INTERNATIONAL MARKETING

When a firm decides to operate across national

boundaries, there arises the need to apply its
marketing principles to the target country, for business
success. This is called International marketing.
 KEY DECISIONS

• Choice of which overseas market to enter.

• Whether or not to enter overseas market.
• Choice of market enter strategy.
 WHY ENTER OVERSEAS MARKET???

• The reasons for marketing abroad can be classfied

as :
• PUSH FACTORS:
Constraints in the home market pushing the firm
to seek overseas market.e.g
1.Saturation in the home market.
2. To extend the product life cycle.
3. to reduce dependence on home market .
4. Intense competition in home market.
 PULL FACTORS

• To exploit business opportunity.

• Growth potential in overseas market
• To grow the firm
• To benefit from economies of scale-reduction
in unit cost.
 International Marketing Example: The Case Of Starbucks Corporation

• The aim of the organisation was to become a worldwide

global brand. Starbucks advertising strategies played a crucial
role in the success of the business. The advertising strategies
adopted by the firm are more local and differentiated rather
than standardized. It had done the swot analysis for extending
as:
 STRENGTHS

• Starbucks is No. 1 specialty coffee retailer of - in terms of

market share and market capitalization.
• It is a global organisation with 16,000 coffee shops in 15
countries world-wide.
• Strong brand image associated with high quality coffee and
excellent customer service - “The Starbucks Experience”.
• The company franchises and licenses 6,500 shops. It has
developed excellent skills in franchise management.
• Due to its specialism in coffee - it achieves high buying
volumes - scale economies and utilizes international sourcing
 WEAKNESS

• Starbucks is a premium brand commanding premium prices. As

competitive pressures increase, the company could be undercut
by lower price rivals such as McDonalds or Costa Coffee.
• Starbucks is seen as an “American Global”, possible perception
that big American chains are trampling on national cultures,
“Starbucks was trampling on Chinese culture”.
• Over-dependency on coffee and coffee related products.

Reputation with pressure groups. Criticized for not using more

Free trade products
 OPPORTUNITIES

• Significant opportunities exist, especially outside domestic US market for

joint ventures. Starbucks could overcome planning restrictions, reduce
costs through co-locating at supermarket chains, pubs & restaurants.
• Product range diversification into greater food ranges and non-food items.
• Licensing its name (e.g. ambient coffee through supermarkets) could
provide new streams of revenue.
• Through CRM and database marketing it could target its high net worth
customers and build greater loyalty with customer base. The introduction
of loyalty schemes such as Starbucks Card.
• Become more of a socially responsible brand. Better public relations
activity, introducing more fair trade products, better distribution of profits
to farmers and ethical sourcing practices.
 THREATS

• Possible saturation in the coffee, café market. In the US, 600

underperforming company-owned stores were eliminated from
the business..
• Several activist groups maintain websites criticizing the company’s
fair-trade policies, labour relations, and environmental impact.
• Recession or downturn in the economy affects consumer
spending, with less disposable income to spend.
• Raw material cost rising - Starbucks is exposed to rises in the cost
of coffee, labour and dairy products, and adverse changes in
exchange rates.
EXIM POLICY
• Exim Policy or Foreign Trade Policy is a set of
guidelines and instructions established by
the DGFT in matters related to the import and
export of goods in India.
•  EXIM Policy of the Indian Government is
regulated by the Foreign Trade Development and
Regulation Act, 1992.
DGFT (Directorate General of Foreign Trade) is
the main governing body in matters related to
Exim Policy. 
 OBJECTIVES
• To accelerate the economy from low level of
economic activities to high level of economic
activities.
• To generate new employment.
• Opportunities and encourage the attainment of
internationally accepted standards of quality.
• To provide quality consumer products at
reasonable prices.
 EPCG SCHEME
• EPCG scheme allows import of capital
goods for pre production, production and post
production at 3% Customs Duty, subject to an
export obligation equivalent to 8 times of 
duty saved on capital goods imported under 
EPCG scheme, to be fulfilled in 8 years
reckoned from Authorised issue-date.
 Special Economic Zone SEZs in India

• SEZ is basically a geographically distributed area or zones

where the economic laws are more liberal as compared
to other parts of the country.
• A SEZ may be set-up in the public, private, or joint sector
and /or by a state government and even by a foreign
country.
• The minimum land area requirement for establishing a
SEZ is 1000 hectares. Out of this total area, only 30-35%
of area is used for setting up plants and rest of the area is
used to provide housing facilities, malls, multiplexes etc.
 Promotional Measures 

• Scheme for Assistance to States for

Infrastructure Development of States for
Exports (ASIDE) is formulated  to encourage
participate in promoting exports, and is
administered by Department of Commerce.
• Developing infrastructure such as roads
connecting production centers with ports.
• Setting up of Inland Container Depots (ICD) and
Container Freight Stations (CFS).
 India New Exim Policy 2010 - 2011 Highlights.

• Higher Support for Market and Product

Diversification :

256 new products added under FPS (at 8 digit

level), which shall be entitled for benefits @
2% of FOB value of exports to all markets.
Support for Technological up-gradation

• Zero duty EPCG scheme.

EDI Initiatives:
Additional licensed certifying authorities for
digital signatures and banks for electronic
fund transfer (EFT) operations have been
included in the gamut of EDI operations.
Financial Institutions
Is an Institute that provide Financial Services for
its clients or members.
Types of Financial Institutions
• Deposit
• Insurance companies & Pension funds
• Brokers, Investment funds
Role of Financial Institutions
• In an international market every business
needs a strong link between the seller & buyer
for easy financial transactions.
Banks