the article I have written is all about the International Marketing. In this article Innovations are made in International Marketing are described. This article is also published by National Conference Magazine named as Innovative Practices in Business Management and Information Technology in New Millennium which ISBN no is 978-93-83587-12-4.

1. INNOVATIONS IN INTERNATIONAL MARKETING
Miss. Sayali V.Ware
MMM-I
Sir. Dr. M. S. Gosavi Institute of Business Studies.
NASHIK-5
• Abstract
Until a few years ago, the international market had been an avenue to absorb the
spillover from extra production. The entrepreneur used to look at export only if he could
spare part of his production after meeting the national domestic demand. With the
economy opening up its doors to international manufacturers and marketers immediately
after foreign exchange crunch of the early 90s, however the scenario changed rapidly.
The liberalized economy also provided Indian consumers internationally acclaimed
brands at competitive prices. Today, international market offer unlimited opportunities
to companies like Infosys, Wipro, Videocon, Ranbaxy, Dr. Reddy’s Labs, Asian Paints
and many others. As a result, these firms now look at international markets to gain
global competitiveness through technological advancement, superior marketing
strategies and continue product and service innovations.
• Objectives
1. To study the international market.
2. To study the Comparison of Domestic Marketing with International Marketing.
3. To study the Challenges Firms Faced In International Marketing.
4. To study the International Marketing Process.
5. To study the types of innovations.
• Introduction

2. There are 192 countries in the world, each offering an independent yet
interdependent market to manufacturers, service providers and knowledge – and skill-
based marketing operators. The domestic markets now face competition not only from
within but even from all remote corners of the world. The multinational and
transnational firms offer tough competition to the domestic industry by setting vey steep
and high standards.
The Indian economy witnessed this when leading multinationals and mega-
billion dollars corporations like Samsung, LG, Panasonic, Whirlpool, Bridgestone and
automobile manufacturers like Hyundai, General Motors, Toyota, Suzuki and Honda
walked into the Indian market and not only created their own space, but also virtually
look over more than 60% share of the market from Indian manufacturers. In the white
goods market, such as color television and refrigerators, multinationals control more
than 90% of the market share today. Goods imported from china have been responsible
for the closures of many small-scale manufacturers in the dry cell battery, kitchenware,
cosmetics and toy industries.
• Concept of International Marketing
It is concerned with the micro aspects of a market and takes the company as a
unit of analysis. The purpose is to find out as to why and how a product succeeds or fails
in a foreign country and how marketing efforts influence the results of international
marketing.
• Definitions of International Marketing
• International Marketing is the performance of business activities that directs the
flow of goods and services to consumers or users in more than one nation.
- Cateora
• It is the performance of business activities designed to plan, price, and promote
&direct the flow of a company’s goods & services to consumers or users in more
than one nation for a profit.
- Cateora
&Graham

3. • International Marketing is the multi-national process of planning and executing
the conception, prices, promotion and distribution of ideal goods and services to
create exchanges that satisfy the individual and organizational objectives.
American Marketing
Association
• The process of planning and conducting transactions across national borders to
create exchanges that satisfy the objectives of individuals and organizations.
• International Marketing can be defined as exchange of goods and services
between different national markets involving buyers and sellers.
• A Comparison of Domestic Marketing with International Marketing
Some of the comparative advantages and disadvantages of both marketing
systems remain similar. The firms undertaking international & domestic marketing
follow the same basic principle of marketing. i.e. they adhere to the rules for selecting
products that are design on the basis of customers’ needs, fix the price band according to
the segment they want to cater to, look for logistics and distribution channels necessary
to reach the end consumer in cost effective ways and, fully, in order to generate
necessary demand, these companies also undertake country- specific promotional efforts
for international marketing. Yet, at times, international marketing poses problems to the
firms at their different levels of operational efficiency such hurdles make international
marketing more challenging than domestic marketing.
• Challenges Firms Faced In International Marketing
• Political & Legal Environment –
The firm doing business with different countries have to follow rules,
regulation, trade laws, taxation laws, and contractual obligation e.g. a number of
countries may follow English law, countries in some other parts of the world
may have their own systems and laws devised. Besides, local administration in

