rights reserved
Duty remission schemes

duty exemption passbook scheme (DEPB) grant credit on post-export basis as specified percentage of freight on board value of exports made in freely convertible currency duty-free replenishment certificate (DFRC) provides
post-export remission of duty (basic and special

additional duty, which is equal to excise duty) on imported inputs used for the manufacture of export products
All rights reserved
Schemes to promote export production and related infrastructure

assistance to states for infrastructure development for exports and other allied activities (ASIDE) export promotion industrial park (EPIP) scheme gives assistance to the states to create infrastructure facilities for export-oriented production (export
promotion industrial park)

critical infrastructure balance (CIB) scheme provides assistance to states to facilitate balancing of
capital investments for relieving bottlenecks in

infrastructure for export production and conveyance
All rights reserved
Creation of enclaves for export production and promotion

Free Trade Zones (FTZ) and Export Processing Zones (EPZs develop infrastructure for export production at internationally competitive prices and environment
EPZs are set up at Kandla, Santacruz, Falta, Noida, Cochin,

Chennai, Vishakhapatnam
All rights reserved
Creation of enclaves for export production and promotion (contd)

special economic zones (SEZs)are duty-free enclaves to
be treated as foreign territory for trade operation duties and tariffs so as to provide an internationally competitive and hassle-free environment for export production. agri-export zones (AEZ) scheme involves comprehensive package of services in an identified zone by all related state and Central Government agencies, state agricultural universities, and related organisations so as to facilitate production and exports of agro products
All rights reserved
EOU, STP, EHTP

Export-Oriented Units (EOU) are complimentary to
EPZ scheme for units located in domestic tariff area
Software Technology Parks (STPs)/electronic Hardware Technology Parks (EHTPs) facilitate exportoriented production of computer software, hardware, and electronic hardware
All rights reserved
Export Houses/Trading Houses/Star Trading Houses

give recognition to the established exporters and large export houses to build up the marketing infrastructure and expertise required for export promotion benefits - license/certificate/permission and customs clearances for both imports and exports on selfdeclaration basis - fixation of input / output norms on a priority bias
- priority finance or medium and long-term capital requirement as per conditions notified by the RBI - enhancement in normal repatriation period from 180-360 days
All rights reserved
Other export schemes

market development assistance (MDA)isassistance
given to exporters and export promotion organizations for market exploration and export promotion on cost sharing basis
market access initiative (MAI) scheme to support

market promotion efforts to exporters and export promotion organisations based on focus product-focus country approach
India brand equity fund (IBEF Trust) offers financial

assistance by way of medium-term loans for promotion of generic products and Indian brands
All rights reserved
Chapter 14
International Trade Finance and Risk Management
All rights reserved
Need for trade finance

international markets are becoming increasingly competitive and overseas buyers often demand
credits from the exporters

exporting firms require finance right from the time of procuring inputs or raw materials for export
production to the time they receive the final payment

from the overseas buyers countries around the world offer export credit at
concessional terms
All rights reserved
Types of export credit

pre-shipment credit is a loan or advance granted by a bank for financing the purchase, processing, manufacturing, or packing of goods prior to shipment
All rights reserved
Export credit in foreign currency

in order to make the credit available to the exporters
at internationally competitive rates, banks (authorized dealers) also extend credit in foreign currency at LIBOR/ EURO Libor / EURIBOR related rates of interest
All rights reserved
Pre-shipment credit in foreign currency (PCFC) scheme

exporters procure export finance as pre-shipment credit in rupees and post-shipment credit either in rupees or discounting/rediscounting of export bills under Export Bills Abroad (EBR) scheme pre-shipment credit in foreign currency and discounting or rediscounting of the export bills in foreign currency under the EBR scheme
All rights reserved
Post-shipment export credit in foreign currency

