Introduction to international marketing assignment
Introduction to international marketing assignment
It also helps improve communication and performance. The advantages of standardization is that it helps cuts costs by lowering installation costs, educing need to maintain large inventories, and lowering maintenance costs thus also allows a company to take advantage of economies of scale when purchasing supplies. It helps improve the management and design with less customization needed, enabling interchangeability of components, and provides practical application of expert knowledge enhancing operability and improves performance.
The disadvantage of standardization is the loss of uniqueness. If a company builds up a customer base that serves a specialized market, standardizing its processes may mean it loses some of its former customers. Another disadvantage is the loss of responsiveness where when a company expands into a new market there may be cultural differences which leads to different taste and likings of the market. Q. 3 Suggest five different ways in which India could improve its image as an exporter in international markets, explaining why? NAS.
The international marketer first has to determine the various characteristics of the economic environment which are relevant for company’s business. Having determined the relevant factors of influence from the economic environment, the marketer will need to analyze their current state in the country markets under consideration. Characteristics of economic environment: Population: The total population of a country, its growth rate, the striation of age groups within the population and the degree of arbitration are of interest to many international marketers. The size of a potential local product- market is a key element in its viability.
The distribution of age groups in a country is closely related to the demand for certain products, and the degree of arbitration represents concentration of potential customers. Size and Growth Many international marketers are interested in rapidly developing markets in China and India which together represent some 70 percent of Sais’s population and about 40 percent of the population of the world. The size of the population and its rate of growth affect a society’s ability to progress economically and provide for the future. Immigration Population growth could also be due to immigration.
Besides, the Government of India has taken steps like, announcing a competition policy, enacting Competition Act, 2002 and setting up of Competition Commission of India, in order to ensure a healthy and fair competition in the market economy. These aim to prohibit the anti-competitive business practices, abuse of dominance by an enterprise as well as regulate various business combinations like mergers and acquisitions. For regulation of the export and import of goods and services an entrepreneur has to bide by the Foreign Trade (Development and Regulation) Act, 1992 and the EXAM policy announced by the Government from time to time.
The Ministry of Commerce and Industry is the most important organ concerned with the promotion and regulation of the foreign trade in India. The Ministry has an elaborate organizational set up to look after the various aspects of trade. Within the Ministry, the Department of Commerce is responsible for formulating and implementing the foreign trade policy. Q. 6 Select a product of your choice to be introduced in the US market. What are the ultra factors that would have to be considered in developing a marketing strategy for this product? NAS.