International Marketing

2. Definition of International
Marketing
“International Marketing is the performance of
business activities that directs the flow of goods
and services to consumers or users in more than
one nation”
OR
“International marketing is the multinational
process of planning and executing the
conception, pricing, promotion and distribution
of ideas, goods and services to create
exchanges that satisfy individual and
organizational objectives”

3. Factors in International
Marketing
Uncontrollable factors
 Political
 Legal
 Economic
 Competition
 Technology
 Geography infrastructure
 Structure distribution
Controllable Factor
 Price
 Product
 Promotion
 Channels
 Research

4. • Evaluation of other cultures according to
preconceptions originating in the standards
and customs of one's own culture.
• Reliance on your own culture.
• Self-reference criterion.
• Approach another culture based on your
culture
Lookout
For

5.  A political or cultural system which
contains many different centres, especially
centres of authority or control
 Firms are guided by multi domestic market
concept.
 All Marketing activities are performed in
each country independently of company
head quarters.

6.  Regiocentrism is a transitional phase between
polycentric and geocentric orientation. • Firm accepts a
regional marketing policy covering a group of countries
which have comparable market characteristics. •
Operational strategies are formulated on the basis of the
entire region rather than individual countries
 Firms with regiocentric orientation are guided by global
marketing concept.
 View World region as distinct markets that share
economic, political, and or cultural trait
 Ex-PepsiCo company in PAN european market.

7.  Geocentric companies perceive the entire world-without
national or regional distinctions-as a potential market.
 A company with offices in multiple nations that
operates to achieve global objectives as well as local
objectives. The subsidiaries contribute unique
competencies as part of a whole rather a set of separate
business units
 McDonald’s has been successful as a result of its
geocentric philosophy.

8. International or Global
 Task is complicated by the interference of
the domestic market vs. the foreign
market
 Task is complicated when company has
multiple international markets
 They also might and do contribute to the
a more favorable outcome

9. International Dimensions of Marketing
 Domestic Marketing-Marketing practices
within the home country.
 Foreign Marketing-It encompasses the
domestic operations within a foreign
country.
 Comparative marketing-It involves two or
more marketing systems rather than
examining a particular marketing system

10. Domestic Vs International
Marketing
Similarity
1.Satisfying the basic needs of consumer
2.To build goodwill both at domestic and
international level
3.Research and development for product
improvement

11. Domestic Vs International
Marketing
Differences
1. Sovereign political entities
2. Different legal system
3. Different monetary systems
4. Lower mobility of factors of production
5. Difference in market characteristics
6. Differences in procedures and documentation
7. Greater degree of risk.

12. Transition From Domestic to
International Business
A. Pre-export Behaviour
1.Firm Characteristics.
2.Percieved External Export Stimuli
3.Percieved Internal Export Stimuli
4.Level Of Organizational Commitment
B. Motivation to Export
1. Bulk Sales
2.Relative Profitability
3.Insuffisiency of domestic demand
4.Reducing Business Risk
5.Legal Restrictions.
6.Imported Inputs.
7.Social responsibilty
8.Increased productivity
9.Technological Improvement

13. Stages of International
Marketing
 Domestic market extension, same as
domestic
 Multi-domestic, product adaptation
 Global marketing orientation
 Standardized marketing mix
 Markets segmented
 Standardized product, country specific
advertising
 Distribution

14. Process of Internationalization
 No regular export activities
 Export via Independent
representative
 Establishment of overseas
Sales Subsidiary
 Overseas
Production/Manufacturing.

15. Global Marketing
 The entire world is the market
 Coca-Cola
 Boeing
 IBM
 Citibank
 Uniliver

16. Kodak in China and the US
 Previously Kodak film in the US nearly no
competition, until Fuji entered the market
 With no competition in the US, Kodak could
invest heavily in China and other places
 Fuji Photo made Kodak invest more in the US
market
 Now, digital photography and use of cell phone
cameras do away with film all together

17.  Amazon.com beat Apple to the punch Thursday
with a new service that lets customers download
movies to their computers and take them for on-
the-go viewing on portable media players -- but
not on Apple iPods.
 Periodic maintenance, repair

18. Why Go International or Global?
 Increase wealth
 Profitability in business is selling to
customers
 Understand the culture and customers in it
to increase wealth

19. Opportunities in Global Business
 Develop a global awareness
 Willingness to learn new ways
 Tolerance of cultural differences
 Knowledge
 Culture
 History
 Economic, social, political trends

20. Benefits of International Marketing
 Survival
 Growth of Overseas Market
 Sales and Profit
 Diversification
 Inflation and Price Moderation
 Employment
 Standards Of Living
 Understanding of marketing process

21. International Marketing
 Fully committed
 Markets all over the world
 Planned production and marketing
Old US

22. Very similar
menu, vision and
mission same.
Some variation.
Beer
Wine
Up-scale
sandwiches and
coffee – McCafe.