WEBVTT Kind: captions Language: en 00:00:13.200 --> 00:00:19.680 Hello, Good morning to all of you. I am Biswarup Ghosh and I am 00:00:20.560 --> 00:00:24.400 from Vinod Gupta School of Management Indian Institute of technology Kharagpur. 00:00:25.440 --> 00:00:29.840 So, it is my pleasure to have you as my students here. 00:00:30.560 --> 00:00:38.160 I will be taking a session on international marketing and I have worked more than 30 years 00:00:38.160 --> 00:00:43.840 in the industry out of that around 10 years in international marketing in various countries. 00:00:44.880 --> 00:00:52.720 So, I try to make this course as easily understandable. And I am sure, 00:00:52.720 --> 00:00:59.760 I am hoping that you will understand it. I have made some arrangements here like initially, there 00:00:59.760 --> 00:01:04.560 will be around sessions on the theory part. So, you need to understand little bit of the theory. 00:01:05.440 --> 00:01:12.160 I have tried to make it as lucid as possible but certain theories you know little complex. So, 00:01:12.160 --> 00:01:16.160 I will try to explain as much as possible. The theory portion to all of you. 00:01:17.360 --> 00:01:22.400 After the theory, there will be certain case studies which we will discuss with you based on my 00:01:22.400 --> 00:01:27.600 experience. My real life experience in international marketing. And also, 00:01:27.600 --> 00:01:34.720 I have arranged some visit of some interaction with some industry experts very senior people 00:01:34.720 --> 00:01:42.640 working for large time long time in industry and they are all in international business. 00:01:43.200 --> 00:01:48.480 So, we will have some interaction session. So, you can listen from the horse's mouth. So that 00:01:48.480 --> 00:01:56.160 would be the best part of it. So, this way I have structured my program as on date. Ah This little 00:01:56.160 --> 00:02:02.640 flexible may be at the later stage. Maybe a little bit change the program if required 00:02:04.240 --> 00:02:13.280 and I am sure this course will add lot of value to you. This course is basically for 00:02:13.280 --> 00:02:18.480 the students. Ah The first one is a groups group of students who are pursuing the 00:02:18.480 --> 00:02:25.440 MBA at various institutes in the country. So, if they want to understand, the 00:02:25.440 --> 00:02:30.720 international marketing, what is all international marketing? Then this would be an great 00:02:31.760 --> 00:02:38.240 platform for them. This would be also useful for the practicing managers. So that means the 00:02:38.240 --> 00:02:44.240 managers who are already practicing international marketing or who has worked long time in domestic 00:02:44.240 --> 00:02:49.840 marketing. And now want to explore the career in international marketing. 00:02:50.960 --> 00:02:58.240 These peop. This will be also useful for them. And mostly targeted to the students 00:02:58.240 --> 00:03:05.360 and the practicing managers. So, this way I have planned this course, structured this course accord 00:03:05.360 --> 00:03:11.120 this way. So, I will take you through this course and in this learning process will 00:03:11.120 --> 00:03:16.720 tell you what are the essential prerequisites for you to learn. Prior to this course, all 00:03:16.720 --> 00:03:22.000 those I will discuss. So, I wish you all the best and let us have a good learning session. 00:03:24.960 --> 00:03:31.840 So, marketing, what is international marketing? 00:03:33.120 --> 00:03:40.080 So, the marketing, as you know, the, I will take the examples from Philip Kotler who is a marketing 00:03:40.080 --> 00:03:48.000 guru. And marketing is a social and managerial process by which individuals and groups obtain 00:03:48.000 --> 00:03:53.920 what they need and want through creating and exchanging products and value with other. 00:03:53.920 --> 00:03:58.400 So that is Philip Kotler I will and what is international marketing now? 00:03:58.960 --> 00:04:01.600 International marketing is the performance of business 00:04:02.800 --> 00:04:09.920 activities designed to plan, price, promote and direct the flow of companies goods and services 00:04:09.920 --> 00:04:16.320 to consumers or users in more than one nation for a profit. So, you can see the difference here. 00:04:16.320 --> 00:04:24.880 So more than one nation. So that means we are going out of the domestic market to another nation 00:04:24.880 --> 00:04:31.120 and that is an international market. So, this is the famous Cateora et definition on 00:04:31.120 --> 00:04:36.320 international marketing. So, I have referred couple of books and you must go through 00:04:36.320 --> 00:04:41.760 these books from this renowned authors, very, very respected learned authors. 