69  International Marketing

69.1 Concept

International Marketing = the performance of marketing activities across national boundaries to identify, anticipate and satisfy customer needs profitably — Cateora, Gilly & Graham. Warren Keegan (Pace) wrote the foundational Global Marketing. Theodore Levitt (1983) — “The Globalization of Markets” — argued for global standardisation.

69.2 Domestic vs Export vs International vs Global vs Multinational

TipFive stages of internationalisation
Stage Description
Domestic Single-country focus
Export Selling abroad from home base
International Some operations abroad; ethnocentric
Multinational Localised in each country; polycentric
Global Standardised approach worldwide; geocentric
Transnational Combine global + local

69.3 Levitt’s Globalisation of Markets (1983)

Theodore Levitt — “The world’s needs and desires have been irrevocably homogenised” — argued global standardisation. Critique by Theodore Levitt’s followers vs localisers like Kenichi Ohmae’s Triad Power (1985).

69.4 Why Companies Go International

TipMotives for internationalisation
  • Market opportunities — larger markets.
  • Profit advantages.
  • Diversification of risk.
  • Excess capacity utilisation.
  • Survival when home market saturated.
  • Source of innovation / talent.
  • Tax / regulatory advantages.
  • Strategic follow-the-customer.
  • Resources access.
  • Globalisation pressures.

69.5 EPRG Framework — Perlmutter (1969)

Recap (Topic 35): Ethnocentric · Polycentric · Regiocentric · Geocentric.

69.6 International Marketing Environment

TipEnvironment dimensions
  • Economic — GDP, income, infrastructure.
  • Political-Legal — stability, regulation, tariffs.
  • Cultural — Hofstede, Hall, Trompenaars.
  • Technological — infrastructure, digital readiness.
  • Demographic — age, urbanisation.
  • Natural — climate, geography.
  • Competitive.

69.7 Cultural Frameworks Recap

(Topic 35, 19): - Hofstede 6 dimensions — PDI, IDV, MAS, UAI, LTO, IVR. - Trompenaars 7 dimensions. - GLOBE Study (House 2004) — 9 dimensions. - Hall’s High-Context vs Low-Context. - CAGE Distance (Ghemawat) — Cultural, Administrative, Geographic, Economic.

69.8 Market Entry Modes

TipEntry modes (increasing commitment)
Mode Commitment
Exporting (direct / indirect) Low
Licensing Low-medium
Franchising Medium
Contract Manufacturing Medium
Management Contracts Medium
Turnkey Project Medium
Joint Ventures High
Strategic Alliances Variable
Wholly-Owned Subsidiary (WOS) — Greenfield or Acquisition Highest

69.9 Indian Export-Import Architecture

TipIndian foreign-trade architecture
  • DGFT — Directorate General of Foreign Trade.
  • EXIM Bank.
  • EPCG — Export Promotion Capital Goods scheme.
  • SEZ — Special Economic Zones (2005 Act).
  • MEIS / RoDTEP — Merchandise Export Incentives.
  • EPCs — Export Promotion Councils.
  • Foreign Trade Policy 2023.
  • PLI Scheme — Production-Linked Incentive (2020+).
  • GIFT IFSC.

69.10 Standardisation vs Adaptation

TipStandardisation vs Adaptation debate
  • Standardisation (Levitt) — same product, same marketing globally. Pros: economies of scale, consistent image. Cons: misses local nuances.
  • Adaptation (Quelch-Hoff) — customise to local markets. Pros: relevance, acceptance. Cons: cost, complexity.
  • Glocal — Sony’s “global localization” — think global, act local.
  • Modular — common platform, local trim (Maruti Suzuki, McDonald’s).

69.11 International Marketing Mix

TipAdaptation of 4 Ps internationally
  • Product — straight extension · adaptation · invention.
  • Price — geographic pricing · transfer pricing · grey market.
  • Place — distribution adaptation · global channels.
  • Promotion — language · cultural adaptation · global vs local campaigns.

69.12 Indian Brands Going Global

TipIndian global brands
  • Tata — Corus, JLR, Tetley.
  • Infosys, TCS, Wipro, HCL — IT exports.
  • Reliance — petrochemicals + telecom.
  • Mahindra — tractors, IT.
  • Sun Pharma, DRL, Cipla — pharma.
  • Aditya Birla — Novelis (Hindalco).
  • Mahindra Tractors — global #1.
  • Bharti Airtel — Africa.
  • OYO — global hospitality.
  • Zomato — UAE.
  • Flipkart / Myntra — Indian-grown.

69.14 Practice Questions

Q 01LevittMedium

"The Globalization of Markets" (1983) was by:

  • ATheodore Levitt
  • BWarren Keegan
  • CKenichi Ohmae
  • DKotler
View solution
Correct Option: A
Theodore Levitt, HBR (May 1983).
Q 02EPRGMedium

In EPRG, "G" stands for:

  • AGlobal
  • BGeocentric
  • CGeneric
  • DGrouped
View solution
Correct Option: B
Geocentric — Perlmutter (1969).
Q 03Entry modeEasy

Lowest commitment entry mode:

  • AExporting
  • BWOS
  • CGreenfield
  • DJV
View solution
Correct Option: A
Exporting — lowest commitment.
Q 04OhmaeHard

"Triad Power" (1985) is by:

  • AKenichi Ohmae
  • BLevitt
  • CGhemawat
  • DHofstede
View solution
Correct Option: A
Kenichi Ohmae — US-Europe-Japan triad.
Q 05SEZMedium

