V Marketing can be defined as a series of

activities leading to an exchange transaction

between a seller & a buyer at a profit.
V Marketing activities centre on an
organisationǯs efforts to satisfy customer
wants & needs with products & services that
offer competitive value.
V `he concept of Marketing has changed dramatically
during the past three decades.
For example focus from product to better product.
6 `he New concept of Marketing & the four Ps (1960). (`he
marketing emphasis was shifted from product to
Customer.
6 `he Strategic concept of Marketing: By the
1990s , the concept of marketing was outdated & the
focus was given on borderless trading as well as
external environment or stakeholders.
 Marketing

Customer Engineeri Manfactur Customer

needs & R&D value
ng ing
wants
V `he 1st identifies the purpose & task of
marketing, the second competitive reality of
marketing & the third the principal means for
achieving the first two.
V Customer Value & Value Equation
V Competitive or differential advantage
V focus
V `he task of marketing is to create customer
value that is greater than the value created by
competitors.
V `



  
of marketing is
competitive advantage. A competitive
advantage is a total offer, vis-à-vis relevant
competition, that is more attractive to
customers.
V `
 

   
is focus or
concentration of attention. Focus is required to
succeed in the task of creating customer value at
a competitive advantage. For example emerging
period of electronic data processing, IBM
company was focused on customer needs &
wants than any competitors.
`he IBM existed from the market in 1990 &
competitors took over the market. Dell, Compaq
etc.
V Domestic market refers to a market where
goods & services are exchanged within the
boundaries. `he economic activities happen
within a one market boarder.
V Marketing is a process of focusing the
resources & objectives of an organisation on
environmental opportunities & needs.
V Marketing is a process of focusing the resources &
objectives of an organisation on environmental
opportunities & needs.
V Ina nutshell, it means a successful global marketer
must have the ability to Dzto think globally & act
locallydz For example
V Coca cola
V IBM
V Compaq
V Sony
V Rebook
V Adidas
V ^lobal market means the product which is
positioning the product in a global level. `he
Best example-Mcdonald, KPC, Adidas,
Reebok, Nike, Coca-cola, Louise Philip,
Arrow, Allen soly
V `he US today represents roughly 25 percent
of total world market for all products &
services. `he slogan of US companies Dzgo
globally Dz which means that 75 percent of
world market is outside of their home
country.
V `he world view of a companyǯs personal can
be described as ethnocentric, polycentric,
regiocentric & geocentric.
r

 






Orientation of Management & Companies

Polycentric
Ethnocentric Each host country
Home country is is unique:
superior;
See differences in
see similarities in
foreign countries foreign countries

^eocentric
Regiocentric World viewǯ
Sees similarities & differences Sees similarities
In a world region; & differences in
Is ethnocentric or polycentric in home & host
its view of the rest of the world countries
V Polycentric world view predominates at a
multinational company where the marketing
mix is adapted by the country manager
operating autonomously.
   
 

  

[`echnology Culture
[Culture Market Differences
[Market needs Costs
[Cost National Controls
[Free markets Nationalism
[Economic integration War
[Peace Management Myopia
[Management vision Organisation History
[Strategic intent Domestic Focus
[^lobal strategy & action
V Political factors
V Social factors
V Economic aspects
V Exchange of Service
V Market size
V Business opportunities
V Flow of business activities
Physical Environment
Climate, topography, resources
Economic Environment
Population, industry structure, stage of development
Lack of wholesalers in developing countries
Political-Legal Environment

Advertising restrictions

`ariffs/non-tariff barriers

Patents/`rademark protection
Cultural Environment
Language
Attitudes
`ime Concepts
Space Concepts
How business is conducted
Friendship
What influences the decision to enter?
Stability of government
Stability of currency
`ariffs/non-tariff barriers
Crime/corruption
Protection of property rights/technology
How to enter:

Exporting
Export excess capacity
Simplest, most direct

Licensing/joint venture
Firm in foreign market produces, distributes
How to enter (cont.):

Subsidiaries
Partly own firm in foreign market

Multinational
As foreign investments grow, firm loses home country identity

Key is volume growth

Which markets?
Current market potential
Future market potential
ǥversus risk
Russia
Marketing Plan
Standardize versus adapt for each market
Marketing Organization

Based on entry strategy

Requirement for in-country participation

Look at the international marketing environment
Decide whether to enter
Decide which markets to enter
Decide how to enter
Plan marketing programs
Plan marketing organization

ǥ.the real issue here is what role national boundaries play in a

firmǯs strategic planning process.


