International marketing

Tapping into global markets

Syllabus

n                   1.   The nature of international and global marketing

n                   2.   Theories of international trade and marketing

n                   3.   The international and global environment

n                   4.   Culture and interantional marketing

n                   5.   International market selection and segmentation

n                   6.   International marketing research

n                   7.   Market entry strategies – introduction

n                   8.   Modes of entry strategies

n                   9.   International product and service marketing management

n                   10. International Pricing

n                   11. International Placement

n                   12. International marketing communication

n                   13. Organization of international marketing activities





n   Literature:  ALBAUM, G., DUERR, E., STRANDSKOV, J. International Marketing and

n                        export management. Harlow: Prentice Hall, 2005.

n                        HOLLENSEN, S. Global marketing. Harlow: Prentice Hall, 2007.

n



n  One seminar work in a group of  two and presentation it during the lectures. Each presentation
should last 30 minutes.

n  Final exam test contains 20 questions.

What is your favourite brand?
Is it your national brand or is it from abroad?
If from abroad why do you buy it?

n   International marketing – 20th of 20th

    http://www.referenceforbusiness.com/encyclopedia/Int-Jun/International-Marketing.html

n   Business nowadays:

v     MASS markets

v     transport

v     telecommunication (ICT)

v     nongovernmental organizations

v     governments

v   Removal of trade barriers

v   Global customer

v   Relationship management/network organisation

v   Global village

v   Global cost drivers ….



GLOBALIZATION

backward or two-way influencies

What are the phases of marketing abroad?

Phases of IMKT involvement:

             no direct foreign marketing

             infrequent foreign marketing

             regular foreign marketing – export

             international marketing

             global marketing (Theodor Levitt)



transnational, crosscultural, multidomestic…





Global firm= A firm that operates in

more than one country and captures

R&D, production, logistical,

marketing, and  financial advantages

in its costs and reputation that are not

available to purely domestic

competitors.





IMKT orientations

n   Domestic market extension orientation (Ethnocentric)

n   Multidomestic market orientation (Polycentric)

n   Global market orientation (Regioncentric or

n                                                  Geocentric)

Why market(s) abroad?

n   Small or saturated domestic market

n   Opportunity for expansion/sales growth/profit/

n   Resources

n   Leverage (i.e. advantages of operating in numerous markets simultaneously)

q   experience transfers

q   systems transfers

q   scale economies

q   resource utilisation

q   time and effort



n   Why not?



Why not?

n  Market differences - diversity

n  History

n  Management myopia as a barrier

n  Organisational culture as a barrier

n  Barriers

n  Resources

n  ??? What else



Major motives for starting export

      Proactive motives

n   Profit and growth goals

n   Managerial urge

n   Technology competence/unique product

n   Opportunities/information

n   Economies of scale

n   Tax benefit

    Reactive motives

n   Competitive pressure

n   Domestic market

n   Overproduction

n   Proximity to international customers

International approach (strategy)

n   global approach treats the world as a single market

n   multinational (+ innternational) approach treats the world as a portfolio of national
opportunities

n   glocal approach standardizes certain core elements and localizes other elements

                   (Kotler, P., 2007)





What is international marketing? II

The process by which individuals and organizations:

n   Identify needs and wants of customers in different international markets;

n   Provide products, services and ideas competitively to satisfy needs and wants of different
customer groups concerning issues different from domestic market;

n   Communicate information about the products and services with the proper adaptation to different
customer perception rising from other country effect; and

n   Deliver the products and services internationally using one or a combination of foreign entry
modes.

                              - Wilson, J., 2006 [Bradley (2002)]

                                                adapted



What is same and what different?

ü  Principles

ü  Concepts

ü  Methods

ü  Techniques



o            Tools

o            Conditions (environment)

o            Competition

o            Customers

o            Marketing practices





Differences between International and Domestic Marketing

n   Culture: behaviour, habits, routine….

                 business + customers

n   Data:  access, reliability

n   Politics: interests, orientation

n   Stakeholders: business + nonbusiness

           (primary + secondary)

n   Economies: unemployment, inflation, parity, purchasing power, wealth…

n   Control: possibility to control and co-ordinate and/or cooperate



IMKT mix differences

n    Product       Suitability, adaptability, competitors

n    Place           Distribution channels and methods

n    Promotion   Symbol, identity, familiarity, attitude

n    Price  Customs duties, Taxes, Agent’s commission, Freight

n    Physical Evidence Descriptions of contents, expression style

n    Process Payment terms, shipping methods, commissioning, training

n    People    Knowledge, skills, willingness

n    Packaging Suitability, climate conditions, freight damage, fits



Major Decisions in  International Marketing





International marketing management

n  Exporting

n  Importing

n  Management of international operations