MBA book international marketing management

International Marketing Management

MBA Second Year
(International Business)

School of Distance Education

Bharathiar University, Coimbatore - 641 046


Author: P K Vasudeva
Copyright © 2008, Bharathiar University
All Rights Reserved
Produced and Printed
by
EXCEL BOOKS PRIVATE LIMITED
A-45, Naraina, Phase-I,
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for
SCHOOL OF DISTANCE EDUCATION
Bharathiar University
Coimbatore-641046


CONTENTS

Page No.
UNIT I
Lesson 1

Introduction to International Marketing Management

Lesson 2

Barriers in International Marketing Management

7
27

UNIT II
Lesson 3

Customer Value and Satisfaction

53

Lesson 4

Implementing Total Quality Marketing

66

Lesson 5

Competitive Marketing Strategies

76
UNIT III

Lesson 6

Introduction to Marketing Mix

91

Lesson 7

Product Mix Planning

100

Lesson 8

Pricing Strategies

122

Lesson 9

Promotional Strategy

140

Lesson 10

International Distribution and Distribution Strategy

169

UNIT IV
Lesson 11

Introduction to Globalization

187

Lesson 12

Global Competitiveness

199
UNIT V

Lesson 13

Information Technology and International Business

211

Lesson 14

Future of International Business

223

Model Question Paper

237


INTERNATIONAL MARKETING MANAGEMENT

SYLLABUS

UNIT I
International marketing management - National & International marketing - Barriers in
International Marketing Management - 5 P`s in International Marketing.
UNIT II
Managing Marketing-Defining Customer Value and Satisfaction-Retaining customer value
and Satisfaction - Implementing Total quality marketing-Competitive Marketing strategies.
UNIT III
Marketing Mix - Product Mix - Product strategies and product planning-Branding and
Packaging Decisions-Pricing strategies-Promotional Strategies. Distribution - Distribution
strategies.
UNIT IV
Globalization and Global Competitiveness: Meaning - stages - Foreign market entry
strategies - Pros and Cons of Globalization - Social Issues - Indicators of competitiveness
- Competitive Advantage of Nations - Technology and Global competitiveness.
UNIT V
Information Technology: New Information Technologies - Business Process Reengineering (BPR) - E-Business; Future of International Business.


UNIT I


LESSON

1
INTRODUCTION TO INTERNATIONAL
MARKETING MANAGEMENT
CONTENTS

1.0 Aims and Objectives
1.1 Introduction
1.1.1 Scope
1.1.2 National and International Marketing
1.2 Benefits of International Marketing
1.2.1 Endurance
1.2.2 Progress of Overseas Markets
1.2.3 Sales Promotion
1.2.4 Diversification
1.2.5 Inflation and Wholesale Price Index
1.2.6 Employment and Placements
1.2.7 Standard of Living/Style
1.2.8 Marketing Process
1.3 Transnational Corporations
1.4 Global Marketing
1.5 Global Segment
1.6 International Management Orientations
1.6.1 Ethnocentric
1.6.2 Polycentric
1.6.3 Regiocentric and Geocentric Orientations
1.7 5 Ps of International Marketing
1.7.1 Product
1.7.2 Price
1.7.3 Placement
1.7.4 Promotion
1.7.5 People
1.8 Let us Sum up
1.9 Lesson End Activity
1.10 Keywords
1.11 Questions for Discussion

1.12 Suggested Readings


8
International
Marketing Management

1.0 AIMS AND OBJECTIVES
After studying this lesson, you will be able to:
Define International Marketing
Distinguish between international and domestic marketing
Describe various marketing orientations in the context of international marketing

1.1 INTRODUCTION
The study of international marketing will not be complete unless we have an understanding
of what marketing is and how it operates in an international context. There have been
large numbers of definitions of marketing which are currently in use. But most of these
definitions are convergent because all of them define marketing in almost the same way.
Hence, any definition of marketing should be acceptable as long as it captures the essential
idea and as long as the strength and the weaknesses of the definition are acknowledged.
Marketing can be conceived as an integral part of two processes, viz., technical and
social. So far as the technical process is concerned, domestic and international marketing
are identical. The technical process includes non-human factors such as produce, price,
cost, brand, etc. The basic principles regarding these variables are of universal applicability.
But the social aspect of marketing is unique in any given stratum, because it involves
human elements, namely, the behaviour pattern of consumers and the given characteristics
of human society such as customs, attitudes, values, etc. It is obvious from this that
marketing, as a social process, will be different in varying environments and international
marketing, to the extent that it is visualised as a social process, will be different from
domestic marketing.

According to Phillip Kotler, marketing is “analysing, organising, planning and controlling
of the firm’s customers – impinging resources, policies, activities with a view to satisfying
the needs and wants of a chosen customer group at a profit”. Thus, it differs from
trading which includes the activities of merchandising (buying and selling), physical
distribution (transportation and warehousing) and facilitation (financing, risk bearing,
standardisation, pricing, advertising and sales promotion and marketing research). In
other words, marketing is an act or operation or service by which the original product
and final consumer are linked together. In between these two points — producer and
consumer — every activity facilitating the movement of goods and services, including
market and market research, may be covered under this term.
We are more concerned here with international marketing, which means marketing activity
carried on across national boundaries. Thus, international marketing includes activities
that direct the flow of goods from one country to the users of another country. A definition
adopted by the American Marketing Association (AMA) is more appropriate to define
international marketing. According to AMA, ‘international marketing is the multinational
process of planning and executing the conception, pricing, promotion and distribution of
ideal goods and services to create exchanges that satisfy individual and organisational
objectives’. In this definition, the word multinational has been added to the definition of
marketing given by other experts. This word implies that marketing activities are undertaken
in several countries and that such activities should somehow be coordinated across the
nations.
This definition is not completely free of limitations. By placing individual objectives at
one end of the definition and organisational objectives at the other, the definition stresses
a relationship between a consumer and an organisation. It excludes industrial marketing,


which involves a transaction between two organisations. In the world of international
marketing, governments, quasi-government agencies and profit seeking and non-profit
entities are frequently buyers. Companies such as Boeing, BHEL and Hindustan Earth
Movers, for example, have nothing to do with consumer products. The definition thus

fails to do justice to the significance of industrial purchases.
The definition of international marketing has various connotations. Firstly, it makes it
clear that what is to be exchanged is not restricted to tangible products but can include
concepts and services as well. When the United Nations promotes such concepts as
birth control and breast-feeding, this should be viewed as international marketing.
Figure 1.1 shows an international effort to fight AIDS. Likewise services or intangible
products are just as relevant to the definition as airline flights, financial services, advertising
services, management consulting services, marketing research and so on as they play a
very significant role in affecting trade balance.
Safe Sex

World AIDS Day, Birth
Control, Breast-feeding,
No-smoking, etc.

