International Marketing

Look at the international marketing environment

Decide whether to enter
Decide which markets to enter
Decide how to enter
Plan marketing programs
Plan marketing organization

….the real issue here is what role national boundaries play in

a firm’s strategic planning process.
 International Marketing

Physical Environment
Climate, topography, resources
US has big products…

Economic Environment
Population, industry structure, stage of development
Lack of wholesalers in developing countries
 International Marketing

Political-Legal Environment

Advertising restrictions

Tariffs/non-tariff barriers

Patents/Trademark protection
 International Marketing

Cultural Environment
Language
Attitudes
Time Concepts
Space Concepts
How business is conducted
Friendship
 International Marketing
What influences the decision to enter?
Stability of government
Stability of currency
Tariffs/non-tariff barriers
Crime/corruption
Protection of property rights/technology
 International Marketing

How to enter:

Exporting
Export excess capacity
Simplest, most direct

Licensing/joint venture
Firm in foreign market produces, distributes
 International Marketing

How to enter (cont.):

Subsidiaries
Partly own firm in foreign market

Multinational
As foreign investments grow, firm loses home country identity

Key is volume growth

 International Marketing

Which markets?
Current market potential
Future market potential
…versus risk
Russia….?

Marketing Plan
Standardize versus adapt for each market
 International Marketing

Marketing Organization

Based on entry strategy

Requirement for in-country participation