00:04:41.760 --> 00:04:47.920 Cateora is one of them. So, and please refer this books after my class. 00:04:49.200 --> 00:04:56.160 So, now I will go to the why international marketing. So, that is the fundamental you 00:04:56.160 --> 00:05:00.720 have to understand why international marketing you have to and why it is useful for you. 00:05:03.280 --> 00:05:09.840 So, here before I go to this case, about international marketing. 00:05:10.960 --> 00:05:14.960 I will tell you, what are the prerequisite? What you have to 00:05:14.960 --> 00:05:19.920 learn first? What you have to learn first? So, you have to learn first 00:05:22.400 --> 00:05:29.840 the basics of marketing. So, I would recommend you that before you start this international marketing 00:05:29.840 --> 00:05:37.520 course. You should go through the basic marketing course what we call marketing management basic and 00:05:37.520 --> 00:05:43.920 an advanced course on marketing management. So, if you understand the basics and little bit of 00:05:43.920 --> 00:05:49.440 advance of marketing management, then this course will be easy for you to understand. So, first 00:05:49.440 --> 00:05:56.640 first and foremost thing for you to understand is the domestic marketing. So, you just cannot start 00:05:57.440 --> 00:06:02.672 working on international marketing without understanding the domestic marketing. That 00:06:02.672 --> 00:06:07.120 is the fundamental so you need to understand you have to understand what is marketing? 00:06:07.760 --> 00:06:11.280 Then you have to have an expertise in domestic marketing 00:06:11.920 --> 00:06:19.840 and then only you can explore international marketing. So, it goes step by step. Ok. So, here, 00:06:21.280 --> 00:06:27.040 so the first thing what you have to learn and which we, I will not teach basics of marketing. 00:06:27.040 --> 00:06:33.040 But I will teach you, I will explain you what you need to know before you start going through my 00:06:33.040 --> 00:06:40.960 lecture. The first is the basic marketing and then developing the marketing strategies. 00:06:40.960 --> 00:06:47.440 And the, what are the marketing strategic plans in the country in the domestic market. You need to 00:06:47.440 --> 00:06:52.640 also learn what are the typically the forecasting techniques forecasting techniques. There are 00:06:52.640 --> 00:06:57.680 various forecasting techniques, but you need to know, you know, why forecasting is important? 00:06:57.680 --> 00:07:04.000 Because in the business your manager or your CEO will always want from you. 00:07:04.560 --> 00:07:11.200 What will be the business quarterly or monthly from your particular product range. 00:07:11.760 --> 00:07:16.800 And what will be the forecast for the whole quarter or the next 4 quarters and the next 00:07:16.800 --> 00:07:22.320 year. Why it is important? Because he has to plan the inventory. He has to plan the production. 00:07:22.320 --> 00:07:28.000 He has to plan the supply chain, logistics, all those things are required at the same time. 00:07:28.000 --> 00:07:35.200 He has to also give the forecast to the his, the shareholders about the how the companies 00:07:35.200 --> 00:07:40.400 will perform? And what are the companies plan details? All those future plans. 00:07:40.400 --> 00:07:46.480 Also, he has to discuss with the board members. So, forecasting is a very, very crucial thing, 00:07:46.480 --> 00:07:52.560 which you need to learn. Let me tell you this is not very simple. Ok Forecasting there are various 00:07:52.560 --> 00:07:59.440 statistical techniques are there in forecasting. But you need to use, 00:07:59.440 --> 00:08:04.240 you need to learn which one to use and which will be applicable for your industry. So, its 00:08:04.240 --> 00:08:09.120 industry certain are industry specific. That is the forecasting for the consumable 00:08:09.120 --> 00:08:18.000 products which are required almost every month. So, the consumables, the forecasting techniques 00:08:18.000 --> 00:08:22.080 are different. Capital equipment forecasting techniques are different. So, we need to, 00:08:22.080 --> 00:08:26.640 based on the industry you have to learn the forecasting techniques. But it is not the, 00:08:27.760 --> 00:08:34.960 I will not cover that forecasting. But before you go for study this international marketing. 00:08:34.960 --> 00:08:40.320 You need to learn the forecasting techniques which you use for the domestic marketing. 