International Marketing An Overview

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International MarketingAn Overview

• Aim To give a brief introduction to the concept
  of international marketing and the complexities
  of international marketing operations

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International Marketing - An Overview (cont.)

• What is International Marketing?

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International Marketing - An Overview (cont.)

• Marketing A Definition
• Marketing is the management process responsible
  for identifying, anticipating and satisfying
  customer requirements profitably. (CIM)

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International Marketing - Definition

• The definition of International Marketing is
  different from the general definition of
  Marketing only in that goods and services are
  marketed across political boundaries.
  (Albaum)
• International Marketing is the performance of
  business activities that direct the flow of a
  companys goods and services to consumers or
  users in more than one nation for profit.
• (Cateora)

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International Marketing Definition (cont.)

• When practising international marketing, a
  company goes beyond exporting and becomes much
  more involved in the local marketing environment
  within a given country or market.
• (Jeannet/Hennessey)

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International Marketing Definition (cont.)

• Levels of Involvement
• Domestic marketing
• - Firm operates in home market.

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International Marketing Definition (cont.)

• Export Marketing
• Marketing activities outside main (domestic)
  base.
• Products are shipped from one market/country to
  another.
• Emphasis on product modification, if required.
• Most traditional and least complicated form of
  international marketing.

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International Marketing Definition (cont.)

• International Marketing
• Entire marketing strategy will need to be
  adapted.
• Understanding of different environments becomes
  essential.

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International Marketing Definition (cont.)

• Multinational Marketing
• Multinational corporation operates in foreign
  market like local company.
• Individual strategy for each market.
• Maximum degree of localisation.
• Many and varied strategies.

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International Marketing Definition (cont.)

• Pan-Regional Marketing
• Marketing strategies for regions rather than
  countries.

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International Marketing Definition (cont.)

• Global Marketing
• A single strategy for a product or service for
  all markets.
• Often some form of local modification necessary.
• Last stage in development.
• (Based on Jeannet/Hennessey)

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The International Marketing Environment

• Which frameworks have you used to analyse the
  macroenvironment?

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The International Marketing Environment (cont.)

• STEP/PEST Social/Technological/Economic/Political
  
• Also SEPTEmber includes Ecology
• SLEPT includes Legal.

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The International Marketing Environment (cont.)

• What are the most important factors in the
  social/cultural environment?
• Why?

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The International Marketing Environment (cont.)

• Social/Cultural Environment
• Language
• Religion
• Value systems
• Social organisations
• Aesthetics
• Material culture

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Social/Cultural Environment (cont.)

• Note
• - Cultural paradoxes
• Westernisation vs. local culture
• - Growing world population
• China, India, Africa
• - Increasing urbanisation

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The International Marketing Environment (cont.)

• What are the most important factors in the
  technological environment/
• Why?

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The International Marketing Environment (cont.)

• Technological Environment
• Infrastructure transport, information
• Attitude towards technology public, government.
• Note effect of www. on
• - market research
• - strategy
• - intermediaries
• - internationalisation of SMEs
• - creation and maintenance of networks

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The International Marketing Environment (cont.)

• What are the most important factors in the
  economic environment?
• Why?

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The International Marketing Environment (cont.)

• Economic Environment
• Important indicators
• Size of economy, growth rate, level of
  development
• Structural/cyclical changes
• Levels and distribution of income
• Rate of inflation
• Unemployment
• Currency value and stability

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Economic Environment (cont.)

• The Triad 80 of world trade
• Developed economies
• Emerging economies
• - rapidly growing markets, e. g. Mexico,
  Indonesia
• - often dual economy
• Developing/less developed countries (LDCs)
• - most people affected in South Asia
• - poverty most extreme in sub-Saharan Africa

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Economic Environment (cont.)

• Expected future developments
• Economic importance of emerging and developing
  markets to increase.
• Within 10 years GDP of East Asia will have
  exceeded GDP of US or Europe by 1 trillion
• By 2020
• - emerging and developing countries will
  generate 65 of world GDP
• - Chinas GDP will have outgrown US GDP
• (McAuley)

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The International Marketing Environment (cont.)

• What are the most important indicators in the
  political/legal environment?
• Why

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The International Marketing Environment (cont.)

• Political Environment
• Form of government
• Political parties
• Interest groups
• Political influence important in
• International trade
• Investment decisions
• Operating conditions

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Political Environment (cont.)

• Assessment of political risk important!
• Moves towards greater stability in international
  trade
• - regional trade agreements
• Europe, North and South America, Asia, Africa
• - global institutions
• WTO, IMF, OECD, World Bank.
• Increased political risk!

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The International Marketing Environment (cont.)

• Legal Environment
• Domestic law
• International law
• Host country law
• All elements of the marketing mix may be affected
• by legal restrictions.

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International Marketing

• Adjusting MARKETING CONTROLLABLES to
• DOMESTIC UNCONTROLLABLES and
• FOREIGN UNCONTROLLABLES (A, B, )

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The International Marketing Environment (cont.)

• The local picture
• 10 companies account for more than 50 of
  Northern Ireland exports.
• 75,000 jobs are directly dependent on overseas
  trade.
• (F. Hewitt, CoC)

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The local picture (cont.)

• SME SHARE OF EMPLOYMENT AND TURNOVER, PERCENT BY
  REGION
• Region Employment Turnover
• UK 55.4 51.4
• Scotland 57.9 56.0
• Wales 67.1 61.4
• NI 79.9 74.5
• (SBS)

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The local picture (cont.)

• Major Export Markets of Large NI Companies
• Total Exp. ( m)
• Republic of Ireland 619
• USA 548
• Asia 405
• Canada 333
• Netherlands 332
• Germany 213
• France 207
• companiesgt50 employees
• (NIERC)

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International Marketing - An Overview (cont.)

• What are the most important decisions a company
  has to make with regard to possible
  internationalisation?

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International Marketing - An Overview (cont.)

• Company Decisions in International Marketing
• Internationalise Yes/No?
• Which market(s)?
• How to enter market(s)?
• Design marketing programme
• Implementation, co-ordination and control of
  global marketing programme.

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International Marketing - An Overview (cont.)

• Summary
• Definition
• The International Marketing Environment
• Social/cultural
• Technological
• Economic
• Political
• The local picture
• Critical company decisions