International marketing o&s s2 ch1 moghimi

B.Moghimi@yahoo.co.uk
2
Professor: Bahman Moghimi
Doctor of Business Administration
M.Sc. Of “Industrial Marketing & e-Commerce”
Session Two, Chapter 1
University of Georgia

1. Give examples of needs, wants, and demands for Nestlé customers
2. What are the implications of each for Nestlé’s practices?
3. Describe in detail all the facets of Nestlé’s product. What is being
exchanged in a Nestlé transaction?
4. Nestlé is B2C, B2B and B2G! Explain how it works?!
5. What is Golacalization in Nestlé?
6. Is Nestlé likely to continue being successful in building customer
relationships? Why or why not?
B.Moghimi@yahoo.co.uk 4
Class Case

International marketing
 International marketing is the export, franchising, joint venture
or full direct entry of a marketing organization into another
country. This can be achieved by exporting a company's
product into another location, entry through a joint venture with
another firm in the target country, or foreign direct investment
into the target country.
 Internationalization and international marketing meets the
needs of selected foreign countries where a company's value
can be exported and there is inter-firm and firm learning,
optimization and efficiency in economies of scale and scope.5

International marketing (cont)
 Domestic marketing is concerned with the marketing
practices within a researcher’s or marketer’s home country.
 From the perspective of domestic marketing, marketing
methods used outside the home market are foreign
marketing.
 Some marketing textbooks differentiate international marketing from
global marketing because international marketing in its literal sense
signifies marketing between nations (inter means between).The word
international may thus imply that a firm is not a corporate citizen of the
world but rather operates from a home base. For those authors, global or
world marketing is the preferred term, since nothing is foreign or domestic
about the world market and global opportunities
6

Domestic marketing V.S. International marketing
 Scope – The scope of domestic marketing is limited and will eventually dry up.
On the other end, international marketing has endless opportunities and scope.
 Benefits – As is obvious, the benefits in domestic marketing are less than in
international marketing. Furthermore, there is an added incentive of foreign
currency that is important from the point of view of the home country as well.
 Sharing of technology – Domestic marketing is limited in the use of
technology whereas international marketing allows use and sharing of latest
technologies.
 Political relations – Domestic marketing has nothing to do with political
relations whereas international marketing leads to improvement in political
relations between countries and also increased level of cooperation as a result.
 Barriers – In domestic marketing there are no barriers but in international
marketing there are many barriers such as cross cultural differences, language,
currency, traditions and customs.

Read more: http://www.differencebetween.com/difference-between-domestic-
marketing-and-international-marketing/#ixzz2eNceO0vn
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MNCs Definition by Size
 It is not unusual for corporate size to be used as a
primary requirement for judging whether or not a
company is multinational. But, corporate size should
not be used as the sole criterion for multi-nationalism.
10

MNCs Definition by structure
 According to Aharoni, an MNC has at least three significant dimensions:
structural, performance, and behavioral. Structural requirements for
definition as an MNC include the number of countries in which the firm
does business and the citizenship of corporate owners and top managers
11

MNCs Definition by performance
 Definition by performance depends on such
characteristics as foreign earnings, sales, and
assets. These performance characteristics indicate
the extent of the commitment of corporate
resources to foreign operations and the amount of
rewards from that commitment.
 The greater the commitment and reward, the
greater the degree of internationalization.
12

MNCs Definition by behavior
 Behavior is somewhat more abstract as a measure of
multi-nationalism than either structure or performance,
though it is no less important.
 This requirement concerns the behavioral characteristics
of top management. Thus, a company becomes more
multinational as its management thinks more
internationally. Such thinking, known as geo-centricity,
must be distinguished from two other attitudes or
orientations, known as ethnocentricity and poly-centricity.
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THE PROCESS OF
INTERNATIONALIZATION
(1) no regular export activities,
(2) export via independent representatives (agent),
(3) establishment of an overseas sales subsidiary,
(4) overseas production/manufacturing.
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Andersen U-model
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BENEFITS OF INTERNATIONAL MARKETING
 Survival and growth
 Sales and profits
 Diversification
 Inflation and price moderation
 Employment
 Standards of living
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Understanding of marketing process
 International marketing should not be considered a
subset or special case of domestic marketing. When
an executive is required to observe marketing in
other cultures, the benefit derived is not so much the
understanding of a foreign culture. Instead, the real
benefit is that the executive actually develops a
better understanding of marketing in one’s own
culture.
 For example, Coca-Cola Co. has applied the lessons
earned in Japan to the US and European market
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International marketing o&s s2 ch1 moghimi

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