00:08:40.320 --> 00:08:47.520 The third one is the market research. So, how you do? What are the various market research primary 00:08:47.520 --> 00:08:52.320 research, secondary research? How do you carry out the research? And how do you interpret the 00:08:52.320 --> 00:09:01.280 data? So, those knowledge are very important in marketing. The mix next is the long term loyalty 00:09:01.280 --> 00:09:09.040 relationship and customer value analysis. So, so long term who are your loyal customers? 00:09:09.040 --> 00:09:13.440 and how do you retain those loyal customers? Because the customers are, 00:09:13.440 --> 00:09:21.040 are repeated buyers from you. So, how do you maintain and manage those customers with you and 00:09:21.040 --> 00:09:28.640 also the customer value analysis? So, how much the value the customer brings to the company? 00:09:30.080 --> 00:09:37.920 Then you need to also understand what is consumer market? The products which is directly consumed by 00:09:37.920 --> 00:09:44.880 the consumer are known as a consumer market. So, you need to understand the, what is consumer 00:09:44.880 --> 00:09:52.240 market? You also need to understand what is B2B market or business to business market. That means 00:09:53.280 --> 00:10:01.600 you the product which and the company buys for manufacturing the end product. So, you 00:10:01.600 --> 00:10:08.320 are that can be a product that can be a service and you need to understand what is B2B market. 00:10:10.000 --> 00:10:17.040 And then also you have to understand what is the famous STP analysis or segmentation, 00:10:17.040 --> 00:10:21.200 target and positioning analysis in marketing. So, how do you segment? 00:10:22.000 --> 00:10:27.280 How do you target? And which of that out of that segment which one you target? And how do you 00:10:27.280 --> 00:10:32.480 position your product in that segment? You need to learn in domestic market. How do you do that? 00:10:34.160 --> 00:10:37.600 Then the most important thing is how you position the brand 00:10:37.600 --> 00:10:43.360 that is very, very important. How you position the brand? So, brand positioning is 00:10:44.400 --> 00:10:50.400 extremely important because you know, the brand comes with two very important thing. 00:10:50.400 --> 00:10:56.240 Once is points of parity and points of disparity Ok, so, or points of difference. 00:10:57.280 --> 00:11:04.400 So, the, how, what are the your points of parity with the other brands at the marketplace? And 00:11:04.400 --> 00:11:09.520 what is the points of difference with the other brand at the marketplace? So, 00:11:09.520 --> 00:11:14.640 you need to understand branding, then you need to understand various techniques in branding. 00:11:16.320 --> 00:11:20.080 Then brand then comes your addressing the competition. 00:11:20.080 --> 00:11:24.560 So, that is the another most important part of this whole study 00:11:24.560 --> 00:11:29.920 that how do you study competitors? Who are your competitors? What are their, what are 00:11:29.920 --> 00:11:36.640 their brands? Key differentiable items are the or the features and what are their market share? What 00:11:36.640 --> 00:11:42.160 are their future plans? All those thing you need to understand? What is your competitors 00:11:42.160 --> 00:11:47.920 and then comes the product strategy? So, what type of a product strategy 00:11:47.920 --> 00:11:51.760 you have you need to learn in basic marketing? What Is your product strategy? 00:11:52.400 --> 00:11:58.640 Is it a new product altogether to the market? Or Is it is a, it is changing little bit of features 00:11:58.640 --> 00:12:04.320 of the previous product and relaunching the product making some cosmetic changes or all those 00:12:04.320 --> 00:12:10.320 details you have to learn in the product strategy. It is a huge subject you need to learn that. 00:12:11.200 --> 00:12:16.720 Then comes the fire, the another most important part is the pricing strategy. How do you price? 00:12:16.720 --> 00:12:22.800 So, it is a based on a market-based pricing, competitors, the market leaders base pricing or 00:12:22.800 --> 00:12:29.200 it is a cost- based pricing or it is an various types of pricing strategy you need to learn. 00:12:30.480 --> 00:12:34.400 And then designing the distribution channels. So, 00:12:34.400 --> 00:12:41.600 how finally the product will reach from your company to your end users. 00:12:41.600 --> 00:12:47.440 So, this in between the distributors and retailers are there and how do you fix those channels? 