NATURE, SCOPE AND IMPORTANCE UNIT-1 Meaning of

Transcript:NATURE, SCOPE AND IMPORTANCE UNIT-1 Meaning of:
NATURE, SCOPE AND IMPORTANCE UNIT-1 Meaning of International Marketing It to the buying or selling of goods and services beyond the boundaries of a country. When a country crosses its national frontiers to market its products it is indulging in international marketing. In simple words, when two countries exchange the products and services with the motive of business trade, the process is called International Marketing. Definitions of International Marketing According to Kotler, "Global marketing is concerned with integrating and standardizing marketing actions across a number of geographic markets." According to Cateora, "International marketing is the performance of business activities that direct the flow of goods and services to consumers and users in more than one nation." According to Cateora and Graham, "International marketing is the performance of business activities designed to plan, price, promote, and direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit." According to Terpstra and Sorathy, “international marketing consists of finding and satisfying global customer needs better than the competition, both domestic and international and of coordinating marketing activities with in the constraints of the global environment.” International marketing is different from domestic marketing not only in scope but also in nature. Following are the nature and scope of international marketing. Nature of International Marketing Broader market is available – Unlike domestic marketing the market is not restricted to national population. Population of other countries can also be targeted in international marketing. Involves at least two set of uncontrollable variables – In domestic marketing the marketers have to interact with only one set of uncontrollable variables. In international marketing at least two set of uncontrollable variables are involved or more if the marketing organization deals in more countries. Requires broader competence – Special management skills and broader competence is required in international marketing/business. Competition is intense – An international marketing organization has to compete with both the domestic competitors and the international competitors. Hence, the competition is intense in international marketing. Involve high risk and challenges – International marketing is prove to various kinds of risk and challenge like – political risk, cultural differences, changes in fashion and style of foreign customers, sudden war, changes in government rules and regulations, communication challenges due to language and cultural barriers, etc,. The Scope of International Marketing International marketing that is also known as global marketing has earned