Chapter 1 Overview: Topic 1: Introduction Topic 2: Scope of International Marketing Topic 3: Level of Marketing Topic 3: Marketing Orientation Topic 4: Theories of International Marketing Topic 5: Strategic Approaches to Market Internationally Topic 6: Importance of International Marketing

1. PREPARED BY:
MISS GHASIDAH UMIRAH BINTI JOHARI
INTERNATIONAL MARKETING
CHAPTER 1:
INTRODUCTION TO INTERNATIONAL
MARKETING

2. Chapter 1 Overview
Topic 1: Introduction
Topic 2: Scope of International Marketing
Topic 3: Level of Marketing
Topic 3: Marketing Orientation
Topic 4: Theories of International Marketing
Topic 5: Strategic Approaches to Market Internationally
Topic 6: Importance of International Marketing

3. 1. International marketing is defined as the performance of
business activities designed to plan, price, promote, and direct
the flow of a company´s goods and services to consumer or
users in more than one nation for a profit.
2. Big Emerging Markets (BEMs):
 In the next 10 to 20 years, BEMs such as: the Chinese
Economic Area (CEA: including China, Hong Kong
Region, and Taiwan), India, South Korea, Mexico, Brazil,
Argentina, South Africa, Poland, Turkey, and the
Association of Southeast Asian Nations (ASEAN:
including Indonesia, Brunei, Malaysia, Thailand, the
Philippines, and Vietnam) will provide many opportunities
in global business.
 Will provide many ‘ OPPORTUNITIES’ in global market !
1. Introduction

4. 2. Scope of International and Global Marketing
 Concerns with the question of what it is and what it isn’t.
 An important task in global marketing is to recognize which
marketing plans and programs can be extended worldwide,
and which must be adpated.
 The phrase global localization means that a successful
global marketer must “think globally and act locally”.
 Global marketing may include a combination of standard
(e.g. the actual product itself) and nonstandard (e.g.
distribution or packaging) approaches.

5. Domestic
Marketing
Export
Marketing
International
Marketing
Global
Marketing
• Least
international
commitment
• Domestic
focus
• Limited
international
commitment
• Involves direct
or indirect export
• Ethnocentric
• Substantial
international
commitment
• Focus on
individual
countries or
regions
• Polycentric or
Regiocentric
• Extensive
international
commitment
• Focus on
segments,
rather than
countries or
regions
• Geocentric
3. Level Of Marketing

6. 4 (1). Ethnocentric Orientation
 Guided by domestic market extension concept:
 Domestic strategies, techniques, and personnel
are perceived as superior.
 International customers are considered as
secondary
 Management focus is to do in host countries what
is done in the home country
 Sometimes called an international company
 Products and processes used at home are used
abroad without adaptation

7. 4(ii). Polycentric Orientation
 Guided by the multi-domestic market concept:
 Focuses on the importance and uniqueness of each
international market
 Likely to establish businesses in each target country
 Marketing strategies are specific to each country
 Management operates under the assumption that every
country is different; the company develops country-specific
strategies
 Sometimes called a multinational company
 Company operates differently in each host country based
on that situation
 Opposite of ethnocentrism

8. 4 (iii). Regiocentric Orientation
 Region becomes the relevant geographic unit
(rather than by country)
 Management orientation is geared to developing
an integrated regional strategy
 European Union
 NAFTA
 World regions that share economic, political,
and/or cultural traits are perceived as distinct
markets
 Divisions are organized based on location
 Regional offices coordinate marketing activities

9. 4 (iv). Geocentric Orientation
 Guided by the global marketing concept:
 Entire world is a potential market
 Managerial goal is to develop integrated world market
strategies
 Global companies serve world markets from a single
country and tend to retain association with a
headquarters country
 Transnational companies serve global markets and
acquire resources globally; blurring of national identity
 Achieve position as low-cost manufacturer and marketer of
product line
 Provides standardized product or service throughout the
world

10. 5. Theories of International Marketing

11. 5. Strategic Approaches To Market
Internationally
 1. Domestic Market Extension Orientation
 International markets are secondary to its
domestic markets
 2. Multi-domestic Market Orientation
 Each country has a specific and separate
marketing plan to adjust to differences
 3. Global Marketing Orientation
 Marketing activities are global
 Strives for efficiencies of scale through
standardization

12. 6. Importance of International Marketing
 International expansion helps firm:
 Keep pace with competition
 Reach a larger market
 Higher profits
 Internet revolution: The Internet and electronic
commerce (e-commerce) are bringing major
structural changes to the way companies operate
worldwide.
 Saturation of domestic markets: Domestic-market
saturation in the industrialized parts of the world and
marketing opportunities overseas are evident in
international marketing.