00:12:47.440 --> 00:12:53.360 So, there are 4 pieces in basic marketing. One is the product then is the price then 00:12:53.360 --> 00:12:59.760 is the promotion and then is the placement so promotion is the, how do you promote the product? 00:13:00.480 --> 00:13:07.360 And then finally the placement, how do you place out? or what are your distribution channel? So, 00:13:07.360 --> 00:13:13.760 I would suggest you that you must before you go through this international marketing course. 00:13:14.560 --> 00:13:20.800 This specifically for the MBA students and I am sure you must have done completed your basic 00:13:20.800 --> 00:13:26.000 management marketing management and also advanced marketing management and the sub and the topics 00:13:26.000 --> 00:13:32.720 which I discussed for last 5, 6 minutes, you should have a good amount of knowledge on the 00:13:32.720 --> 00:13:42.320 subjects. So, why I am insisting this. The reason behind this is that if you know all these critical 00:13:44.160 --> 00:13:48.880 parameters of marketing. All if you know, for the domestic marketing, 00:13:49.760 --> 00:13:56.960 then you can do jolly well in international marketing. Then there will come some more 00:13:56.960 --> 00:14:01.920 complex dimensions, which I will discuss. But before going to the international marketing you 00:14:01.920 --> 00:14:08.000 should have thorough knowledge on the various marketing subjects. What I have discussed and 00:14:08.000 --> 00:14:16.480 you should have thorough knowledge. Ok, So, this is very, very important for you to understand 00:14:17.360 --> 00:14:22.080 and go through that. If you have studied, maybe if you are a practicing 00:14:22.080 --> 00:14:27.920 manager and studied long ago during your MBA days. I would suggest that go through once again the 00:14:27.920 --> 00:14:33.280 famous Kotler book or any good text book on marketing. Go through these chapters once again, 00:14:33.280 --> 00:14:40.640 and I am sure you will, you can recapture your memory and you can learn that. So, that is very, 00:14:40.640 --> 00:14:50.160 very important for you. Ok. Fine. Next is that I will start with the case is very simple case. 00:14:50.160 --> 00:14:55.680 Ok, This international marketing blunder and withdrawal of Cakeron a case study. 00:14:56.240 --> 00:15:01.840 So, I have referred. This is a source from night. I have referred from where I have taken 00:15:01.840 --> 00:15:10.160 the journal of international marketing. I have taken this case. You know in early 1960 s so, 00:15:10.160 --> 00:15:17.680 there was a company known as General Mills and they are the fame originator of Betty Crocker 00:15:18.640 --> 00:15:26.160 and they are the cake company. Ok. And so, they are one of the famous cake 00:15:26.800 --> 00:15:34.000 company in United States. So, what they do? They, they prepare the cake, mixing mixes and then they 00:15:34.000 --> 00:15:41.840 sell it to the customers. And the customers in US were having a oven baking oven in their house. 00:15:41.840 --> 00:15:48.000 And they bake, then they make that bake that cake in the oven. And they enjoy the food in the 00:15:48.000 --> 00:15:55.840 house. So, this company thought we are so big in United States and we have such a good brand. 00:15:56.800 --> 00:16:03.280 Why not explore the Japanese market? So, imagine where is United States in the globe 00:16:03.280 --> 00:16:09.040 and the Japan where it is Japan. Okay, So, they thought so let us go to the Japan market. Why? 00:16:09.040 --> 00:16:16.560 Because the Japanese standard of living was very high gradually rising and they have 00:16:16.560 --> 00:16:23.760 Japanese. People have lot of fondness for the western products in Japan. So, they are very, very 00:16:23.760 --> 00:16:28.000 they were liking that if some western product comes, they will try it out. 00:16:28.000 --> 00:16:33.520 So, there was a there and the people preferred to have 00:16:34.320 --> 00:16:41.920 western style cakes. And then they can buy this western style skits from the cake shop. Now this 00:16:41.920 --> 00:16:48.800 General Mills thought that why cannot we sell this cake mixture? And why cannot we give it 00:16:48.800 --> 00:16:54.240 to sell it in the Japanese market? And let them make the cake at home 00:16:54.880 --> 00:17:01.200 ok clear. So, they will make this. So, they try to enter the market. So, by produce by extending 00:17:01.200 --> 00:17:07.120 that same product to the Japanese market. So, it is, we typically call it product extension, 00:17:07.120 --> 00:17:12.880 So, they extended this product to this market without any change of the product 00:17:12.880 --> 00:17:18.400 Ok, so, they extend