exporters have the option to avail of post-shipment export credit in either foreign currency or domestic currency post-shipment credit has to be in foreign currency if the pre-shipment credit has already been availed of in foreign currency in order to liquidate the pre-shipment credit the scheme covers bills with usance period upto 180 days
from the date of shipment
All rights reserved
Factoring
purchase of receivables by the factor at a discounted price benefits - facilitates expansion of sales in international
markets by offering prospective customers the same terms and conditions as local competitors - facilitates immediate payment against receivables and increases working capital - credit investigations, collection of account receivables from the importer, and other bookkeeping services are carried out by the factors - in the event of buyers default or refusal to pay, factors assume credit risk
All rights reserved
Forfaiting
a mechanism for financing exports forfaiting discounts receivables by negotiating bills drawn under a letter of
credit or co-accepted bills of exchange
benefits
- by discounting export receivables evidenced by bills of exchange or promissory notes - on a fixed rate basis (discount) - without recourse to the exporter - carrying medium to long-term maturities (usually over 120 days) - up to 100% of the contract value
All rights reserved
Financing to overseas importers

buyers credit is extended by a bank in India to an
overseas buyer enabling him to pay for machinery or equipment that he may be importing from India for a specific project
line of credit is extended by a bank in India to an

overseas organization for facilitating imports from India
All rights reserved
Risks in international transactions

an international transaction involves a number of
risks that adversely affect a firms smooth operation

managers operating in international markets need to develop a thorough understanding of these
risks and the various options available to minimize

them
All rights reserved
Types of risks in international transactions

commercial risks
- non-payment by the importer at the end of credit period or after some specified period after the expiry of credit term
- non-acceptance of goods by the importer despite its compliance with the export contract - insolvency of the purchaser
economic risks - import restrictions

- local content requirements - exchange controls - foreign exchange risk
All rights reserved
Types of risks (contd)

political risk - confiscation - expropriation - nationalization - domestication
transit risks
- maritime - extraneous - war - strike
All rights reserved
Types of cargo losses

total loss
- actual total loss occurs when goods are completely damaged or destroyed or undergo such a marked change that they no longer remain marketable - constructive total loss (CTL) the cost of saving, repairing, or reconditioning of insured goods is greater than the value of goods
partial loss
- general average (GA) is a loss specific to marine cargo insurance - particular average is partial losses or damage that is not covered by general average and particular charges
All rights reserved
International business risks

measuring international business risk
- Business Environment Risk Intelligence (BERI) Index - EIUs Business Environment Ranking managing international business risk - Credit Risk Insurance - Marine Cargo Insurance
All rights reserved
Chapter 15
Export Procedure and Documentation
All rights reserved
Export procedures and documetation

export procedures and documentation are crucial to
international marketing, as both exporters and

importers are situated in two different countries and are governed by different legislative frameworks
export documentation facilitates international

transactions and protects the interest of the exporters and importers
All rights reserved
Types of export documents

commercial documents are used by custom of trade
in international commerce by exporters and importers

in discharge of their respective legal and other incidental responsibilities under sales contract.
regulatory documents are prescribed by different

government departments / bodies for compliance of formalities under relevant laws
All rights reserved
Commercial documents
commercial invoice is a document of content that provides: - identification of shipment - detailed description of goods - description of quantity a packing list provides details of how the goods are packed, the contents of different boxes, cartons, or bales, and details of the weights and measurement of each package in the consignment transport documents documents that evidence shipment of goods, such as bill of lading, combined transport document, waybill, or consignment note
All rights reserved
Bill of lading
marine bill of lading (B/L)
- a transport document issued by the shipping company to the shipper for accepting the goods for the carriage of merchandise
airway bill (AWB) - issued by the carrier as an evidence of contract of carriage
a bill of lading serves three purposes:

- it is the receipt of cargo by the shipping company - a contract of carriage (or transport) - a document of title
All rights reserved
Types of bill of lading

on board or shipped bill of lading
received for shipment bill of lading clean bill of lading dirty (clause) bill of lading
stale bill of lading

through bill of lading trans-shipment bill of lading
All rights reserved
Certificate of origin
used as an evidence of the origin of goods in the importing country
includes the details of the goods covered and the

country where the goods are grown, produced or manufactured
All rights reserved
Types of certificates of origin

inspection certificate is related to quality of goods insurance certificate provides protection to the cargo-owner, an insurance cover is necessary while the cargo is in transit from the consignor to the consignee mates receipt is a cargo receipt issued by the master of the vessel for every shipment taken on board bill of exchange is an unconditional order in writing prepared and signed by the exporter addressed to the importer requiring the importer to pay a certain sum of money to the exporter or his / her nominee shipment advice advice is sent to the importer informing of the details of the shipment
All rights reserved
Regulatory documents
shipping bill / bill of export is the principal
document required by customs authority

