INTERNATIONALBUSINESSSCHOOL

Direccin Acadmica

INTERNATIONALMARKETING
FirstSession:
Introductiontointernationalmarketing.
Decisionwhethertointernationalizethefirm
Professor:Econ.EnriqueAngles
 Learningobjectives
Discussthereasonwhyfirmsgointernational
throughthesolutionofcasestudies
IntroductiontoInternationalmarketing
Internationalmarketingdecisions(structure
ofthiscourse)
EPRGModell
Motivesforinternationalization

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 Insights
InLima,aGermanbusinesspersonisdrivinga
Lexus;heswearingHugoBossshoes,Calvin
Kleinunderwear,anArmanisuit,withaGucci
belt.HehasaMontBlancpen,inhisItalian
shirt.HesgoingtomeetaPeruvianinvestor
ataTonyRomarestaurant,foraCoke.After
lunch,theystopforacoffeeatStarbrucks.
Whenhegetshome,sittingonanottoman,he
hasanAbsolutvodkanightcap,whilelistening
toJazzmusic.
WhatbrandsareJapanese,American,Chinese
orGerman?
 Introduction
Whatismarketing?

Marketingisasocialandmanagerialprocess
bywhichindividualsandgroupsobtainwhat
theyneedandwantthroughcreating,offering,
andexchanging productsofvalue withothers.
(Kotler)

Process, exchange, value

 Marketingprocess
Capture
Create value for customers and value from
build customer relationships customers
in return

Understand Design a Construct a Build profitable Capture

the customer- marketing relationships value from
marketplace driven program that and create customers to
and customer marketing delivers customer create profits
needs and strategy superior satisfaction and
wants value customer
quality

Marketing Global Ethics and

technology markets social responsibility
 Introduction
Whatisinternationalmarketing?

Internationalmarketingistheprocessof
planningandconductingtransactionsacross
nationalborderstocreateexchangesthatsatisfy
theobjectivesofindividualsandorganizations
(CzinkotaandRonkainen)

Internationalmarketingfocusesitsresourceson
globalmarketopportunitiesandthreats (Keegan
andGreen)

Internationalmarketingisthemotorofthe
internationalizationprocessofthefirm (Usunier)
Whatarethesimilaritiesanddifferencesbetween
internationalmarketingandnationalmarketing?
Similarities: basicconcepts,practicesandtoolsare
almostidentical,keysuccessfactorsarethesame
Differences: morestrategic,morevariables,more
complex,culturaldifferences,legalconstraints,
informationsources,managingdistances,entrymode
choice
 ImportanceofInternational
Marketing
Internationalexpansionhelpsfirm:
Keeppacewithcompetition
Reachalargermarket(e.g.USwith25%of
worldwideproducts/services)
Reaphigherprofits
Prolongthelifecycleoftheirproducts

Alsoanoptionforsmallandmediumsized
companies

8
 Introduction
InternationalMarketingDecisions
(Structureofthiscourse)
Phase 1: Deciding whether to go abroad

Phase 2: Deciding which markets to enter

Phase 3: Deciding how to enter the market

Phase 4: Deciding on the international marketing plan

Phase 5: Deciding on the marketing organization

 Structure of this course
Sessions:
(Phase 1:
1.Introduction. Decision whether to
Deciding whether go abroad
to go abroad) 2.International marketing research
Phase 2: 3.Economic, political and legal
Deciding environment
4.Cultural, social environment
which markets
5.The process of international market
to enter selection

Sessions
Phase 3: 6. Market entry strategies (Presentation
Deciding of a first advance international
how to enter marketing plan)
foreign markets 7. International market segmentation
8. International market positioning
 Structure of this course
Sessions:
Phase 4: 9. Product decisions
Designing 10. Pricing decisions
the international 11. Presentation of a second advance
marketing of international marketing plan
12. Distribution decisions
plan
13. Communication decisions
Phase 5: Session:
Implementing/ 14. Marketing organization,
controlling the implementation and control
international 15. Presentation of final
marketing international marketing plan
plan
 InternationalComposition
InternationalGrowthOptions

4/12/2015 Page12
StagesofInternationalMarketingInvolvement
Domestic Export Multinational Global
Marketing Marketing Marketing Marketing
Low or no Limited Substantial Extensive
international international international international
commitment commitment commitment commitment

