THE BHOPAL SCHOOL OF SOCIAL SCIENCES

BBA SEM 6 : INTERNATIONAL MARKETING

UNIT 1: Module 1: Historical Background of International Marketing in

India
International marketing in India has evolved significantly over the years, driven by changes
in global trade dynamics, technological advancements, and shifts in government policies.
Here's a brief historical background:
Pre-liberalization era (pre-1991):
Before the economic liberalization in 1991, India followed a policy of economic self-reliance,
characterized by protectionist measures and heavy regulation of foreign trade.
International marketing activities were limited, with a focus on exporting traditional goods
such as textiles, handicrafts, and agricultural products.
The government imposed strict controls on imports and exports, hindering the growth of
international marketing.
Economic liberalization (1991):
In response to a balance of payments crisis, India initiated economic reforms in 1991,
liberalizing its economy and opening up to foreign investment and trade.
This period saw a significant shift in India's international marketing landscape, with increased
participation in global trade and integration into the world economy.
Foreign companies started entering the Indian market, and Indian companies began exploring
opportunities abroad.
Emergence of Indian multinationals (1990s-2000s):
Indian companies expanded their international marketing efforts, leveraging their competitive
advantages such as low-cost manufacturing and a skilled workforce.
Industries such as IT, pharmaceuticals, and automotive led the way in global expansion,
establishing a presence in key markets worldwide.
Indian multinationals engaged in activities like foreign direct investment (FDI), joint
ventures, and strategic alliances to enter new markets and enhance their international
competitiveness.
Technological advancements and digitalization (2000s-present):

*Edited & Compiled for Students by:

DR LILA SIMON
Professor
Department of Management
The Bhopal School of Social Sciences
 THE BHOPAL SCHOOL OF SOCIAL SCIENCES
Class : BBA Sem 6 Subject : International Marketing
Unit : 1 Module : Module-No 1

The proliferation of the internet and digital technologies transformed international marketing
practices. Indian companies embraced digital platforms for market research, customer
engagement, and online sales, enabling them to reach global audiences more effectively.
E-commerce platforms facilitated cross-border trade, allowing Indian businesses to tap into
international markets with greater ease.
Government initiatives and trade agreements:
The Indian government introduced various initiatives to promote international trade and
investment, such as the 'Make in India' campaign and the establishment of special economic
zones (SEZs).Trade agreements like the ASEAN-India Free Trade Agreement and bilateral
agreements with countries like the USA and EU facilitated smoother trade relations,
encouraging international marketing activities.
Challenges and opportunities:
Despite significant progress, challenges such as infrastructure constraints, regulatory hurdles,
and cultural differences continue to impact international marketing in India. However, India's
large consumer base, growing middle class, and increasing disposable incomes present
immense opportunities for companies looking to expand their global footprint through
effective international marketing strategies.
Overall, the historical evolution of international marketing in India reflects the country's
transition from a closed economy to an increasingly interconnected player in the global
marketplace, driven by economic reforms, technological advancements, and changing
consumer preferences.
International Marketing: Definition
Kotler has defined marketing as, “Marketing is the analysis, planning, implementation and
control of programmes designed to bring about desired exchanges with target audiences for
the purpose of mutual or personal gain. It relies heavily on the adoption and co­ordination of
product, price, promotion and place for achieving effective response.”

There are two sets of variables in this definition. One is markets and other one is human
needs and wants and a process or techniques to convert potential exchanges into realized
exchanges. The techniques involved are more or less similar in both domestic and
 THE BHOPAL SCHOOL OF SOCIAL SCIENCES
Class : BBA Sem 6 Subject : International Marketing
Unit : 1 Module : Module-No 1

international marketing. But the variables involved are totally different in case of
International Marketing.

International marketing can, therefore, be defined as, “marketing carried on across national
boundaries.”

According to Kotler, "Global marketing is concerned with integrating and standardizing

marketing actions across a number of geographic markets." According to Cateora,
"International marketing is the performance of business activities that direct the flow of
goods and services to consumers and users in more than one nation." According to Cateora
and Graham, "International marketing is the performance of business activities designed to
plan, price, promote, and direct the flow of a company’s goods and services to consumers or
users in more than one nation for a profit."

