International Marketing Notes

INDIAN INSTI. OF PLANNING & MANAGEMENT AHMEDABAD. SATURDAY, 6 th SEPTEMBER,2 0 0 8 IM-1 * Scope/challenges/dynamic environment of INTERNATIONAL MARKETING:FW/07-09/4 th trimester Dr. PRADIP DESAI B.E. ,M.B.A. (I.I.F.T.), LL.B., Ph.D.(Management-U.S.A.),CMC CERTIFIED MANAGEMENT CONSULTANT ( C.M.C.) CHAIRMAN & C.E.O.

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DEFINITION OF I.M. • DEFINITION of International Marketing ( as per American Marketing Association (AMA): • I.M. is the Multinational process of planning & executing the conception,pricing, promotion & distribution of ideas,goods & services to create exchanges that satisfy individual (consumers)& organisational (sellers)objectives. • Limitation : Industrial Mktg. is betn.2 organisations & not betn. an individual & organisation as defined above. • Several govt.depts.are large buyers for projects• U.N. runs campaign for HIV AIDS control Transnationally they are not marketing any tangible product but an idea/ concept or a service to humanity at large. Moun Marketing Consultants

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DOMESTIC MKTG. V/s. INTL.MKTG. • DOMESTIC MKTG. Relatively simpleProcess Mkt.CharactristicKnown Cultural pref. Known Legal system is known Political system-Trusted Known Monetary system Single strategy works

• INTL. MARKETING Complex Mktg.Processes Many uncontrolables Diverse cultural issues Different legal system Political SystemUnknown Diff. Monetary Systems Multiple Strategy needed since diverse markets catered

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Scope & challenges of I.M. • WORLD HAS BECOME A GLOBAL VILLAGE -:`VASUDHAIV KUTUMBAKAM’ • Scope is enormous for Emerging Market COUNTRIES called `BRIC ‘ : Brazil- Russia - India- China • Challenges are compliance with WTO norms & satisfy FDA & ISO9000 quality norms for drugs & food products etc. • Trade Barriers created to protect local Industries are to be overcome • Most Favoured Nations (MFN ) treatment for Import Duties • Increasing REGIONAL TRADE CO-OPERATION/AGREEMENT • E.g. SAARC=SOUTH ASIAN Association for Regional Co-operation • LAFTA =Latin American Free Trade Association • ASEAN=Association of South East Asian Nations-India trying to enter Moun Marketing Consultants 4

Challenges of International Trade • International Marketing is often mistaken as Domestic Marketing on a global scale • Cos.Like McDonald/Kentuky FriedChicken(KFC) marketing globally has to respect local religious sentiments of consumers e.g. avoid Beef as an ingradient in INDIA. * Pure Veg.( Green Dot)was challenged in USA court since Animal fats were used for frying & case won by an Indian Dr. –McDonald had to apologize & also pay heavy compensation. Moun Marketing Consultants

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ENVIRONMENTAL FACTORS in International Trade • From 1947 to 2000 India’s relations were very good with erstwhile USSR & we were identified more friendly compared to USA • However,after disintegration of USSR into Confederation of Independent States(CIS) countries, in last decade our trade/political relations has greately improved with USABeing largest trade partner for Export of services/Imports of high technology products Moun Marketing Consultants

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