  

 




 
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V Due to its impact, V 
 

 
international marketing encompasses a firmǯs efforts in
concepts should be its home country.
understood by all types of V 

 


 
involves marketing goods and
firms. services outside the home
V ^lobal marketing allows firms country.
to seek new markets for V ^


  is an
expansion. advanced form of international
V Countries trade items in which marketing in which a firm
they have a comparative addresses global customers,
advantage. markets, and competition.
V It allows each country to
maximize their strengths and
offset its weaknesses.
V Countries can optimize their
comparative advantages.
V It can extend the product life
cycle, dispose of discontinued
items, and allow for
innovations.
V 
  : It restricts efforts to
home market.
V $%    : It expands sales
beyond its home borders.
V 

 
 : It modifies
products for foreign markets or
introduces new items.
V  
 
 : While head-
quartered in home nation. 50% of its
sales/profits are from multiple nations.
V ^
 : Its domestic sales are
relatively low, so it relies more on
foreign transactions.


 
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V While 70% of U.S. foreign business
revenues are generated by large firms,
hundreds of thousands of small firms are
also involved.
V Worldǯs leading export countries include
United States, ^ermany, Japan, ^reat
Britain, and France.
V Capital goods are leading U.S. exports.
V `he Value of U.S. imports exceeds its
exports, creating a 


  .
V `he U.S. has a large service trade surplus,
the greatest of any nation.
 `
  

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Production
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and measurement
Standards of behavior
systems Advances
Language
Lifestyles ^oals



 
   

 




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   ationalism
Standard of living ^DP ^overnment stability
Stage of economic Trade restrictions
development Trade agreements/
Stability of currency economic communities
A culture is a group of people sharing a
distinctive heritage.
Ȉ Inadequate information about foreign culture is a
common cause of marketing errors.
Ȉ Developing countries often have limited census data
information, poor communication tools, and limited
technological access.
Ȉ Language barriers often inhibit access to traditions
and customs that are key to customer desires.
 V A 
 ,
 
 
indicates
its present and potential capacity for
consuming goods and services.
V A 

   refers to the average
quality of goods and services that are owned
and consumed in a country.
V `he ^ 
 + (^+) is the
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- 
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 total value of goods and services produced in

 


 a country in a year.
  
 V ^+ is the most frequently used measure of

 
  a nationǯs wealth because it is regularly

 # published and easy to calculate and compare
with other nations.
 
 
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High literacy rate
Modern technology High
per-capita ^DP



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Rising education Improving
technology Low per-capita
^DP

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Low literacy
Limited technology
Extremely low per-capita ^DP
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V $%  & A firm reaches international markets by
selling products made in its home country directly
through its own sales force or indirectly via foreign
merchants or agents.
V Î .

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 )

0& A firm agrees to
combine aspects of manufacturing or marketing
efforts with a company in a foreign country to share
expertise, costs, or contacts. It is critical to select
appropriate partners.
V 
r
 &A firm has full control and owns
production, marketing, and other facilities in a
foreign country without any partners.
V It encompasses the selection and
use of resellers, and the physical
movement of products.
V Distribution in each international
market requires planning.
V ^overnment restrictions, costs,
transportation, poor road
conditions, and other limitations
may alter distribution modes.
V Inventory, storage, and reordering
may be affected by warehouse
availability.
V It considers whether prices should
be standardized, the level at which
prices are set, the currency in
which prices are quoted, and terms
of sale.
V  is involved if a firm sells a
product in a foreign country at a
price lower than that prevailing in
its home market, below the cost of
production, or both. Duties may be
levied on Dzdumpeddz products.