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1.2
Nature, Scope, and Significance of International Marketing
Asssociate Prof. Nitin Kumar 1
Nature of IM
• The role of an International Marketing Manager is to frame the controllables (endogenous factors) in light of uncontrollables (exogenous factors).
Asssociate Prof. Nitin Kumar 2
Business Environment
Internal (Controllable)
External
(Un-controllable)
MICRO MACRO
3
International Business
Internal Environment
Domestic Environment
Foreign Environment
Global Environment
Environment of IB
5 The Business Environment
Business Decision
Internal Environment
• Value System
• Mission and Objectives • Human Resources
• Company Image & Brand
Equity
• Management Structure and Nature
• Internal Power Relationships
• Other factors – Physical
Assets & Facilities,
• R&D and Technological
capabilities,
• Marketing Resources,
• Financial Factors, etc.
6 The Business Environment
Business Decision
Internal Environment
MICRO (Task/Operating) Environment Suppliers Customers
Publics Competitors Intermediaries
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7 The Business Environment
Business Decision
Internal Environment
MICRO (Task/Operating) Environment
MACRO (Remote/General) Environment
Political &
Legal
Economic &
Natural
Socio-Cultural Technological
World Trade in Goods and Services - Major Trends and Developments
• Global Trade has been growing much faster than global output (almost 3x since 1950)!
• World Merchandise Trade (Exports) in 2012 = US$ 18.4 trillion
8 Associate Prof. Nitin Kumar, DBS,
2013-14
Year 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
US$ Trillions 3.633 3.882 3.876 4.429 5.284 5.546 5.74 5.681 5.922 6.725 6.484 6.743 7.869 9.571 10.87 12.46 14.33 16.57 12.78 15.5 18.5 18.6
3.633 3.882 3.876 4.429
5.284 5.546 5.74 5.681 5.922
6.725 6.484 6.743
7.869
9.571
10.87
12.463
14.329
16.571
12.778
15.503
18.499 18.601
0
2
4
6
8
10
12
14
16
18
20
US$
Tri
llio
ns
World Merchandise Trade (Exports)
Source: Retrieved on 20/8/2013 at 1500 hours from http://www.wto.org/english/res_e/statis_e/trade_data_e.htm © WTO 2013 9
Associate Prof. Nitin Kumar, DBS,
2013-14 10
0
50
100
150
200
250
300
350
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Exports in US$ b
India
11
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Exports in US$ b
United States 12
0
500
1,000
1,500
2,000
2,500
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Exports in US$ b
China United States
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3
13
0
500
1,000
1,500
2,000
2,500
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Exports in US$ b
China India United States Asssociate Prof. Nitin Kumar 14
YEAR 2012
China 2,048,714
United States 1,545,709
Germany 1,407,082
Japan 798,568
Netherlands 655,700
France 568,920
Korea, Republic of 547,870
Russian Federation 529,255
Italy 500,719
China, Hong Kong SAR 492,907
United Kingdom 474,476
Canada 454,794
Belgium 446,529
Singapore 408,393
Saudi Arabia 388,370
Mexico 370,827
United Arab Emirates 350,000
China, Taiwan Province of 301,181
India 294,158