Concepts and Services

Figure 1.1: Safe Sex Concept and Services

Secondly, the definition removes the implication that international marketing applies only
to market or business transactions. International non-profit marketing, which has received
only scant attention, should not be overlooked. The marketing of governments and religions
underscores this point. The governments are very active in marketing in order to attract
foreign investments. The US is using a variety of local and international media (including
CNN International and BBC World Television Network) to announce the arrival of
newly designed $100 bills which would not involve any devaluation and that there would
never be any recall of the old bills.
Religion is also a big business, though most people prefer not to view it that way. Religion
has been marketed internationally for centuries. Tercentenary of the birth of Khalsa
(300 years of Sikh religion) was celebrated at Anandpur Sahib in 1999 where a large

number of NRIs and foreigners contributed to its success. The religious messages were
flashed on the Internet all over the world.
Thirdly, the definition recognises that it is improper for a firm to create a product first and
then look for a place to sell it. Actually the needs and the wants of the consumers should
first be ascertained through market research and then the new product should be produced
accordingly. Suzuki-Maruti has understood the needs of the Indian consumers for a
small car; hence it has become the leader in the car industry though other car manufacturers
are also following a similar international marketing strategy.
Fourthly, the definition acknowledges that “place” (distribution) is just part of the marketing
mix and that the distance between the markets makes it neither more nor less important
than the other parts of the mix. Thus, it is improper for any firm to regard their international
function as simply as export available products from one country to another.

9
Introduction to International
Marketing Management


10
International
Marketing Management

Finally, the “multinational process” implies that the international marketing process is not
a mere repetition of using identical strategies abroad. The 4 Ps of marketing (product,
place, promotion and price) must be integrated and coordinated across countries in order
to bring about the most effective marketing mix. In some cases, the mix may have to be
adjusted for a particular market for a better impact. For example, Coca Cola and Pepsi
Cola Inc. have created new slogans for marketing in India and new chips that differ both
in taste and texture from their American version. The Whirlpool Corporation has been
able to use more standardised models of washing machines and refrigerators to break

down national traditions.

1.1.1 Scope
The foundation for a successful international marketing programme is a sound
understanding of the marketing discipline. Marketing is the process of focusing the
resources and objectives of an organisation on environmental needs and opportunities.
The first and the most fundamental fact about marketing is that it is a universal discipline.
The marketing discipline is equally applicable from China to India, United States to Japan
and Australia to Zanzibar. Marketing is a set of concepts, tools, theories, practices and
procedures and experience.
Although the marketing discipline is universal markets and customers are quite
differentiative. This means that marketing practices must vary from country to country.
Each person is unique and each country is unique. This reality of differences means that
we cannot always directly apply experience from one country to another. If the customers,
competitors, channels of distribution and available media are different, it may be necessary
to change our marketing plan.
The scope of international marketing is to have a borderless world like the multinational
companies — Coca Cola, Pepsi, MacDonald, Gillette and so on. Their products and
body marketing mix elements are both international and local in nature. A central issue in
international marketing is how to tailor the international marketing concept to fit a particular
product or business.

1.1.2 National and International Marketing
The striking difference between international and domestic marketing lies in the
environment in which the two take place. The important points of difference between
the two are:
1.

Sovereign Political Entities: Each country is a sovereign political entity and,
therefore, they impose several restrictions for import and export of goods and

services in order to safeguard their national interests. The traders, in international
marketing, have to observe such restrictions. These restrictions may fall in any of
the following categories.
i.

Tariffs and customs duties are imposed on import and export of goods and
services in order to make them costly in the importing country and not to ban
their entry into the country completely. In the post-war period, because of the
efforts of General Agreement on Tariffs and Trade (GATT), there has been
a significant reduction in tariffs globally and on a regional basis due to the
emergence of regional economic groupings.

ii.

Quantitative restrictions are also imposed with an intention to restrict trade in
some specific commodities. The major objective behind the restriction is the
protection of home industries from competition with foreign commodities.


iii.

Exchange control is another restriction imposed by almost every sovereign
state. The government, in some cases, does not ban the entry of goods in the
country but the importer is not allowed the necessary foreign exchange to
make payment for goods imported. But, in some cases, exchange control and
quantitative controls are put together along with the grant of import licence.

iv.

Imposition of more local taxes on imported goods with an object to make the

imported goods costly is one of the restrictions in international marketing.

2.

Different Legal System: Different countries operate under different legal systems
and they all differ from each other. Most countries follow the English Common
Law as modified from time to time. Japan and Latin American countries are important
exceptions to this rule. The existence of different legal systems makes the task of
businessmen more difficult as they are not sure as to which particular system will
apply to their transactions. This difficulty does not arise in domestic trade, as laws
are the same for the whole country.

3.

Different Monetary Systems: Each country has its own monetary system and the
exchange rates for each country’s currency are fixed under the rules framed by
the International Monetary Fund (IMF) and, therefore, they are more or less fixed.
However, in recent years, the exchange rates have been fluctuating and are being
determined by demand and supply forces. Some countries operate multiple rates
i.e. different rates are applicable to different transactions.

4.

Lower Mobility of Factors of Production: Mobility of different factors of
production is less between nations than in the country itself. However, with the
advent of air transport, the mobility of labour has increased manifold. Similarly, the
development of international banking has increased the mobility of capital and labour.
In spite of these developments, the mobility of labour and capital is not as much as
it is within the country itself.

5.

Differences in Market Characteristics: Market characteristics in each segment
are different, i.e. demand pattern, channels of distribution, methods of promotion,
etc. are quite different from market to market. If we treat each country as a
separate market, we can assume different market characteristics there. These
differences are accentuated due to the existence of government controls and
regulations. However, this is a difference of degree only. Even in one single country,
for example India and America, these differences in market patterns may be found
from state to state.

6.

Differences in Procedure and Documentation: The laws of countries and customs
of trade in each country demand different procedures and documentary requirements
for the import and export of the goods and services. Traders residing in the territory
have to comply with these regulations and customs if they want to import and
export goods and services.
As there are differences in legal and monetary systems, in government regulations
and controls, in market characteristics, in mobility of factors of production and in
procedures, practices and documentation in foreign trade, the two marketing systems
– international and domestic – are quite different. As each country has to protect
its own interests – political, financial and social – it has to put certain restrictions on
foreign trade. Restrictions are also there in domestic marketing, but the procedures,
systems and the rules and regulations are applicable equally in all parts of the
country and these are well known to the traders concerned.

