1. INTERNATIONAL MARKETING
MANAGEMENT

2. Global Marketing Management
• Global perspective is far more than
understanding of worldwide business and
international career opportunities.
– enable people to understand the links between their
own lives and other part of the world.
– Incremental growth of economic, social, political
which shape life.
– Develop skills, attitudes and values to enable people
working together to bring change for good
– Work for sustained world where resources are shared.
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3. GMM: An Old Debate and a New View
• Standardization Vs adaption
• Globalization Vs Localization
• Internet revolution
• Homogeneous Vs Heterogeneous
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4. Planning for global market
• Considerable factors are
– Company objectives and resources
– International commitment
– Planning process
Adapting the
Preliminary
Marketing MIX Developing Implementation
analysis &
to Target Marketing Plan and Control
Screening
markets
Phases in Planning Process
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5. Alternative Market Entry Strategies
• According to Frank Bradley & Micheal Gannon,
“any injudicious selection of the entry mode
give rise to opportunity costs & in some cases
foil subsequent endeavors in international
market”
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6. Level of commitment
1. Domestic purchasing 9. Contract manufacture
2. Piggy back operations 10.Licensing
3. Export management 11.Strategic alliance
companies 12.Joint venture
4. Trading companies 13.Assembly operations
5. Sales force 14.Company Acquisition
6. Distributors & agents 15.Wholly owned
7. Franchising subsidiary
8. Direct marketing
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7. Factors Affecting the selection of entry
mode
• External factors
– Market size
– Market growth
– Government regulations
– Level of competition
– Physical infrastructure
– Level of risk
• Political
• Economic
• Operational
– Production & Shipping Costs
– Lower cost of Production
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8. • Internal factors
– Company Objectives
– Availability of company resources
– Level of commitment
– International experience
– Flexibility
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9. Steps in Entering Foreign Market
• Country Identification
• Preliminary Screening
• In depth Screening
• Final Selection
• Direct Experience
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10. Foreign Market Entry Strategies
• Exporting • Licensing
• Joint venture • Strategic alliances
• Acquisition • Franchising
• Assembly operations • Management
• Turnkey operations contracts
• Wholly owned • Free Trade Zones
subsidiary • Contract Manufacture
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11. Exporting
• Traditional mode of entering the foreign
market
– The volume of foreign business is not large
enough to justify production in foreign marketing
– Cost of production in the foreign market is high.
– Company may not have permanent interest in the
foreign market and no guarantee of longer
markets
– Licensing or contract manufacturing is not a better
alternative.
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12. • Factors to be considered in exporting
– Government policies
– Marketing factors
– Logical considerations
– Distribution Issues
• Type of Exporting
– Indirect Exporting
– Direct Exporting
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13. Advantages & Disadvantages of
Advantages Indirect Exporting
 Free from botheration
 No need for export firm
 A boon to new entrants
 Economy
 Market information
 Concentration on production
Disadvantages
 Ignorant for export trading
 No scope for product development
 Availability of middle men
 Commission
 No obligation to manufacturer
 No permanency in business.
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14. Direct Exporting
• Functions:
– Direct supervision, including the
development of export policy.
– Selling, advertising, sales promotion,
training and services.
– Credit & terms of payment.
– Financing, exchange, invoicing and bill
collections
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15. Adv & Dis adv
• Advantage:
– Better knowledge of customer’s demand
– Complete control
– Better returns on exports, goodwill
– Appreciation of market conditions
– Permanency
– Supply chain management
– Dedication of staff
• Disadvantage:
– Large financial resources
– Managerial ability
– Increased distribution costs
– Risk
– Miscellaneous limitations
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16. Licensing
• Licensing agreements are most common on the
use of patents, trademarks, copyrights &
unpatented technology.
• Advantage:
– Offers a small business
– Relatively low investment
– Low financial risk
– Less cost MR
– Less investment in R&D
– Escapes from product failures
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17. Disadvantages
• No control over production & marketing
• Licensor can be competitor
• Chances of misunderstanding between two
parties
• Quality control may be difficult to achieve.
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18. Joint Venture
• When company decides to shares its
ownership of specially set up new company
for manufacturing & marketing to explore
opportunity.
• It is always based on 2 or more companies can
contribute complimentary resources or
expertise.
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19. Reasons for joint ventures
• Cost savings
• Expanding customer base
• Access to technology
• Risk sharing
• Entry to emerging Economics & Technical
markets.
• Global competition.
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20. Types of Joint Ventures
• Between two firms in one industry.
• Between two firms across different industries
• Between an Indian firm and foreign company
in India.
• Between an Indian firm and foreign company
in foreign country.
• Between an Indian firm and foreign company
in a third country.
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21. Adv & Dis Adv
• Advantage:
– Large capital flow.
– Joint risk burden
– Different skills set are available.
– Large projects are feasible and possible.
– More direct participation in local markets
– Exert greater control over the JV.
• Disadvantage:
– Potential of conflicts.
– Delay in decision making
– Life cycle of a JV hindered by many causes of collapse.
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22. Strategic Alliances
• It is an agreement between two or more individuals or entities stating that
the involved parties will act in a certain way to order to achieve a common
goal. Strategic alliances usually make sense when the parties involved
have complementary strengths.
• e.g. ‘code share’ where airlines of a similar type sell each other’s tickets.
There is no co-ownership.
– Types
• technology swaps
• R&D exchanges
• distribution relationships
– Driving forces
• insufficient resources
• High R&D costs
• Concentration of firms in mature markets
• Market access
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