1. The document discusses factors to consider when choosing international markets, such as market size, language/culture, competition, proximity, and political/financial stability.
2. It also covers legal aspects like applicable laws, intellectual property protection, and methods of doing business abroad. Risks include political and commercial/financial risks.
3. Companies may sell internationally to access new markets, take advantage of opportunities abroad, utilize excess capacity, or gain cost advantages over competitors.
2. Nature Of International Market
International market vary in terms of their level
of development-
Undeveloped
market
Highly
developed
market
3. Choosing The Market
FACTORS 1. The size of
the market
2. The language
and culture of
the market
3. The
4. Proximity of
competition in
the market
market
5. Political and
financial stability
4. Legal Aspects
1. Knowledge of law that prevails in case of a dispute.
2. Protection of Intellectual Property Rights.
3. The method of doing business in the
destination country.
5. Risk Involved
RISK
1. 2.Commerci
Political al and
Risk Financial
Risk
6. Selling In International Market
Trade between countries occurs because of
following reasons-
A particular product is unavailable.
There are cost advantage by buying the
product instead of manufacturing locally.
The product offered is differentiated from the
local product.
7. Conti……
A company may decide to sell its product in
international market due to one or more of the
following reasons-
It has a good market domestically where the
growth is limited.
International market offer large and profitable
opportunities.
The company has excess capacity, which the
domestic market cannot absorb.
8. Conti…..
The company has a considerable
cost advantage over its
international competitors.
The company foresees increased
competition in the domestic
market and seeks to mitigate the
risk by diversifying.
10. Organizing For International
Selling
The type of organization a company
adopts for International sales
DEPENDS ON
The size and nature of its
international business
11. Distribution
Role of distribution becomes more important at
global level due to-
• These markets are usually at a distance
from the manufacturing base.
1.
• It takes considerable amount of time to
transport the products.
2.
• Involves crossing national boundaries and
completion of a no. procedures and
3. formalities.
12. Types of Distribution Channels
The type of distribution channel chosen
Depends upon
The nature of the product and its positioning
The image of the product
get enhanced and diminished
Image of the distribution channel
Up market Exclusive Supermarkets and
Stores Stores Hypermarkets
13. Profile of an International
Salesperson
International salesperson need to have the
following additional qualities-
The ability to speak in one or more international
languages.
The ability to adapt to foreign culture.
The ability to act independently and decisively.
A pleasant and amiable personality.
The ability to understand not only the product and
pricing, but also financing of the sales, the
instrument of payment, and foreign exchange risk.
14. Pricing and Payment Terms
Pricing of product for international markets can
be done on various terms. Some of the
commonly used term are-
2. 3.
1. Ex FOT FAS
Work
s
4. 6.
5.
FOB CIF
C&F
15. Packing and Shipping
The packing should be-
Light and Strong.
Must be appealing for the end users.
Usually buyers tend to specify the type of
packing required.
Packing should show the contents and specify
origin, weight and quantity of the item inside.
Most shipment these days are done in
containers which is safer and easier to handle.
16. Market Intelligence and
Research
Collecting primary data is very expensive and
not feasible for most companies.
Secondary data is available from no. of
sources such as-
Embassies
EXIM bank
Trade journals and publication
Internet websites
Commercial banks, etc.