11
Introduction to International
Marketing Management

12
International
Marketing Management

1.2 BENEFITS OF INTERNATIONAL MARKETING
The importance of international marketing is neither understood nor appreciated by
consumers though they are carrying out international marketing daily. Government officials,
especially bureaucrats, seem to always point a negative aspect of international business.
Many of their charges on international marketing are imaginary than real. Hence, it is
essential that the benefits of international marketing be explicitly discussed. These benefits
are:
i.

Endurance

ii.

Progress of overseas markets

iii.

Sales promotion

iv.

Diversification

v.

Inflation and wholesale price index

vi.

Employment and placement

vii.

Standard of living/style

viii. Understanding marketing process.

1.2.1 Endurance
Every country is not as fortunate as America in terms of infrastructure, size, resources
and opportunities. Hence, they must trade with other countries to survive. Similarly,
every country is not as fortunate as India, which has abundant natural resources and a
treasure of bio-diversity that it can survive within its resources even if there is a resource
crunch. Even then it has to carry out trading with other countries to get oil and armaments
for its own survival. Hong-Kong cannot survive without food and water from China.
The countries of Europe have had similar experience since most European nations are
relatively small in size. Without a foreign market, European firms would not have sufficient
economies of scale to allow them to be competitive with US firms. Switzerland lacks
natural resources, forcing it to depend on trade and adopt the geocentric perspective.
Similarly, Japanese firms are dependent on raw material from other countries but they
have better technical know-how as a result of which they are the world leaders in
electronics and software industry.

1.2.2 Progress of Overseas Markets
Developing countries, in spite of a poor economy with serious marketing problems, are

excellent markets. The US has found that India is the biggest market in the world for
consumer and engineering products. According to a report prepared by the US Trade
Representative US Congress, Latin America and Asia are experiencing the worst
economic recession though they have potential in the world market.
The Conference Board’s study of some 1500 companies found that US manufacturers,
with factories or sales subsidiaries overseas, outperformed their counterparts during
1980s in terms of growth in 19 out of 20 major industrial groups and higher earnings in 17
out of 20 groups. American market cannot ignore the vast potential of the international
market. The world market is four times larger than US market. In the case of Amway
Corporation, a privately held US manufacturer of cosmetics, soaps, and vitamins, Japan
represents a larger market than the US.


1.2.3 Sales Promotion
Foreign markets constitute a large share of total business of many firms that have cultivated
markets abroad. Many large US companies have done very well because of their overseas
customers. IBM and Compaq sell more computers abroad than at home. The case of
Coca-Cola clearly emphasises the importance of overseas markets (Box 1.1). Coca
Cola is coming up with milk-based products as majority of Indians and Asians do not
relish the taste of aerated drinks which are supposed to have caffeine which is addictive.

1.2.4 Diversification
In the international market, cyclical factors such as recession and seasonal factors such
as climate affect the demand for most products. Due to these variables, there are sales
fluctuations, which frequently be substantial enough to cause lay-off of personnel. One
way of diversifying a company’s risk is to consider foreign markets as a solution for
variable demands. For example, cold weather may depress demand for cold drink
consumption. All countries do not enter the winter season at the same time and some of
the countries are warm round the year. Refer Box 1.1 and 1.2.
Box 1.1: Coke Coming up With Milk-based Drink

The fragmented, but high potential, packaged flavoured milk market, which has names such
as Amul, Nestle and Britannia vying for the consumer’s attention, will witness a big-ticket
entry shortly. In line with its intended ‘beverage revolution’, soft drink major, Coca-Cola,
India (CCI), is mulling the introduction of flavoured, milk-based beverages.
“A milk-based product is in the offing. We are currently exploring the viability of introducing
such a product in the domestic market,” a Coke official said.
The development assumes importance in the domestic market, considering that only last
week, Coke’s Atlanta headquartered parent company had announced its decision to
introduce a dairy drink called Swerve in the US this season, to boost its share of the
nutritional beverage market.
The company had been testing the chocolate-flavoured dairy drink, Choglit, through an
existing joint venture with Swiss food giant, Nestle SA, as well as another dairy drink called
Slap. Swerve will replace both products in the US.
Globally, Coca-Cola also sells the Planet Java line of bottled coffee drinks, which contain
dairy products.
The past few months have been witnessing heightened activity in the flavoured milk market.
Late last year, foods major, Nestle, had staged an entry in this market with its Fruit’s milk
brand, in 200 ml tetrapaks, manufactured by Dynamix Dairy.
This market saw another major development early this year, with Gujarat Cooperative Milk
Marketing Federation (GCMMF) rolling out Amul Shakti, its flavoured milk brand, in
disposable bottles.
Amul Shakti had been under development for over six years, and GCMMF has begun its
flavoured milk project with an installed capacity of three lakh bottles per day.
Explaining the high interest in the category, Mr RS Sodhi, General Manager, Marketing,
GCMMF, said, “Research studies show that there is a steady consumer movement towards
healthy beverages such as milk and juices. Naturally, corporates are looking at tapping the
opportunity the segment presents.”
While other significant players in this market include Britannia, Mother Dairy and Parle
Agro’s N-joi, smaller, regional level players include Vijaya and Energee.
The Delhi based Paras group, too, has been working on a flavoured milk project. The milkbased drink market is put as Rs 100 crore.

Another beverage Coca-Cola is considering bringing into India next year is its global juice
brand Minute Maid. Ethnic beverages such as ‘nimbu pani’ and tender coconut water, too,
are in the offing. Meanwhile, Coke’s energy drink, Shock, continues to be a small brand.
Source: The Hindu Business Line, dated: May 29, 2003.

