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An Introduction to
INTERNATIONAL
MARKETING
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
consumers or users in more than one
nation for a profit.
 Marketing concepts, processes, and
principles are universally applicable
all over the world.
Stages of international
marketing involvement

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


No direct foreign marketing.
Infrequent foreign marketing.
Regular foreign marketing.
International marketing.
Global marketing.
Global marketing
 …is marketing that integrates or
standardises marketing actions
across geographic markets.
Factors drawing companies into
the international arena
 Higher profit opportunities
 Need a larger customer base to
achieve economies of scale or want to
reduce dependence on any one
market
 To counterattack global competitors
 Customers are going abroad and
require international service
Factors influencing
attractiveness of a market

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
Product
Geography
Income and population
Political climate
Etc.
Barriers in international trade
 Tariffs, quotas, embargo
 Exchange control (limits on the amount
of its country’s foreign exchange with
other countries and on its exchange rate
against other currencies)
 Non-tariff trade barriers - non-monetary
barriers to foreign products such as
biases against a foreign company’s bids
Risks
 Might not understand foreign preferences and
could fail to offer a competitively attractive
product
 Might not understand the other country’s
business culture or know how to deal with
foreign regulations
 May lack managers with international
experience
 Other country might change its commercial
laws, devalue its currency, or undergo a
political revolution...
Foreign Environment
(Uncontrollables)
7. Structure of
Distribution
1. Competition
Domestic environment
(Uncontrollables)
Environmental
uncontrollables
country market A
1.
Competition
(Controllables)
2. Technology
Price
Product
Target
5. PoliticalEnvironmental
7
Market
uncontrollables
6. Geography and Legal
country
Promotion Place or 2 .Technology
Infrastructure
market B
Distribution
4.
Culture
Environmental
3. Economy
uncontrollables
5. Political3. Economy
country
Legal
market C
4. Culture
Deciding which markets to
enter
 What are the company’s marketing
objectives?
 What volume of foreign sales does it want?
 How many countries does it want to market in?
 How fast should it expand?
 What types of countries should it enter?
Market potential
 Market size, market growth, cost of
doing business, competitive
advantage, risk level…
 Indicators of market potential within
PESTLE
Deciding How to Enter the
Market

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
Indirect and direct exporting
Licensing, franchising
Joint ventures
Direct investment
Exporting
 Entering a foreign market by selling
goods produced in the company’s
home country, often with little
modification.
 Types of exporting:
 Indirect:
 Working through independent
international marketing intermediaries.
 Direct:
 Company handles its own exports.
Joint venturing
 Joining with foreign companies to produce
or market a product or service.
 Licensing
 Franchising
 Contract manufacturing
 Management contracting
 Joint ownership
Direct Investment
 The development of foreign-based
assembly or manufacturing facilities.
 M&A
Crucial problem
Standardized marketing mix
Keeps costs low, allows for brand image consistency, enables the firm to
leverage ideas quickly and efficiently
Adapted marketing mix
Market program is adjusted to each target market
Continuum
Adaptation
(of Marketing Mix)
Standardization
(of Marketing Mix)
INFLUENCED BY 7 ENVIRONMENTAL FACTORS
International Product and
Communication Strategies
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Straight extension
Product adaptation
Product invention
Communication adaptation
Dual adaptation
Organizing the Marketing
Department
 Functionally, geographically, product
or brand, market
 Organise an export department
 Create an international division
 Become a global organisation
Discussion and case studies
 With all the problems facing
companies that ‘go global,’ why are so
many companies choosing to expand
internationally? What are the major
factors contributing to the intensity of
today’s global competition?
 What must a company consider when
it decides whether to expand globally?