Product Development & Positioning

MMK::BMS

INTERNATIONAL MARKETING

PRODUCT DEVELOPMENT

&

POSITIONING

SEMESTER – IV

INTRODUCTION

“THINK LOCAL - ACT LOCAL”

Today's market is very dynamic and increasingly competitive. In a market crowded with brands, models and multiple options, how could one create a difference – this was a challenge faced by many companies in the Indian market. Therefore, in this present era of globalization, many firms do not confine themselves to their domestic market but choose to enter international markets at some point.

Overseas business by a company refers to undertaking and expanding its commercial activities across the national borders. It encompasses diverse nature of activities like trading (exporting and importing its goods and services); manufacturing and marketing as well as outsourcing for production and marketing. The main reason for making such overseas investments is to explore business opportunities abroad and take advantage of such opportunities. Foreign markets in both developed and developing countries provide enormous growth opportunities

A firm typically passes through different stages in its transition from local firm to a transnational firm. That is, a firm which is entirely domestic in its activities normally passes through different stages of internationalization before it becomes a truly global one.

A firm may start exporting its products on an experimental basis and if the results are satisfying, it would enlarge its international operations and in due course it would establishes its offices, branches or subsidiaries or joint ventures abroad. This expansionary process may also be characterized by increasing the product mix and the number of market segments and the number of countries of operation. Thus, the company becomes multinational or global.

In other words, for many firms overseas business initially starts with a low degree of commitment and involvement, and gradually develops...