INTERNATIONAL MARKETING

ASSESSMENT-1
REFLECTION PAPER
Submitted To:
Dr. Syed Ahmed Wajih
Submitted By:
Supriya
2020-B-13062002A

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1. Differentiate between Domestic and International Marketing.

“The science and art of exploring, creating, and delivering value to satisfy the needs of a target
market at a profit.”
~Philip Kotler

Based on the target market (geographical boundaries), marketing can be categorised as domestic
and international marketing. Domestic marketing refers to the marketing activity taking place
within the domestic boundaries of the country. On the other hand, International Marketing refers to
the marketing activities taking place beyond the domestic boundaries of the country.

The difference between Domestic and International Marketing:-

Point Of Distinction Domestic Marketing International Marketing

Meaning Domestic marketing refers to International Marketing refers

the marketing activities taking to the marketing activities (like
place within the geographical promoton, advertising, selling,
boundaries of the country. and more) taking place beyond
the geographical boundaries of
the country.
Business Operation Functions in only one country. Functioning in multiple countries.
The marketing strategies remains The marketing strategies di er
uniform as the factors like taste from country to country, due to
and preference, political changes in values, political
conditions, societal belief of factors, taste and preference and
target audience is remains same. other factors di er from country
to country. For example, a
Bollywood actor may not
successfully on billboard in the
USA may not attract the
customer that well compare to
India.

Capital Requirements Domestic Marketing doesn’t International Marketing requires a

require a huge capital huge capital requirement due to
requirement. the size of the market.

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 Point Of Distinction Domestic Marketing International Marketing

Use of Technology The technology deployed in The technology in International

domestic marketing is limited. marketing is latest and
specialised as going global opens
the door for new technology and
specialised one.

Environmental Factors Simple and Uniform Complex and varying , legal,

economic , cultural and political
environment di ers from country
to country.

Risk Factor The risk involved is low. The risk involved is high.

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 2. Discuss the scope and challenges involved in Global Marketing.

Scope of Global Marketing:-

• Import: When a company can identify the demand in the domestic market for imported goods
and
services, it may localise the products as per the market's requirements.
• Export: Companies can export finished products to international markets as it provides great
potential for expansion.
• Joint Venture: An international company partnering with a company in the domestic market
ensures easy access to the domestic market. It also provides operational know-how and market
dynamics.
• Fully owned manufacturing: A foreign company can own a fully owned manufacturing unit in a
country. This facility could be used to manufacture and sell products within the country and the
neighbouring countries.
• Contractual Agreements: Companies can grow exponentially by getting into contractual
agreements with partners overseas. As the market expands, their consumer base and profits also
increase.

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 QUESTION:3

Discuss the process of International Marketing.

The following are the steps involved in International Marketing:-

1. Deciding to Internationalise: The decision to engage in international marketing is to assess

the opportunities overseas and the resources of the company and its objectives. This requires
the company to conduct a SWOT analysis and, if favourable, it can venture into the foreign
market.

2. Market Selection: Once the company decides to internationalise, they need to identify the
right market and analyse the marketing environment based on criteria such as Geographical
proximity, market potential, access to the market, and market characteristics.

3. Product Selection: The products must be selected based on certain criteria such as elasticity of
supply, and demand of the products.

4. Selection of Entry Mode: After selecting the product, the company needs to determine the
mode of entry for the foreign market such as Exporting, licensing, Franchising, contract
manufacturing, joint venture, Strategic Alliance, Assembly, Mergers and acquisitions

5. Selection of Marketing Strategy: The company must make marketing mix decisions such as
product, price, distribution and promotion.

6. Selection of Marketing Organisation: This step involves choosing the organisational

structure based on the nature of the business, the size of the business, the product lines and the
characteristics of the foreign market.

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 QUESTION:4

Explain the benefits and characteristics of International Marketing.

CHARACTERISTICS OF INTERNATIONAL MARKETING:-

• High assets and turnover: A company must have large assets and must also have targets so high
that they
make substantial profits.

• Network of branches: Multinational corporations operate through a network of branches which

keep production and marketing operations in different countries.

• Control: The multinational company usually controls the branches and offices across the world
from a central command in the home country.

• Continued Growth: Most multinational corporations grow through mergers and acquisitions.
They also upgrade their processes and products to grow their economic size.

• Invest in technology: Multinational companies make use of capital-intensive technology in their

production processes, and marketing processes for efficiency in operations and better profits and
to achieve competitive advantage.

• Effective Advertising and Marketing: Multinational companies spend huge amounts of money
on marketing and advertising and they will be able to sell various brands and products.

• Quality products: Multinational Corporations use capital-intensive technology to produce great

quality products.

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 BENEFITS OF INTERNATIONAL MARKETING

• Survival: Most MNCs have to trade across the globe for their survival in the case of European
countries as their size is small, and they have to depend on foreign markets.
• Growth of overseas markets: Developing countries are growing into potential markets for
international business. These countries experience considerable economic growth. Therefore the
MNCs cannot ignore the developing markets.
• Sales and Profits: Firms invest in businesses abroad as foreign markets constitute a large share
of the total business. Overseas sales constitute a major share of the total revenues of many firms.
• Diversification: Demand for products and services in the domestic market is affected by cyclical
factors and seasonal factors. These factors can have an impact on sales and therefore investing in
overseas markets helps firms to avoid such a possibility. Business cycles also can cause similar
impacts.
• Inflation and Price Moderation: Global Marketing helps in controlling inflation and price
moderation.
• Standard of living: Product shortages often force people to pay more for less, denying them the
purchasing
• Power: Trade affords nations and their citizens higher standards of living.
• Intensive global competition for domestic companies: Increased competition in the market
forces the domestic players to either enhance their own products to meet the standards or perish.
The intensive competition in the market is good for the consumers.

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