Download INTERNATIONAL_MARKETING_2003

INTERNATIONAL
MARKETING
Cansu KÖROĞLU
2010503047
Dokuz Eylul University
Industrial Engineering Department
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Marketing
Marketing, constitutes activities that direct
goods from manufacturers to consumer.
 Marketing to identify:
• Must have two or more parties are
interested in change.
• The parties must have goods that can be
traded.
• The parties should have the power of
communication and delivery.

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International Marketing

International marketing occurs when a
business directs its products and services
toward consumers
in more than one
country.
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"At its simplest level, international marketing involves the
firm in making one or more marketing mix decisions
across national boundaries. At its most complex level, it
involves the firm in establishing manufacturing facilities
overseas and coordinating marketing strategies across
the globe.“
(International Marketing Strategy - Analysis, Development and Implementation)
"International Marketing is the performance of business
activities that direct the flow of a company's goods and
services to consumers or users in more than one nation for
a profit."
(Publishing Company-International Marketing)
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Differences between domestic marketing
and international marketing
For international as well as domestic marketing the basic tools and
concepts of marketing are applied in order to satisfy consumer
demand, although the problems encountered in international marketing
and the techniques used to overcome them can differ considerably.
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Domestic
International
Research data is available in a single
language and is usually easily accessed
Research data is generally in foreign
languages and may be extremely difficult to
obtain and interpret
Business is transacted in a single currency Many currencies are involved, with wide
exchange rate fluctuations
Promotional messages need to consider
just a single national culture
Numerous cultural differences must be
taken into account
Communication and control are immediate
and direct
International communication and control
may be difficult
Business laws and regulation are clearly
understood
Foreign laws and regulations might not be
clear
Bussiness risk can usually be identified
and assessed
Enviroments may be so unstable that it is
extremely difficult to identify and assess
risk
Distribution and credit control are
straightforward
Distribution and credit control may be
extremely complex
Competitors’ behaviour is easily predicted
Competitors’ behaviour is harder to
observe, therefore less predictable
New product development can be geared
to the needs of the home market
New product development must take
account of all the markets the product will
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be sold in
Factors affecting international marketing
International marketing is dealing with more than one
foreign market. So international marketing is affected
by many factors.
Cultural
Political
Legal
FACTORS
Economic
Social
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4P’s of International Marketing
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Product


An international company has to decide which
strategies should be sold after developing the
product.
Products can be sold with 4 different strategies.
These strategies are:
•Single Product-Single Message
•Same Product-Different Message
•Different Product-Same Message
•Different Product-Different Message
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Price

The company can price
according to different
purposes. Making faster the
entering the market, maintain market share,
market shares of other firms through price
competition to capture some of these purposes.
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Promotion

After product research, development and creation,
promotion (specifically advertising) is generally the
largest line item in an international company’s
marketing budget.
The key is testing advertising ideas using a
marketing research system proven to provide
results that can be compared across countries.
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Place

There are some general principles about the
distribution channels:
• Marketing objectives to be determined.
• Assessment of the situation change at every
stage of the distribution.
• In each country, to determine strategies for
distributions channels.
• Determination of performance standards for
all the organizations in the distribution chain.
• Comparison of actual performance with
expected performance.
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Benefits of International Marketing

→
→
→
→
→
International marketing daily affects consumers in
many ways, though its importance is neither well
understood nor appreciated.
Survival and growth
Sales and profits
Diversification
Inflation and price moderation
Standards of living
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Survival and growth

For companies to survive, they need to grow. Because
most countries are not fortunate of market size,
resources and opportunities, they must trade with others
to survive.
International expansion was necessary when
foreign companies entered a domestic
market.
Only companies with previously substantial
market share and international experience
could expand successfully.
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Sales and profits


Foreign markets constitute a large share of the
total business of many companies that have wisely
cultivated markets abroad.
Foreign sales
constitute a major
share of total
revenues of many
companies.
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Diversification


Demand for most products
in domestic market is
affected by cyclical factors
and seasonal factors.
These factors are likely to
cause a drop in sales often forcing companies to
lay off personnel.
Foreign markets iron out fluctuations by providing
outlets for excess production capacity.
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Inflation and price moderation

The benefits of exports are obvious. Even imports
can be beneficial to a country. Without imports,
there is no force to influence domestic companies
to moderate their prices.
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Standards of living

Trade affords participating nations and their
citizens higher standards of living than is
otherwise possible.
Without trade, product
shortages force people
to pay more for less,
denying them the
purchasing power to buy
more.
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