Thursday, April 4, 2019
The essential nature of International marketing
The essential nature of outside(a)istic market multinational market is the per mental strainance of business activities designed to plan price, promote and directs the flow of the companionships goods and services to consumer or substance abuser in much then one nation for profit. Cateora Graham transnational merchandise is a broader theory and includes tradeation merchandise. Export merchandise is concerned with the harvest-tideion of good in one unpolished and selling them in several(predicate) countries of the founding while supranationalist market is a boarder concept and includes globoseization. unknown Marketing is essential for all in all countries-small big developed developing and replete low. This is because no country in the military personnel is self sufficient as regard all the requirements and no country can pull round in complete economical and policy-making isolation. Every country has to import something from otherwise country and has to export whatever pleonastic purchasable.The vivid resources atomic number 18 not divided equally among the countries of the world. There is discrimination among countries as regards geographical area, population, climate fountain, avail ability of natural resources, economic growth, technology development, harvestingion activities and so on. Such disparity pulls to inter dependent of countries. It is this business office which serves as base for the conduct of crowing scale international marketing activities.OBJECTIVESTo hold countries nearer for transaction purpose and to encourage large scale free trade among the countries of the world.To mystify integration of economies of heterogeneous countries and there by to facilitate the process of globalization of trade.To establish trade dealing among the nations and thereby to proceed cordial relations among nations for maintaining world peace.To facilitates and encourage cordial and cultural deepen amon g divergent countries of the world.To provide assistance to developing countries in their economic and industrial growth and thereby to remove recess in the midst of the developed and developing countries.To ensure optimum utilization of resources at global level.To encourage world export trade and to provide benefits of the same to all participating countries.To invite the benefits of comparative speak to emolument to all countries participating in international marketing.To keep international trade free and fair to all countries by avoiding trade barriersFEATURESLarge Scale operation foreign marketing transaction is always conducted in large quantity. This is requirement for securing the advantages of large scale operation as regards transportation, handling and warehousing.Domination of multinationals and developed countries multinational Corporation dominates the international marketing scene. It has world wide contacts. They conduct business operation more efficiently a nd economically. They are in a better position to adopt global approach which is necessary in international marketing.International travailsInternational marketing imposes conglomerate trade restriction (tariff non-tariff) because of productive policies followed by going aways countries. responsibility barriers are adopted practically by all countries. Foreign step in in addition imposes various restrictions on imports exports. The growth of international marketing is adversely affected callable to such trade restrictions.Sensitive subjectInternational marketing is highly sensitive flexible in the character. A product whitethorn utterly become unpopular or market may come down quickly due to political and economic reasons. Even the use of advanced technology by the competitors or the introduction of new-sprung(prenominal) product by the competitor may affect the sale at the global level. get of international marketing researchInternational marketing requires marketing re search in the form of marketing surveys, product surveys and product testing as it is highly competitive. administration policies change, new substitutes enter in to the market and new restriction is imposed because of political, economic, social and cultural factors. Such challenges are common in international marketing and for this continues image on international marketing environment is required. Marketing research, sale forecasting, and so forth are useful techniques for this purpose. They bring adoptability in international marketing activities.Importance of Advance TechnologyCountries like the USA, Japan Germany throw a dominating position in international marketing because of the use of advanced technology in drudgery marketing of goods. They are able to promote export capture world market due to their ability to sell superior quality goods at competitive prices. At present, world markets are flooded with Japanese goods. this is the result of intensive use of automati on advanced computer technology in Japan.Keen vivid CompetitionInternational marketing is highly competitive. Moreover, this competition is between developed developing countries which are incommensurate partners. Such competition is made life-threatening due to special facilities incentives provided by the government to the exporter for export promotion.Need for specialized InstitutionsInternational marketing is risky complicated. It requires lengthy procedures formalities. Professional exports are necessary for dealing with various aspects of international marketing. Similarly, financial institution like indent houses, exchange bank export houses are establish world over for effective participation in international marketing.Need for retentive term be afterInternational marketing requires long term marketing proviso. The marketing situation in divergent countries changes because of social, economic political factors. This stresses the command for long term plannin g in international marketing. A comprehensive combat-ready marketing programmed can be prepared through such long term planning.Lengthy snip ConsumingInternational marketing activity is lengthy, duration-consuming complicated. This is due to long distances, restrictions imposed by unalike countries, payment difficulties due to the use of different currencies lengthy procedural formalities which deprivation to be entire in an orderly manner.NEED FOR INTERNATIONAL MARKETINGInternational interdependence of countriesNo countries in the world are self-sufficient in all respect. No countries can discover all its requirements due to geographical other factors. There is international inter-dependence because of which every country has to imports. This awareness of mutual dependence creates amicable situation for the growth of international marketing. International inter-dependence growing world population are two basic factors which fire the need of large scale international marketing.Absence of uniform geographic climate instructsGeographic condition climatic factors are not uniform in all countries. No country is able to produce all goods required by it. A country can import the goods which it is not n a position to produce due to natural other economic factors. This suggests the need of international marketing in the case of all countries.Availability of comparative cost benefitsInternational marketing is necessary