13
Introduction to International
Marketing Management


14
International
Marketing Management

Box 1.2: Cola Drinks on the Move
With net profitability and a 40 per cent surge in volumes under its belt, Coca-Cola India
(CCI) is now undertaking its fastest capacity expansion yet in the domestic market.
The soft drink major is in the process of setting into operation 30 new lines for its Carbonated
Soft Drink (CSD) business. Mr Sanjiv Gupta, the company’s deputy division president, said
that the capacity expansion was being done for both glass and PET bottles. “Of the 30 new
lines, six are new plants in Tamil Nadu, Andhra Pradesh and Karnataka, while 27 lines have
been added in existing plants,” he said. These are a combination of company-owned and
franchisee-owned operations.
A significant portion of the $100 million investment allocated for the current year has been
ploughed into this capacity expansion exercise, Mr Gupta said.
The company’s rural penetration has increased by 40,000 villages this year, and nine million
cases of glass bottles have been added in the first five months of the year, he added. While
CCI’s 200-ml bottles, priced at Rs 5, continue to be the mainstay of the season, the company
will continue with its variable pricing strategy (between Rs 7 and 8) for its 300 ml bottles.
While the month of April saw the soft drinks industry hit by the transporters strike, the

current month has seen recovery. “The highlights of the year so far have been lower fixed
asset costs, price compliance, costs efficiencies and packaging innovation. Till one-year
back, CSDs was a highly seasonal market with over 45 per cent volumes being generated
from the peak season, which lasted about three months. The industry dynamics are changing
now.”
A global market can balance good markets with bad ones. While there is no question that
the US cola market is the biggest in the world, it is a highly mature market, and the profit
potential is limited. Cola has shrunk from 63.3 per cent of soft drink sales in the United
States in 1984 to 58.8 per cent in 1993 – a loss of $2.4 billion in potential retail sales.
The United States leads the world in Cola-Cola consumption, averaging 296 eight-ounce
servings per person per year. The comparable figures for other markets are Mexico (275
servings), Germany (189), Canada (169), Japan (124), Great Britain (89), France (56), Egypt
(18), Russia (2) and China (1). In the case of India’s 890 million people, each person only
consumes an average of three servings in a year, well below the levels found in Pakistan (9)
and Thailand (75).
In addition to being the world’s most populous nations, China and India are two of the
world’s fastest growing economies, and Japanese, European and American firms are all
quite excited about doing business with and in China and India. Undoubtedly, China and
India have plenty of room to grow as a market. If the Chinese and Indians can be persuaded
to drink just one more serving per person a year, Coca-Cola and Pepsi can derive additional
sales of more than two billion cans.
Coca-Cola has been particularly aggressive in East Europe, Asia and South America. It has
opened plants in Romania, Norway, Fiji and India while planning several more in China,
Hungary, Lithuania, Russia and Thailand. When the Soviet Union collapsed, Pepsi Co held
on to its network of state-run bottlers so as to utilize their ties to old-line management.
Coca-Cola, on the other hand, quickly got rid of the government link and spent more than
$ 1.5 billion in former East bloc countries to build a new business from scratch. As a result,
Pepsi’s lead due to its early distribution deals evaporated. Coke now leads in market share
in every Eastern European country. In addition it also has a wide lead in Latin America.
Source: “Pepsi Fights for India’s Beverage Business”, The Wall Street Journal, 3 June 1994; “In Business This

Week,” Business Week, 27 July, 1992, 40; “Coke Makes China Foray with Accelerated Fizz Sales”, Bangkok
Post, 16 November 1993; “Behemoth On a Tear,” Business Week, 3 October 1994, 54-55; “Adding Some Fizz,”
The Wall Street Journal, 22 August 1995; and “Companies That Live Alone—and Like it”, Business Week,
30 October 1995, 136,138.


1.2.5 Inflation and Wholesale Price Index
The best way to control inflation is to earn foreign exchange through exports. Imports
can also be highly beneficial to a country because they constitute reserve capacity of the
local economy. Without imports, there is no incentive for domestic firms to moderate
their prices. The lack of imported product alternatives forces consumers to pay more,
resulting in inflation and excessive profits for local firms. This development usually acts
as a prelude to workers to demand higher wages, further exacerbating the problem of
inflation. Import quotas imposed on Japanese automobiles in 1980s saved 46,200 US
production jobs but at a cost of $ 160 thousand per job per year. This huge cost was a
result of the addition of $ 400 to the prices of US cars and $1000 to the prices of
Japanese imports. This windfall for Detroit resulted in record high profits for US
automobiles.

1.2.6 Employment and Placements
Tariff barriers and trade restrictions in certain countries had contributed significantly to
the great depression of 1930 and have the potential to cause widespread unemployment
again. Unrestricted trade, on the other hand, improves the world’s GNP and enhances
employment generally for all nations. With the liberalisation of economic policy, 1991,
India has gained tremendously with the inflow of foreign direct investment as a result of
which employment in the country has tremendously improved.

1.2.7 Standard of Living/Style
Trade affords countries and their citizen’s a higher standard of living than is otherwise
possible. Without trade, product shortages force people to pay more for less. Products

taken for granted such as coffee and bananas may become unavailable overnight. Life
in most of the countries will be more difficult were it not for the many strategic metals
that must be imported. Trade also makes it easier for industries to specialise and gain
access to raw materials, while at the same time fostering competition and efficiency.

1.2.8 Marketing Process
International marketing should be considered a special case of domestic marketing. It
has earlier been explained that there is very little difference between domestic and
international marketing. Only thing is that the word multinational has been added in the
international marketing process. Otherwise, the marketing mix is the same for both.
With improvements in information technology, the international markets have become
easily accessible and the whole world has become a small global village.
Transnational Corporations (TNCs) are incorporated or unincorporated enterprises
comprising parent enterprises and their foreign affiliates. A parent enterprise is defined
as an enterprise that controls assets of other entities in countries other than its home
country, usually by owing a certain equity capital stake. An equity capital stake of 10%
or more of the ordinary shares or voting power for an incorporated enterprise, or its
equivalent for an unincorporated enterprise, is normally considered as the threshold for
the control of assets. A foreign affiliate is an incorporated or unincorporated enterprise
in which an investor, who is a resident in another economy, owns a stake that permits a
lasting interest in the management of that enterprise (an equity stake of 10% for an
incorporated enterprise, or its equivalent for an unincorporated enterprise). In WIR,
subsidiary enterprises, associate enterprises and branches - defined below - are all referred
to as foreign affiliate or affiliates.
A subsidiary is an incorporated enterprise in the host country in which another
entity directly owns more than a half of the shareholder's voting power, and has the
right to appoint or remove a majority of the members of the administrative,
management or supervisory body.

15

Introduction to International
Marketing Management


An associate is an incorporated enterprise in the host country in which an investor
owns a total of at least 10%, but not more than half, of the shareholders' voting
power.