4. each country would prefer controlling the international imports to their country
in order to protect local industry through non tariff and non tariff barriers.
Similarly, political ideologies of the nation may not see eye to eye. But
an international firm’s public relations activities will ensure that it overcomes all
such challenges, when entering into business with such nations. Some of the U.S
expatriate managers are expert in handling such situations, as almost all U.S
based firms face some hostile nation or the others. Yet, they manage their
relationship in such a manner that the U.S multinationals keep growing.
• Cultural Environment –
The cultural environment poses yet another challenge to marketers at the
international level. Differences in the customs and traditions followed by
different communities around the world can lead to situation where
communication with the consumers, users and customers can be misinterpreted.
The variation in semiotics, values, ideas, attitude, beliefs, assumptions and
traditions pose a challenge to the international marketing manager. The manager
must identify similarities and disparities in cultures and take steps for
adaptations in different countries.
• Competitive environment-
Taken in the right spirit, competition can spur an organization to
excellence. At the same time, however, it can be dispiriting if the opponents
indulge in tactics, for instant they may employ strategies to block channels of
distributions, devise prohibitive trading contracts, resort to negative advertising
policies and either suddenly raise prices or lower them. Pepsi and Cock have
often indulged in similar fierce competitive fights.
• Five Steps of the International Marketing Process

5. FIG-STEPS IN INTERNATIONALMARKETING
1) Analysing Marketing Opportunity-
Analyzing international marketing opportunities to identify unfulfilled or
under fulfilled needs that a marketer may satisfy through its products or services.
This analysis can be done through information seeking and analysis or through
market research. A marketer may have a product or service concept developed
first and looks for the needs in the market that can be satisfied by these products
or services. The marketer may also first identify unfulfilled or under fulfilled

6. needs in the market and then develop a suitable product or service offer to satisfy
these identified needs.
2) Selection of Target Market-
Once the marketer has identified the potential opportunities in the first
step now is the time to select the groups of potential international customers
(target markets) to whom to sell the products or services. This step also involves
identifying the potential buyers, demand measurement & forecasting, market
segmentation, market targeting & market positioning. Segmentation involved
identifying groups of potential customers from the total potential market that are
homogeneous on certain aspects of identity and behaviour and are heterogeneous
on the same aspects from others in the target population. This step also requires
the marketers to decide what key benefits in a product or service to offer to the
selected target customers and on what aspects to differentiate from the
competition.
3) Offers to Potential Customers-
Since a firm needs to offer best value to the potential customers to makes
its products and services more profitable compared with competitors, firms have
to adopt appropriate business and marketing strategies. Many activities are to be
undertaken in a firm by many people and in a number of departments to produce
and deliver final products and services to its customers, this requires aligning
and coordinating numerous activities and efforts. At the same time to achieve
best value for the buyer and bet profits for the firms, the firm needs to optimize
all the activities, efforts undertaken and resource utilization. This requires the
firm to adopt a coherent and appropriate logic or strategy to direct and control
the alignment, coordination and optimization of its business and marketing
effort.

7. 4) Developing The International Marketing Mix-
The fourth step in the marketing process is developing the international
marketing mix, product, place, price & promotion. Marketing mix identifies four
key areas for developing a well coordinated marketing strategy. To create a
strong marketing impact a firm needs to develop appropriate programs in these
four key areas and also need to ensure that all these four aspects of a firms
marketing program are well coordinated and in conformity with each other to
give a clear image to the target market of the firm’s brands and its products.
5) Proper Implementation of Marketing Program-
Developing a good marketing program is not good enough for success. A
firm also needs to manage the international marketing effort properly. Quite
often firms fail not because they did not have a viable marketing program, but
that they failed in properly implementing their well designed plans. Firms also
need proper analysis, planning, implementation and control of their marketing
programs.
• Types of Innovations
1) A product innovation is "introducing a good or service that are new or
significantly
Improved in terms of their characteristics or intended uses." These include
significant
Improvements in technical specifications, components and materials, the
embedded software, the user-friendly attitude of other functional characteristics.
Product innovations can use new knowledge or technology, or may be based on

