Page 335 - DMGT408DMGT203_Marketing Management

Marketing Management/Essentials of Marketing

Notes is product adaptation keeping in view the consumer preferences and behaviour in specific
countries. Yet another choice is to invent a totally new product for a foreign country
suitable to its specific conditions.
Setting prices is particularly complicated for an exporter facing currency conversion, if
any service is included in price, and often little control on prices set by resellers.

The international marketer strives to choose the best distribution network and many
exporters prefer to enter into partnerships with companies that are already established in
foreign markets.

14.6 Keywords

Contract Manufacturing: Production of goods by one firm, under the label or brand of another
firm
Exporting: The selling of goods and services produced in one country in another country.
Franchising: Arrangement where one party (the franchiser) grants another party (the franchisee)
the right to use its trademark or trade-name as well as certain business systems and processes, to
produce and market a good or service according to certain specifications.
Global Marketing: The process of conceptualizing and then conveying a final product or service
worldwide with the hopes of reaching the international marketing community.
Joint Venture: A contractual agreement joining together two or more parties for the purpose of
executing a particular business undertaking.
Licensing: The granting of permission to use intellectual property rights, such as trademarks,
patents, or technology, under defined conditions.
Product Adaptation: Marketing strategy whereby new products are based on modification or
some improvement on existing or competing products, and not on pioneering innovations.
Strategic Alliance: Agreement for cooperation among two or more independent firms to work
together toward common objectives

14.7 Review Questions

1. In your view, what cultural differences in India can cause problems for a fast-food chain
opening its outlets?
2. Explain the concept of a ‘global marketplace’. Does it hurt the small time local companies?

3. State the factors that make the task of international marketers more difficult than that of
domestic marketers.
4. ‘A company always seeks foreign markets, even when it has established business in domestic
market’. Do you agree with the statement? Justify.
5. Discuss the major approaches to entering international markets. Which one would you
recommend to a new textiles company?
6. How do political/legal, cultural/social, and economic factors affect global marketing?
7. Differenciate between standardising the marketing mix and customising the marketing
mix. Describe the conditions that favour standardization.
8. How can an international marketer determine the suitability of a particular product for a
new foreign market?

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