16
International
Marketing Management

A branch is a wholly or jointly owned unincorporated enterprise in the host country
which is one of the following: (i) a permanent establishment or office of the foreign
investor; (ii) an unincorporated partnership or joint venture between the foreign
direct investor and one or more third parties; (iii) land, structures (except structures
owned by government entities), and/or immovable equipment and objects directly
owned by a foreign resident; or (iv) mobile equipment (such as ships, aircraft, gas
or oil-drilling rigs) operating within a country, other than that of the foreign investor,
for at least one year.
Check Your Progress 1
Fill in the Blanks:
1.

The striking difference between the international and domestic marketing lies
in the ....................... in which the two take place.

2.

Developing countries, in spite of a poor economy with serious marketing

problems are ....................... .

3.

In the international market the cyclical factors such as recession and seasonal
factors such as climate ....................... the demand for most products.

4.

International marketing should be considered as a special case of
....................... market.

1.3 TRANSNATIONAL CORPORATIONS
The largest national market in the world, the United States, today represents roughly 25
per cent of the total world market for all products and services. Thus, US companies,
wishing to achieve maximum growth potential, must “go global” because 75 per cent of
world market potential is outside their home country. Coca-Cola is one American-based
company that understands this; 82 per cent of its 1995 operating income and 71 per cent
of revenues were generated by its soft drink business outside the United States. Non US
companies have an even greater motivation to seek market opportunities beyond their
own borders; their opportunities include the 260 million people in the United States. For
example, even though the dollar value of the home market for Japanese companies is the
second largest in the free world (after the United States), the market outside Japan is 85
per cent of the world potential for Japanese companies. For European countries, the
picture is even more dramatic. Even though Germany is the largest single country market
in Europe, 94 per cent of the world market potential for German companies is outside of
Germany.
Many companies have recognised the importance of conducting business activities outside
the home country. Industries that were strictly national in scope only a few years ago are
dominated today by a handful of global companies. The rise of the global corporation

closely parallels the rise of the national corporation, which emerged from the local and
regional corporation in the 1880s and the 1890s. In the first quarter of the 20th century,
there were thousands of auto companies in the world, and more than 500 in the United
States alone. Today, fewer than 20 companies remain worldwide, and only two of them
are American. In most industries, the companies that will survive and prosper in the next
century will be global enterprises. Some companies that do not respond to the challenges
and opportunities of globalisation will be absorbed by more dynamic enterprises; others
will simply disappear.


This fact is illustrated by the stunning announcement of a merger between DaimlerBenz and Chrysler in 1998. This $36 billion dollar deal, the largest industrial takeover in
history as of May 1998, underlined the importance of scale and size and scope in the
global auto industry. The combined companies moved from 6th and 15th in the world to
a combined 5th place ranking after GM, Ford, Toyota and Volkswagen. When you look
at the list of companies in Table 1.1, you can see that the pressure for further combinations
and mergers in this industry will build. As Thomas Middelhoff, the newly appointed
chairman of Bertelsmann AG; said recently, “There are no German and American
companies. There are only successful and unsuccessful companies.”
Table 1.1 shows 25 of The Wall Street Journal’s top 100 company rankings in terms of
market capitalisation — that is, the market value of all shares of stock outstanding.
Website fortune.com provides a different perspective. The top 25 of Fortune magazine’s
1997 ranking of the 500 largest services and manufacturing companies by revenues.
Comparing the two tables, it is striking to note that although General Electric has the
highest market value, it is ranked 12th in revenues and 3rd in profits. One company that
makes a strong showing in both rankings is Nippon Telegraph & Telephone (NTT): it is
4th in market capitalisation and 14th in revenues, but 100th in profits. Table 1.1 also
highlights some of the problems Japanese companies have experienced in the mid-1990s.
Japan’s Nissan Motor, for example, ranks stemmed in part from the Yen’s strength
compared to currencies of major trading partners such as the United States.
Table 1.1: Total Vehicle Sales Worldwide

1997 Sales (Millions)
6.8

1997 Market Share
16.2%

Ford

6.9

12.0

Toyota

4.8

9.0

General Motors

Volkswagen

4.6

7.9

Chrysler/Daimler-Benz

4.0

7.4

Fiat

2.9

5.3

Chrysler

2.9

5.3

Nissan

2.8

5.2

Peugeot Citrogen

2.1

3.9

Honda

2.0

3.8

Mitsubishi

1.9

3.6

Renault

1.9

3.5

Suzuki

1.8

3.4

Hyundai

1.2

2.3

BMW

1.2

2.2

Daimler-Benz

1.1

2.1

Source: “Atomotive News,” The New York Times, 7 May 1998, P.D.-5

1.4 GLOBAL MARKETING
Companies sometimes assume that what works in their home country will work in another
country. They take the same product, same advertising campaign, even the same brand
names and packaging, and with virtually no chance to try to market it the same way in
another country.
The result in many cases is failure. Why? Well, the assumption that one approach works
everywhere fails to consider differences that exist between countries and cultures. While
many companies who sell internationally are successful following a standardized marketing
strategy it is a mistake to assume this approach will work without sufficient research
that addresses this question.

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18
International
Marketing Management

Possibly the most challenging concept in marketing deals with understanding why buyers
do what they do (or don't do). But such knowledge is critical for marketers since having
a strong understanding of buyer behaviour will help shed light on what is important to the
customer and also suggest the important influences on customer decision-making. Using
this information, marketers can create marketing programs that they believe will be of
interest to customers.

1.5 GLOBAL SEGMENT
The global segment includes relevant new global markets and existing ones that are
changing, important international political events, and critical cultural and institutional
characteristics of relevant global markets. Although the previous segments should be
analyzed in terms of their domestic and global implications, some additional specific
global factors should be analyzed as well.
Firms must also attempt to identify critical new global markets and/or those that are
changing. It is clear that many global markets are fast becoming borderless and integrated.
For example, firms may examine emerging markets such as those in South American
countries or markets in newly industrialized countries such as in Asia (e.g., South Korea,
Taiwan) for new opportunities. They should also be cognizant of the potential threats
from these countries.
Newly industrialized countries, such as South Korea, have significant buying power but
also have globally competitive firms. Based on significance support and economic planning
from the government, the predominant goal of major South Korean firms is growth.
Thus, many South Korean firms place less emphasis on earning net profits and more on
attaining major growth goals through their strategic actions. An example of this is shown
by Samsung's new venture into passenger-car production, partially because of executives'
concerns at being ranked number two in size to Hyundai.
Although Samsung is predicted to invest approximately upto $150 million in the development
of a 100 seat jetliner, $3 billion to build semiconductor manufacturing plants in North
America, Europe, and Southeast Asia, and $2 to $3 billion to establish a hypermedia city
of offices, shops, entertainment centers, and housing in downtown Seoul by 2000. Recently,

