International Marketing & Finance

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International

MarketingNature, Scope

and Constraints


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International Marketing deals essentially withthe Trade patterns among the various countriesof the world.

Terpstra has called International Marketing asMarketing carried on across national

boundaries

Philip Cateora and Graham

International Marketing is the performance of

business activities design to plan, price,promote and direct the flow of a companysgoods and services to consumers or users inmore than one nation for a profit


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Some of the important characteristics of

International Marketing are:-

1. Multinational Marketing Management


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Some of the important characteristics of InternationalMarketing are:-

2. Controllable and Uncontrollable Factors

2.2 Domestic Uncontrollable2.2.1 Competitive Structure2.2.2 Economic Climate2.2.3 Political and Legal Forces


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Some of the important characteristics of International Marketingare:-

2. Controllable and Uncontrollable Factors

2.3 Foreign Uncontrollable Factors2.3.1 Cultural Forces2.3.2 Geography and Infrastructure

2.3.3 Level of Technology2.3.4 Political and Legal Forces2.3.5 Competitive Forces2.3.6 Economic Issues2.3.7 Structure of Distribution


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3. Broader Competence


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4. Protectionism


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5. Intense Competition


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6. Credit Oriented


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7. Comprehensive Risk


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8. Dominance


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Push Factors to go International

Profit Advantage

Growth OpportunitiesDomestic Market ConstraintsCompetitionGovernment Policies and RegulationsMonopoly PowerSpinOff BenefitsStrategic VisionPolitical Nature


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Push Factors to go International

Profit Advantage

Growth OpportunitiesDomestic Market ConstraintsCompetitionGovernment Policies and RegulationsMonopoly PowerSpinOff BenefitsStrategic VisionPolitical Nature


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1. Political and Legal Differences

2. Cultural Differences3. Economic Differences

4. Currency Unit

5. Language Differences


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6. Differences in the Marketing

Infrastructure7. Trade Restrictions

8. High Costs of Distance

9. Differences in Trade Practices


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Supply Chain Management(SCM) is acritical element in today's highly

complex and competitive businessenvironment. It has direct influenceon key issues like cost to market, timeto market, responsiveness to changing

customer demands and marketdynamics.


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Supply Chain Management(SCM)is an ongoing process that involvesprecision in demand forecasting,inventory optimization, reductionin warehouse costs and efficient as

well as cost-effective handling ofboth incoming and outgoingstocks.


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Effective Supply Chain Management(SCM) brings down operating costs bya reduction in cost leakages likeinventory pile-ups and reverselogistics, thereby ensuring a better

planned environment wherein theproduction and supply sides arebetter synchronized and optimized.


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International

MarketingMarket Identification Process

Market Entry Methods


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Factor for Assessing Market:-

1. Demographic & Physical Environment

1.1 Total population and growth and density trends.

1.2 Distribution of population by age groups, UrbanSuburban and rural areas.

1.3 Climate and Weather1.4 Age and Quality of Transportation, Communication

1.5 Local Distribution Networks


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2. Political Environment

2.1 Conduciveness of system of Government.

2.2 Stable political system

2.3 Trade barriers for Imports


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3. Economic Environment

3.1 Predicted economic growth level

3.2 G N P and Balance of Payment

3.3 Inflation and Per Capita Income

3.4 Exchange Regulations


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4. Technological Environment

4.1 High Expectations of Consumers

4.2 Increase Productivity and R&D


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5. Social and Cultural Environment

5.1 Average Educational Level and Middle Class

5.2 Discretionary Income spent on consumer goods


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6. Market Access

6.1 Product Adaptation

6.2 Judicial System


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7. Product Potential

7.1 Need and Acceptance of Imported products

7.2 Seasonality of Product


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1. Exporting2. Licensing

3. Joint Venture

4. Manufacturing

5. Assembly Operation

6. Management Contract

7. Turnkey Operation

8. Acquisition

9. Strategic Alliances

10. Contract Manufacturing

International Marketing & Finance

Documents

Transcript of International Marketing & Finance