2. Introduction
International marketing is the process of planning and
conducting transactions across national borders to create
exchanges that satisfy the objectives of individuals and
organizations
In contrast to the definition of marketing only the word
multinational has been added. In simple words international
marketing is the application of marketing principles to across
national boundaries. However, there is a crossover between
what is commonly expressed as international marketing and
global marketing, which is a similar term.
3. Reasons for Global Marketing
Growth
Access to new markets and access to resources
Survival
Against competitors with lower costs (due to increased
access to resources) – e.g. India and China
Or push and pull factors
4. International Marketing Decisions
Deciding whether to go abroad
Deciding which markets to enter
Deciding how to enter the market
Deciding on the market program
Deciding on the market organization
5. Deciding whether to go abroad?
Reasons to consider going global:
Foreign attacks on domestic markets
Foreign markets with higher profit opportunities
Stagnant or shrinking domestic markets
Need larger customer base to achieve economies of scale
Reduce dependency on single market
Follow customers who are expanding
6. Deciding which markets to enter?
Before going abroad, the company should try to
define its international marketing objectives and
policies.
What Volume of Foreign Sales is Desired?
How Many Countries to Market In?
What Types of Countries to Enter?
Choose Possible Countries and Rank Based on
Market Size, Market Growth, Cost of Doing Business,
Competitive Advantage, and Risk Level
8. Deciding how to enter the market?
Joint Venturing:
Joining with foreign companies to produce or market
products or services.
Approaches:
Licensing
Contract manufacturing
Management contracting
Joint ownership
Direct Investment:
The development of foreign-based assembly or
manufacturing facilities.
This approach has both advantages and disadvantages.
9. Deciding on the market program
Standardized Marketing Mix:
Selling largely the same products and using the same
marketing approaches worldwide.
Adapted Marketing Mix:
Producer adjusts the marketing mix elements to each
target market, bearing more costs but hoping for a
larger market share and return.
10. Deciding on the market organization
Organize an export department
Create international divisions
Geographical organizations
World product groups
International subsidiaries
Become a global organization
11. Strategies
Global strategy
Companies such as Sony and Panasonic pursue a global
strategy which involves:
Competing everywhere
Appreciating that success demands a presence in almost
every part of the world in order to compete effectively
Making the product the same for each market
Centralized control
Taking advantage of customer needs and wants across
international borders
Locating their value adding activities where they can
achieve the greatest competitive advantage
Integrating and co-ordinating activities across borders
12. Global Strategies Continued…
A global strategy is effective when differences between
countries are small and competition is global.
It has advantages in terms of
Economies of scale
Lower costs
Co-ordination of activities
Faster product development
However, many regret the growing standardization across the
world.
13. Domestic Strategies
A multi-domestic strategy involves products tailored to
individual countries
Innovation comes from local R&D
There is decentralization of decision making within the
organization
One result of decentralization is local sourcing
Responding to local needs is desirable but there are
disadvantages: for example high costs due to tailored
products and duplication across countries
15. The Ethnocentric Orientation
-- It is a belief which considers- one’s own country/
culture, products as superior
-- It views similarities in all markets/ foreign country
market.
-- Product’s/ services/ management practices/
methods that is being offered/ followed in one’s
own country/ successful in one’s own country will
be acceptable in other world markets, anywhere.
-- Adaptation of the product is not required.
-- Shades of egoism encircled herewith
16. The Polycentric Orientation
-- Opposite of Ethnocentrism .
-- It views each country as unique.
-- Each subsidiary is to develop its own unique business.
-- Each subsidiary to develop its own marketing strategies
to succeed in its own right.
17. The Regiocentric Orientation:
Management views regions as unique.
-- Management seeks to develop an integrated regional
strategy, to market product/services- in the particular
identified region.
-- Regions are considered to be one- i.e. consumers
having one taste, choices, preferences, one regional
identity etc.
-- NAFTA, EU, SAARC etc are examples.
18. The Geocentric Orientation:
-- The Company views the entire world as a potential
market.
-- Company strives to develop integrated world market
strategies.
-- It views similarities and differences in markets and
countries.
-- It seeks to create a global strategy- responsive to local
needs and wants.
19. The Importance of Global Marketing
For US-based companies, 75% of sales potential is outside
the US.
About 90% of Coca-Cola’s operating income is generated
outside the US.
For Japanese companies, 85% of potential is outside Japan.
For German and EU companies, 94% of potential is outside
Germany.
20. Marketing Mix Adaptation
In India, McDonald’s serves chicken, fish, and vegetable burgers, and
the Maharaja Mac—two all-mutton patties, special sauce, lettuce,
cheese, pickles, onions, on a sesame-seed bun.
21. U.S. Globalization
Many U.S.
companies
have made
the world
their
market.
22. Cultural Difference
When Nike learned that
this stylized “Air” logo
resembled “Allah” in
Arabic script, it
apologized and pulled
the shoes from
distribution.
23. Colgate Goes to China
Using aggressive promotional and educational
programs, Colgate has expanded its market
share from 7% to 35% in less than a decade.
25. International Pricing
Twelve European Union countries have adopted the euro as
a common currency, creating “pricing transparency” and
forcing companies to harmonize their prices throughout
Europe.
