MCOM 2nd Year Scope Of The International Marketing Study Notes
SCOPE OF THE INTERNATIONAL MARKETING
International marketing has a wide scope. It works on the gloal scale every country is the part of international marketing. Every country contribution in this because one country demands for a product or importer country question for the goods and exporter country fulfills their needs.
Both of countries importer and exporter and exporter can be included in the scope international marketing. Apart fro mthis the scope of international marketing can be understood with the help of following points.
- Collaboration and joint veniure. In the field of intefrnation marketing collaboration is very important. If inporter and exporter do not cooperate, international marketing can not grow up. Because even a single produc is equipped with the parts made in different countries. Without joint venture international marketing is meaningless. International marketing is the effect of collaboration and joint venture. Maruti Suzuki, hero Honda, Yamaha a the examples of effective collaboration and joint work. These vehicles a equipped with various countries spare parts. They all countribute to make thought vehicles. Not only vehicles many other products you can see around yours which are the result of collaboration and joint venture of importer and export and other countries help to complete a product.
- Marketing Recearch. International marketing also included marketing research. In other words, market research is the scope of international marketing marketing research helps to knkow the consumer’s wants and habits .It helps know the popularity of a product and what changes want a buyer. Exporter can get true and accurate information through marketing research. The scope marketing research is very wide in the field of international marketing. A marketer/supplier/exporter can know his disqualities with the help of marketing research and can make necessary changes and improvements according to the choice and need of customer/consumer/importer.
“Marketing research is the systematic search for and analysis of facts related to a marketing problems.”
Marketing research analyses consumer haits, collect information to solve a problem and take correct actions.
3. Advertising. Advertising is also important in international marketing Advertising has bocame an important function in the today’s competitive work Advertising expanse the information about a product to increase its sale. It makes a non-personal link between customer and marketer or advertiser and the receiver of the information about product. The importance of advertising have increased in the modern age because of large scale production and cut throat competition. Every producer want to increase his sales and profit and advertising is a best tool to attain this goal. Business firms send their message about products by given advertisement in news papers, radio, magazines, televisions, cinema halls, hoardings, window displays, etc. We get knowledge about a introductory product by advertise and we attract towards that product and used it and get information about development, modification and improvement in the basic product. As we can see the advertisement of new range of Lux which is played by Aishwarya Rai.
4. Conferation Services. Conferation services are also included in scope of international marketing. Developed countries provide consultancy service to the developing countries about the setup or establishment of new business. They consult developing countries about the construction of bridges and for the construction of modern building. We can see the beautiful buildings of Hotels, Residential buildings and offices in developing countries make them beautiful and strong according to the instruction of developing countries. Apart from this, developing countries also consult from developed countries about technologies.
5. The Knowledge of Technology and Management. Technical and managerial know-how now included in international marketing. Exporter country sends his technical specialists and genius in importer country. Importer country gets knowledge about technology and management.
For Example : Even now people from India goes to America to get higher education because America have modern technologies more than India.
DOMESTIC MARKETING Vs. INTERNATIONAL MARKETING
Concepts and elements of marketing are the same both in domestic marketing and international marketing. But their applicability differs in respect marketing environment in which they work. Marketing in home country and in foreign country can be compared on following grounds :
1. Scope. The scope of international marketing is wide because it makes business and transitions outside of the nation. In other words, international marketing is done out of the boundaries of the nation. So its, scope is wide:
On the other hand, domestic marketing have a narrow scope. In this marketing customer and marketer are of same nation. This business controlled and established on the home country level customer likes to go their local markets for shopping
2. Competition, In the modem era the competition is appearing every where in every service field. International marketing have tough competition business dealings have escalated on a global scale and every country want to do strong their economy by reducing exports and deducing imports. This conditions increase the competition one country want to push another country into depth.
International marketing have more competition but it does not mean that domestic marketing competition less. Domestic marketing is also having competition among producers but this competition is less than competition of international marketing. :
3. Customs and Traditions. In the domestic marketing one country is the place of marketing so every body can understand their traditions. Those people know how to do a business customs, how to bargain to get a product and what is reasonable price of a product.
For example : India is a country of different customs and traditions but people know their traditions and try to purchase a product even in a different state according to their custom and tradition at home country.
But International Marketing facing the problem of different customs. International Marketing include various countries and this is not possible for every country to comprehend the traditions of every courtry.
This is a difference between domestic and international marketing.
4. Natural Environment. Natural environment is another difference between both marketing. The difference in natural environment and the natural conditions of all countries can not be same. Because when it is day in India there will be night in America and the environment of Europe is cold and Africa is very hot.
So, International marketing unlike domestic marketing requires operating continuously in more than one environment.
5. Programmes of Companies. The programmes of companies in different countries are also different. Every company have its own market strategy different from other companies. Every nation/country cannot understand their market policy.
Though a home country can try to understand the policy of other companies because they all are of same country and this is not impossible for them to get a knowledge about company programmes.
It is clear method of working in different countries must be co-ordinated and the experience gained must be used for making decisions in different countries.
6. Government Control and Restrictions. Domestic marketing do not fare this problem because in the same nation we are receiving a product from other state no government restriction will be faced.
But the entire field of International marketing is controlled by government and restrictions exercise by every sovereignty. If a nation export or import with other nation the government of that nation imose the custom charges and imporer and exporter pay the custom charges.
Without government restriction, International marketing is not possible.
The other differences are as follows:
Competition is generally not open and free laws, restrictions taxes tariffs and control are all part of the expressed sovereignty of all foreign countries. Moreover, these devices are constantly changing and they must be followed closely
In and export marketing venture, statistical data for many export markets is either non-existent or inaccurate. Language is a major obstacle for export markets. The fundamental problem is the lack of common background and experience which domestic marketer shares with his customer.