ch 1 Ibm 414 international marketing foley

International marketing and domestic
marketing share
common components:
the 4 P’s of
Marketing:
Product: Does product meet needs of
customers?
• Price: What is the price of my product and
what are my competitors charging?
• Promotion: Do people know about my
product?
• Place: Is the product properly distributed
so my customers can purchase it?
International Marketing
marketing across national
borders but addressing similar issues as in domestic marketing,including customer identification, product development, product distribution, promotion, and pricing.
The objectives of International Marketing include
-Identifying and understanding
-global consumer needs
-Satisfying customer needs
-Being better than the competition
– Coordinating marketing activities
Identifying and Understanding Global
Consumer Needs
Research.
Analyze analyze market segments across
countries to be able to position their
products appropriately
Satisfying Customer Needs
-distribution is needed
to make sufficient quantities of goods and
services available at the point of sale (POS)
-adapt its products and the various elements of
the marketing mix
Being Better than the Competition
(Differentiation &
a Unique Selling Proposition)
-Firms must contend with competitors in their
home markets and competitors in the
foreign markets in which they operate.
Multinational companies have a more extensive
set of experiences to draw upon and generally
have access to additional resources
Controllable elements
4p’s
Uncontrollable elements
legal environment and the different kinds of risk associated with international marketing (political, legal, economic, and financial).
principle rationale of MNCs
synergy is created within international operations through the implementation of a division of labor and a transfer of knowledge.
international
marketing
manager has a dual
responsibility:
• Foreign Marketing – marketing
within foreign countries.
• Global Marketing – coordinating
marketing in multiple markets in
the face of global competition.
example of Risks and Differences of
Foreign Markets
Ben & Jerry’s and Mary kay show
consumer preferences, and pricing when doing
business in Russia.
trend The role of emerging (and emerged)
economies as both consumer and competitor has increased
Provides enormous opportunities to companies
seeking to expand Also generates new global competitors
The growing middle classes in China and India
have increased the number of consumers for
international firms and their domestic
competitors.
trend: Continued growth and
strength of the service sector
fastest-growing
segment of internationalization, representing
about 20 percent of world trade.
The United States has a trade surplus in
services, but a trade deficit in products.
This is especially true for services like
transportation and healthcare
trend : Franchising offers growth
opportunities
Many countries, such as Brazil, are
opening up their markets to foreign
franchises, and evidence suggests that
foreign franchises have tremendous
growth opportunities
trend:Ongoing change and
increasing risk are the new
normal
communication becomes cheaper, product development
cycles shorten, and competitors become more
numerous. These changes result in a greater need for resources, speed, and flexibility puts even greater pressure
on the international marketing manager to understand
these changes
trend: Increasing economic integration
and cooperation between countries
includes opportunity and risk
It means lower trade barriers and low costs of doing
business. It can also mean new competitors
It also means an increase in economic agreements like
NAFTA, ASEAN, and MERCOSUR Marketing managers must look to current events for news, like what is happening with the EU, that could impact the firm negatively or positively
trend: The global financial crisis of 2008-2009
has undermined any growing support
for globalization.
Renewed concerns about globalization
Workers question open borders while
facing job losses and government deficits
Businesses need the benefits of
globalization, but they must defend their
actions to workers and politicians.
Additional trends
-Small can be big
-New
-communication technologies and social media are
important influences
-Product life cycles are shortening
-Import and export regulations increasing
global environment
Business environment where business transactions take place within different country environments.
Includes
Technological
Competitive
Political-legal
Cultural
Economic
point of sale
location at which a transaction occurs between a buyer and seller
marketing management
the planning and coordinating of activities to achieve a successfully integrated program
marketing
collection of activities undertaken by a firm to assess and satisfy customer needs wants and desires
why market internationally
Taking advantage of the potential of world markets
Diversifying geographically
Using experience-curve economies and economies of scale
Extending the life cycle of a product
Overseas markets are a source of new products and ideas
Foreign companies may provide capital and/or market access
Globalization
Potential
Market Drivers
Competitive Drivers
Technological Drivers
Government Drivers
Cost Drivers
Concerns of international marketing
-Developing new products
-Developing relationship with suppliers distributors
and customers
-fewer but stronger global competitors
-Growing price competition
Greater regional and government regulation
-Developing a marketing culture
This dual responsibility creates concern over issues in
BOTH domestic and international markets
global and foreign marketing