Section A

According to Hess and Cateora, International marketing is “the

performance of business activities that direct the flow of goods and
services to consumers or users in more than one nation.” It is different
from domestic marketing in as much as the exchange takes place
beyond the frontiers, thereby involving different markets and
consumers who might have different needs, wants and behavioral
attributes.
According to the American Marketing Association (AMA) “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.
 Objectives of International Marketing
• Bringing countries closer for trading purpose and to encourage large
scale free trade among the countries of the world and integration of
economies of different countries and there by to facilitate the process
of globalization of trade. . For Ex – A free trade agreement (NAFTA)
between US, Canada and Mexico has removed most of the barriers to
trade and investments . Most agreements are supplemental
commitments on labor and the environment to encourage countries to
upgrade their working.
• Establishing and strengthening trade relations among the nations and
thereby to maintain cordial relations among nations for maintaining
world peace.
• To facilitates and encourage social and cultural exchange among
different countries of the world. For example in country like India we
love to consume Mexican, Chinese, Italian food which is a fine example
of socio- cultural exchange.
• To provide better life and welfare to people from different countries
of the world. In addition, to provide assistance to countries facing
natural calamities and other emergencies situations.
• To provide assistance to developing countries in their economic and
industrial growth and thereby to remove gap between the developed
and developing countries.
• To ensure optimum utilization of resources (including surplus
production) at global level.
• To encourage world export trade and to provide benefits of the same
to all participating countries.
• To offer the benefits of comparative cost advantage to all countries
participating in international marketing.
• To keep international trade free and fair to all countries by avoiding
trade barriers
The Scope of International Marketing – Importance in the Global
Arena

1. International Marketing Leads to Peace Among Nations

All the activities associated with a business like –

development, production, and marketing, especially in
the case of high-tech products, involves people from
around the world to work together. Moreover, companies
as a part of employee interactions enable people from all
countries to meet face-to-face for both recreation and
commerce. All this interaction leads to not just the
mutual gain associated with business relationships
but also personal relationships and mutual
understanding. The latter is the foundation of global
peace and prosperity and widen the scope of
International Marketing. eg. Mobile Phone Companies
deploy different functions of their business in different
parts of the world – say manufacturing in China, R & D in
London and sales teams across the globe. In order to
work as a team and drive a single agenda, the teams
interact with each other frequently and occasionally meet
for important agendas.

2. Global Markets Reduce Risk and Open Opportunities

Scope of International Marketing increases with

global markets opening up for business. At times
manufacturing a product in a country can be much cost-
effective and the nation becomes the hub of all exports.
e.g. Huge portion of all consumer products sold globally
is manufactured in China.

Global brands rake in a significant portion of their

revenues from outside their parent country. Below is the
example of a few US-based companies and how they
widened the Scope of International Marketing.

3. Factors Affecting the Scope of International Marketing

Of all the events and trends affecting global business

today, four stand out as the most dynamic, the ones that
will influence the shape of international business:

1. The rapid growth of the World Trade

Organization and regional free trade areas such
as the North American Free Trade Area and the
European Union.
2. The trend toward the acceptance of the free
market system among developing countries in
Latin America, Asia, and eastern Europe.
3. The burgeoning impact of the Internet, mobile
phones, and other global media on the dissolution
of national borders.
4. The mandate to manage the resources and global
environment properly for the generations to come.
The Scope of International Marketing – Major Types of
Businesses

1. Imports

This is the easiest form of International Marketing a

company can get into – Importing from one country and
selling in the domestic market. This is possible only in a
scenario where there is demand in the domestic market
for imported goods or services. Companies also localise
the imported product depending on the needs of the
market.

2. Exports

Opposite of Importing and selling, companies export

their finalized products to international markets or
on to their other franchises in far off markets where they
can sell the products to their localities for generating
huge revenues.

3. Contractual Agreements

Whenever business moves beyond their domestic

boundaries, its scope of international marketing exposes
it to greater chances of doing a lot more business. The
market expands, the consumer base expands and even
volumes and profits expand. Companies grow
exponentially by getting into contractual agreements with
several other partners overseas.