India's SEZ Act was enacted in:

  • A2000
  • B2005
  • C2010
  • D2015
View solution
Correct Option: B
SEZ Act 2005.
Q 06DGFTEasy

India's foreign-trade policy is administered by:

  • ADGFT
  • BRBI
  • CCBIC
  • DSEBI
View solution
Correct Option: A
Directorate General of Foreign Trade.
Q 07CAGEHard

CAGE Distance Framework is by:

  • APankaj Ghemawat
  • BHofstede
  • CPorter
  • DTrompenaars
View solution
Correct Option: A
Cultural · Administrative · Geographic · Economic.
Q 08StandardisationMedium

McDonald's modifying menus for India (no beef) reflects:

  • AStandardisation
  • BAdaptation
  • CGeneric
  • DHard sell
View solution
Correct Option: B
Local adaptation.
Q 09Tata CorusMedium

Tata Steel acquired Corus in:

  • A2000
  • B2007
  • C2010
  • D2013
View solution
Correct Option: B
2007, ~$12 bn.
Q 10RoDTEPHard

RoDTEP scheme replaces:

  • AEPCG
  • BMEIS
  • CSEIS
  • DPLI
View solution
Correct Option: B
Replaced MEIS after WTO challenges.
Q 11Reverse InnovationMedium

"Reverse Innovation" is by:

  • AVijay Govindarajan
  • BPrahalad
  • CKotler
  • DGhemawat
View solution
Correct Option: A
Vijay Govindarajan, Tuck (Dartmouth).
Q 12Bharti AirtelMedium

Bharti Airtel's iconic 2010 acquisition was:

  • AZain Africa
  • BMTN
  • CVodafone India
  • DReliance
View solution
Correct Option: A
Zain Africa $10.7 bn.
Q 13GlocalHard

"Think global, act local" is associated with:

  • ASony
  • BLevitt
  • CHofstede
  • DTrompenaars
View solution
Correct Option: A
Sony's "global localization" → glocal.
Q 14PLIEasy

India's Production-Linked Incentive (PLI) scheme started in:

  • A2018
  • B2020
  • C2022
  • D2024
View solution
Correct Option: B
PLI launched 2020 for 14 sectors.
Q 15MatchHard

Match:

(i) EPRG (a) Ghemawat
(ii) Globalization of Markets (b) Govindarajan
(iii) CAGE Distance (c) Perlmutter
(iv) Reverse Innovation (d) Levitt
  • A(i)-(c), (ii)-(d), (iii)-(a), (iv)-(b)
  • B(i)-(a), (ii)-(b), (iii)-(c), (iv)-(d)
  • C(i)-(b), (ii)-(c), (iii)-(d), (iv)-(a)
  • D(i)-(d), (ii)-(a), (iii)-(b), (iv)-(c)
View solution
Correct Option: A
EPRG — Perlmutter; Globalization — Levitt; CAGE — Ghemawat; Reverse Innovation — Govindarajan.

69.14.1 Advanced Format Questions

AR 1Assertion-ReasonHard

A: Standardisation cuts cost via economies of scale.
R: Adaptation increases local relevance but raises cost.

  • ABoth true; R explains A
  • BBoth true; R does not explain A
  • CA true, R false
  • DA false, R true
View solution
Correct Option: B
S 1Statement-basedMedium

Entry modes: (i) Export. (ii) Licensing. (iii) JV. (iv) WOS.

  • AAll four (rising commitment)
  • B(i) and (ii) only
  • C(iii) and (iv) only
  • D(iv) only
View solution
Correct Option: A
S 2Statement-basedHard

Indian global brands: (i) Tata. (ii) Infosys. (iii) Mahindra. (iv) Bharti Airtel.

  • AAll four
  • B(i) and (ii) only
  • C(iii) and (iv) only
  • D(i), (ii), (iii) only
View solution
Correct Option: A

69.15 Quick Recall

ImportantQuick recall
  • International Marketing: cross-border 4Ps; Cateora-Gilly-Graham · Keegan.
  • Levitt (HBR 1983): Globalisation of Markets, standardisation.
  • Stages: Domestic → Export → International → Multinational → Global → Transnational.
  • Why go international: market · profit · diversification · capacity · survival · innovation · tax · follow customer · resources · globalisation pressures.
  • EPRG — Perlmutter (1969): Ethnocentric · Polycentric · Regiocentric · Geocentric.
  • Entry modes (rising commitment): Export → Licensing → Franchising → Contract Mfg → Mgmt Contract → Turnkey → JV → Alliance → WOS (Greenfield/Brownfield).
  • Cultural frameworks: Hofstede · Trompenaars · GLOBE · Hall · CAGE — Ghemawat.
  • Triad Power — Ohmae (1985).
  • Standardisation vs Adaptation vs Glocal (Sony) vs Modular.
  • India: DGFT · EXIM Bank · SEZ Act 2005 · MEIS → RoDTEP · Foreign Trade Policy 2023 · PLI (2020) · GIFT IFSC.
  • Indian global brands: Tata · Infosys · TCS · Mahindra · Sun Pharma · Bharti Airtel (Zain 2010) · OYO · Reliance · Hindalco-Novelis · Mahindra Tractors.
  • Modern trends: de-globalisation · friend-shoring · China+1/India+1 · digital trade · GIFT City · CBDC · ESG · DPI exports (UPI/ONDC) · Reverse Innovation (Govindarajan) · Gen-AI localisation.