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International marketing
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Jump to: navigation, search International marketing (IM) or global marketing refers to marketing carried out by companies overseas or across national borderlines. This strategy uses an extension of the techniques used in the home country of a firm.[1] It refers to the firm-level marketing practices across the border including market identification and targeting, entry mode selection, marketing mix, and strategic decisions to compete in international markets.[2] According to the American Marketing Association (AMA) "international marketing is the multinational process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives."[3] In contrast to the definition of marketing only the word multinational has been added.[3] In simple words international marketing is the application of marketing principles to across national boundaries. However, there is a crossover between what is commonly expressed as international marketing and global marketing, which is a similar term. The intersection is the result of the process of internationalization. Many American and European authors see international marketing as a simple extension of exporting, whereby the marketing mix 4P's is simply adapted in some way to take into account differences in consumers and segments. It then follows that global marketing takes a more standardised approach to world markets and focuses upon sameness, in other words the similarities in consumers and segments.
Contents
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3 Differences between domestic marketing and international marketing 4 Mode of engagement in foreign markets o 4.1 Exporting o 4.2 Joint ventures o 4.3 Direct investment 5 References
Cateora and Ghauri (1999) 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. International marketing is often not as simple as marketing your product to more than one nation.[4] Companies must consider language barriers, ideals, and customs in the market they are approaching.[4] Tailoring your marketing strategies to attract the specific group of people you are attempting to sell to is highly important and can serve the number one cause of failure or success.[4] As with other elements of marketing, there is no single definition of international marketing. Furthermore some authors define international marketing and global marketing differently. It can be distinguished between different levels of international marketing: "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."[5] Another definition sees international marketing as the international involvement of business activities: "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."[6] It can be also defined as "the application of marketing orientation and marketing capabilities to international business."[7] "The international market goes beyond the export marketer and becomes more involved in the marketing environment in the countries in which it is doing business."[8] Some definition refer to the term global marketing: "Global/transnational marketing focuses upon leveraging a company's assets, experience and products globally and upon adapting to what is truly unique and different in each country."[8] "Global marketing refers to marketing activities coordinated and integrated across multiple country markets."[9]
Global strategy:
Competitive strategy:
conceptual development; competitive advantage vs. competitive positioning; sources of competitive advantage and performance implications.
Strategic alliances:
learning and trust; recipes for alliance success; performance of different types of alliance.
Global sourcing:
global sourcing in a service context; benefits of global sourcing; country of origin issues in global sourcing.
Multinational performance:
Police: bobby (Britain), garda (Ireland), Mountie (Canada), police wallah (South Africa) Porch: stoep (South Africa), gallery (Caribbean) Bar: pub (Britain), hotel (Australia), boozer (Australia, Britain, New Zealand) Bathroom: loo (Britain), dunny (Australia) Ghost or monster: wendigo (Canada), duppy (Caribbean), taniwha (New Zealand) Barbecue: braai (South Africa), barbie (Australia) Truck: lorry (Britain and Australia) Festival: feis (Ireland) Sweater: jumper (England) French fries: chips (Britain) Soccer: football (the rest of the world) Soccer field: pitch (England)
On a sign in a Bucharest hotel lobby: The lift is being fixed for the next day. During that time, we regret that you will be unbearable. From a Japanese information booklet about using a hotel air conditioner: Cooles and Heates: If you want just condition of warmin your room, please control yourself. In an Acapulco hotel: The manager has personally passed all the water served here.
Exporting (which is further divided into direct and indirect exporting) Joint ventures Direct investment (split into assembly and manufacturing)
[edit] Exporting
Direct exporting involves a firm shipping goods directly to a foreign market. A firm employing indirect exporting would utilise a channel/intermediary, who in turn would disseminate the product in the foreign market. From a company's standpoint, exporting consists of the least risk. This is so since no capital expenditure, or outlay of company finances on new non-current assets, has necessarily taken place. Thus, the likelihood of sunk costs, or general barriers to exit, is slim. Conversely, a company may possess less control when exporting into a foreign market, due to not control the supply of the good within the foreign market.