7/24/2010

Week 1

Rationale for International Marketing

What is International Marketing?

The process of planning and undertaking transactions across national boundaries that involve exchange. Concerns taking risks that include:
Different political systems Legal frameworks Cultural norms Economic environments

Understanding International Marketing is Imperative

Saturation of domestic markets Changing view of competition around the world International competition brings about global cooperation Proliferation of the internet and electronic business Profound changes in countries of competitors in the international marketplace

7/24/2010

Why Go International?
Utilise full production capacity Product life cycle extension Market a bulk surplus Market new products Take advantage of regional development incentives Improve company image Improve brand image Inhibit brain drain

Why Go International Exporting

Access new markets Achieve more rapid growth Dumping Comparative advantage Increase market share Expand customer base

Why go international Investment

Gaining access to supplies of key materials or product Seek low cost production sources Value adding Diversify capital investment
Tax advantages Cost reductions

Avoid government regulations Avoid import barriers Access to regional expertise

7/24/2010

Developing a Global Awareness

Knowledge of cultures, history, world market potential, global economic trends, social and political trends Tolerance of cultural differences Objectivity

International Marketing & Business

Does not occur in isolation Marketers must know:
Finance Distribution Production capabilities Commerce Economics Trade barriers Business in general

Stages in International Marketing Involvement

No direct foreign marketing Infrequent foreign marketing Regular foreign marketing International marketing Global marketing

7/24/2010

Strategic Orientations
Domestic market extension concept
Seeks extension of sales of its domestic products into foreign markets

Multi-domestic market concept

Recognition that country markets are different from domestic markets

Global marketing concept

Marketing activity is global

International Marketing Planning & Strategy Development

Planning is the process of preparing a set of decisions for actions in the future, directed at achieving goals by preferable means.

Dror, I, 1973, The planning process: a facet design

International Marketing Planning & Strategy Development

Environmental Analysis of International Markets International Marketing Planning Process International Marketing Strategy International Marketing Implementation Electronic Commerce in International Marketing