International Marketing: An Overview'

1
International Marketing An Overview.

• AIM - An Introduction to the concepts of
  International Marketing and the complexities of
  International Marketing.

2
What is International Marketing?

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

3

• International Marketing is the performance of
  business activities that direct the flow of a
  companies goods and services to consumers or
  users in more than one nation for profit.
  (Cateora)
• 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/Hennessy)

4
Levels of Involvement.

• DOMESTIC MARKETING
• Firm operates in home market.
• 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.

5

• INTERNATIONAL MARKETING
• Entire marketing strategy will need to be
  adapted.
• Understanding of different environments becomes
  essential.
• MULTINATIONAL MARKETING
• Multinational corporation operates in foreign
  market like local company.
• Individual strategy for each market.
• Maximum amount of localisation.
• Many and varied marketing strategies.
• PAN-REGIONAL MARKETING
• Marketing strategies for regions rather than
  countries.

6

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

7
The International Marketing Environment.

• With which environmental analysis models are
  you familiar?
• PEST - Political, Economic, Social,
  Technological.
• SEPTEmber - as PEST but includes Ecology.
• SLEPT - Social/Cultural, Legal, Economic,
  Political, Technological.

8
Social/Cultural Environment

• Language
• Religion
• Aesthetics
• Value Systems
• Social Organisation
• Material culture.
• Note cultural paradoxes
• Westernisation vs emphasis on local culture.
• Growing world population Africa, India, China.
• Increasing urbanisation.

9
Political Environment

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

10
Political Environment cont.

• Assessment of political risk important!
• Moves towards greater stability in
  international trade
• Regional trade agreements Europe, North and
  South America, Asia and Africa.
• World trading institutions WTO, IMF.

11
Legal Environment

• Domestic Law
• International Law
• Host Country Law
• All elements of the marketing mix may be
  affected by legal restrictions.

12
Technological Environment.

• Transport
• Information/Data management.
• Communications
• Internet
• The electronic superhighway
• Satellite communications.

13
Technological Environment cont.

• Note effect of Internet on
• Price differentials
• Intermediaries
• Market research
• Creation and maintenance of networks
• Internationalisation of SMEs.

14
Economic Environment.

• The Triad
• 80 of world trade.
• Developed economies
• Emerging economies
• Rapidly growing markets e.g. Indonesia,
  Mexico often dual economy
• Less developed economies (LDCs)
• Poverty most extreme in sub-Saharan Africa.
  Most people affected in South Asia.

15
Critical Company Decisions in International
Marketing

• 1 Internationalise - Yes/No?
• 2 Which market(s)?
• 3 How to enter market(s)?
• 4 Design of global marketing programme.
• 5 Implementation, co-ordination and control of
  global marketing programme
• (based on
  Hollensen)
• ALL DECISIONS MUST BE SUPPORTED BY
  APPROPRIATE MARKETING INTELLIGENCE.

16
Changes and Challenges in the Global Era.

• What are the major changes or challenges for
  companies in the new millennium?
• Rapid pace of development in science and
  technology, particularly in computing,
  telecommunications and information sciences.
• Increasing globalisation, including increased
  global competition.
• Moving industry boundaries and competitive
  structures
• - Mergers and acquisitions of increasing
  volume.
• - Strategic alliances within and across
  conventional industries.

17
Changes and Challenges in the Global Era cont.

• Changing demographics, popular values and
  behaviour.
• Increased deregulation, privatisation and
  co-operation between business and government.
• Changes in business practices re-engineering,
  downsizing, outsourcing.
• (based on
  Wind)

18
Summary

• Definitions
• Marketing.
• International Marketing.
• Varying levels of involvement
• Domestic Marketing
• Export Marketing
• International Marketing
• Multinational Marketing
• Pan-Regional Marketing
• Global Marketing

19
Summary cont.

• The International marketing environment
• Analysis models
• PEST
• SEPTEmber
• SLEPT
• Company Decisions
• The international marketing task
• Changes and future challenges

20
Preparatory Reading

• INTERNATIONAL MARKETING RESEARCH.
• Cateora/Ghauri
• Ch.8 Assessing International Market
  Opportunities pp 145-175
• Hollensen
• Appendix Global marketing research/decision
  supporrt system pp 626-648
• Jeannet/Hennesey
• Ch.6 International and Global Marketing
  Research pp 216-256.