According to Terpstra and Sorathy, “international marketing consists of finding and satisfying
global customer needs better than the competition, both domestic and international and of
coordinating marketing activities within the constraints of the global environment.”

International marketing refers to marketing carried out by companies overseas or across

national boundaries. This strategy uses an extension of the techniques employed in the house
country of a firm. According to the American Marketing Association (AMA) “International
promoting is that the international method of designing and death penalty the conception
rating, promotion and distribution of concepts, goods, and services to form exchanges that
satisfy individual and organizational objectives.”

Nature of International Marketing

1. Broader market is available – Unlike domestic marketing, the market is not restricted
to the national population. The population of other countries can also be targeted in
international marketing.
2. Involves at least two sets of uncontrollable variables – In domestic marketing the
marketers have to interact with only one set of uncontrollable variables. In
 THE BHOPAL SCHOOL OF SOCIAL SCIENCES
Class : BBA Sem 6 Subject : International Marketing
Unit : 1 Module : Module-No 1

international marketing at least two sets of uncontrollable variables are involved or

more if the marketing organization deals in more countries.
3. Requires broader competence – Special management skills and broader competence
are required in international marketing/business.
4. Competition is intense – An international marketing organization has to compete with
both domestic competitors and international competitors. Hence, the competition is
intense in international marketing.
5. Involve high risk and challenges – International marketing is proving to various kinds
of risk and challenge like – political risk, cultural differences, changes in fashion and
style of foreign customers, sudden war, changes in government rules and regulations,
communication challenges due to language and cultural barriers, etc.,

Scope of International Marketing

1. Exports – It is a function of international business whereby goods produced in one

country are shipped to another country for further sale or trade. Opposite of
importation and mercantilism, firms export their finalized product to international
markets or on to their different franchises in far flung markets wherever they will sell
the product to their localities for generating huge revenues
2. Imports – Goods or services brought into one country from another for use or sale.
This is the easiest form of International Marketing a company can get into –
Importing from one country and selling in the domestic market. This is attainable
solely in an exceedingly state of affairs wherever there's demand within the domestic
marketplace for the foreign merchandise or services. Companies also localize the
imported product depending on the needs of the market
3. Re-export – Import of semi-finished goods, further processing, and export of finished
goods.
4. Contractual Agreements - Whenever, business moves on the far side their domestic
boundaries, its scope of international marketing exposes it to greater chances of doing
a lot more business. The market expands, the consumer base expands and even
 THE BHOPAL SCHOOL OF SOCIAL SCIENCES
Class : BBA Sem 6 Subject : International Marketing
Unit : 1 Module : Module-No 1

volumes and profits expand. Companies grow exponentially by going in written

agreement agreements with many different partners overseas.
5. Joint Venturing -Two brands will close and enter a possible market. The investments,
profit or losses are pre decided in terms of both value and time period. At time it's
useful for firms to enter into a squad for raise the scope of international selling as a
result of barrier to new entrants in foreign markets. A local partner will sway be vastly
helpful for doing business not solely operationally however conjointly from a
domestic understanding of the market dynamics.
6. Fully Owned Manufacturing-Relatively a better level of engagement within the
foreign soils, companies can own a fully owned manufacturing in a country. The
company will use this facility to sell product at intervals the country or export to close
nations. Owning a totally owned producing helps firm’s management quality.
7. Management of international operations
 Operating marketing and sales facilities abroad,
 Establishing production or assembly facilities in foreign countries, and
 Monitoring the operations and practices of other MNCs and agencies.
REFERENCES
1. https://www.economicsdiscussion.net/marketing-2/international-marketing/what-is-
international-marketing/32402
2. https://www.scribd.com/document/362836336/Nature-and-Scope-of-International-
Marketing
3. https://www.enotesmba.com/2015/01/mba-notes-nature-and-scope-of-international-
marketing.html
4. http://www.uprtou.ac.in/other_pdf/22_10_2020_MBA_3p43_English.pdf