Samsung invested approximately $9.92 billion in expansion opportunities.
Firms must also have a reasonable understanding of the different cultural and institutional
attributes of global markets in which they operate or hope to operate. For example, a
firms operating in South Korea must understand the value placed on hierarchical order,
formality, self-control, and on duty rather than rights.
Furthermore, Korean ideology places emphasis on communitarians, a characteristic if
many Asian country, Korea approach differs from that of Japan and China with its focus
on Inhwa or harmony.
Inhwa is based on a respect of hierarchical relationships and obedience to authority.
Alternatively, the approach in China is focussed on Guanxi or personal relationships and
in Japan on Wa or group harmony and social cohesion. The institutional context of Korea
suggests a major emphasis on centralized planning by the government. The emphasis
placed on growth by many South Korean firms is the result of a government policy to
promote economic growth in South Korea.
The cultural and institutional contexts in which firms must operate in global markets can
be critical. For example, in India there is a current nationalist campaign led to the recent
closing of a statement was the KFC outlet was closed for health reasons after an
inspection, executives of several U.S. food companies blamed political posturing related
to an upcoming election.


Also, those who oppose KFC’s opening are often those who lobby against meat eating.
KFC was one of the first major fast food giants to open a facility in India. Furthermore,
it has been quite successful in Asia with more than 2,200 restaurants operating in that
region of the world. Still, even a firm that has been as successful as KFC must carefully
and thoroughly analyze the institutional and cultural environments of its global markets.
The takeover of Hong Kong, China offers potential opportunities but also threats to a
number of firms with domestic headquarters outside its borders. Even more so with
Hong Kong now a part of China, its growing economic prowess makes its firms potentially
significant competitors, particularly in labour-intensive industries. As a result, firms

operating in such industries worldwide must view the development of Chinese
entrepreneurial operations as an environmental threat.
P&G owes its success to being an early mover in China, and its aggressiveness has paid
dividends. It has been successful even though its prices are sometimes 300 percent
greater than local brands. The development of the Chinese economy is one that must be
analyzed carefully by firms operating in many industries regardless of their home country.
A key objective of analyzing the general environment is identification of anticipated
significant changes and trends among external elements. With a focus on the future, the
analysis of the general environment allows firms to identify opportunities and threats.
Also critical to a firm's future operations in an understanding of its industry environment
and its competitors, which are considered next.

1.6 INTERNATIONAL MANAGEMENT ORIENTATIONS
The form and substance of a company’s response to global market opportunities depend
greatly on the management’s assumptions or beliefs – both conscious and unconscious –
about the nature of the world. The worldview of a company’s personnel can be described
as ethnocentric, polycentric, regiocentric and geocentric. Management of a company
with a prevailing ethnocentric orientation may consciously make a decision to move in
the direction of geocentricism. The orientations — collectively known as the EPRG
framework – are summarised in Table 1.2.
Table 1.2: The Largest Corporations by Market Value (US $ Millions)
Rank
1997

1996

Company (Country)

Market Value

1

1

General Electric (US)

$214,454

2

2

Royal Dutch/Shell (Netherlands/UK)

177,537

3

3

Coca-Cola (US)

167,334

4

4

Nippon Telegraph & Telephone (Japan)

152,784

5

5

Exxon (US)

152,706

6

12

Microsoft (US)

151,438

7

10

Merck (US)

124,936

8

14

Intel (US)

116,144

9

7

Toyota Motor (Japan)

111,924

10

8

Philip Morris (US)

107,778

11

34/52

Novartis (Switzerland)

99,031

12

15

Procter & Gamble (US)

95,677

13

6

Bank of Tokyo-Mitsubishi (Japan)

93,712

14

16

International Business Machines (US)

89,570

15

13

Johnson & Johnson (US)

85,740

16

11

Roche-Holding (Switzerland)

85,403

Contd....

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Introduction to International
Marketing Management


20
International
Marketing Management

17

31

Bristol-Myers Squibb (US)

80,989

18

29

Pfizer (US)

77,152
76,603

19

19

Wal-Mart Stores (US)

20

25

Glaxo Wellcome (UK)

73,574

21

26

DuPont (US)

70,983

22

22

British Petroleum (UK)

70,710

23

30

American International Group (US)

70,139

24

-

Deutsche Telekom (Germany)

66,041

25

59

Eli Lilly (US)

60,710

Source: “The World’s 100 Largest Public Companies,” The Wall Street Journal, 18 September 1997, p.
R25. Data reflects market value on December 31,1996.

1.6.1 Ethnocentric
A person who assumes that his or her home country is superior compared to the rest of
the world is said to have an ethnocentric orientation. The personnel of such a company
see only similarities in markets and assume that the products and practices that succeed
in the home country will, due to their demonstrated superiority, be successful anywhere.
At some companies, the ethnocentric orientation means that opportunities outside the
home country are ignored. Such companies are sometimes called domestic companies.
Ethnocentric companies that do conduct business outside the home country can be
described as international companies; they adhere to the notion that the products that
succeed in the home country are superior and, therefore, can be sold everywhere without
adaptation.
Table 1.3: The Fortune Global Corporations by Revenues (US $ Millions)
Rank
1996
1
2
3
4
5
6
7
8
9
10
11
12
13

14
15
16
17
18
19
20
21
22
23
24
25

1995
4
7
2
1
3
10
6
9
5
8
12
20
11
15
18
13

16
14
22
17
27
19
24
34
25

Company
General Motors
Ford Motors
Mitsui
Mitsubishi
Itochu
Royal Dutch/Shell Group
Maruben
Exxon
Sumitomo
Toyota Motor
Wal-Mart Stores
General Electric
Nissho Iwai
Nippon Telegraph & Telephone
Intl. Business Machines
Hitachi
AT & T
Nippon Life Insurance
Mobil

Daimler-Benz
British Petroleum
Matsushita Electric Industrial
Volkswagen
Daewoo
Siemens

Source: Fortune Magazine 1997

Revenues
Country
($Million)
US
168,369.0
US
146,991.0
Japan
144,942.8
Japan
140,203.7
Japan
135,542.1
Brit./Beth.
128,174.5
Japan
124,026.9
US
119,434.0
Japan
119,281.3

Japan
10,702.0
US
106,147.0
US
79,179.0
Japan
78,921.2
Japan
78,320.7
US
75,947.0
Japan
75,669.0
US
74,525.0
Japan
72,575.0
US
72,267.0
Germany
71,589.3
Britain
69,851.9
Japan
68,147.5
Germany
66,527.5
South Korea
65,160.2