8. new uses or combinations of existing knowledge and technologies. Product term
is used to cover both goods and services.
2) Process innovation is implementing new or significantly improved methods of
production (e.g. new manufacturing processes or technology flows) or a new
method of delivery. This includes significant changes in techniques, equipment
and / or software. The result of process innovation should be significant in terms
of: the production, product quality or reduce production costs and distribution.
3) Marketing innovation is implementing a new marketing method involving
significant changes in product design or packaging, new sales methods, product
placement, product promotion or pricing on the policy. Marketing innovations
are designed to better meet customer needs, pursue new markets or opening a
ninth position of company products on the market, with the objective of
increasing company sales.
4) Organizational innovation is implementing a new way of organizing the
company's
Business practices in employment organization or external company’s relations.
Such an innovation aimed at enhancing business performance by reducing
administrative and transaction costs, improving satisfaction at work (and thus
labour productivity) or reduces supply costs.
In the U.S. many organizational innovations have taken place in
distribution. Examples of organizational innovations include the introduction of
supply chain management, quality management system etc... In a general sense,
the term "organizational innovation" refers to the creation or adoption of new
ideas or behaviours organization through change and innovate the organization's
internal adjustments may be introduced changes in strategy, structure, skills,
Processes, systems or cultural stimulation innovation of organization,
reorganization of the whole organization.

9. Abernathy and Clark (1985) evaluated that in terms of innovation brings
benefits to an organization over its competitors, resulting in four types of
innovations:
a) Architectural Innovation (substance) that recombines certain components of a
product or process so that produces a new "architecture". An example of
architectural innovation can replace steel with plastic in some applications.
b) Niche Business Innovation "which allows creation of new markets using
existing technology.
c) Regular innovation "(current) which are incremental changes, continue to have
Significant cumulative effects on cost and performance products. Continuous
improvement of current innovations taking place in the automotive industry,
computers, etc...
d) Revolutionary innovation (the break) that produces completely new
technologies or products, involving radical changes (rupture) of industries or the
creation of new industries.
• Few Examples of Innovations
• People in Madrid buy Coca-Cola trough sms
Media agency Universal McCann has made an interactive mega poster Coke Zero which
Proved to be very beneficial for the brand. A building under construction was
completely covered with posters imitating a very good coffee machine. Poster was
displayed on a phone number to which to send a message puteu Spanish with the word
"zero." As a reward, they receive a code that could get a free bottle of Coke.
• The Dutch follow their phone to find ATM's
ING Wegwijzer is an application for mobile, which allows users to find the nearest
ATM.

10. For this, the application uses the phone's camera and GPS. The user must choose one of
the camera settings and positioning it as if taking a picture. The application displays the
picture immediately above that which is the fastest way to a nearby ATM.
• Londoners send their content on Facebook in the first MMS phone
Fun Text, a provider of mobile messaging, has developed a function that allows users to
Send MMS content on Facebook. This can send animations, videos and virtual gifts.
• Conclusion
Advantages for companies
• Employees with the necessary know-how and skills to develop holistic solutions
for customers.
• Interdisciplinary insights into business processes.
• Interrelated understanding of product and services marketing and sales and
service execution for global brand management.
• Country-specific marketing, sales and service concepts.
• Competitive advantage through the combination of service, marketing and sales.
• Graduates with relevant practical experience.
• Knowledge transfer from student and research projects.
• Successful tool to improve employee retention/loyalty.
Benefits For Customers
• When products and services conform to International Standards consumers can
have confidence that they are safe, reliable and of good quality.
• For example, ISO's standards on road safety, toy safety and secure medical
packaging are just a selection of those that help make the world a safer place.

11. • International Standards on air, water and soil quality, on emissions of gases and
radiation and environmental aspects of products contribute to efforts to preserve
the environment and the health of citizens.
• References
1. Justin Paul & Ramneek Kappoor (2008) International Marketing, Tata McGraw-
Hill Company Limited.
2. Philip Cateora, Marry C. Gilly & John L. Graham, 14th edition, International
Marketing.
3. Michael R. Czinkota, Illka A. Ronkainen, Hardcover, International Marketing,
South-Western College.