it. So, they have set up a distribution channel there, placement channel, 00:17:18.400 --> 00:17:24.560 and then there, then they, when they went to the market, they found that Japanese do not have the 00:17:24.560 --> 00:17:29.840 oven in their house in American citizens. They have the oven baking oven in their house but 00:17:29.840 --> 00:17:36.160 Japanese do not have an oven in their house. So, but they discovered they are having a rice 00:17:36.160 --> 00:17:41.600 cooker in the house. So, Japanese people as you know, like we Asians. Ah, they, We prefer, 00:17:41.600 --> 00:17:50.400 we, we take lot of rice. So, the rice cooker is there. So, they thought that this cake can be also 00:17:50.400 --> 00:17:56.480 baked or prepared inside using the rice cooker. So, they targeted that segment and they went 00:17:56.480 --> 00:18:01.760 to that market for the rice cooker. Initially there was a great success Japanese people. 00:18:01.760 --> 00:18:07.920 Instead of going to the shop buying the western cake, they came to the, they, they purchased the 00:18:07.920 --> 00:18:15.440 cake mix and they make it in the house and put it in the oven and then bake the cake and then eat 00:18:15.440 --> 00:18:22.640 here. Initially the company was doing very well. But finally, what happened, you know, the whole 00:18:23.760 --> 00:18:29.760 sale started falling down. People stopped buying it. Now you must be thinking why, 00:18:29.760 --> 00:18:35.200 what happened? They love Western cake. The cake is a famous from the US General Mills. 00:18:35.840 --> 00:18:42.240 The brand cake around, so why it failed? Why the sales are not picking up? So, when the company 00:18:42.240 --> 00:18:49.520 executives came? They found that actually rice is the main food of Japanese people. Okay It is one 00:18:49.520 --> 00:18:57.120 of the main food and is very, very sacred. So that is the food they take. And now in that oven, when 00:18:57.120 --> 00:19:02.880 they make the cake in that oven, there is the, you know cake there are in that cake mixture. 00:19:02.880 --> 00:19:10.720 There are various ingredients which has lot of smells. So, what happens when they take it out? 00:19:10.720 --> 00:19:16.800 Even after cleaning there is some smell inside the oven. So, when they cook rice next time, 00:19:16.800 --> 00:19:22.800 in that the rice also, they get some smell. They are not able to accept that because they want 00:19:22.800 --> 00:19:28.640 the rice. The, the rice of original flavor of rice which got mixed up with the cake, 00:19:29.760 --> 00:19:34.640 cake mixture smell. So, the people in Japan they discarded the product. 00:19:35.360 --> 00:19:42.160 So, why I started this? Because we often the domestic market years, we often get very excited 00:19:42.160 --> 00:19:47.920 if the product is very successful in my domestic market. Why cannot we extend to the international 00:19:47.920 --> 00:19:54.240 market? So, this is a classic case study where they thought that we are very, very powerful in 00:19:54.240 --> 00:20:03.200 United States. And we have a such a high brand pool at United States. And this is in Japan the 00:20:03.200 --> 00:20:06.800 people like western cakes. Why cannot we go to Japan and 00:20:06.800 --> 00:20:12.560 and sell the same product? So, they have just extended the product without understanding 00:20:12.560 --> 00:20:18.880 their cultural difference. So that is the way, this is a big cultural difference. Because you 00:20:18.880 --> 00:20:23.440 know, in United States people do not take that much of rice every day. But in Japan, 00:20:23.440 --> 00:20:30.640 the rice is the main food which is prepared in the cook in a cooker. But in United States, 00:20:31.360 --> 00:20:38.320 they have a separate baking machine oven baking oven in the house where they bake the cake. 00:20:38.320 --> 00:20:45.840 But in Japan, they do not have the baking oven. So, they wanted to use their household 00:20:46.480 --> 00:20:52.480 oven. They wanted to use the for the rice cooker for making the cake. 00:20:53.360 --> 00:21:00.720 So, that became a failure. So, that was the so that is it too simplistic way of extend the 00:21:00.720 --> 00:21:07.040 product. And this is not the Cakeron. There are so many companies after doing extremely well in 00:21:07.040 --> 00:21:12.560 domestic business. They wanted to extend the product without understanding the demand. 