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Discuss the need of entering International or Global markets.

The organisations try to enter international markets because of many reasons. If the domestic market is profitable and the organisation has a good market share, it would not like to take its business abroad. It is a challenge to learn the culture, habits, environment and needs of wants of target market in a different country. The organisation has to reinvest in designing marketing strategies, developing new or modified products for these new customers. But there are major factors that drive organisations to go international –

Market – First reason is lack of growth opportunities in the domestic market. To sustain its growth, an organisation moves to lure customers in more attractive markets. Since the organisation has a vast experience in marketing in domestic market, they rely heavily on the experience and brand value to enter new markets.

Competition – It is because of entry of competitors which can be domestic as well as international that an organisation sees no new customer base in the domestic market. The organisation tries to invest in an international market to maintain its profitability and counter competition. Sometimes the organisation enters into the competitor country. This helps reduce the organisations dependence on one market.

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Discuss International Marketing and Global Marketing.

In International marketing, the product is sold all over the world by making modifications to suit each target market. For example, Knorr soup has different flavours for Asian markets where spices are preferred.

In global marketing, a same product is sold all over the world. For example, an iPod.

Definitions –
International Marketing – International marketing refers to designing and executing marketing strategies for achieving the organisations objectives in an international market or markets.

The definition is same as that of “marketing” except that the efforts are directed towards international markets to achieve the organisations objectives.

Marketing Strategy involves decisions on which markets to target and how to position products as well as the organisation in the minds of the existing as well as potential customers in relation to the competitors.
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What are the entry strategies for entering an international market?

The organisation has broadly these options for entry – Exporting, licencing, joint venture or direct investing.

Exporting can be indirect as well as direct.

In Indirect exporting, the organisation gets into contract with another domestic organisation which takes responsibility for moving products overseas. The different kinds of such organisations are –

Commission agents locate the buyer firms in foreign countries. They negotiate the price and get commission from the foreign clients.

Export management companies (EMC) carry out business transactions in the name of the manufacturer. They receive a commission, salary, etc. for their service.

Export trading companies (ETCs) purchase products for resale in international markets.

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Discuss the major steps or decisions in International Marketing.

The major steps or decisions in International Marketing are –

Major Decisions in International Marketing

1) Deciding on entering International markets –
Major factors that drive organisations to go international are –
Market – First reason in because of no growth opportunities in the domestic market. To sustain its growth, an organisation moves to lure customers in more attractive markets. Since the organisation has a vast experience in marketing in domestic market, they rely heavily on the experience and brand value to enter new markets.

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Discuss the Macro Environmental Bases or variables for International markets.

The environment in which an organisation operates in is divided into Marco and Micro environment. These environmental factors pose a major challenge for marketers in international markets. A comprehensive study and analysis is required on these variables.

Macro environment –
Macro Environment in International markets exists in the form of cultural forces, political forces, economic forces, competitive environment, demography and Geography of the region.

Social and Cultural Environment –the social and cultural values are passed on from generation to generation affects the regions social structure, habits, life-style, customs, traditions, etc. These vary from country to country.

• Extent of religion, collectivist or individualistic, attitude to authority
• Changes in lifestyles, fashions
• Components of the culture and its impact on the strategies.
• Views about the natural environment, others.
• Healthy, home based or social
• Family centered, work driven (e.g. Japanese), solo or couple

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Discuss the Micro environmental bases for International markets.

The Micro environment variables are partially controllable. The management can adjust them to gain maximum advantage.

Micro environment is divided into two parts, the Task Environment and the Internal Environment.
Micro environmental bases for International markets

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Explain the decisions taken on 4P’s for segmenting the international market.

Management decisions on 4P’s for international market –

4P’s for international market

The marketers need to decide at this stage the extent to which changes should be made to the existing 4P’s – Product, Price, Promotion, and Place (distribution) to adapt to the market in the new country. The organisation can implement the same strategy as part of Global Marketing, but there should be some adaptation done to suit he local needs and make profits.

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