International Marketing Notes

INDIAN INSTI. OF PLANNING & MANAGEMENT AHMEDABAD. SATURDAY, 4 th OCTOBER,2 0 0 8 IM-5 *Global Marketing-Types of Market Agreements or RegionalCooperationAgreements=RCA)&Mfrs.-ConsumerMx

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.

MOUN MARKETING CONSULTANTS { EXPORTS -MARKETING-IMPORTS -PROJECT-MGMT. CONSULTANTS}

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Types of Regional Market Agreements (RMA) 1.Free TradeArea (FTA): No internal tariff barriers at all (zero duty) within all member countries but External Tariff can vary for specific trade partner country. e.g. Latin American Free TradeArea(LAFTA) est.1960but in 1980 becameLatinAmerican IntegrationAsso.(LAIA) Members:Argentina,Brazil,Chile,Mexico,Paraguay,Peru, Uruguay,Colombia,Ecuador,Venezuela & Bolivia. North American Free Trade Area( NAFTA): USA/Canada/Mexico (Old) European Free Trade Area(EFTA=now EU) 2. Customs Union(CU):No internal tariff & also common extranal tariff for Imports/Exports Moun Marketing Consultants

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Types of Regional Mkt. Agreements cont.. 3. Common Market:European Common Mkt. (ECM) Abolish internal/external Tariff & free flow of all 3 factors of production-capital,labour,technology except Land which can not move but can be bought anywhere.

4.Economic Union(EU):Apart from Same tariffs,Fiscal/monetary policies are common 5.Political Union: This is ultimate market agreement including all characteristics of EU& also political harmony with Members e.g.earstwhile USSR/CIS e.g. Common Wealth of Nations-U.K. & other Moun Marketing Consultants ex.British ruled countries of ASIA,AFRICA etc. 3

Types of Mkt.Agreemnts ..cont: Council for Mutual Economic Assistance COMECON countries=Council for Mutual Economic co-operation (EST.1949& 10 member): Bulgaria,Czechoslovakia,erstwhile E.Germany Hungary,Mongolia,Poland Romania,e-w soviet union,cuba & Vietnam * They contribute 25 % of world’s Industrial output. • 35 % of natural gas * 32 % of crude steel * • 32% of bituminous coal * chemicals & paper:20% Moun Marketing Consultants • After disintegration of USSR lost their strength. 4

ASIA.. cont: • ASEAN: Association of South East Asian Nations (est.1978- 5 Members: Emerging Mkt.eco.countries:Indonesia,Malaysia, Phillipines, Singapore,Thailand * By 1990,became new centre of world economic power since growing twice than Industrialised cs. • SAARC (est.Dec.,1985-7 members): South Asian Association for Regional Co-operation. India,Pakistan,Bangladesh,SriLanka,Nepal,Bhutan Moun Marketing Consultants 5 & Maldives

OTHER ORGANISATIONS • GATT: General Agreement on Tariffs & trade now called `World Trade Organisation (WTO) • Doha round of negotiations for Agri.products * OPEC: oil producing & exporting countries Est.in 1960 but powerful since 1972 only • WORLD BANK: For developmental project • International Monetary Fund (IMF) • IATA: International Air Transport Association • OECD countries: Organisation for Economic cooperation & Development Moun Marketing Consultants

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Agri.-Manufacturing-Consumers • LARGE Agricultural Exporting Countires : :USA,AUSTRALIA,CHINA,INDIA,BRAZIL,Malaysia • Large Agro-trading cos. Like KARGIL group predict crop output & has Trans-Global Trading Operations (TGTO) • MNCs: Multi-National Corporations* TNCs : TransNational Corpo.s having Multi-location Mfg.Plants(MMP) • Consumers : RICH-HIGH END-MASS MARKETSBottom of Pyramid Consumers (BPC)*In India called:BPL • Consumers:High Net Worth Individuals(HNI)for Investment & banking sector. • Under-developed markets-Africa,Latin America • Emerging markets Economy-Brazil-Russia-India-China Moun Marketing Consultants

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INDICES FOR CROSS COUNTRIES COMPARISON • Human Development Index(HDI)-United Nations based on GDP/Education & health/Lifeexpectancy/child mortality ratio • GDP=Value of the goods & services produced by a nation during 1 year period. • DevelopedCountries:2-5 %*India-China:8%-10% • Per capita Income(PCI): GDP/Population • Balance of Trade=Export Earning - Import Spending • Balance of Payment=Export – Import + F.D.I. + Net Inward Remittances + Invisible Incomes * Exchange rate comparison:strong /weak currency Moun Marketing Consultants

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Mobile/InternetUser-base Projections by 2012 • Mobile usage matrix for BRIC Countries(mn.): Brazil*Russia*India * China Population mn. 199 138 1220 1366 *[email protected] 189 560 800 “ Penetration % 88 137 46 59 * “ Internet users# mn. 44 21 298 320 “ “ “ as % 25 11 53 40 Total mobile users in BRIC by 2012 : 1.7 Billion @ Subscribers : only active SIM cards considered. # Mo.Internet: using browser(WAP/XHTML)SMS/MMS/IM not considered * Source:eMarketer/US Cencus Breau Moun Marketing Consultants

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