Page 9 - DMGT547_INTERNATIONAL_MARKETING

International Marketing

Notes
Did u know? 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.

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.

4. The international marketer has to become a native in the ....................... land. He has to
communicate with the people of those lands in their lingo and idiom.
5. International marketing involves all the ....................... that form part of domestic marketing.

Caselet Carpet Industry in India

n this era of globalisation, every company and every industry wants to go global.
India also wants to sell carpets to the foreign markets. This can only be done through
Iexports when the profits in the exports increase we go in for International Marketing,
which lead to international trade and international business. How does it happen? This
happens only when our company becomes international, multinational and Transnational.
The carpet industry at present is passing through international marketing stage.
The carpets that are exported follow the concept of Ethnocentricity. In order to make the
carpet industry an MNC the export of carpets have to increase to more than $ 100 million
turn over per annum. This can only happen in case this industry is properly organized and
given more incentives by the Government being a labour intensive industry.
The question of its becoming Transnational cannot arise unless this industry falls in the
hands of MNC itself and a large number of carpet weavers are trained on a large scale
through Carpet Management Schools which is a far of dream. However, effort should be
made to give more incentives to the carpet weavers so that the child labour in this industry
is completely abolished and the objection of the importers on the use of child labour is
removed.
Source: PK Vasudeva, International Marketing, 3rd Edition, Excel Books.

1.2 International Marketing vs. Domestic Marketing

The striking difference between international and domestic marketing lies in the environment
in which these two take place. The important points of differences between international and
domestic marketing are:
1. Sovereign Political Entities: Each country is a sovereign political entity and, therefore,
they for importing and exporting the goods and services in order to safeguard their

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