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PCTI Group

PCTI Group. Document Title (Document Sub-Title). Introduction to International Marketing. Block-1. Unit-1. International Marketing. Marketing.

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PCTI Group

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  1. PCTI Group Document Title (Document Sub-Title)

  2. Introduction to International Marketing Block-1

  3. Unit-1 • International Marketing Presentation Title | August 28, 2014 | <document classification>

  4. Marketing According to AMA, Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives. Marketing is the process of It is a management process whereby the resources of the whole organization are utilized to satisfy the needs of selected customer groups in order to achieve the objectives of both parties. Presentation Title | August 28, 2014 | <document classification>

  5. The Exchange Process • Giving something of value in return for something of value. • A product is anything customers will exchange something of value for, because it satisfies their need or want. Presentation Title | August 28, 2014 | <document classification>

  6. Conditions for successful exchange • At least two parties must be involved. • Each party must have something that interests the other party. • Each party must be able to communicate and deliver. • Each party must be free to accept or reject any offer from the other party. Presentation Title | August 28, 2014 | <document classification>

  7. Marketing Philosophies • There are 5 marketing philosophies: • 1.Production concept • 2. Product concept • 3. Selling concept • 4. Marketing concept • 5. Societal concept Presentation Title | August 28, 2014 | <document classification>

  8. Production concept • This is an approach in which a company believes that customers are interested only in low priced, easily available goods and finer points of the product are not very important to them. • In this approach a company concentrates on achieving high production efficiency and wide distribution coverage. Presentation Title | August 28, 2014 | <document classification>

  9. Product Concept • This is an approach in which a company believes that customers favors those products that offer the most quality performance and features. • Customers appreciate quality features and are willing to pay higher price for extra quality. Presentation Title | August 28, 2014 | <document classification>

  10. Selling concept • In this approach producers believe that aggressive persuasion and selling is the crux of the business success. • Attention is paid to find ways and means to sell. • Considerable promotional effort is justified. Presentation Title | August 28, 2014 | <document classification>

  11. Marketing Concept • Under Marketing concept, the organization considers the needs and wants of customers and produce according to that. • Under this concept, the task of marketing begins with finding what the customer wants and produce a product which will meet that want and provide maximum satisfaction. Presentation Title | August 28, 2014 | <document classification>

  12. Societal Concept • The societal concept holds that a company must take into account the needs and wants of consumers and deliver the goods and services efficiently so as to enhance customers satisfaction as well as the societies well being. • Marketing must be a socially responsible or accountable activity. Presentation Title | August 28, 2014 | <document classification>

  13. Difference between Selling and Marketing • In selling Emphasis is on the product whereas in Marketing Emphasis is on customer wants. • In selling company first makes the product then figures out how to sell it whereas in Marketing company first determines customers wants then figures out how to deliver it. Presentation Title | August 28, 2014 | <document classification>

  14. Marketing Mix • The marketing activities are divided into four basic elements: • Product • Price • Promotion • distribution Presentation Title | August 28, 2014 | <document classification>

  15. Product • Products are integral to the exchange process, without them, there is no marketing. • Product stands for the goods and services offered by the organization. Presentation Title | August 28, 2014 | <document classification>

  16. Price • It is the value, usually in monetary terms, that sellers ask for in exchange for the products they are offering. Presentation Title | August 28, 2014 | <document classification>

  17. Place / Distribution • It is the process of moving products from the producer to the consumer. Presentation Title | August 28, 2014 | <document classification>

  18. Promotion • It includes a variety of techniques, including advertising, sales promotion, public relations and personal selling, that are used to communicate with customers. Presentation Title | August 28, 2014 | <document classification>

  19. Functions of Marketing • Functions of marketing are divided into three categories. • 1. Merchandising functions. • 2. Physical distribution functions • 3. Auxiliary functions Presentation Title | August 28, 2014 | <document classification>

  20. Merchandising functions • Product planning and development. • Standardization and grading. • Purchases and collection. Presentation Title | August 28, 2014 | <document classification>

  21. Physical distribution functions • Storage • transportation Presentation Title | August 28, 2014 | <document classification>

  22. Auxiliary functions • Arrangement of finance • Risk-bearing • Collection of market information Presentation Title | August 28, 2014 | <document classification>

  23. International Marketing • International Marketing is the multinational process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives. • International marketing refers to marketing carried out by companies overseas or across national borderlines. • This strategy uses an extension of the techniques used in the home country of a firm Presentation Title | August 28, 2014 | <document classification>

  24. International marketing is simply the application of marketing principles to more than one country. the process of globalization also provide a country to have a hidden attack to another • International marketing is often not as simple as marketing your product to more than one nation. Companies must consider language barriers, ideals, and customs in the market they are approaching. Presentation Title | August 28, 2014 | <document classification>

  25. International Marketing concepts • Domestic Marketing:Marketing that is targeted exclusively at the home-country market. • A purely domestic company operates only domestically.When it reaches growth limits, it diversifies into new markets, products and technologies within the country instead of entering foreign markets. Presentation Title | August 28, 2014 | <document classification>

  26. Export marketing:This is the first stage when the firm steps out of the domestic market and explore market opportunities outside the country. • In export marketing, the main aim of the firm is to expand the market size. • Firm produces all its goods in the home country and exports the surplus production to other countries. Presentation Title | August 28, 2014 | <document classification>

  27. International Marketing: • In International marketing, focus changes from just exporting to marketing in foreign countries. • Company establishes subsidiaries in the foreign countries to undertake marketing operations. Presentation Title | August 28, 2014 | <document classification>