Germany
63,704.7

Profits
($Million)
4,963.0
4,446.0
321.9
394.1
110.9
8,887.1
178.6
7,510.0
(1,292.8)
3.426.2
3,056.0
7,280.0
136.9
1,330.3
5,429.0
784.2
5,908.0
2,799.1
2,964.0
1,776.1
3,985.2
1,223.9
437.9
468.3
1,877.1

Rank
8
11
292
271
411
1
370
2
491
18
22
3
395
100
6
186
5
33
24
73
12
112
257
250
66


In the ethnocentric international company, foreign operations are viewed as being

secondary or subordinate to domestic ones. An ethnocentric company operates under
the assumption that “tried and true” headquarters knowledge and organisational capabilities
can be applied in other parts of the world. This can sometimes work to a company’s
advantage. For a manufacturing firm, ethonocentrism means that foreign markets are
viewed as a means of disposing off surplus domestic production. Plans for overseas
markets are developed utilising policies and procedures identical to those employed at
home. No systematic marketing research is conducted outside the home country, and no
major modifications are made to products. Even if consumer needs or wants, in
international markets, differ from those in the home country, those differences are ignored
at headquarters.

Ethnocentricity
Home country is
superior; sees
similarities in foreign
countries

Regiocentric
Sees similarities and differences in a world region; is
ethnocentric or polycentric in its view of the rest of the
world.

Polycentric
Each host country is unique;
sees differences in foreign
countries

Geocentric
World view; sees similarities
and differences in home and

host countries

Figure 1.2: Orientations of Management and Companies

Nissan’s ethnocentric orientation was quite apparent during its first few years of exporting
cars and trucks to the United States. Designed for mild Japanese winters, the vehicles
were difficult to start in many parts of the United States during the cold winter months.
In northern Japan, many car owners would put blankets over the hoods of their cars.
Tokyo’s assumption was that Americans would do the same thing. Until the 1980s, Eli
Lilly and Company operated as an ethonocentric company in which activity outside the
United States was tightly controlled by headquarters and focused on selling products
originally developed for the US market.
Fifty years ago, most business enterprises — and especially those located in a large
country like the United States — could operate quite successfully with an ethnocentric
orientation. Today, however, ethnocentrism is one of the biggest internal threats a company
faces.

1.6.2 Polycentric
The polycentric orientation is the opposite of ethnocentrism. The term polycentric describes
management’s often unconscious belief or assumption that each country in which a
company does business is unique. This assumption lays the groundwork for each
subsidiary to develop its own unique business and marketing strategies in order to succeed;
the term multinational company is often used to describe such a structure. Until recently,
Citicorp’s executives offered this description of the company: “We were like a medieval
state. There was the king and his court and they were in charge, right? No. It was the
land barons who were in charge. The king and his court might declare this or that, but the

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Introduction to International
Marketing Management

22
International
Marketing Management

land barons went and did their thing.” Realising that the financial services industry is
globalising, CEO John Reed is attempting to achieve a higher degree of integration between
Citicorp’s operating units. Like Jack Welch at GE, Reed is moving to instil a geocentric
orientation throughout his company.

1.6.3 Regiocentric and Geocentric Orientations
In a company with a regiocentric orientation, management views regions as unique and
seeks to develop an integrated regional strategy. For example, a US company that focuses
on the countries included in the North American Free Trade Agreement (NAFTA) —
the United States, Canada, and Mexico — has a regiocentric orientation. Similarly, a
European companies that focuses its attention on Europe is regiocentric. A company
with a geocentric orientation views the entire world as a potential market and strives to
develop integrated world market strategies. A company whose management has a
regioncentric or geocentric orientation is sometimes known as a global or transnational
company.
The geocentric orientation represents a synthesis of ethnocentrism and polycentrism; it
is a “world view” that sees similarities and differences in markets and countries, and
seeks to create a global strategy that is fully responsive to local needs and wants. A
regiocentric manager might be said to have a world view on a regional scale; the world
outside the region of interest will be viewed with an ethnocentric or a polycentric orientation,
or a combination of the two. Jack Welch’s quote at the beginning of this chapter that
“globalisation must be taken for granted” implies that at least some company managers
must have geocentric orientation. However, recent research suggests that many
companies are seeking to strengthen their regional competitiveness rather than moving

directly to develop global responses to changes in the competitive environment.
The ethnocentric company is centralised in its marketing management, the polycentric
company is decentralised, and the regiocentric and geocentric companies are integrated
on a regional and global scale, respectively. A crucial difference between the orientations
is the underlying assumption for each. The ethnocentric orientation is based on a belief in
home country superiority. The underlying assumption of the polycentric approach is that
there are so many differences in cultural, economic, and marketing conditions in the
world that it is impossible and futile to attempt to transfer experience across national
boundaries.
There is a likelihood that the geocentric company does not identify itself with any particular
country. Therefore, it is difficult to determine the firm’s home country except the location
of its headquarter and its corporate registration.
The case of European Silicon Structures illustrates the practice of geocentric marketing.
In order to attract customers around the continent, the company has decided to become
a company without a country. Although incorporated in Luxembourg, the firm’s
headquarter is in Munich. The company has its research facilities in England and a
factory in Southern France and its board of directors, eight of them, come from seven
different countries.
There is evidence that geocentricity and a companies’ international practices are related.
There is a study by Stephen J Kobrien who employed the geocentric scale to measure
the human resources managers’ mind-set concerning the impact of nationality on the
selection of career managers. The index of a geocentric mind-set was found to be
significantly related to the per cent of sales and employee’s abroad as well as the number
of countries with manufacturing operations.


The study of ethnocentrism, polycentrism, regiocentrism and geocentrism (EPRG)
framework found that firms exhibiting an ethnocentric orientation emphasize the home
market and export to psychologically close markets. In addition, these firms believe that
marketing adaptation is not necessary. In contrast, polycentric, regionocentric and

geocentric firms export to psychologically distant markets.
Check Your Porgress 2
1.

Define International Marketing.
..............................................................................................................
..............................................................................................................

2.

What are the various management orientations for International Marketing?
..............................................................................................................
..............................................................................................................

