International and Domestic Marketing Comparison Paper Essay Sample

India is the 2nd most populated state in the universe. with about one billion people. It has the concern environment that attracts transnational companies ( MNCs ) and because of its monolithic market size and positive concern clime. American houses such as General Electric. General Motors. McDonald’s. Kellogg’s. and Microsoft have late entered the Indian market. As a consequence. the state has forged strong commercial involvements with the United States. with trade and concern dealingss across many industrial sectors. In fact. the U. S. is India’s taking beginning of engineering and her most valuable investor.

In the past 20 old ages. India has grown in the eyes of the planetary community from a rural. developing state to a burgeoning planetary selling hub. While India had much counsel from the United States and other planetary powers. the state has still chosen to follow its ain way of concern and selling development. This paper is designed to measure India’s current selling environment in comparing with the selling environment here in the US. mentioning both nation’s similarities and differences ( Ramachandran. Raja. 2000 ) .

Selling environment

India is a state that is on the move towards going one of the leaders in the planetary economic system. While the state still has a long manner to travel. it is doing important paces towards competition with states such as the United States and England. Indian leaders have been traveling towards “a five-point docket that includes bettering the investing clime ; developing a comprehensive WTO scheme ; reforming agribusiness. nutrient processing. and small-scale industry ; extinguishing ruddy tape ; and establishing better corporate administration. These stairss are geared to get down India’s transmutation from a 3rd universe state into a planetary economic leader. The current selling environment in India is in passage. with both similarities and differences in comparing to the selling environment in the US.

Culture

The first and likely most complex influence on both nations’ selling is civilization. Culture of USA has been a blend of varied influences of the different folks and races that have inhabited the topographic point from historical times. Capitalism and individuality is what the US holds at the bosom of its civilization. Americans tend to honor single attempts instead than the attempts of a group. which has a important impact on our society. This aspect translates into our selling. and can be seen in advertisement and in concern patterns. where the implicit in focal point is normally on competition and individuality.

In comparing. India is a state that is rich in history and civilization. Like the US. India has a mesh of different races. linguistic communications. and cultural beliefs. Yet unlike the US. India’s people have a long history which influences their civilization. The state has taken full advantage of the engineering roar. and has embraced the commercial life style that has taken clasp in the twenty-first century. Yet there is still a divide between the modern urban civilization and the rural civilization in India. where agricultural laterality is prevailing ( Merchant. 1999 ) . The distinguishable thing about India nevertheless. is the fact that the younger. energetic coevals is encompassing consumerism and technological promotion. The willingness for India to go a capitalistic society has helped hit the state into the head of planetary commercialism. Many American companies. such as IBM and Google. are perforating the market and basking much success ( Prasso. 2007 ) . As a consequence. India has welcomed and embraced many facets of American concern and selling.

Direct Selling

Selling in India has been progressing over the past 20 old ages. due to betterments in usage and import responsibilities. and personal and corporate revenue enhancements. Yet the state has embraced direct selling in a much different manner. compared to the US. In the United States. direct selling is dominated by Television and wireless ads. Yet in India. telecasting ads are virtually nonexistent. Alternatively. email selling is going much more common. As good. the US relies to a great extent on mail order catalogues. yet in India. online catalogues are the pillar. as internet shopping holds a immense portion of the market portion ( Precision Marketing. 2007 ) . Additionally. “the costs of directing an electronic mail are minuscule compared to direct mail. so most sellers are passing a batch of clip and attempt capturing email references or directing chances and clients to their website” ( Precision Marketing ¶ 4. 2007 ) . In comparing. some traditional American signifiers of direct selling are deriving popularity in India. Many air hoses. hotels. and retail merchants are offering trueness plans. and have been seeing much success ( Precision Marketing. 2007 ) .

Cleavage of market

The differences between India and the United States do non stop with the direct selling employed by the two states. The greatest differences lie with the differences in market sections. Sellers in the United States can. of class. happen many different market sections to concentrate on. But typically there is non a immense divide in the market sections. In India. nevertheless. there are three really distinguishable market sections because the state is a underdeveloped state. The three markets are:

? The traditional rural/agricultural sector- Composed of those who tend to work in the countryside.

? The transitional sector- Composed of those traveling from the state to the big metropoliss. Normally this is a big sector. and is made up of low-income urban slums.

? The modern urban/high-income sector- Composed of an spread outing westernized in-between category.

Of India’s more than 1 billion population. merely 200 million to 250 million autumn into this sector. Having three really distinguishable market sections makes selling in India really complex because each section needs to be addressed independently based on its demands. This can do selling schemes really dearly-won and clip consuming. yet if done right. companies can be really successful. “Many companies market successfully to both the traditional and the modern market sections but frequently have jobs in the transitional sections. where. for illustration. publicizing aiming high-income consumers reaches low-income consumers” ( Cateora & A ; Graham p. 29. 2007 ) . Covering with three really different market sections decidedly creates a alone selling clime in comparing to the United States.

Political and Legal Environment

The Indian market construction has 17 functionary linguistic communications and an cultural diverseness every bit broad as that from Britain to the Middle East–not to advert 26 provinces. tonss of castes. and six major faiths. The 5. 7 million people in Chennai ( once Madras ) have immensely different gustatory sensations than the 8. 5 million people from New Delhi. the 11. 2 million in Calcutta. and the 12. 8 million in Mumbai ( once Bombay ) . Such a diverse market place has a enormous impact on merchandise labeling. merchandise assortment. and where merchandises can be sold successfully. McDonald’s provides a good illustration of accommodating to the diverse Indian market place. Though celebrated for its beef cake main courses. it has introduced vegetable Burgers to the big Hindu population and mouton cakes to Indian Muslims.

Additionally. the political and legal environment impacting selling in India differs from the environment in the US. India’s duties are much higher in comparing to other developed states. In the US. duties are comparable to other developed states. As good. there are no important systems of protection for rational belongings rights in India. The US. in contrast. has protections such as patent and right of first publication Torahs in topographic point to protect rational rights. Finally. India is sing a important degree of corruptness in both concern and political relations ( Cateora & A ; Graham. 2007 ) . Corruptness of class exists in the US as good. but there are many more Torahs and ordinances in topographic point trying to forestall it. Battling corruptness. duties. and unequal protection of rights makes marketing a hard undertaking for concerns. but the possible for success in India makes it worthwhile.

Decision

Overall. India is turn outing itself to be a state with great possible. Its selling schemes are similar to those in the US in many ways. including the promotion of direct selling through electronic mail and the cyberspace. Yet the differences between the two states are important. as India has three really distinguishable market sections to see when making a market scheme. In a sense. India is rapidly following the lead that the United States has set Forth for economic growing while still keeping its ain individuality. If it stays on class. India has the possible to go one of the more booming and powerful states in Asia.

Mentions:

Justin Paul ( 2008 ) . International selling: text and instances McGraw-Hill

Cateora. P. R. & A ; Graham. J. ( 2007 ) . International Marketing. 13th Edition. Chapter 9. McGraw-Hill

Ramachandran. Raja ( 2000 ) Understanding the Market Environment of India. Retrieved from hypertext transfer protocol: //www. accessmylibrary. com/coms2/summary_0286-27502938_ITM