INTERNATIONAL

1 INTERNATIONALMARKETING(Text and Cases)Fourteenth Revised Edition : 2015 Francis , , , , School of Management Studies,Viswajyoti College of Engineering & Technology,Vazhakulam - 686 670, Kerala.(Formerly Professor and Chairman, Marketing Area, IIMK;Director, School of Management Studies,Cochin University of Science & Technology;Director, Albertian Institute of Management, Cochin;Director, Kochi Business School;Director, Mangalam Management Studies, Kottayam)E-mail: NEW DELHI NAGPUR BENGALURU HYDERABAD CHENNAI PUNE LUCKNOW AHMEDABAD ERNAKULAM BHUBANESWAR INDORE KOLKATA GUWAHATIF irst Edition: 1998 Reprint: 1999 Second Revised Edition :1999 (October)Third Revised Edition:2000 Reprint: 2001 Fourth Revised Edition:2002 Fifth Revised Edition: 2002 (July)Sixth Revised Edition:2003 Seventh Revised Edition:2004 Reprint: 2005 Eighth Revised Edition:2006 Ninth Edition: 2007 Tenth Revised Edition:2009 Eleventh Revised Edition.

2 2010 Twelfth Revised Edition:2012 Thirteenth Revised Edition :2013 Fourteenth Revised Edition :2015 Published by:Mrs. Meena Pandey for Himalaya Publishing House Pvt. Ltd., Ramdoot , Dr. Bhalerao Marg, Girgaon, Mumbai - 400 : 022-23860170/23863863, Fax: 022-23877178E-mail: Website: Offices:New Delhi: Pooja Apartments , 4-B, Murari Lal Street, Ansari Road, Darya Ganj,New Delhi - 110 002. Phone: 011-23270392, 23278631; Fax: 011-23256286 Nagpur:Kundanlal Chandak Industrial Estate, Ghat Road, Nagpur - 440 : 0712-2738731, 3296733; Telefax: 0712-2721216 Bengaluru:No.

3 16/1 (Old 12/1), 1st Floor, Next to Hotel Highlands, Madhava Nagar,Race Course Road, Bengaluru - 560 : 080-22286611, 22385461, 4113 8821, 22281541 Hyderabad:No. 3-4-184, Lingampally, Besides Raghavendra Swamy Matham, Kachiguda,Hyderabad - 500 027. Phone: 040-27560041, 27550139 Chennai:New-20, Old-59, Thirumalai Pillai Road, T. Nagar, Chennai - 600 : 9380460419 Pune:First Floor, "Laksha" Apartment, No. 527, Mehunpura, Shaniwarpeth(Near Prabhat Theatre), Pune - 411 030. Phone: 020-24496323/24496333;Mobile: 09370579333 Lucknow:House No 731, Shekhupura Colony, Near Convent School, Aliganj,Lucknow - 226 022.

4 Phone: 0522-4012353; Mobile: 09307501549 Ahmedabad:114, SHAIL , 1st Floor, Opp. Madhu Sudan House, Road, Navrang Pura,Ahmedabad - 380 009. Phone: 079-26560126; Mobile: 09377088847 Ernakulam:39/176 (New No: 60/251) 1st Floor, Karikkamuri Road, Ernakulam, Kochi : 0484-2378012, 2378016; Mobile: 09387122121 Bhubaneswar:5 Station Square, Bhubaneswar - 751 001 (Odisha).Phone: 0674-2532129, Mobile: 09338746007 Indore:Kesardeep Avenue Extension, 73, Narayan Bagh, Flat No. 302, IIIrd Floor,Near Humpty Dumpty School, Indore - 452 007 ( ). Mobile: 09303399304 Kolkata:108/4, Beliaghata Main Road, Near ID Hospital, Opp.

5 SBI Bank,Kolkata - 700 010, Phone: 033-32449649, Mobile: 7439040301 Guwahati:House No. 15, Behind Pragjyotish College, Near Sharma Printing Press, Bharalumukh, Guwahati - 781009, (Assam).Mobile: 09883055590, 08486355289, 7439040301 DTP by:(Rajani Tambe)Printed at:M/s Sri Sai Art Printer Hyderabad. On behalf of HPH AuthorNo part of this publication may be reproduced, stored in a retrieval system, or transmitted in any formor by any means, electronic, mechanical, photocopying, recording and/or otherwise without the priorwritten permission of the to the Fourteenth Revised EditionThis book is patterned after the Model Curriculum recommended by the UGC and it coversthe syllabi of the following papers of different 3204 INTERNATIONAL MarketingIB 4105 INTERNATIONAL MarketingMIB/MBA ( INTERNATIONAL Marketing)