as the cost of production is not uniform in all countries. Every countries can produce certain favorable factors. Exchange of commodities on the basis of comparative cost is always beneficial to all countries.Growing need of countriesInternational marketing is necessary in order to meet the growing need of different countries also for providing better standard of living to good deal. This is the reason due to which countries following different political philosophies system maintain trade relation make the life of their citizens ri cher happier.Need of closer economic cultural cooperationInternational marketing is also undeniable for developing closer economic cultural relations between countries. This is the way by which the available global, natural other resources will be utilized fully at the international level. International marketing is needed for economic integration among the nation of the world.Problem of surplus/ famine of production in countriesInternational marketing is needed due to surplus production in some countries supplemented by shortage of production in some other countries. It is also needed as some countries put up vast un employ production competency while other have no capacity to meet correct their home(prenominal) need. This situation can be corrected only through international marketing which facilities exchange of goods as per the need of different countries.Bridging gap between developed and developing countriesInternational marketing is need in order to bridge the gap be tween the advance countries the developing countries. Such marketing not only brings exchange of goods services but also facilitates transfer of technical know-how skills. Such transfers are necessary for rapid growth of developing countries.Economic growth of developing countries world peaceInternational marketing is needed for rapid growth development in all countries-develop developing. It bring transfer of technologies facilitates rapid industrial enterprise in developing countries. It provides a mechanism through which developed countries provides assistance to developing countries in there efforts towards economic growth. International marketing efforts benefits to all participating countries also develops co-operation among countries. In short, international marketing is needed as it is a key to world peace prosperity.PROBLEMS/DIFFICULTIES IN INTERNATIONAL MARKETINGPayment clogPayment is an important difficulty in international marketing because of different curren cy systems followed by different countries of the world. The buyer will like to make payment in one currency, while the seller desires to have payments in his home currency. In addition, strict foreign exchange is necessary. All these factors create complication in the payments for the goods sold or the services rendered. Such difficulties are absence in the case of domestic marketing due to the existence of uniform currency systemRisk and Uncertainties in transportationInternational marketing involves the transportation of goods over long distance covering thousand of kilometer. There is a risk of pass or damage of goods as exposed to uncertainties in transportation. High cost of transportation is one more problem in international marketing as this cost raises the market price considerably and affects sales.Government restrictionsInternational marketing is not free like domestic marketing. Export imports are restricted by the Govt in all countries. Due to such restriction, variou s problems are created before the exporters. Even the restriction in foreign countries create problem before the exporting community. Such trade restrictions are in the form of heavy tariffs, quotes, exchange control so on.Difficulties in communicationThe operation of international marketing is between people of different language chemical groups, traditions, customs, nationality, socio-system national laws. More over, direct contact between the parties is not possible. Hence, a special procedure in the form of letter of credit, bank guarantee, indemnity, etc., is necessary for safety security of payments. judgment of conviction difficultyThere is a wide gap between the time when the group are dispatched the time when the goods are received paid for. There is delay in receiving the delivery of goods due to complicated procedures long distance. Such delay is always troublesome to exporter as well as importer.Difficulty in the facility of documentsA large number of documents a re required to be prepared in international marketing transaction. The exporters, for example, have to prepare various documents for the benefit of the importers. This work is lengthy, complicated time-consuming.Severe competition in global marketInternational marketing is risky due to competition in global markets. This competition may be related to price, quality sales promotion techniques used. The competition is between countries with varied economy, social proficient background. Such competition is always troublesome to poor developing countries. Exporters from such countries have to face various problems while dealing with severe market competition. various difficultiesThese difficulties in international marketing include (a) difference in weights measures in different countries, (b) political affiliations of countries, (c) trade barriers trade blocs, (d) differences in the marketing practices followed in different countries and (e) war or international tensions.SCOPE O F INTERNATIONAL MARKETINGRegulation on marketing activitiesInternational marketing is not free like domestic marketing. Various countries impose tariff non-tariff restrictions on concern activities. Such restriction affects the volume of international trade. The subject field of such economy their effects on trading activities is one aspect of occupy concerned with international marketing. Every country has to study such regulation imposed by other countries take jibeable remedial measures.Formalities and procedures of marketingInternational marketing is a complicated time-consuming activity due to different commercial laws practices followed in different countries. Exporter importer have to follow various formalities procedure relating to licensing, foreign exchange, customs duties clearing of goods. Such procedure formalities are not uniform in all countries hence the study of procedure formalities comes within the scope of international marketing. Exporter impor ter have to study such formalities procedure for orderly conduct of international marketing activities.Trade block and their impactTrade block are established by different countries participating in international marketing activities. Such block includes EU, LAFTA, ASEAN, EFTA CACM. However, such trade blocks are pestiferous to the growth of free world trade.Commercial policies and their impactEvery country prepares its own commercial policies to suit its specific needs. The policies of different countries create international commercial environment under which all countries have to operate. Naturally, the study of commercial policies of different their impact on world trade needs special attention. Such study comes within the scope of international marketing.International marketing researchMarketing research is essential for large scale marketing in global markets. Information about marketing environment, needs