Focus on Involves direct Focus on Focus on

domestic or indirect different regions
consumers and export international market
home country countries segments
environment rather than
countries

Domestic focus Ethnocentric Polycentric Regiocentric

Geocentric

Raising commitment/ involvement to international markets13

 EPRGModel Characteristics
Ethnocentric Polycentric Geocentric
Approach International Each country is The world is one
operations are relatively common market
secondary independent
Vision Centered on the Each market is Global vision of
domestic market unique the world

Priority Searching for Taking into Unifying

identical consideration differences in the
segments in differences in world market
foreign markets foreign markets
Planning center National Subsidiary in each World
headquarters country headquarters
Structure International Division for each Matrix structure
division zone
 EPRGModel Characteristics
Ethnocentric Polycentric Geocentric
Staff Citizens from the Citizens from Most qualified
domestic market each market

Marketing Extension Adaptation Extension,

strategy Adaptation,
Creation
Management Centralized Decentralized Integrated and
style interactive
Production Domestic Local Low-cost sources
of supply

Partnerships Agent, licensing Joint-ventures Strategic alliances

Performance Domestic market Local market World market

measures share share share
Thenetworkmodel
The
relationships
ofafirmina
domestic
networkcan
beusedas
bridgesto
other
networksin
other
countries 316
PersonalfactorsinInternationalization

Positiveperceptionsofglobalenvironment
Entrepreneurialorientation
Innovativeness

317
 Internationalization
preparation

Conducting international market research

Committing resources to support venture

Adapting products to target foreign markets

318
 Motives
forinternationalization
Proactive Reactive
Profitandgrowthgoals Competitivepressures
Managerialurge Domesticmarket
Technologycompetence Overproduction
Foreignmarket Unsolicitedforeignorders
opportunities Extendsalesofseasonal
Economiesofscale products
Taxbenefits Proximitytointernational
customers

219
 Whatisthis?

Internalorexternaleventstakingplaceto
initiateinternationalizationareknownas
______.

Internationalization triggers

220
 Triggersofexportinitiation
Internaltriggers Externaltriggers
Perceptive Marketdemand
management Competingfirms
Specificinternalevent Tradeassociations
Importingasinward Outsideexperts
internationalization

221
 Barriershindering
exportinitiation
Insufficientfinances Lackofproductive
Insufficientknowledge capacity
Lackofforeignmarket Lackofforeignchannels
connections ofdistribution
Lackofexport Managementemphasis
commitment ondevelopingdomestic
Lackofcapital markets
Costescalation

222
 Barriershinderingthe
processofinternationalization

General market risks

Commercial risks

Political risks

223
 Generalmarketrisks

Comparativemarketrisks
Competitionfromotherfirms
Differencesinproductusage
Languageandculturaldifferences
Difficultiesinfindingtherightdistributor
Differencesinproductspecifications
Complexityofshippingservices

224
 Commercialrisks

Exchangeratefluctuations
Failureofexportcustomerstopay
duetocontractdisputes,bankruptcy,
refusaltoacceptproduct,orfraud
Delaysand/ordamageintheexport
shipmentanddistributionprocess
Difficultiesinobtainingexport
financing
225
 Politicalrisks(1)
Foreigngovernment
restrictions
Nationalexportpolicy
Foreignexchangecontrols
imposedbyhostgovernments
Lackofgovernmental
assistanceinovercoming
exportbarriers
Lackoftaxincentives
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 Politicalrisks(2)

Highvalueofdomesticcurrency
relativetoexportmarkets
Highforeigntariffsonimported
products
Confusingforeignimportregulations
andprocedures
Complexityoftradedocumentation
Enforcementofnationallegalcodes
regulatingexports
Civilstrife,revolution,andwars
disruptingforeignmarkets
227
 Riskmanagementstrategies

Avoid exporting to high-risk markets

Diversify overseas markets

Insure risks when possible

Structure export business so that buyer bears most risk

228
 Fordiscussion(1)
Exportmotivescanbeclassifiedasreactiveor
proactive.Giveexamplesofeachgroupof
exportmotives.Howwouldyouprioritize
thesemotives?Canyouthinkofmotives
otherthanthosementionedinthissession?
Whatarethey?

229