International Marketing explores the history of trade and marketing between countries. In the year 1970, with the onset of progressive trade liberalization there was a tremendous expansion of the world trade. An organization’s way of marketing in a given country is termed “International marketing”. This comes into play when an organization is part of or associated with an enterprise which also operates in other countries and there is some degree of influence or control of the organization’s marketing activities from outside the country in which it sells and or produces. To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html This Slideshare is the sole Property of the Welingkar School of Distance Learning – Reproduction of this material , without prior consent, either wholly or partially will be treated as a violation of copyright.

1. Chapter 1
International Marketing : An Introduction
International Marketing chapter-1 International Marketing: An Introduction

2. Learning Objectives
What are the trends in international trade
Why there is an increase in global sourcing and production
sharing
Reasons behind the growth of economic power of developing
countries
What is international marketing
What are the levels of involvement in international
orientations
What is the scope of marketing Indian products abroad
What are the driving and restraining forces of globalization
What are the categories of participants in international market
What is the future of international marketing
International Marketing chapter-1 International Marketing: An Introduction

3. Introduction
Marketing environment is becoming
increasing international even for domestic
firms
National markets are being international
by imports and foreign investment
The world economic integration is
encourage by growing trend of production
For many companies, for large ones
headquartered in small countries ,
international market is the mainstay
International Marketing chapter-1 International Marketing: An Introduction

4. Trends in International Trend
1970 there was a tremendous
expansion of the world trade propelled
by the progressive trade liberalization
Much of the trade takes place between
the developed countries.
Bulk of the exports of the developing
countries is absorbed by the developed
countries
International Marketing chapter-1 International Marketing: An Introduction

5. Table 1.3 Composition of
World Exports
International Marketing chapter-1 International Marketing: An Introduction

6. Global Sourcing and
Production Sharing
The trend of global sourcing and
production sharing has been growing
Out-sourcing has been more
conspicuous with the Japanese
industries than others
International sourcing accounts for an
estimated one-third of the world trade
International Marketing chapter-1 International Marketing: An Introduction

7. The Growing Economic Power
of Developing Countries
Developing countries account for only
about one-fifth of the world income and
less than a quarter of the world trade
Their global economic share will increase
and they will play an increasingly
important business
The developing countries’ share of the
world output is estimated to increase from
21 per cent in 1994 to 27 % in 2010
International Marketing chapter-1 International Marketing: An Introduction

8. International Marketing
“the marketing of goods and services
across national frontiers, and
The marketing operations of an
organization that sells and or produces
within a given country when:
International Marketing chapter-1 International Marketing: An Introduction

9. International Marketing
That organization is part of or associated
with, an enterprise which also operates in
other countries, and
There is some degree of influence or
control of the organization's marketing
activities from outside the country in which
it sells and or produces
International Marketing chapter-1 International Marketing: An Introduction

10. Special Problems in IM
1. Political and legal differences
2. Cultural differences
3. Economic differences
4. Differences in currency unit
5. Differences in the language
International Marketing chapter-1 International Marketing: An Introduction

11. Special Problems in IM
6. Differences in the marketing
infrastructure
7. Trade restrictions
8. High costs of distance
9. Differences in trade practices
International Marketing chapter-1 International Marketing: An Introduction

12. Motives of IM
Profit
Growth opportunities
Domestic marketing constraints
Competition
Government policies
Monopoly power
Spin-off benefits
Strategic vision
International Marketing chapter-1 International Marketing: An Introduction

13. International Orientations
1. Ethnocentrism
2. Polycentrism
3. Egocentrism
4. Geocentrism
International Marketing chapter-1 International Marketing: An Introduction

14. Internationalization Stages
Domestic company
International company
Multinational company
Global/transnational company
International Marketing chapter-1 International Marketing: An Introduction

15. Stages in the Evolution of
Companies Fig. 1.2
International Marketing chapter-1 International Marketing: An Introduction

16. International Marketing
Decisions
International business decision
Market selection decision
Entry and operating decisions
Marketing decision
International organisation decision
International Marketing chapter-1 International Marketing: An Introduction

17. Scope of Marketing Indian
Production Abroad
Enormous
Indian firms with products of acceptable
quality may explore the foreign markets
Developing countries are having
advantages in products like textiles,
leather, jems and jewellery, seafood
International Marketing chapter-1 International Marketing: An Introduction

18. Driving forces
Liberalization
MNCs
Technology
Transportation and communication
revolutions
Rising aspirations and wants
Competition
International Marketing chapter-1 International Marketing: An Introduction

19. Restraining Forces
Government policies and control
Social and political opposition
Management myopia
Organizational culture
International Marketing chapter-1 International Marketing: An Introduction

20. Participants in International
Marketing
Private firms
MNCs
SMEs
Public sector undertakings
Trading companies
Individuals
International Marketing chapter-1 International Marketing: An Introduction

21. Future of IM
Globalization of supply chain and
operations management
International investment
Information surge
World growth
International Marketing chapter-1 International Marketing: An Introduction

22. Future of IM
Domination of the world economy
Trade-cycle decision rule
Pervasiveness of free markets
Accelerating growth of global markets
The rise of internet and information
technology
International Marketing chapter-1 International Marketing: An Introduction

23. Summary
International trade is very important
aspect of international business
The practice of carrying out different
stages of manufacturing of a product in
several countries is called production
sharing
There are four types of orientations
towards internationalization
International Marketing chapter-1 International Marketing: An Introduction