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International Marketing:

Introduction

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Overview

Marketing: A Universal Discipline

The Three Principles of Marketing

International Marketing:What It Is & What It Is

Not

Importance of International Marketing

Management Orientation & International

Marketing Driving and estraining !orces Affecting

International Integration & International

Marketing

"#mmar 

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Learning Objectives

% Understand how the world economy developed over

the past decades

% Know the impact of globalization on the marketing

discipline

% Learn about the interdependencies between

management orientation & marketing performance

% Understand the factors supporting or inhibitinginternational marketing activities

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Marketing: A UniversalDiscipline

% Marketing (1! the process of focusing the resources &ob"ectives of an organization on environmentalopportunities & needs

% Marketing (#! a set of concepts$ tools$ theories$ practices$ procedures$ & e%periences

% lthough marketing is a universal discipline$marketing practice varies from country to country

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 The Marketing Concept (1)

% 'oncept has chanced dramatically

% 1)*+s! ,ocus on products

% 1-*+s!  ,ocus on customer orientation

  .evelopment of marketing mi%! product$ price$ place$

 promotion (/0+s 

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 The Marketing Concept ()

% 1*+s!

  ,ocus on customer in the conte%t of the broader e%ternal

environment

% 'ompetition$ government policy & regulation

  ,ocus on stakeholder value

% employees$ customers$ shareholders$ society

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 The Marketing Concept (!)

% oday!

  wo key tasks of marketing% ,ocus on customer & his2her environment

% 'reate value for consumers & stakeholder  

  3hift towards 

% ,ocus on managing strategic partnerships

% 0ositioning of firm in value chain to optimize valuecreation

  0rofit as a measure of success$ not an end in itself 

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 The Three "rinciples o#Marketing

CUSTOMER VALUE

DIFFERENTIATION FOCUS

l # k i

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$e% &le'ents o# Marketing

1 C*sto'er +al*e% 4oal! create customer value that is greater than the

value created by competitors

% 3trategy!  5%pand or improve product and2 or service benefits

  6educe the price

  'ombine these two elements

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&le'ents o# Marketing

C*sto'er +al*e

7 8 7alue

9 8 0erceived 9enefits : 0erceived 'osts

0 8 0rice

V = ! "

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e% e'en s o ar e ng

Di,erentiation% 4oal! create competitive advantage through

differentiation

% dvantage can e%ist in any element of a company+soffer 

% ;ne way to penetrate a new national market is to

offer a superior product at a lower price<

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e% e'en s o ar e ng

! -oc*s% 4oal! a concentration of attention & resources

% 6e=uirement to create customer value at a

competitive advantage% viable way for small & medium sized companies

to achieve dominant position in world market

% clear focus on customer needs & wants

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.nternational Marketing

% Marketing discipline is universal but markets &customers are =uite different

% > domains of knowledge

  'ross?'ultural Knowledge

  'ountry2 6egional Knowledge

  'ross?9order ransactions Knowledge

%  @eed for ABnternational LocalizationC! d"ustment of

Bnternational marketing strategies to localre=uirements

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Product

Design

Canon/photocopier/McDonalds/Toyota/Ford

Brand Name Marlboro/Coke/Pepsi/Mercedes/Caterpillar

Product

Positioning

Colgate toothpaste/Unilever abric sotener

Packaging !illette ra"ors

#dvertising

$trategy

Coca%cola/British #ir&ays/Benetton

$ales

Promotion

'BM

Distribution Benetton/United Distillers

Customer

$ervice

#merican ()press/*ert"

()amples o 'nternational Marketing

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.'portance o# .nternationalMarketing

% Bnternational arena is of great importance to

companies ma%imizing growth potential

%D)E of market potential is outside the U3

% /E of market potential for 4erman companies is

outside of 4ermany

% large number of industries will be dominated by a

handful of Bnternational companies

M t t t

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Manage'ent r entat onan/ .nternational Marketing

(1)% .ifferent Management ;rientations in the

Bnternational rena : 5064 ,ramework 

Regiocentric

Et#nocentric

$eocentric

"ol%centric

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Manage'ent Orientation 0.nternational Marketing ()

% 5thnocentric ;rientation!

  'haracteristic of domestic & international companies

  ;pportunities outside the home market are pursued by

e%tending various elements of the marketing mi%

% 0olycentric ;rientation

  'haracteristic of multinational companies  Marketing mi% is adapted by autonomous country

managers

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Manage'ent Orientation 0

.nternational Marketing (!)% 6egiocentric or 4eocentric ;rientation!

  'haracteristic of Bnternational & transnational companies

  Marketing opportunities are pursued by both e%tension &

adaptation strategies in global markets

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Driving -orces A,ecting.nternational Marketing

  echnology

  6egional 5conomic greements

  Market @eeds & Fants

  ransportation & 'ommunication Bmprovements

  0roduct .evelopment 'osts

  Guality

  Forld 5conomic rends  Leverage

  he Bnternational2 ransnational 'orporation

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estraining -orces A,ecting.nternational Marketing

  Management Myopia & ;rganizational 'ulture

   @ational 'ontrols & 9arriers

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2*''ar%

International marketing is the process of

foc#sing reso#rces on International marketing

opport#nities

'oal( to create c#stomer val#e & competitive

advantage )$ maintaining foc#s

Three classifications of management

orientation: ethnocentric( pol$centric(regiocentric( geocentric

International marketing importance is shaped )$

a variet$ of driving & restraining forces