00:21:12.560 --> 00:21:19.200 Whatever I taught previously I discussed in this basics of marketing. Without understanding the 00:21:19.200 --> 00:21:25.040 cultural differences, without understanding the various marketing dynamics at that 00:21:25.040 --> 00:21:30.400 international market. They wanted to just launch the product so which failed? Ok 00:21:31.680 --> 00:21:39.680 So, the next is, the international marketing is a very hard work very, very hard work and 00:21:39.680 --> 00:21:46.160 market Making sales calls in no vacation, even in Paris that is a Cateora s famous statement. 00:21:48.160 --> 00:21:56.000 Now what is international marketing? Now I am showing you a big picture. So, this 00:21:56.000 --> 00:22:03.760 international marketing, today if you look at this slide. You will see that you are sitting 00:22:03.760 --> 00:22:09.520 in India at some place in Kolkata or in Delhi or Bangalore. You are using 00:22:10.560 --> 00:22:20.640 the oil which is coming crude oil which is coming from Saudi Arabia. And you are getting some grapes 00:22:20.640 --> 00:22:26.320 which is coming from Afghanistan. Textile which is coming from Sri Lanka 00:22:27.280 --> 00:22:33.040 or there are integrated circuits or you are using the television, the, 00:22:33.040 --> 00:22:39.120 the raw materials or the television circuitries, IC s, all those things are coming from Taiwan 00:22:39.120 --> 00:22:46.400 or these countries or some from Vietnam Cambodia. So, this is the way and the automobile and you are 00:22:46.400 --> 00:22:51.040 using an automobile which is some essential part of this automobile is maybe coming from 00:22:51.040 --> 00:22:57.200 Japan or coming from Korea and all those. So, why international market is important that 00:22:57.200 --> 00:23:03.840 with every moment of your life, you are using some or other product where some either the product 00:23:03.840 --> 00:23:09.440 has come from abroad from international market from the other mark from the other country or 00:23:10.160 --> 00:23:17.280 part of that product was produced with the raw material from international market. 00:23:18.480 --> 00:23:26.000 So, if this international market is not available tomorrow and imagine this is not for us for every 00:23:26.000 --> 00:23:32.160 citizen in the world will have an issue. So, international marketing is extremely important 00:23:32.880 --> 00:23:37.760 for us because we cannot, you have to understand we cannot produce everything in our country. 00:23:37.760 --> 00:23:43.200 We need to prove, we can produce where we have expertise and where we have knowledge where we 00:23:43.200 --> 00:23:49.040 have skills where we have the labor or the capital intensive industry skills available with us. 00:23:49.760 --> 00:23:56.400 Based on that we can produce whatever is possible will teach you lot of theories on that. 00:23:56.400 --> 00:24:01.040 And, and then you will learn from that. But just for very basics 00:24:01.840 --> 00:24:06.880 to give to, this slide will give you an idea that these are the 00:24:08.160 --> 00:24:12.560 places the world international marketing is very, very essential for all of us. 00:24:12.560 --> 00:24:18.880 We just cannot say no to international marketing because we will not survive. So, because the 00:24:18.880 --> 00:24:25.280 products it is not possible for any country to really produce everything they need. So, 00:24:25.280 --> 00:24:29.120 they have they need certain products which they have to import from the other country. 00:24:31.600 --> 00:24:37.840 Now, how do we do on the exports of the country? So, exports you know, that means the country 00:24:38.640 --> 00:24:45.040 sells, the products their own products outside world but outside the countries. So, 00:24:45.040 --> 00:24:51.760 if it is, I am showing here, the slides which is known as the world in world 00:24:51.760 --> 00:24:58.240 integrated trade solution is an world bank site. And I have given a link there. You can go there 00:24:58.240 --> 00:25:06.560 and you select country-wise how they export. Now the foreign exchange reserve. What is the 00:25:06.560 --> 00:25:11.840 foreign exchange reserve of our country? The foreign exchange reserve of our country 00:25:13.120 --> 00:25:21.840 is 641 billion dollar. So, India today, we are having a very good amount of foreign exchange 00:25:21.840 --> 00:25:28.480 reserve with us. Foreign exchange 651 billion dollars is the total foreign exchange reserve. 00:25:29.040 --> 00:25:39.760 So, how much we import? We import we export around 330 billion dollar worth of goods. 00:25:39.760 --> 00:25:48.640 We export to international market. So, India exports roughly 330 billion dollar worth of goods. 