1.7 5Ps OF INTERNATIONAL MARKETING
We will study the international 4P's concept and the marketing plan. The correct definition
of the marketing mix or 4P's (Product, Price, Promotion and Place) will be fundamental
to successfully enter the target markets we identify. Some commentators will increase
the mix to the '5 Ps', to include people. Others will increase the mix to '7 Ps', to include
physical evidence (such as uniforms, facilities, or livery) and process (i.e. the whole
customer experience). In any case the design of an international marketing plan will also
be one of the pillars of our export activity.

1.7.1 Product
A global company is one that can create a single product and only have to tweak elements
for different markets. For example, Coca-Cola uses two formulas (one with sugar, one
with corn syrup) for all markets. The product packaging in every country incorporates
the contour bottle design and the dynamic ribbon in some way, shape, or form. However,
the bottle or can also includes the country's native language and is the same size as other
beverage bottles or cans in that country.

1.7.2 Price
Price will always vary from market to market. Price is affected by many variables: cost
of product development (produced locally or imported), cost of ingredients, cost of delivery
(transportation, tariffs, etc.), and much more. Additionally, the product's position in relation
to the competition influences the ultimate profit margin. Whether this product is considered
the high-end, expensive choice, the economical, low-cost choice, or something in-between
helps determine the price point.

1.7.3 Placement
How the product is distributed is also a country-by-country decision influenced by how
the competition is being offered to the target market. Using Coca-Cola as an example
again, not all cultures use vending machines. In the United States, beverages are sold by
the pallet via warehouse stores. In India, this is not an option. Placement decisions must
also consider the product's position in the market place. For example, a high-end product
would not want to be distributed via a "dollar store" in the United States. Conversely, a

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Introduction to International
Marketing Management


24
International
Marketing Management

product promoted as the low-cost option in France would find limited success in a pricey
boutique.

1.7.4 Promotion

After product research, development and creation, promotion (specifically advertising)
is generally the largest line item in a global company's marketing budget. At this stage of
a company's development, integrated marketing is the goal. The global corporation seeks
to reduce costs, minimize redundancies in personnel and work, maximize speed of
implementation, and to speak with one voice. If the goal of a global company is to send
the same message worldwide, then delivering that message in a relevant, engaging, and
cost-effective way is the challenge. Effective global advertising techniques do exist.
The key is testing advertising ideas using a marketing research system proven to provide
results that can be compared across countries. The ability to identify which elements or
moments of an ad are contributing to that success is how economies of scale are
maximized. Market research measures such as Flow of Attention, Flow of Emotion and
branding moments provide insights into what is working in an ad in any country because
the measures are based on visual, not verbal, elements of the ad.

1.7.5 People
Jude, in 1887, came out with yet another ‘P’, People. Jude is argument was that it is the
employees of an organisation which represent the organisation to the consumers. If
these employees are not given training in how to go about face-to-face customer contact,
the entire marketing effort may not prove to be effective. He even went further by
recommending that people power should be formalised, institutionalised and managed
like the other 4Ps as a distinctive component of the marketing mix and, consequently, as
an element of the organisation marketing or business plan.

1.7 LET US SUM UP
International marketing is the process of focusing the resources and objectives of a
company on marketing opportunities at international level. Companies are engaged in
international marketing for two reasons: firstly, to take advantage of opportunities of
growth and expansion, and secondly, to eventually lose their domestic markets because
they will be pushed aside by stronger and more competitive international competitors.
This lesson presents the theory and practice of applying the universal discipline of

marketing to the international opportunities found in the world markets.
One way to understand the concept of international marketing is to examine how
international marketing differs from such similar concepts as domestic marketing, foreign
marketing, comparative marketing, international trade, international business and
multinational marketing.
The basic goals of marketing are to create customer value and competitive advantage
by maintaining focus. Company management can be classified in terms of its orientation
towards the world: ethnocentric, polycentric, regiocentric, and geocentric. An ethnocentric
orientation characterises domestic and international companies that pursue marketing
opportunities outside the home market by extending various elements of the marketing
mix. A polycentric world view predominates at a multinational company, where country
managers operating autonomously adapt the marketing mix. Managers at international
and transnational companies are regiocentric or geocentric in their orientation and pursue
both extension and adaptation strategies in international markets.


International marketing importance today is shaped by the dynamic interplay of several
driving and restraining forces. The former include market needs and wants, technology,
transportation improvements, costs, quality, international peace, world economic growth,
and recognition of opportunities to develop leverage by operating internationally.
Restraining forces include market differences, management myopia, organisational culture
and national controls.

1.8 LESSON END ACTIVITY
What are ‘Dos’ and ‘Don’t’s’ for success in International Marketing? How should the
firm execute the dos and don’ts in the context of marketing?

1.9 KEYWORDS
Marketing: It is the performance of business activity, directing the flow of products
from producer to consumer.

International Marketing: It is the performance of marketing across two different
countries.
Domestic Marketing: It is the form of marketing in which the firm faces only one set of
competitive, economic and market issues.
Global Marketing: The performance of business activities that direct the flow of goods
and services to consumers or users in more than one nation.

1.10 QUESTIONS FOR DISCUSSION
1.

Define International Marketing. How does it differ from domestic marketing?

2.

a.

What are the various points that you would consider before entering the foreign
market?

b.

What are the various methods that will be considered after entering the foreign
market?

3.

What are the basic economic reasons which might influence a firm’s decision or
motivate a firm to plunge into international marketing?

4.

“International Marketing has become indispensable in the economic development
of a developing country”. Comment with respect to the Indian situation.

5.

Why is the task of the international marketer more complex and difficult than that
of the domestic marketer?

6.

Distinguish among (a) domestic marketing (b) foreign marketing (c) comparative
marketing (d) international trade (e) international marketing (f) multinational
marketing (g) global marketing and (h) world marketing.

7.

Distinguish among (a) ethnocentricity (b) polycentricity and (c) geocentricity.

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Introduction to International
Marketing Management


26
International
Marketing Management

Check Your Progress: Model Answers
CYP 1

1. Environment, 2. Excellent markets, 3. Affect, 4. Domestic
CYP 2
1.

International Marketing: It refers to the marketing of goods and services
in more than one nation. It may consist of exporting goods from one country
to another or it may refer to a firm that both produces and markets in more
than one country.

2.

Management Orientations
(i)

Ethnocentric Orientation

(ii)

Polycentric Orientation

(iii) Regiocentric Orientation
(iv) Geocentric Orientation

1.11 SUGGESTED READINGS
PKVasudeva, International Marketing, Excel Books, New Delhi, 2006
Shyam Shukla, International Business, Excel Books, New Delhi, 2008
Philip R. Catero, International Marketing
Keegan, Global Marketing Management