There are different categories of participants in International Marketing. Important categories are the following.
Private Firms: The bulk of the international transactions are carried out by private firms â€“ MNCs; other large firms and (small and medium enterprises)SMEs.
MNCs account for a large part of the international marketing. About one-third of the international trade is estimated to be intraâ€“company transfer, i.e. trade between affiliates or divisions of the MNCs located in different countries. Besides, they market large quantities of products to international customers.
Other Large Firms: Besides MNCs, there are a large number of firms active in international marketing. Although they do not qualify to be regarded as MNCs, many of them have manufacturing and other operational facilities foreign countries.
SMEs: Small and medium enterprises also play a very significant role in international business. A very large number of them do considerable business abroad. There are many in this category which is hundred percent primarily export oriented. In the case of USA and Germany, the largest exporting nations, more than half of the exports are contributed by small firms. About 35% of Indiaâ€™s exports come from village and small industries.
In several countries public sector also play a very important role in foreign trade State trading was the rule in the communist countries. State trading was prominent in socialist countries. Even in some of the mixed economies like India, state trading had an important place. There was substantial canalization of foreign trade of India (a canalized item can be exported/imported only by a public sector undertaking). The liberalization has very significantly reduced the role of state trading. The share of canalized items in the total business of state trading agencies like STC and MMTC has substantially come down. They now have to do business mostly on their own, like private trading corporations. Besides the state trading agencies, a number of public sector undertakings do significant international trade, like marketing their products and buying their requirements.
There are, many trading companies, including public sector (like STC and MMTC), which are specialized in foreign trade. They are merchant exporters, (i.e. those which export products manufactured by other firms). Trading companies in countries like Japan do very huge volumes of trade.
A large number of individuals also do international marketing. One of the very significant contributors of the worldwide web and the internet is the empowerment of individuals and small firms to start business and to expand their business horizon. They are now able to easily access information from through out the world and get in to direct contact with buyers/sellers globally.
It may be predicted that in future the word international will disappear from international business or international marketing because business means business including domestic and international business and marketing means marketing including domestic and international marketing so that there is no need for the adjective â€˜internationalâ€™. International competition in the â€˜domesticâ€™ market is so pervasive that international may be defined as marketing in an internationally competitive environment, whether the market is foreign or domestic.
There are several trends that would make globalization and international marketing more pronounced in future. Important among them are the following.
* Globalization of supply chain and operations management. The growing trend towards globalization of supply chain and operations management will increase the importance of international marketing.
* International investments; the continuing high levels of international investments and increasing international production tend to increase the importance of international marketing.
A good example of International based pricing in India is that of polyester intermediates like PTA and MEG where manufacturers like Reliance Industries go according to other international manufacturerâ€™s prices giving a good comfort factor to the Indian consumer (to prevent any imports into India). If the international prices go down they promptly match them with an additional reduction as comfort factor.