AN INTRODUCTION TO INTERNATIONAL MARKETING

Session 1
Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

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WHAT IS MARKETING?

Marketing Involves:
Focusing on the needs and wants of customers Identifying the best method of satisfying those needs and wants Orienting the company towards the process of providing that satisfaction Meeting organisational objectives
Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

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WHAT IS INTERNATIONAL MARKETING?

Different Levels of International Marketing

Export marketing International marketing Global marketing

Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

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ENVIRONMENTAL INFLUENCES ON INTERNATIONAL MARKETING

Socio/Cultural Language Religion Aesthetics Values and attributes Social organisation Material culture Legal Local domestic laws International law Home domestic law Political Operational restrictions Discriminatory restrictions Physical actions

Economic Developed economies Emerging economies Less developed economies Currency movements

Environmental Influences on International Marketing

Technological Satellite Communications ISDN Internet WWW The Electronic Superhighway

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Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

SOCIAL / CULTURAL INFLUENCES

Coca-Cola:
2 Litre bottles too big for Spanish fridges Pronunciation in China Kooke Koula
A thirsty mouthful of candle wax

Pepsi-Cola:
Come Alive with Pepsi in German translated to:
Come alive out of the Grave

McDonalds:
The white face of Ronald McDonald
A white face is seen as a death mask in Japan
Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

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SOCIAL INFLUENCES

Emergence of a global village in which there ..will be a nationless state marked by the convergence of consumer needs that transcends political and cultural boundaries" Omahe; 2005
80% world population currently live in developing countries By 2025, 85% population will live in emerging markets 2 out of every 5 people currently live in China and India In the next 50 years, the African population will treble

Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

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WORLDS MEGA CITIES

By 2010, 50% of people will live in urban areas By 2015, the top 5 largest cities will be:

Source: United Nations Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

Tokyo - Japan Mumbai - India Lagos - Nigeria Dhaka - Bangladesh San Paulo - Brazil

26.4 million 26.1 million 23.2 million 21.1 million 20.4 million

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ENVIRONMENTAL INFLUENCES ON INTERNATIONAL MARKETING

Legal Local domestic laws International law Home domestic law

Economic Developed economies Emerging economies Less developed economies Currency movements

Environmental Influences on International Marketing

Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

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THE LEGAL ENVIRONMENT

3 dimensions in the legal environment:

local domestic law:
different in every country

international law:
issues include piracy, treaties, patents etc

domestic laws in the home country:

export controls, plus duty to abide by national laws in all activities
Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

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ECONOMIC ENVIRONMENT

Developed triad Economies

account for 80% of world trade

Emerging Economies
huge and growing consumer demand government directed economic reforms dual economy

Less Developed Countries (LDCs)

low GDP, limited manufacturing base infrastructure weaknesses heavy reliance on one product/one trading partner
Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

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WORKING TIME REQUIRED TO BUY A BIG MAC

Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

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ENVIRONMENTAL INFLUENCES ON INTERNATIONAL MARKETING

Political Operational restrictions Discriminatory restrictions Physical actions

Environmental Influences on International Marketing

Technological Satellite Communications ISDN Internet WWW The Electronic Superhighway

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Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

POLITICAL ENVIRONMENT

A risk due to a sudden or gradual change in a local political environment that is disadvantageous or counter productive to foreign firms and markets

Government actions which may constitute potential risk for the firm:
Operational restrictions eg. exchange controls or employment policies Discriminatory restrictions eg. special taxes and tariffs Physical actions eg nationalisation, riots and war
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Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

TECHNOLOGICAL CONSIDERATIONS

Impact of technological advances:

Ability to gather data on markets Management control capabilities Operational practicalities of electronic communication

Global access to the World Wide Web

Est. 1.2 billion users in 2007 17% of global population

Importance of English language for web users

Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

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GLOBAL COMMUNICATIONS.....

Globally e-business;
US $10 trillion (nearly all B2B)

HOWEVER.....
Some countries have been bypassed by the global electronic highway Only 10% have direct access to a pc Only 7% have direct internet access
Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

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DIVERSITY OF STAKHOLDER INTEREST

Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

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THE CHALLENGES OF THE INTERNATIONAL MARKETING ENVIRONMENT #1

Culture
Often diverse and multicultural

Markets
Widespread and sometimes fragmented

Data
Difficult to obtain and sometimes expensive

Politics
Regimes vary in stability, political risk becomes an important variable

Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

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THE CHALLENGES OF THE INTERNATIONAL MARKETING ENVIRONMENT #2

Governments
Can be a strong influence in regulating importers and foreign business ventures

Economies
Varying levels of development

Finance
Many differing finance systems and regulatory bodies
Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

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THE CHALLENGES OF THE INTERNATIONAL MARKETING ENVIRONMENT #3

Stakeholders
Commercial, home country and host country

Business
Diverse rules, culturally influenced

Control
Difficult to control and co-ordinate across markets
Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

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INTERNATIONAL MARKETING STRATEGIES Success and Failure

Failure arises from:

inability to find right market niche unwilling to adapt products products not perceived as sufficiently unique vacillating commitment assigning the wrong people picking the wrong partners inability to manage local stakeholders mutual distrust/lack of respect between HQ & management inability to leverage ideas to all countries
Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

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THE INTERNATIONAL MARKETING STRATEGY PROCESS

Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

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