International marketing Joseph Biju Kuruvilla

Lec 1 International marketing

What is international Business (IB) and international Marketing(IM) International business constitutes any business activity carried out by an organization in a country other it's country of origin International marketing is the performance of business activities that direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit

 Why IB is important 1.Survival 2.Growth 3.Financial backing 4.Personal and technology availability

 Why was /is it carried out? Advantage Traditionally New markets Sources or RM

 Current Advantages Economies of scale  Production  Purchasing  Financing  Distribution  Advertising  Against  Competitor (home and host country)

 Current Advantages Competitive advantage  Proprietary advantage through patent laws  Goodwill  Marketing  Sourcing (RM and manpower)  Technology  Hedging/risk diversification

 Driving forces  Needs  Technology  Cost  Quality  Transportation & communication  Economies of scale

 Restraining forces  Market differences  History  Management myopia  Organizational culture  Barriers to entry

 Theories of IB  Absolute Advantage  Comparative Advantage  Competitive Advantage  International Product Life Cycle Theory  Porter's Diamond

 Absolute advantage Nations will gain from free trade as long as each partner has an absolute costs advantage in producing some product machinerywine England10040 France30120

 Comparative advantage  A country will gain from international trade if it specialises in the production and exports of products that requires relatively more input of its abundant production factors and if it imports products that require relatively more input of its scarce production factors

 Comparative advantage machineryTextiles France80or90 England120or100

 International product life cycle theory Similar to product life cycle theory but is internationalised  Introduction  Exports  Host country production  Host country exports  Home country imports

National Diamond for CAs Firm structure, Strategy & Rivalry Factor Conditions Demand Conditions Related & Supporting Industries Chance Government

 Competitive advantage  Refers to companies  Competitive advantage is a skill or capability that enables a company to out compete its rivals Eg italian pottery Silicon valley

Marketing task  Marketing controllable  4 ps  Domestic uncontrollable  Economic  Climate  Competition  Political legal forces

Marketing task  Foreign uncontrollable  Level of technology  Structure of distribution  Geography and available infrastructure  Cultural forces