6 MIB INTERNATIONAL MarketingMEC (Master of E-Commerce)MEC INTERNATIONAL INTERNATIONAL (Master of Marketing)MM INTERNATIONAL MarketingBIB (Bachelor of INTERNATIONAL Business)IB INTERNATIONAL (Bachelor of Marketing)BM INTERNATIONAL MarketingThis edition is characterised by updating of information throughout the author expresses his gratitude to the Himalaya Publishing House Pvt. Ltd. for the ,Dr. Francis CherunilamJune 21, 2015 Contents1. INTERNATIONAL Marketing: An Introduction1 29 Expansion of INTERNATIONAL market; global sourcing and production sharing;growing economic power of developing countries; INTERNATIONAL marketing;reasons for/motives of INTERNATIONAL marketing; INTERNATIONAL orientations;internationalisation stages; INTERNATIONAL marketing decisions; scope of marketingIndian products abroad, driving and restraining forces; participants in internationalmarketing; future of INTERNATIONAL INTERNATIONAL Marketing Environment30 111 Economic environment.

7 Social environment; political and government environment;demographic environment; technological environment; INTERNATIONAL tradingenvironment; trade barriers; non-tariff barriers; commodity agreements; cartels;state trading; trading blocs and growing intra-regional trade; the EU; the Euro;SAARC; Indo-Sri Lanka, Free Trade Agreement; WTO; patents; UNCTAD,UNIDO; ITC; legal environment of business. Appendix : Multifibre Arrangement(MFA)3. MNCs and INTERNATIONAL Business112 123 Definitions; organisational transformation; globalisation of business; dominanceof MNCs; MNCs and INTERNATIONAL trade; merits of MNCs; demerits; perspectives;code of conduct; MNCs in INTERNATIONAL Marketing Intelligence124 136 Information requirements; sources of information; INTERNATIONAL marketinginformation system and marketing research; phases of research project; methodsof data collection; research agencies; problems in INTERNATIONAL Market Selection137 143 Market selection process.

8 Determinants of market selection; market profiling;market segment Market Entry Strategies144 162 Licensing and franchising; exporting; contract manufacturing; turnkey contracts;fully owned manufacturing facilities; assembly operations; joint ventures; thirdcountry location; mergers and acquisitions; strategic alliances; counter trade;entry strategies of Indian INTERNATIONAL Organisation163 168 Built-in export department; separate export department; export sales subsidiary; INTERNATIONAL division; global Market Coverage Strategies169 172 Concentrated marketing strategy; niche marketing; market segmentation anddifferentiated marketing INTERNATIONAL Product Decisions173 198 Product decisions; product; product mix; product life cycle; new productdevelopment; branding; packaging and labelling; business environment andproduct strategies; product strategies; product-communication strategies;globalisation vs.

9 INTERNATIONAL Pricing199 225 Exporter s costs; pricing objectives; factors affecting pricing; pricing methods/approaches; transfer pricing; dumping; steps in pricing; retrograde pricing; exportprice structure; export price quotations and inco terms; information requirementsfor INTERNATIONAL Distribution226 235 INTERNATIONAL channel system; direct exports; indirect exports; types of intermediaries;marketing environment and distribution strategies; INTERNATIONAL INTERNATIONAL Promotion236 249 Marketing environment and promotion strategies; major decisions in internationalmarketing communications; communication mix; role of export promotionorganisations; trade fairs and exhibitions; personnel selling in internationalmarketing; problems in INTERNATIONAL marketing Export Finance250 259 Payment terms; institutional finance for exports; Exim : Letter of Credit and Financing of Foreign Export Risk Insurance260 266 Marine insurance; ECGC and export credit Quality Control and Pre-shipment Inspection267 272 Objectives of quality control; quality standards.

10 Methods of quality control andinspection; role of Bureau of Indian Standards; problems in maintaining qualityfor Trade in Services273 278 Characteristics of services; Technological Developments andInternational Marketing279 289 The death of distance: technology and competitiveness; e-marketing; componentsof global electronic supply chain; targeting the individual customer: INTERNATIONAL Negotiations290 2954Cs of negotiation; stages of negotiation; prerequisites for effective negotiations;negotiating with Trade Policy and Regulation of India296 308 Trade strategy of India; economic policy liberalisations; foreign trade policy2015-20; regulation and promotion of foreign trade; Foreign Trade (Developmentand Regulation) Act, Export Promotion309 324 Organisational set-up; incentives; production assistance/facilities; marketingassista