International Marketing: An Introduction
Transcript of International Marketing: An Introduction
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International MarketingAn Introduction
By:Arciaga, Renier JohnFuentes, Rodney JudeMahidlawon, Jessica KimMalingin, LovelyTan, Brigette
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What is International Marketing??The performance of business
activities that direct the flow of company’s goods and services to consumers or users in more than one nation for a profit (Cateord and Graham, 2004).
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• Marketing activities take place in more than one country.
• Complexity and diversity can be found in International Marketing Operations
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Deals with controllable and uncontrollable elements.
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Domestic vs. International Marketing
Domestic Smaller arena Specified needs Low stakes/risks One familiar market Deals with one
uncontrollable elements
International Bigger arena More Complex needs Higher stakes/risks Diverse and
unfamiliar markets Deals with two
uncontrollable elements
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wsd
Price
Research
Distribution
Promotion
Product
Domestic Environment
Economic Climate
Political and Legal Forces
Competitive
Structure
Foreign Environment
Economic Forces
Political/Legal Forces
Competitive Forces
Cultural Forces
Level of Technolog
y
Geographyand
Infrastructure
Structure of Distribution
Uncontrollable
Controllable
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Differences Between Domestic and International MarketingConsumerPurchasing PowerProduct and PackagingCurrencyPayment TermsPhysical DistributionLanguageCommunication
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Phases of International Marketing
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1. Domestic Exporter- Operates exclusively within a single country
2. Regional Exporter- Operates w/in a geographically defined region
3. Exporter- Finished goods distributed outside home region
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4. International Exporter- Both finished goods and intermediate productsare exported outside home region.
5. International to Global Exporter- Runs independently and mainly self-sufficientsubsidiaries in a range of countries.
6. Global Exporter- Highly decentralized organization operating across a broad range of countries.
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Five Distinct but Overlapping Phases of Int’l. Mktg. No Direct Marketing Infrequent Foreign Marketing Regular Foreign Marketing International Marketing Global Marketing
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Reasons Why Companies Venture into International Marketing
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Internal Reasons To utilize the firm’s excess capacity To take advantage of higher purchasing
power in overseas markets To take advantage of the government’s
export promotion drive To find other markets as the firm’s
product experiences a decline in sales in the home market
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Internal Reasons To find other markets as stiff
competition in the domestic or home market has reduced the firm’s sales
To diversify the firm’s power base in different geographic locations
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External Reasons To take advantage of tax incentives and
promotional packages offered by certain countries to foreign investors
To take advantage of low labor and raw material costs in foreign countries
To take advantage of access to new technologies in foreign countries
To take advantage of the government’s import promotion drive
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Factors Influencing International Marketing
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Controllable Factors Product Price Promotion Place Physical distribution Presentation
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Uncontrollable Factors for Domestic Competition Political Forces Economic Situation
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Uncontrollable Factors For International Marketing Cultural forces Distribution Geography and infrastructure Level of technology Economic forces Political forces competition
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Entry Modes in International Marketing
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There are different modes by which a company can enter foreign markets. These are franchising, licensing, manufacturing, management contracts and exporting
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Franchising This method of distributing products and
services is ideal for people who want to expand their business but do not want to manage it themselves.
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Licensing Entails only a part of a whole franchising
aspect. A licensee may only get the patent,
trademark or the manufacturing know-how of the company
Licensee has to pay royalties due the parent company
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Manufacturing Lumped into several categories, certain
companies are mostly concerned with the manufacture of products. They serve as satellites or extensions
It may form into following:Assembly plantContract ManufacturingJoint VentureWholly owned plant
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Management Contracts Production is irrelevant to the mother
companies Merely supply management know-how
to a foreign company that is willing to supply the capital to them.
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Exporting Refers to the marketing of goods and
services produced in one country into another country.
Allows a company to enter foreign markets with a minimum change in product lines, company organizations, investment or company mission.
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Thank You For Listening