Any company marketing into other country or groups of countries, however slight the involvement or the method of involvement is considered as international marketing.. Hence this discussion of international marketing ranges from the marketing and business practices of small exporters, such as a Colorado-based company that generates more than 50 percent of its $ 40,000 annual sales of fish egg sorters in Canada, Germany, and Australia, to the practice of global companies such as Motorola, Avon, and Johnson & Johnson, all of which generate more than 50 percent of their annual profits from the sales of multiple products to multiple country market segments all over the world.
The global marketing concept views an entire set of country markets (whether the home market and only 1 other country or the home market and 100 other countries) as a unit, identifying groups of prospective buyers with similar needs as a global market segment and developing a marketing plan that strives for standardization wherever it is cost and culturally effective.
Space prohibits an encyclopedic approach to all the issues of international marketing; nevertheless the authors have tried to present sufficient detail so that readers will appreciate the real need to make a thorough analysis whenever the challenge. The text provides a framework for this task.
India’s Foreign Trade:
India’s GDP has been witnessing high growth and is now the second fastest growing GDP after China. The required impetus to this economic growth came from the Indian services and industry sector.
In the year 2006, Indian economy was ranked the fourth largest in terms of PPP valued at USD 4.1 trillion.
In the below figure we can see that service industry contribution to Indian Industry has grown from 40% in 2000 to 55% in 2006.
India’s enhanced economic performance coupled with liberalization and changing demographic segmentation have been major contributors towards increased Forex reserves in the country.
Indian regulatory authorities have adequate security against any possible currency crisis or monetary instability. Due to this Forex reserves witnessed an increase of 200 percent for the period 1990–2007.
The services sector has been a major contributor to increased exports from India. Acceptance of Indian products, due to their cost advantage as well as quality, has provided an impetus to exports. Indian companies are leveraging this advantage and have chalked out extensive plans to increase their presence abroad.
The internationalization of Indian and American business is proceeding with increasing pace. The globalization of market and competition necessitates all managers to pay attention to the global environment. International is defined as the performance of business activities including pricing, promotion, product, and distribution decisions across national borders. The international marketing task is made more daunting because environmental factors such as laws, customs, and cultures vary from country to country. These environmental differences must be taken into account if firms are to market products and services at a profit in other countries.
Key obstacles facing international marketers are not limited to environmental issues. Just as important are difficulties associated with the marketer’s own self reference criteria and ethnocentrism. Both limit the international marketer’s abilities to understand and adapt to differences prevalent in foreign markets. A global awareness and sensitivity are the best solutions to these problems, and these should be nurtured in international marketing organizations.
Three different strategic orientations are found among managers of international marketing operations. Some see international marketing as ancillary to the domestic operations. A second kind of company sees international marketing as a crucial aspect of sales revenue generation but treats each market as a separate entity. Finally, a global orientation views the globe as the marketplace and market segments are no longer based solely on national borders, common consumer characteristics and behaviors come into play as key segmentation variables applied across countries.