4. Joint Venturing

Two brands can come together and enter a potential

market. The investments, profit or losses are pre-decided
in terms of both value and time period. At the time it is
beneficial for companies to enter into a JV for raising the
scope of international marketing as a result of a barrier
to new entrants in foreign markets. A local partner can
prove to be immensely useful for doing business not only
operationally but also from a domestic understanding of
the market dynamics.
5. Fully Owned Manufacturing

Relatively a higher level of engagement in the foreign

soils, companies can own a fully owned manufacturing in
a country. The company can use this facility to sell
products within the country or export to nearby nations.
Owning a fully owned manufacturing helps companies
control quality.

Benefits of international marketing

International marketing daily affects consumers in many ways, though

its importance is neither well understood nor appreciated. The benefits
of international marketing must be explicitly discussed here under.

Importance of International Business? Benefits of International Business (marketing91.com)

Marketing is defined as the set of activities which are undertaken by the

companies to provide satisfaction to the customers through value addition
and making good relations with them, to increase their brand value. It
identifies and converts needs into products and services, so as to satisfy
their wants. There are two types of marketing namely, domestic and
international marketing. Domestic marketing is when commercialization
of goods and services are limited to the home country only.

Difference Between Domestic and International Marketing (with Comparison Chart) - Key Differences

8 Theories of International Trade: Explained, PPT Available (thegkeducation.com)

Difference Between TNC and MNC (askanydifference.com)

https://www.businessmanagementideas.com/marketing/international-marketing-environment/20682

https://www.tpci.in/research_report/types-of-trade-
agreements/

• The General Agreement on Tariffs and Trade (GATT) was signed by 23

countries in October 1947, after World War II, and became law on Jan.
1, 1948.
• The purpose of the GATT was to make international trade easier.
• The GATT held eight rounds in total, from April 1947 to December
1993, each with significant achievements and outcomes.5
• In 1995, the GATT was absorbed into the World Trade Organization
(WTO), which extended it.

Why was the GATT replaced by the World Trade

Organization (WTO)?
The GATT, though largely successful in its goal, was said to lack a coherent
institutional structure. In short, it was a legal agreement acting as an
international organization. The World Trade Organization (WTO) incorporates
the principles of the GATT and is better positioned to carry them out because,
among other things, it is better versed in issues like intellectual property, has
a faster dispute settlement system, and wields more power.

World Trade Organization (WTO): Functions, Objectives, Significance (geektonight.com)

Pdf marketing 1 :- page 50-54

New Product Development: Process & Stages - Maze
 UNIT 3
• International Business: Meaning, Reason, Scope, and Benefits - GeeksforGeeks
• International Business: Nature, Characteristics, Features (PDF) (commercemates.com)
• E-Marketing - Meaning, Importance, Types & Example | MBA Skool
11 Cost-Effective E-marketing Types | Indeed.com
What factors affect Digital Marketing? (linkedin.com)
• (PDF) E-MARKETING CHALLENGES AND OPPORTUNITIES | sneha chacko - Academia.edu
• e-PGPathshala (inflibnet.ac.in) media and advertising
e-PGPathshala (inflibnet.ac.in) sales
• What is Public Relations? - Meaning, Definitions, Objectives and Types
(economicsdiscussion.net)
Concept of Public Relations (byjus.com)
6 Problems With Public Relations In Today's World - CommSights
Publicity- Types of publicity in marketing? features & Importance (godigitalinfo.com)
• Advertising Appeal - Meaning, Importance, Types & Example | MBA Skool
• The Principles of Communication – supporting the Microsoft 365 MaturityModel | Microsoft
Learn
• What is Communication Process? definition and meaning - Business Jargons
• International Promotional Strategies (theintactone.com)
International promotion (slideshare.net)
How the Communication Process Works (Example Included) | Indeed.com India
Direct vs. Indirect Distribution: What's the Difference? (investopedia.com)

distribution channel is a network of intermediaries that facilitates

product delivery from the manufacturer to the end consumer and
transfers payments from the buyer to the producer. In other words,
it is the route through which a product travels from the production
end to the point of consumption.
Importance and Role of Distribution Channel (commercemates.com)
Direct vs. Indirect Distribution: What's the Difference? (investopedia.com)
Wto 1105
Dumping – Meaning, Types, Price Determination and Effects of Dumping (yourarticlelibrary.com)

268 pricing