International Marketing

Going International (The challenges of globalisation)

The Marketing Mix (an international context)

Going International

Why international?
What country/ies shall we enter?
How shall we enter?
What do we do once we enter?
How do we organise/plan/implement and control?
 Internationalisation
Why companies internationalise
increased market size
increased segment size
increased resources

Why countries trade internationally

enables countries to specialise
develops political links
increase efficiency/competition
enables economies of scale

Whether to internationalise
doesit fit with overall objectives
do we have the resources
do we have or can we obtain info
do we have or can we develop competitive advantage
 Why is international marketing different?
Culture Diverse, Multi-cultured
Markets Widespread, fragmented, different
Data Difficult to get, expensive
Politics Varying stability and attitudes
Governments Attitudes towards foreign trade
Competitors Varying levels
Economies Varying levels and systems
 International Marketing Environment
Political/Legal factors
political risk and stability
tariff and non-tariff barriers
legal controls/patents/liability

Economic factors
levelof economic development
Economic indicators (GDP etc)
Exchange rates
 International Marketing Environment
Social/cultural factors
beliefs and values
Customs
rituals

Technology/infrastructure
industrialisation
e-commerce
 International Buyer Behaviour
Culture
beliefs and values
customs
artefacts
rituals
Sources of culture
language
religion
values and attitudes
Consumer buying behaviour
motivation
decision making
Business and Government buying behaviour
DMU
 International Marketing Research

Questions
Should we internationalise?
Which market/s?
How should we enter?
Marketing objectives
resources
availability
risk/control
what marketing mix?
Market Entry Methods
Exporting Overseas production
indirect licensing and franchising
export managers contract manufacture
buying offices joint venture
piggy-backing wholly owned subsidiary
direct
via agent or distributor
via e-commerce
direct to final user
 The Marketing Mix (an international context)
The 4 Ps (will they be the same internationally?)

To what extent might these change in an international

marketplace?
The Four Ps (revisited)
Price (why might this need to change?)

Promotion (how and why would this differ?)

Place (would an international market be different?)

Product (does the product need to change?)

Should we add three more?

The Physical Evidence (does this only apply to a service?)

The Process (would a cultural difference change this?)

People (would you need to employ locals?)

What about......
Positioning?
Profit?
Packaging?

In an international context, would these be different?

Product Issues

core/formal/augmented product
standardise or adapt
product life cycles
branding decisions

In an international marketplace the requirements may all

change..WHY?
Promotion Issues

cultural considerations
legal considerations
media considerations
method availability
standardise or adapt
agency issues

Why would these need to be considered?

Price Issues
Standardise or adapt (grey imports)

Pricing methods
cost based
demand based
competition based

Pricing strategies for new products

skimming
Penetration

Currency of quotation

Remember that price is the only P that generates revenue.

Distribution Issues

Supply chain management

Buyer requirements
Channel availability
Physical distribution
Documentation
Financing

These issues may be far more complex in the international

market.