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Published byCharla Ray Modified over 7 years ago
INTERNATIONAL MARKETING :NATURE AND SCOPE
MEANING International Marketing refers to the buying or selling of goods and services beyond the boundaries of a country. When a country crosses its national frontiers to market its products it is indulging in international marketing. In simple words, when two countries exchange the products and services with the motive of business trade, the process is called International Marketing.
DEFINITION OF INTERNATIONAL MARKETING “To make available company's products and services to more than one country's customers for use, is known as International Marketing” Philip Ketiora and John M.Hess “The process of marketing beyond the country's border is called International Marketing” Van Terpestra
DIFFERENCE BETWEEN INTERNAL AND INTERNATIONAL MARKETING MEANING:- Internal Marketing means when business takes place within the country but International Marketing means when marketing of goods and services take place outside the boundaries of a country. REQUIREMENT:- Internal Marketing is essential for the requirement of different states and cities of a country but International Marketing is necessary for country’s economical, technical development and cultural exchange. LANGUAGE PROBLEM:- Language problem does not arise in Internal marketing but it arises in case of international marketing. CURRENCY PROBLEM:- Same currency is followed in internal marketing but in case of international marketing exchange rate is to be considered. GOVT INTERFERENCE:- Govt interference is very less in internal marketing but govt plays a very imp roll in case of international marketing. MARKET RESEARCH:- Market research work is very easy in case of internal marketing in comparison to international marketing.
NATURE OF INTERNATIONAL MARKETING PROTECTIVE NATURE – International Marketing is protective by nature. There are some restrictions in IM which protect domestic industries from foreign competition. COMPETITIVE MARKET – In IM the exporters have to face three tier competition, i.e. (1) from local manufacturers, (2) from manufacturers of own country, and (3) from manufacturers of other foreign countries. MORE RISK – Because of the longer time period involved due to longer time in transit and longer credit period involved. DIFFERENT LEGAL SYSTEMS – Each country has its own legal system and often the legal systems operating in different countries differ from each other.
NATURE OF INTERNATIONAL MARKETING DIFFERENT MONETARY SYSTEMS – Monetary system and exchange value of each country's currency are different from that of the other. CREDIT ORIENTED – Developing countries prefer to buy goods from those countries which offer liberal credit facilities i.e. period of payment should be long and interest charged should be low. CONTROLLING NATURE – Developed countries like USA and Japan have dominating position in IM because of the use of advanced technology. POLITICAL NATURE – IM is political in nature. There is virtually no trade between those countries which are not having cordial relations.
FACTORS INFLUENCING INTERNATIONAL MARKETING INTERNAL FACTORS – Factors existing within the marketing firm are called internal factors. These are the controllable factors which can be modified according to the environment. EXTERNAL FACTORS – The external factors which influence the Intrnational marketing decisions of a business organisation can be – 1.Economic Environment 2.Social and Cultural Environment 3.Political Environment 4.Legal Environment 5.Physical Environment 6.Technological Environment 7.Business Environment
SCOPE OF INTERNATIONAL MARKETING Establishing a Branch Licensing Arrangement Franchising Joint Venture and Collaboration Foreign Agent and Distributor Strategic Alliance Consultancy Services Technical and Managerial Knowledge
IMPORTANCE OF INTERNATIONAL MARKETING 1.Domestic Market Constraints (a)Small domestic market (b)Due to Recession (c)Sale at Saturation point (d)Growth in international market (e)Change in Demand in Domestic Market (f)Economies of Large Scale Production 2.Govt policies and regulations 3. Increased productivity 4. Counter competition 5. Relative profitability 6. Reducing Business Risk 7. Control Inflation and Price Rise 8. Product Obsolescence
OTHER FACTORS 1.Unequal Distribution of Natural Resources 2.Advantages of Specialization 3.Technological development 4.To Create Research Opportunity 5.Helps in Political Peace 6.Economic Development of a Country (1) Rapid economic growth (2) Profitable use of natural resources (3) Increase in Employment Opportunities (4) Role of Exports in National Income (5) Increase in standard of living (6) International Collaboration (7) Closer Cultural Relaions
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