of consumers, buying behavior, widen of market competition, etc. w ill be available through such research activities. Product planning development, introduction of scales promotion techniques, etc are possible only through such research of foreign markets.Miscellaneous aspectsExport financing.Exim policy and implication.Export pricing and export risk management.Product innovation, standardization and sales promotion. submit of special facilities, concession and incentives.BENEFITS OF INTERNATIONAL MARKETING TO A COUNTRY/NATIONProvides higher standard of leaveInternational marketing provides better life welfare to people in different countries. It provides goods which cannot be produced in the home country due to geographical limitations. This raises the standard of living of the people social welfare. International marketing facilities large scale production create employment opportunities in different countries. This provides purchasing power to the people ensures higher living standard to them.Ensures rational optimum utilization of resour cesRational allocation of resource the dress hat use of the resources available at the international level is one major advantages of international marketing. It enables every country to export whatever is available as surplus. This may be raw material, oils, consumer goods even machinery services.Rapid industrial growthInternational marketing creates new demand for goods. This facilitates industrial activities brings industrial development. International marketing leads to industrial development of the country, provides massive employment opportunities to the people full utilization of natural resources available.Benefits of comparative costInternational marketing provides to participating countries, the benefits of comparatives costs. The benefits of division of labour specialization at the international level are available to participating countries through international marketing.International cooperation and world peaceInternational marketing bring countries closer due t o trade relation. This leads to cooperation among the countries. Developed countries help developing countries in their development activities. This remove economic technological gap between the countries.Facilitates cultural exchangeSocial cultural exchanges between different countries of the world are possible due to international marketing. This is possible as fashions move along with goods. Trade also develops social cultural relation among nations. This lead to cultural integration at global level.Better utilization of surplus productionDue to international marketing, surplus production of goods can be exported to other countries. This provides foreign exchange to exporting country also meets the needs of other countries. Effective use of surplus goods, service, raw material, etc. is possible due to international marketing. Thus effective utilization of surplus domestic production, introduction of new varieties of goods, improvement in the quality of production promotion of mutual co-operation among countries are the benefits of international marketing.Availability of foreign exchangeEasy availability of foreign exchange for import of capital goods, modern technology other essential requirements is possible due to international marketing. A country earn foreign exchange due to export can use it for essential imports.Expansion of tertiary sectorInternational marketing promotes exports. This lead to industrial development. on with this, expansion takes place in the infrastructure facilities. International marketing indirectly promotes transport, banking, insurance shipping activities. This provides additional benefits to the national economy.Special benefits during emergency situationInternational marketing offers special benefits during natural calamities such as floods famines. Emergency supply of goods is required to meet urgent needs. This is possible because of large scale imports. Even other country offers cooperation to county facing diffi culties through supply of essential goods services.BENEFITS OF INTERNATIONAL MARKETING TO A COMPANYA company exporting abroad earns substantial profit out of its export operation. This is because export marketing is normally more profitable then domestic marketing. Even the loss in domestic marketing can be compensated from the profit earned out of export.A company exporting abroad earn foreign exchange out of its operation and the same can be used for the import of essential goods, new machinery, technology, etc. this facilitates large scale export in future.A company exporting goods abroad is in position to utilise its production capacity fully as it has capacity to use the entire production for domestic and export marketing.A company exporting goods abroad is normally a sound company with financial stability and good earning capacity. It can face problems of domestic marketing because of the support marketing.LIMITATIONS OF INTERNATIONAL MARKETINGUnequal sharing of benefitsThe b enefits of international marketing are not shared out in a fair manner among the participating countries. Rich and developed countries get more benefits at the cost of poor and developing countries.Restrictions on International MarketingInternational marketing will offer all benefits only when free trade is allowed by all countries. However, the actual position is all in concert different. Trade restrictions (tariff and non-tariff) are imposed by all countries (developed and developing) on free movement of goods. This restricts the growth of international trade and actual benefits available to participating countries are limited. Efforts to remove various restrictions by WTO and other international trade organizations are not effective.Adverse effects of trade blocs on International MarketingAlong with trade barriers, trade blocs exist among the countries of the world. EU, LAFTA, ASEAN are some active trade blocs. They encourage trade among the members of the group but put artifici al restrictions on the trading activities with non-members. As a result, the growth of international marketing is restricted. Similarly, free trade among nations is not allowed. In addition, countries which have not joined such trade blocs pay back in regards to their exports and imports.Domination of MNCs and developed countries on International MarketingMNCs from rich and developed countries dominate international trade since long. Their operations are for profit maximizations. Poor and developing countries suffer due to virtual monopolistic position of MNCs in international marketing. These corporations sell their products in many developing countries as per the terms and condition which are profitable to them. This leads to exploitation of poor and developing countries also dominate international marketing.Existence of severe competition in international marketingOne limitation of present day international marketing is the existence of stiff competition among participating coun tries and companies. Unfortunately, this competition is between unequal competitors. It is between rich and poor or developed and developing countries. Developing countries lack advance technology, skilled labour, infrastructure facilities and so on. As a result, they have to sell their raw materials and other resources at a low price to rich countries.