HIGHER NATIONAL CERTIFICATE IN BUSINESS

ASSIGNMENT BRIEF

QUALIFICATION: B.TECH HNC BUSINESS UNIT NO AND TITLE: UNIT 4- MARKETING PRINCIPLES STUDENT NAME: __MENTA

V POORNA SAI ABHISHEK______________________________

ASSESSOR NAME: SWATI RAGHUPATRUNI DATE ISSUED: ___________DEADLINE:__________SUBMITTED ON_______

ASSIGNMENT TITLE: ILMC- SCOPE OF INTERNATIONAL MARKETING

_______________________________

GAYATRI VIDYA PARISHAD

REPORT ON ILMC-SCOPE OF INTERNATIONAL MARKETING

STUDENT DECLARATION
I certify that the work submitted for this assignment is my own and research sources are fully acknowledged.

M.V.P.S ABHISHEK

Student signature

Date

ABSTRACT:

Differences between B2B and B2C is clearly pointed and firm should enter

into international markets since it has the capacity to tackle global lubricant manufacturers but firm should start initially open overseas office and then as expertise and experience is achieved can extend entry continuum. B2B marketing is major part of lube business so business tours will adapt ILMC products for global local markets.

INTRODUCTION: Sales of the company had soared up due to proper regulation of

marketing strategies. In this financial year (2013-3014) new ideations are to be formulated for relentless growth of sales. The members of the board insisted marketing manager for the firms international venture and to initiate B2B marketing strategies. This report dealt about international marketing and B2B related issues.

OBJECTIVES OF THE REPORT:

Differences in marketing products to business markets and consumer markets. Differences between international markets and domestic markets. Choosing and setting up international lube business.

RESEARCH METHODOLOGY:
Sources of information had been retrieved from browsing, books, journals i.e. only through secondary data analysis.

LIMITATIONS OF THE REPORT:

Time is big constraint to provide complete information.

THEOROTICAL FRAMEWORK:

Firms business had been segmented into business markets and consumer markets. Business markets are those markets where buying and selling i.e. exchange of transactions takes place between business organizations while in consumer markets, transactions takes place between manufacturers/sellers to end consumers. The buyer behavior of business markets had already been discussed; The difference between B2B marketing and B2C marketing are B2B transactions are higher compared to B2C transactions. Ex:- lubricant which is an end product of lube manufacturer, should perceive about refined oil, additives, machinery etc and these are all B2B transactions while lube product can be B2C or to other company.

(Philip kotler, Gary Armstrong, John Saunders, Veronica Wong, Principles of marketing, European edition, Pg 203-207.)

The decision making process in B2B is lengthier and time taken process compared to B2C as the materials required for functioning of a firm is large. Below table describes about evaluation by consumers is

(Philip kotler et al, Principles of marketing, European edition, Pg 203-207.)

In Business organizations the B2B buying decision process is evaluated by group of individuals, aptly called business center. The buyer decision process for business markets is

International marketing:
International marketing is a business function which involves set of process for creating, and formulating ideas, distribution of products, communicating and delivering value for customers globally satisfying customers across the globe ultimately benefiting organization.

Domestic marketing:
Marketing phenomenon followed in home country or native country is called domestic marketing.

Differences between international marketing and domestic marketing:

Huge amount of financial resources are required for international marketing compared to domestic marketing. Language is a barrier for effective communication with distributors for international marketing whereas it is not an issue for domestic marketing. Required high level of commitment to achieve success for international marketing. Interpreting on local marketing trends is easier and faster for domestic marketing and developing new marketing strategies is farther easier to international marketing. 4Ps of marketing is complex compared to domestic marketing and has broad classification. They can be conjured up as: PRODUCT: It should be adaptive in international marketing i.e. the firm should know local cultural beliefs which varies from a country to other.

PRICE: It often should be penetration pricing (competitive pricing) rather than other product based pricing as large numbers of competitors involved are other exporters (manufacturers) from same country, other exporters from different country, Local producers, and substitute product producers. PLACE: Physical distribution is complicated as firm has to handle transportation issues like mode of export from home country to foreign country, time given by the buyer; cost of using these particular modes, type of insurance while exporting, packaging etc and such type of lengthier dimension is not seen in domestic marketing. PROMOTION: In India promotions are mainly through advertising but across the globe they are done through business trips and also by trade fares, advertising, proper managing of official website of the firm.

REASONS FOR DOING INTERNATIONAL LUBE BUSINESS:

International markets provide high profit opportunities than the domestic market. Demand for lubes across the globe is high (Europe (35%), Asia-pacific (25%), North America (28%) and South America (12%)) Counter attacking global competitors in domestic markets.

ADVANTAGES OF ENTERING INTO INTERNATIONAL MARKETS:

International image of the firm is attained and can achieve stability. Seasonal fluctuations can be regulated (can be ignored in lubricant business).

Can learn new business strategies like product development, packaging and can provide huge employment opportunities.

MODES OF ENTRY INTO INTERNATIONAL MARKETING:

At initial stage companies start export business and exporters (manufacturers) export products to international dealers. On gaining the grip of export business now firm can open overseas branch office and can directly communicate with dealers. As the firms overseas brand image has enhanced it can give licensing or franchising or both. If the firms level of commitment is strong enough it can directly form strategic alliances or joint ventures to gain expertise. As the firm had got enough expertise it can directly manufacture its own products, promote and pricing can be done around global countries.

LICENSING: Licensor issues license to a foreign firm for manufacturing products, product trade secret for royalty or fee. (Philip kotler et al, Principles of marketing, European edition, Pg 203-207.)

FRANCHISING: It is an agreement made between franchisor and franchisee, where franchisee pays fees for franchisors brand concept, operating chain. (Philip kotler et al, Principles of marketing, European edition, Pg 203-207.)

SUGGESTIONS:

ILMC should start international marketing in neighboring regions, after gaining experience products can be designed, marketed in other continents as to counter attack international competitors in domestic market share. ILMC should contemplate at treaties like SAARC, BRICS etc as the trade barriers can be reduced or avoided. Product adaption is not required as the products are being marketed mainly for B2B but promotion strategies can be changed.

CONCLUSIONS:
B2B marketing transactions are higher and larger compared to B2C transactions. If international marketing is properly regulated firm can achieve stability and can captivate lubricant business. Entry mode of international marketing should be through exports since it involves less risk and can gain experience.

REFERENCES:
International market entry strategies, video recording, IGNOU.