mentioning details of shipment for exports bill of entry is a document needed for customs
clearance of imported cargo
All rights reserved
Procedure for export-import

compliance with legal framework obtaining import-export code number registration with export promotion council registration with sales tax and central excise authorities concluding an export deal arranging export finance appointing C& F Agent procuring manufacturing of goods arranging cargo insurance port procedures and customs clearance presentation of documents at the negotiating bank claiming export incentives receiving payment and export incentives
All rights reserved
Electronic processing of export documents

use information technology in the field of international business has facilitated computerized generation and processing of export documents for electronic filing and processing of documents, Indian customs and central excise electronic commerce / electronic data interchange (EC /EDI) gateway has been created, popularly known as ICEGATE
All rights reserved
Systems components of ICEGATE

Indian Customs EDI system (ICES)
The Message Exchange Servers (MES)
ICEGATE and ICENET (Indian Customs and Central Excise Gateway and Indian Customs and Central Excise Network)
All rights reserved
Chapter 16
Institutional Infrastructure for Export Promotion
All rights reserved
Export promotion
public policy measures which actually on potentially
enhance exporting activity at the company, industry,

or national level
All rights reserved
Functions of export promotion programmes

to create awareness about exporting as an instrument of
growth and market expansion

to reduce and remove barriers to exporting to create promotional incentives to provide various forms of assistance to potential and actual exporters
All rights reserved
Institutional framework for export promotion in India

Tier level
Tier I Tier II
Bodies
Department of Commerce Advisory Bodies
Responsibilities
frames trade policy coordinating discussion between industry & govt. for bringing in required changes assist the export effort of a specific product group facilitate and assist exporters to expand markets handle export import of specific commodity facilitate export promotion from the states
All rights reserved
Tier III Tier IV
Commodity Organisations Service Organisations
Tier V
Tier VI
Government Trading Organisations State Export Promotion Agencies
Department of Commerce
the primary government agency responsible for evolving and directing foreign trade policy and programmes, maintaining commercial relations with other countries, and
developing and regulating export-oriented industries
functional divisions economic division

trade policy division foreign trade territorial division export product division export industries division export service division directorate general of foreign trade (DGFT) directorate general of commercial intelligence and statistics
All rights reserved
Advisory bodies
provide an effective mechanism for continued interaction with trade and industry and increased
coordination among various departments and

ministries concerned with export promotion Board of trade
Export promotion board
All rights reserved
Commodity organizations
these organisations look at sector-specific
exports and perform a wide range of functions

right from product development to export marketing
All rights reserved
Export Promotion Councils

engineering project
electronics and computer software

plastics and linoleums basic chemicals, pharmaceuticals, and cosmetics
chemicals and allied products

gems and jewellery leather sports goods cashew
All rights reserved
Export Promotion Councils (contd)

shellac apparel synthetic and rayon Indian silk carpet handicrafts wool and woollens cotton textiles handloom powerloom export oriented units (EOUs) and special economic zones (SEZs)
All rights reserved
Export Promotion Councils (contd)

major functions - provide commercially useful information and
assistance to the members in developing and increasing their exports - offer professional advice to the members in areas such as technology upgradation, quality and design improvement, standards and specifications, product development, innovation, etc. - organize visits of delegations of its members abroad to explore overseas market opportunities - organize participation in trade fairs, exhibitions, and buyer-seller meets in Indian and abroad
All rights reserved
Commodity boards
Tea Board Coffee Board Coir Board Central Silk Board All-India Handlooms and Handicraft Board Rubber Board Cardamom Board
Tobacco Board
Spices Board
All rights reserved
Autonomous bodies
Agriculture and Processed Food Products Export
Development Authority (APEDA)

Marine Products Export Development Authority (MPEDA)
All rights reserved
Service institutions
Indian Institute of Foreign Trade Indian Council of Arbitration India Trade Promotion Organization National Centre for Trade Information Export Credit Guarantee Corporation Export-Import Bank of India Indian Institute of Packaging
Federation of Indian Export Organizations (FIEO)
All rights reserved
Government participation in foreign trade

the Government of India has set up a number of corporations to supplements the efforts of the private sector in the field of foreign trade:
- State Trading Corporation (STC)
- Minerals and Metals trading Corporation (MMTC) - Spices Trading Corporation Limited - Meal Scrap Trading Corporation (MSTC)
All rights reserved
States involvement in promoting exports

