DEFINITION OF INTERNATIONAL MARKETING

International marketing is the performance of business activities to

plan,price,promote and direct the flow of a companys goods and services or
users in more than one nation for profit.

MEANING OF INTERNATIONAL MARKETING
International marketing reders to the process of identifying the goods and
services that customers want and then providing them at the right pricae and
place
It involves selling in as many countries as the company wants.

SCOPE OF INTERNATONAL MARKETING
Though international marketing is in essence export marketing, it has a broader
connotation in marketing literature. It also means entry into international
markets by:
a) Opening a branch/subsidiary abroad for processing, packaging, assembly
or even complete manufacturing through direct investments.
b) Negotiating licensing/franchising arrangements whereby foreign
enterprises are ganted the right to use the exporting companys know how
viz. patents, processes or trade marks, with or without financial
investment.
c) Establishing joint ventures in foreign countries for manufacturing and/or
marketing.
d) Offering consultancy services and undertaking turnkey projects abroad.
e) Sub-contracting and countertrade.
f) Importing for export production.
Depending upon the degree of a firms involvement, there may be several
variations of these arrangements.


IMPORTANCE OF INTERNATIONAL MARKETING
SURVIVAL:
It is important for many countries that they need to trade across globe
for their survival. For example, Nestle is forced to depend on foreign markets as
its home country, Switzerland is relatively small in size.
GROWTH OF OVERSEAS:
International marketing has helped firms to achieve worldwide
dominance mainly through forays into overseas market; notwithstanding their
home country market being small. Successful global firms from Netherlands, a
smaller country in Western Europe, have become giants worldwide like Philips
(electronics), Royal Dutch/Shell (petrol).
SALES AND PROFITS:
Foreign markets constitute a large share of the total business of many
firms that have wisely cultivated markets abroad. For example, Coco-Colas
foreign sales account for 80% of its total revenue.
DIVERSIFICATION:
Domestic markets are affected by cyclical factors (i.e., recession) and
seasonal factors which are likely to cause a drop in sales. So foray into overseas
markets may help a firm avoid such a possibility.
Foreign markets iron out fluctuations by providing outlets for excess
production capacity. Cold weather, for instance, may depress soft drink
consumption .Yet, not all countries enter the winter season at the same time.
INFLATION AND PRICE MODERATION:
International marketing influences domestic firms to moderate their
prices. Absence of imported products compels consumers to buy domestic
products at higher prices, resulting in inflation.
STANDARDS OF LIVING:
Trade affords participating nations and citizens higher standards of
living. Without trade, product shortages force people to pay more for less,
denying them the purchasing power to buy more.