00:25:48.640 --> 00:25:59.520 And this is the data of 2019, ok 330 billion dollar. And where from we and the exports where 00:25:59.520 --> 00:26:06.800 we export, we export to United States. We export United Arab Emirates, China, Hong Kong, Singapore, 00:26:06.800 --> 00:26:12.160 Netherlands, UK, Germany, Bangladesh, Japan. All these countries what you can see here. 00:26:13.360 --> 00:26:22.400 Look this exports, you can see that the Indian products are somewhere in Turkey someone is 00:26:22.400 --> 00:26:26.800 using. Someone using in Spain. Someone using in Brazil. Someone using in Australia. Someone 00:26:26.800 --> 00:26:34.320 using in US. Someone is using China. So, that is the way how great, these exports for any country. 00:26:34.320 --> 00:26:39.840 So, you are producing something in India and it is getting used in the other countries. 00:26:39.840 --> 00:26:46.880 So, this is the dynamics and I would strongly suggest that you go to this website where 00:26:46.880 --> 00:26:53.120 this world bank which website, which is worlds integrated trade solution. And you can select 00:26:53.120 --> 00:27:03.280 and you can get the idea about this world bank. Ah ok, So that is about the exports and you can 00:27:03.920 --> 00:27:10.480 go to the before you go to any country for international marketing. You have to 00:27:10.480 --> 00:27:16.560 understand what the, what are the countries? Where they export and from where they import? 00:27:16.560 --> 00:27:21.840 What is their total export amount? How much they earn from? the,How much 00:27:22.480 --> 00:27:26.960 the foreign exchange they generate from the export? And how much foreign exchange they 00:27:28.160 --> 00:27:33.440 spend for imports? So, one is you generate for the exports, the foreign exchange comes to the 00:27:33.440 --> 00:27:40.480 country. Another is the imports where foreign goes out of the country. Ok So that is very, very 00:27:41.120 --> 00:27:45.680 important for you to understand. So, this is the fundamental. Then we 00:27:45.680 --> 00:27:50.480 will go through little bit of economics. We will study a little bit of very, very basics 00:27:50.480 --> 00:27:55.520 of macro-economics. We will study today, and I will give you the exposures. What are the 00:27:55.520 --> 00:28:00.560 typically gross domestic product, gross national product balance of trade balance of payment? 00:28:01.200 --> 00:28:05.520 These are very essential things like what I taught told you few 00:28:05.520 --> 00:28:10.080 minutes ago about the marketing essentials. What you need to learn you need to also learn the 00:28:10.080 --> 00:28:15.520 very basics. So, an international marketer is very important. The first thing you have to important 00:28:15.520 --> 00:28:22.800 for you where India, where you export. So, now suppose you want to go to a country say, Turkey. 00:28:23.520 --> 00:28:28.880 So, you have to look at the Turkey s export and Turkey's import. Turkey s 00:28:28.880 --> 00:28:32.400 foreign exchange reserve. Why foreign exchange reserve is important? 00:28:32.400 --> 00:28:39.440 Because the country's ability to pay you in foreign currency in US dollar or Euro 00:28:39.440 --> 00:28:46.240 to you when you export. So, the foreign exchange reserve is extremely critical. If the country is 00:28:46.240 --> 00:28:50.480 not having large amount of foreign exchange reserve, it is a very, very risky proposition 00:28:50.480 --> 00:28:58.640 for you. Ok So basically first you have to see if they are exporting something. That means they 00:28:58.640 --> 00:29:03.680 have a core competency on that product. So, you should not try to export that product 00:29:03.680 --> 00:29:09.040 to that country. Ok, so we need to look at the, then I will come in the next slide. I will come 00:29:09.040 --> 00:29:16.400 about the imports but here we are talking about the exports. And, and, and then this website 00:29:16.400 --> 00:29:22.080 will also tell you what are the products what we export to each of these countries and how much 00:29:22.080 --> 00:29:30.320 is the value terms? How much is the percentage terms? Ok, So, that is the way it is there and, 00:29:35.120 --> 00:29:42.480 and this Netherlands, China, Italy. Any one of this, you can click in the website 00:29:42.480 --> 00:29:47.200 and you will see that the amount exported in that financial year. 00:29:47.200 --> 00:29:54.320 And what is a percentage of the total exports all those information are available there. 00:29:54.320 --> 00:30:00.560 And then I will come to the next session or next session on and start on the 00:30:01.600 --> 00:30:07.840 imports and then take you through the imports. Thank you. Thank you very much.