Page 216 - DMGT545_INTERNATIONAL_BUSINESS

Unit 11: Basics of International Marketing

11.1.2 main functions in international marketing notes

Let us briefly touch upon the main functions involved in International marketing. They are:

l z Choosing the basic route for global marketing
l z Market selection and product selection
l z Selection of distribution channels
l z Developing pricing strategy
l z International marketing communication
l z Mastering the procedural complexities
l z Organizational adaptations
l z Handling business ethics
Choosing the basic route:
A properly conceived entry strategy is the starting point. There are five basic routes to enter a
foreign market:

l z Exports
l z Licensing of technology and know how
l z Multinational trading

l z Joint venture
l z Full-fledged global operation
We shall mention the salient features of each of these routes.
Export is the primary route for entry into the global markets. Many firms stop with this step
in their international marketing endeavor. Some firms, however, go beyond; they license their
technology and know how to foreign firms who may be interested in importing it into their land.
In multinational trading, the companies source products from any part of the world and cart it
to any place where demand for the product exists. Setting up joint ventures in foreign countries
is another effective strategy for gaining entry into world markets. Through the joint ventures,
the firm literally gets close to the foreign markets. Through joint ventures, a firm becomes a
native in foreign lands and that is the surest way to the birth of a full-fledged MNC. In modern
days, the joint venture strategy is taking firmer roots among companies planning massive global
marketing. Becoming full-fledged global operators or MNCs with manufacturing and marketing
set up across countries is the most difficult but also rewarding of all strategies of International
Marketing.

Task Make a list of main components of international marketing.

self assessment

Fill in the blanks:

1. .................. is the primary route for entry into the global markets.
2. Many firms stop with this step in their .................. marketing endeavour.
3. It is obvious that the difference between .................. and international marketing is essentially
environmental and cultural in character.

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