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08/01/2014

Nature of IM
The role of an International Marketing
Manager is to frame the controllables
(endogenous factors) in light of
uncontrollables (exogenous factors).

1.2
Nature, Scope, and Significance of
International Marketing

Asssociate Prof. Nitin Kumar

Business
Environment

Asssociate Prof. Nitin Kumar

Internal
Environment

Internal

External

(Controllable)

(Un-controllable)

Global
Environment

International
Business

Domestic
Environment

MICRO

Value System
Mission and Objectives

Environment of IB

Human Resources
Company Image & Brand
Equity
Suppliers

Internal Environment

Customers

Business
Decision

Management Structure and Nature


Internal Power Relationships

MICRO (Task/Operating) Environment

Internal Environment

Business
Decision

Foreign
Environment

MACRO
3

Other factors Physical


Assets & Facilities,
R&D and Technological
capabilities,
Marketing Resources,
Financial Factors, etc.

The Business Environment

Publics

Competitors
Intermediaries

The Business Environment

08/01/2014

World Trade in Goods and Services Major Trends and Developments

MACRO (Remote/General) Environment

Political &
Legal

MICRO (Task/Operating) Environment

Economic &
Natural

Global Trade has been growing much faster


than global output (almost 3x since 1950)!

Internal Environment

Business
Decision

World Merchandise Trade (Exports) in 2012 =


US$ 18.4 trillion
Socio-Cultural

Technological
Associate Prof. Nitin Kumar, DBS,
2013-14

The Business Environment

Exports in US$ b
350

World Merchandise Trade (Exports)


20
18.601
18.499

18

300

16.571
16

15.503

12.463

12
US$ Trillions

250

14.329

14

12.778
200

10.87
10

9.571

150

7.869
6.725 6.484 6.743

5.74
5.284 5.546

5.681 5.922
100

4.429
3.633 3.882 3.876

2
50
0

Year 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

US$ Trillions 3.633 3.882 3.876 4.429 5.284 5.546 5.74 5.681 5.922 6.725 6.484 6.743 7.869 9.571 10.87 12.46 14.33 16.57 12.78 15.5

18.5

18.6
0

Source: Retrieved on 20/8/2013 at 1500 hours


from http://www.wto.org/english/res_e/statis_e/trade_data_e.htm
WTO 2013
Associate
Prof. Nitin Kumar, DBS,

2013-14

1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

10

India

Exports in US$ b

Exports in US$ b

1,800

2,500

1,600

2,000
1,400

1,200
1,500
1,000

800
1,000
600

400
500

200

0
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
United States

11

1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
China

United States

12

08/01/2014

Exports in US$ b
YEAR
China
United States
Germany
Japan
Netherlands
France
Korea, Republic of
Russian Federation
Italy
China, Hong Kong SAR
United Kingdom
Canada
Belgium
Singapore
Saudi Arabia
Mexico
United Arab Emirates
China, Taiwan Province of
India

2,500

2,000

1,500

1,000

500

2012
2,048,714
1,545,709
1,407,082
798,568
655,700
568,920
547,870
529,255
500,719
492,907
474,476
454,794
446,529
408,393
388,370
370,827
350,000
301,181
294,158

1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
China

India

United States

13

Asssociate Prof. Nitin Kumar

14