Page 22 - International Marketing

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24 International Marketing BRILLIANT'S

6. Competitive Nature: International marketing is strongly competi-
tive in nature. Every country wants to establish its presence in interna-
tional marketing so every country makes efforts to become the best of all.
There are three level’s competition.
(i) From the exporters of his own country.
(ii) From the exporters of other countries.
(iii) From the importers of other countries.
7. Nature of Risk: There is risk in every type of business. International
marketing is also surrounded by many types of risks like; changes in gov-
ernment rules and policy changes in financial condition of importer or ex-
porter, changes in fashion and interest of foreign customers and so on.
Scope of International Marketing
Though international marketing is in essence export marketing, it
has a broader connotation in marketing literature. It also means entry into
international markets by:
(a) Opening a branch/subsidiary abroad for processing, packaging,
assembly or even complete manufacturing through direct invest-
ment;
(b) Negotiating licensing/franchising arrangement whereby foreign
enterprises are granted the right to use the exporting company's
know how, viz., patents, processes or trademarks, with or with-
out financial investment;
(c) Establishing joint ventures in foreign countries for manufacturing
and/or marketing;
(d) Offering consultancy services and undertaking turnkey projects
abroad;
(e) Sub-contracting and countertrade; and
(f) Importing for export production.
Depending upon the degree of a firm's involvement, there may be
several variations of these arrangements.
Reasons for International Marketing

There are many reasons for the firms to go international. The factors
which motivate the firms to go international may be broadly divided into
two groups:
 The pull factors, and
 The push factors.
The pull factors, most of which are proactive reasons, are those forces
of attraction which pull the business to the foreign markets. In other words,