  28. Multinational Marketing: • Multinational marketing is the adaptation of the domestic marketing mix suitable to the marketing differences in market environment of each country. Presentation Title | August 28, 2014 | <document classification>

  29. Global Marketing: • Under this strategy the world as a whole is viewed as the market and the firm attempts to standardize as much of the company effort as is practical on worldwide basis. • Thus the global marketing views an entire set of country market as a unit, identifying groups of prospective buyers with similar needs as a global market segment and developing a marketing plan that strives for standardization. Presentation Title | August 28, 2014 | <document classification>

  30. Reasons for Entering International Markets • Domestic market constraints • Government policies and regulations • Growth of overseas markets • Increased productivity • Relative profitability • Diversification to reduce business risk • Control inflation and price rise • Counter competition • Strategic vision Presentation Title | August 28, 2014 | <document classification>

  31. Domestic market constraints • If the size of domestic market is very small. • Due to recession in domestic market, companies may not be able to utilize the full production capacity. • Market of a number of products tend to saturate or decline in the advanced countries. • Growth in international markets causes the growth in demand for some products, attracting the manufactures of these products to internationalize. Presentation Title | August 28, 2014 | <document classification>

  32. Government policies and regulations • Government policies and regulations also motivate the firms to internationalize.Government may impose certain restrictions on further growth and capacity expansion of some firms within the domestic market in order to achieve certain social objectives. Presentation Title | August 28, 2014 | <document classification>

  33. Growth of overseas markets • The enormous growth potential of many foreign markets is a very strong attraction for companies to enter into foreign markets. Presentation Title | August 28, 2014 | <document classification>

  34. Relative profitability • International business could be more than domestic markets.The price realized in export markets may be relatively higher then that realized in the home market. Presentation Title | August 28, 2014 | <document classification>

  35. Strategic Vision • The systematic and growing internationalization of many companies is essentially part of their business policy or strategic management. Presentation Title | August 28, 2014 | <document classification>

  36. Unit-2 • International marketing orientation and innovation Presentation Title | August 28, 2014 | <document classification>

  37. International Marketing Management process • International marketing management can be defined as the analysis, planning, implementation and control of programmes designed to create, build and maintain beneficial exchanges with the target buyers in overseas market for the purpose of achieving organizational objectives. Presentation Title | August 28, 2014 | <document classification>

  38. Steps involved in the international marketing decision making process • Deciding to internationalize(SWOT Analysis) • Market selection(Target market) • Product selection • Selection of entry mode • Marketing strategy selection a) Product strategy b) Pricing strategy c) Distribution strategy d) Promotion strategy 6. International organization decision Presentation Title | August 28, 2014 | <document classification>

  39. Deciding to internationalize • Whether the firm should internationalize its operation or not? • If SWOT analysis is favorable to the firm, it may decide to venture into the foreign market. Presentation Title | August 28, 2014 | <document classification>

  40. Market selection • It depends on: • Geographical proximity • Market potential of a country i.e size, prosperity and growth of its imports etc. • Characteristics of the country like population Presentation Title | August 28, 2014 | <document classification>

  41. Product selection • Elasticity of supply • Elasticity of demand | August 28, 2014 | <document classification>

  42. Selection of entry mode • New firm – through export houses etc • Established firm- own ways Presentation Title | August 28, 2014 | <document classification>

  43. Marketing strategy selection • Product strategy • Pricing strategy • Promotion strategies • Distribution strategies Presentation Title | August 28, 2014 | <document classification>

  44. International organizational decision • Creation of export department • Setting up of a international decisions • Development of a global organization Presentation Title | August 28, 2014 | <document classification>

  45. International marketing orientation • EPRG orientation • It identifies four types of orientation towards internationalization of business operations • 1. Ethnocentrism • 2. Polycentrism • 3. Reginocentrism • 4. Geocentrism Presentation Title | August 28, 2014 | <document classification>

  46. Implications of EPRG orientations • Ethnocentric orientation: A company follow this orientation when it does not differentiate between domestic and foreign market and consider that techniques which are applied to domestic market can be applied o international market also. • In this phase of the firms operations overseas operations are considered secondary to domestic operations and as a means to dispose of domestic surplus production. • International marketing activities will be controlled from home country. • This approach will better suit small firms just entering international operations.When a company is small & is not in a position to invest heavily in the overseas operations,it is better for it identify countries which have same characteristics similar to those of the home country & export to them Presentation Title | August 28, 2014 | <document classification>

  47. Polycentric orientation • In this each overseas market is different from the other and local techniques and personnel are best suited with local conditions • Firms with this orientation are known to organize their international marketing activities on a country by country basis. Each country is treated as a separate entity.Subsidiaries are established overseas. • This orientation will prove ideal for firms seriously committed to international marketing and have capacity to invest. • This approach is best suited if there is significant differences between countries. Presentation Title | August 28, 2014 | <document classification>

  48. Regiocentric orientation • In this phase, the firm recognizing the common features of a region, views that region as one market and organizes activities for that region as a whole. Presentation Title | August 28, 2014 | <document classification>

  49. Geocentric Orientation • Basic philosophy of this orientation is that all humans are alike.The entire world is treated as one market. Presentation Title | August 28, 2014 | <document classification>

  50. EPRG depends on • Size of the firm • Experience in overseas market • Extent of heterogeneity of the potential market • Nature of the product Presentation Title | August 28, 2014 | <document classification>

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