Scope of International Marketing

The scope pf international marketing is very wide. It has a broader meaning in marketing context. It includes the following :-

• Establishment of a Branch Abroad :- As the needs of the foreign customers vary. So in order to serve them in a better way a firm may establish a branch abroad through direct investment for carrying out processing, packaging, assembling or even complete manufacturing operations.
• Joint Venture :- A joint venture may be done with a foreign firm in international marketing. In this a domestic firm joins hand with a foreign firm for exploiting the opportunities which are present in the foreign market.
• Licensing Arrangements :- Licensing is an agreement in which a domestic firm gives permission to foreign firms to use its name, technique, trademark, patent as per the agreed terms and conditions.
• Franchising Arrangements :- It is a sort of licensing. The only difference lies here is that a standard package of goods and services are transferred by one party to another. The one who supplies is the owner or the franchisor and who receives is called as franchisee. A franchising arrangement involves centralisation of expertise and decentralisation of functions.
• Consultancy Services :- Consultancy services are provided to foreign firms in international marketing. This is done by sending experts to foreign countries.
• Turnkey Contracts :- In turnkey contracts projects are designed and made by foreign enterprises and then handed over to the local enterprises. Personnel of local enterprise are trained for running the project. Basically these kinds of contracts are common in construction industries.
• Sub contracting :- An arrangement by manufacturer in the developed country with one in the developing country under which the latter agrees to supply the parts and components and or do assembly operations for the former, on a long term basis is generally known as international sub-contracting

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