International MarketingAn Introduction

Dimensions of Marketing
Consumer Marketing vs. Business-to-Business
Marketing
Domestic Marketing vs. Foreign Marketing
Comparative Marketing
International Marketing vs. Global/Multinational
Marketing
Domestic Marketing vs. International Marketing
- similar in nature but not in scope (scale)?
- different in degree but not in kind?

Overview of Global
Marketing

Due to its impact,

international marketing
concepts should be
understood by all types
of firms.
Global marketing allows
firms to seek new
markets for expansion.
Countries trade items in
which they have a
comparative advantage.

Domestic marketing
encompasses a firms
efforts in its home
country.
International
marketing involves
marketing goods and
services outside the home
country.
Global marketing is an
advanced form of
international marketing in
which a firm addresses
global customers,
markets, and competition.

Levels of International
Marketing
Domestic
Marketing

Export
Marketing

International
Marketing

Least
international
commitment

Limited
international
commitment

Substantial
international
commitment

Domestic
focus

Involves direct Focus on

or indirect
individual
export
countries or
regions
Ethnocentric
Polycentric or
Regiocentric

Global
Marketing
Extensive
international
commitment
Focus on
segments,
rather than
countries or
regions
Geocentric

Why International Marketing

Occurs

Comparativ
e
Advantage

Tax Incentives

Stage in the
Product
Life Cycle

Growth of
Internation
al
Marketing
Economic and
Demographic
Trends

Competition
at Home

International Philosophy
Human
Resources

Marketing
&
Sales

Corporation &
Business Lines

Manufacturing
& Distribution

Finance

Management
internationalizat
ion philosophy
affects all
functional areas
of the
corporation.

International marketing
It refers to marketing carried out by
companies overseas or across national
borderlines.
The performance of the business activities
that direct the flow of a companys goods
and services to consumers or users in more
than one nation for a profit.

Definition given by American

Marketing Association (AMA)

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

INTERNATIONAL
MARKETING

In simple words International Marketing

is the application of marketing principles
across national boundaries.

However, there is a crossover between what

is commonly expressed as international
marketing and global marketing, which is a
similar term.

Range of Global
Marketing Options

Domestic firm: It restricts

efforts to home market.
Exporting firm: It expands
sales beyond its home borders.
International firm: It modifies
products for foreign markets or
introduces new items.
Multinational firm: While
head-quartered in home nation.
50% of its sales/profits are from
multiple nations.
Global firm: Its domestic sales
are relatively low, so it relies
more on foreign transactions.

THEINTERNATIONALMARKETING
ENVIRONMENT
Asindomesticmarkets,marketersmustpayattentiontolocal
environmentalfactors.
INTERNATIONALECONOMICENVIRONMENT

Importantfactors:nationssize,percapitaincome,stageofeconomic
development,andinfrastructure.
IndiaandChinatogethercontributeonethirdoftheglobalGDP.
ExchangeratePriceofonenationscurrencyintermsofanothernations
currency.
INTERNATIONALSOCIALCULTURALENVIRONMENT

Marketersmustunderstandanationscultureandlanguage.

INTERNATIONALTECHNOLOGICALENVIRONMENT

Internettechnologiesconnectlargeandsmallfirmstoworldmarkets.
Asia,Europe,andNorthAmericaaccountfor87percentofworlds
Internetusage.
INTERNATIONALPOLITICALLEGALENVIRONMENT

Marketersmustbeawareofpoliticalconditionsandlegalenvironmentin
eachcountryinwhichtheycompete.
Internationallawregulatinginternationaltrade.
U.S.lawregulatinginternationaltrade,includingtraderegulations,tax
laws,andimport/exportrequirements.
Legalrequirementsofothernationsinwhichacompanyisdoing
business.

Source: Philip R. Cateora. International Marketing. Ninth edition

International Marketing
Environment
Foreign environment

Political/legal
forces

Cultural
forces

Political
/ legal
forces

Geography and
infrastructure

(uncontrollable)
Domestic environment
(uncontrollable)

(controllables)

Economic
climate
Structure of
distribution
Environmental
uncontrollables
country market A

Economic forces

Competitive
Competitive
structure
forces

Level of
technology

International environmental
forces
A strategy successful in one country can be
rendered ineffective in another by
differences in political climate, staged of
economic development, level of technology,
or other cultural variation.

International marketing
Considerations

International marketing is often not as

simple as marketing your product to more
than one nation. Companies must consider
language barriers,
ideals, and
customs in the market they are approaching.

Stages Of International
Marketing Involvement
1. No Direct Foreign Marketing: trading
companies, foreign customers, domestic
wholesalers, distributors
2. Infrequent Foreign Marketing:
Temporary surpluses caused by variations in
production levels or demand (few
companies today fit this model)
3. Regular Foreign Marketing: foreign or
domestic overseas intermediaries, own
sales force or sales subsidiaries

Stages Of International
Marketing Involvement
4. International Marketing: fully committed
and involved in international marketing
activities. Such companies seek markets all
over the world and sell products that are a
result of planned production for markets in
various countries.
5. Global Marketing: Market segmentation
decisions are no longer focused on national
borders. Instead, market segments are
defined by income levels, usage patterns, or
other factors.

Objectives of International
Business/International Marketing

1.
2.
3.
4.

5.
6.
7.
8.
9.
10.
11.
12.
13.
14.

To
To
To
To

sell Out the Surplus

Achieve sales and production stability
Pay for Imports
Contribute to National Goals

Achieve growth and development

To Lower cost of business
To Improve company Image
Nature of Business
Political reasons
Economic Incentives
Profit Advantage
Competition
Monopoly Power
Strategic Vision