INTERNATIONAL MARKETING MEANING & SCOPE

Martin Joseph MathewsMACFAST

Marketing

The American Marketing Associationdefines marketing as “the performance ofbusiness activities that direct the flow ofgoods and services from producer toconsumer or user.”

International Marketing

International marketing can be defined as"marketing carried on across nationalboundaries”.

It can also be defined as “theperformance of business activities thatdirect the flow of goods and services toconsumers or users in more than in onenation”.

Scope of International Marketing

1. Exports & Imports

- International Trade

- reduce the risk of operating

internationally

- gain adequate experience about the

foreign market

2. Contractual Agreements

- Turn key Operations

- Co-production

- Technical and Managerial know-how

- Licensing Agreements

3. Joint Ventures

- a form of collaborative association for a considerable period of time

4. Wholly Owned Manufacturing

- Factors like trade barriers, cost differences, govt. policies, etc encourage setting up of production facilities in foreign markets

- provides the firm with total control over quality and production

5. Contract Manufacturing

- when a firm enters into a contract with other firm in the foreign country to manufacture and assemble the products and retain product marketing with itself

- low risk, low cost, easy exit

6. Management Contracting

- the supplier brings a package of skills that will provide an integrated service to the client

7. Third Country Location- when there is no commercial transactions between two countries due to various reasons, firm which wants to enter into the market of another nation, will have to operate from a third country

8. Mergers & Acquisitions- it provides access to markets, distribution network, new technology and patent rights- reduces the level of competition for firms which either merge or acquires

9. Strategic Alliances

- strategy refers to „the means to fulfill company‟s objectives‟ .

- it is a business relationship established between two or more companies to cooperate out of mutual need and to share risk in achieving a common objective.

THANK YOU…...