International Marketing in Pakistan International marketing is can be defined as exchange of goods and service between different national and

international markets involving buyers and sellers. International marketingIt is the multi-national process of planning and executing the conception, prices, promotion and distribution of ideal goods and services to create exchange that satisfy the individual and organizational objectives. Key Cconcepts of international marketing: Domestic Marketing is concerned with marketing practices within the marketers own country. Foreign Marketing refers to domestic marketing within the foreign country.

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Comparative Marketing is when the study of two or more marketing systems are studied, the subject of study is known as comparative marketing. In such a study, both similarities and dis-similaritiesdifferences are identified. It involves an analytical comparison of marketing methods practiced in different countries across the globe.

International Marketing: It is concerned with the micro aspects of a market and

takes the company as a unit of analysis. The purpose is to find out as to why and how a product succeeds or fails in a foreign country and how marketing efforts influence the results of international marketing.

International Trade: International Trade is concerned with flow of goods and services between the countries. The purpose is to study how monetary and commercial conditions influence balance of payments and resource transfer of countries involved. It provides a macro view of the market, national and international.

Global Marketing: Global Marketing consider the world as a whole as the theatre of operation. The purpose of global marketing is to learn to recognize the extent to which marketing plans and programs can be extended worldwide and the extent to which they must be adopted Marketing is the process of focusing the resources and objectives of an organization on environmental opportunities and needs. It is a universal discipline. However, markets and customers are different and hence the practice of marketing should be fine-tuned and adjusted to the local conditions of a given country. The

marketing man must understand that each person is different and so isalso each country which means that both experience and techniques obtained and successful in one country or countriesa particular country may not be relevant to another one. Every country has a different set of customers and even within a country there are different sub-sets of customers, distribution channels and media are differentchannels. If that is soTherefore, for each country there must be a unique marketing plan. For instance, Nnestle tried to transfer its successful four flavor coffee from Europe to the united United Sstates and lost a 1% market share in the usUS. Hence, Iit is important in international marketing to recognize the extent to which marketing plans and programmes can be extended to the world and the extent to which marketing plans must be adapted. The PakistanPakistans economy was to be integrated with the world economy through a programme of structural adjustment and stabilization. While the stabilization programme includes inflation control, fiscal adjustment and BOP adjustment, the structural reforms included trade and capital flow reforms, industrial deregulation, disinvestment and public enterprise reforms and financial sector reforms. The programme of economic reforms has not been entirely successful and as a result, the globalization international marketing process aspect of the Pakistan economy products has not gathered momentum. Indian business
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continuesPakistani businesses continue to face a number of difficulties and obstacles in their effort to globalize their business. These obstacles are as follow: Government policy and procedures in Pakistan are extremely complex and confusing. Immediate and efficient actions, is aan essential pre-requisite for globalization, are completely missing from the equationmissing sadly. The procedures and practice continue to be bureaucratic and hence a speed breaker in the globalization effortof Pakistani products. This adversely affects the marketing campaigns of these products in the International arena. High cost of inputs and infrastructural facilities, the cost of raw materials, intermediate goods, power, finance, infrastructural facilities etc. in Pakistan are high which reduces the global competitiveness of Pakistan productsbusiness. The quality and adequacy of infrastructural facilities in Pakistan is far from satisfactory. Pakistan is faced with several challenges; electricity crisis being a primary concern. The country is facing a dearth of this invaluable commodityelectricity. On a typical day, most cicitrs in Pakistan is faced with a18 hour electricity outage due to which there has been a sharp decline in business activities. Most Businesses gets electricityget electricity twice a week for certain time periods. because of these electricity time frameDue to this rationing of electricity, businesses are not being able tofail to achieve their optimal output produce at the fill potentials which are causing them to haveresults in a higher rate cost of production. When the

businesses cost of productioning of good is high increases sharply, there are not be able to get higher profits its profits steeply decline because because the competitors markets are producing the same goods at a lower price. When With thethe rampant electricity shortage rampant Pakistanshortage, Pakistani manufacturing industry is facing a lot of delays in producing the goodsproduction. because of the electricity time frame because of the Consequently, this results in delayed orders causing Pakistan is to loseing customers. and tThe customers are going to the competitors like India and chinaChina. The high cost of fuel i.e. the price of crude has increased from $40 to $140 a barrel. This obscene sharp rise in cost means that the thermal source of production is resulting in exorbitant prices. As WAPDA and KESC (electricity manufacturing authorities in Pakistan) procure energy on high cost, hence, they will sell it at a higher price too. The viable solution is to increase the energy cost. The government will have to monitor the theft of electricity and make sure it doesnt prevail. WAPDA and KESC have a monopoly in this business. The private sector should be given the permission to install power plant. Through this way rates will be decided on a competitive basis and moreover constant power supply will be ensured. This electricity crisis has caused a lot of businesses to close down and lot many businesses have lost their international customers because they were not able to full fill the orders on time. Electricity crisis is a huge problem for Pakistani manufacturing industry in general, and international marketing in