States cell in the Ministry of Commerce institutional infrastructure for export promotion by state governments apex-level organisations under the chairmanship of chief ministers /chief secretaries to consider and sort out the problems faced by the exporters/importers in their respective states most state governments nominate a sernior officer at the level of Commissioner of Industries/Secretary of Industries as its Niryat Bandhu
All rights reserved
Chapter 17
Emerging Issues
All rights reserved
Emerging issues in international marketing

accelerated growth of global markets breaking down of marketing boundaries
- economic liberalization - path to free markets - death of distance
emerging new marketing barriers emergence of global customer segment product proliferation and shortening product life cycles growing strength of retailers emergence of knowledge economy increasing customer sophistication market beyond the urban middle class
All rights reserved
Global e-marketing
physical marketplace to virtual market space
- problem recognition - information search
- evaluation of alternatives
- purchase decision - post purchase behaviour
reverse marketing
- reverse promotion - reverse advertising - reverse pricing - reverse product design - reverse segmentation
All rights reserved
Cross-country comparison of e-readiness (2004)
Denmark
Germany
South Africa
India
Country
Russia
8.28 8.04 7.83 6.86 10 5.79 5.56 8 4.453.96 6 3.74 2.61 4 2 0
Score
All rights reserved
Types of e-marketing models

Business to Business (B2B)
Business to Consumers (B2C)

Consumers to Business (C2B) Consumers to Consumers (C2C)
All rights reserved
m-marketing
the conduct of marketing activities through the use of mobile technology such as mobile phones, personal digital assistant (PDA), and telematics
facilitates customers interaction with locationspecific context and worldwide web enables marketing communication through mobile devices and text applications such as SMS
All rights reserved
Customer relationship marketing (CRM)

process of creating and maintaining business relationship by a firm with its customers identifies key customers in terms of long-term potential profits analyzes the expectations of customers and the sellers finds out strategies to work more closely with the customers identifies the changes required in the operating procedures customizes the marketing mix establishes an institutional mechanism for regular interactions with the customers
All rights reserved
A glance at Indias strengths

India produces 3 million graduates and 700,000 post-
graduates India has the second best developed entrepreneurial culture in the world 10% of researchers and 15% of scientists engaged in the pharma/biotech R&D in the US are of Indian origin one third of the start-ups in silicon valley are by Indians India is among the select group of six nations with satellite launch capabilities 3500 firms operating in 39 software parks export over US$ 8 billion worth of IT products and services over 70 MNCs have set up R&D facilities in India in the past five years
All rights reserved
Services
Indias strategic strength in offering services to international markets lies both in individual and corporate services major potential for remote servicing to individual customers lies in telemedicine, e-learning, record keeping, and tax advisory services tourism, education, and health and nursing are the services targeted mainly at individual customers
All rights reserved
Indias strengths in international markets

Indian firms have about 440 investments in the UK making India the 8th largest investor in the UK.
1,441 Indian companies have operations in Singapore

92 Indian-American owned companies in the USA generated business of US$ 2.2 billion and provided
employment to about 19,000 people in 2002

seven Indian companies are listed on the NYSE and three on the NSDAQ, while over 15 companies are traded on the London Stock Exchange
All rights reserved
Foreign direct investment (FDI)

India offers talent and low cost that fits well
with the perspective of global corporations

increase profits and ensure business continuity through multi-country strategies India is fast emerging as one of the largest consumer markets in the world
All rights reserved
FDI Confidence Index

2.03 1.45 1.40 1.25 1.17 0 0.5 1 1.5 2 2.5
China United States India United Kingdom Germany
Country
All rights reserved
Short vs. medium-term attractiveness of emerging markets

(percentage of total respondents)
90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
80%
85% 68%
82%
55% 48% 41%
55% 46% 35%
China
India
Poland Country 1-3 Years 10 Years
Brazil
Mexico
All rights reserved
Indias competitiveness and information and communication technology

skilled manpower
cost competitiveness mature destination for IT outsourcing
All rights reserved

International Market

Diunggah oleh

Informasi Dokumen

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

International Market

Diunggah oleh

Hak Cipta:

Format Tersedia

International Marketing Oxford University Press, 2005

All rights reserved