particular it is causing Pakistan to go to old age. These electricity shortages have also affected international trade of Pakistan a lot. Further the technology employed by Pakistan industries and the style of operation is generally out dated, because of which the cost of production is higher from all its competitors and the shortage of electricity hold Pakistan back from using the latest technology. RESISTANCE TO CHANGE: The pre-reform era in Pakistan breaded lethargy, created rigid structures, systems, practices and procedures and generally instilled a laid back attitude. These factors arecreate a hindrance to the processes of modernization, rationalization and efficiency improvement. Technological change is generally perceived to be employment reducing and hence resisted to the extent possibleincrease efficiency and efficacy. For instance, information technology was introduced in India Pakistan in the early eighties. However, computerization process of nationalized banks began only in the mid-nineties. Excess labor is particularly employed in the public sectors in areas such as banking, insurance, and the railways and Indian Pakistani industry in general. As a result, labor productivity is low and cheap labor in many a cases turns out to be dear.

SMALL SIZE AND POOR IMAGE: Pakistan firms are found to be small in size with low availability of resources.

Pakistan firms there fore cannot compete successfully in the international market. Pakistan products suffer from a poor image in the international market for both reasons valid and otherwise. Pakistan firms continue to miss consumer focus both domestically and internationally. The value-money equilibrium is missing in Pakistan products. Further, Pakistan firms are do not have the wherewithalresources to keep up to the delivery schedule, accepts large orders and match up to international specifications.

GROWING COMPETITION AND POOR SPENDING: Pakistan firms are not only up and against competition from developed countries but also emerging Asian powerhouses such as South Korea , and China and Pakistan. Continuous improvement in quality and usefulness and competitive costs with competitive pricing can only keep you afloat and in order to remain afloat, one has to spend quite a lot on R & D. both Both public and private sector outlays on research in Pakistan is deliberately low when compared to the developed countries. Pakistan Mainly exports in these these sectors: The Agricultural Sector Agriculture presently accounts for only 25% of GDP. At the time of independence in 1947, it was considered to be the core economy,

generating a major part of GDP. Despite this shrinkage, the Pakistani agricultural sector has actually done well compared to other countries in the region. As a result of the second green revolution of the 1990s, Pakistan has tripled its world market share of cotton, reaching about 10%, which is almost the same level as neighboring Pakistan (Federal Bureau of Statistics, 2003). This fact is especially remarkable considering the large difference in size between the two economies. However, Pakistani agriculatural products remain unknown in the international sphere due to little focus on international marketing.

Capital Markets Despite past inefficiencies, capital markets in Pakistan are reappearing in the private sector as important instruments of economic growth As noted earlier, as foreign capital is poured into the country, the major Pakistani stock exchange in Karachi (KSE) became the best performing stock market in the world in 2002. Pakistans renewed status as a U.S. ally in the war against terrorism has led to a marked easing of trading restrictions with Western nations. Pakistan includes the publicly integrated Development Finance Institutions and the National Savings Organization. Private-sector financing is available through the major commercial banks in the country, of which Habib Bank, United Bank , and

Allied Bank are the largest. These banks provide bulk of domestic financing required by investors. Exports and Growth Industries: The ratio of exports to GDP has doubled from 8% 30 years ago to 16% in the late 1990s (Ministry of Finance, 2003), producing notable improvements in levels of urbanization. Basic industries like textiles, leather, and sporting goods account for the bulk of export revenues. Textile manufacturers alone accounted for a massive 64% of total export revenues in fiscal year 20012002 (Ministry of Finance, 2003). Export diversification is a priority for the Pakistani economy, and government incentives have been structured to achieve this goal. Exports of manufactured goods are replacing exports of primary commodities, while still retaining links to key industries producing tobacco, textiles, and apparel. The agricultural sector has done well in recent years, but industry has done even better. Thus, the two major engines of economic growth, agriculture and industry, are effectively working together to generate economic growth. New areas of economic activity, such as software development in the technology sector, are receiving special governmental attention and support through expedited approvals and developmental capital schemes (Board of Investment, 2003). Consequently this is an opportune time for foreign investors to get in on the ground floor in growth industries.

Global Trading Relations The United States, Germany, and Japan are currently the largest export markets for Pakistani goods. Pakistans participation in numerous regional and bilateral trading agreements offers potential for building bilateral relationships and diversifying export markets in the future. Reciprocal trade agreements are already in place with China, the Gulf countries, Turkey, Iran, and several major markets in Southeast Asia. Pakistan enjoys a special relationship with China that dates back to the early 1960s. The two countries were brought together initially by motives of political expediency, shared borders and ethnicities, and common interests stemming from border disputes with India. This relationship grew into a longstanding friendship. Pakistan, therefore, presents a valuable production platform for exports to China, particularly for apparel and software.

Pakistan exports mainly in these finished goods textiles, leather, sporting goods, surgical instruments, mangos, and sugar. However, a lack of focus on International marketing is making Pakistan lose its competitive edge across the globe, resulting in poor performance of the manufacturing industry and consequently the economy. This paper clearly shows a strong relation between international marketing and a successful economy. A wrong marketing campaign for the right products can adversely affect national economies.