Master di primo livello:

“Marketing Management

per l’Impresa Internazionale VIII”

Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 1

Module 1 - Defining the issue

of International Marketing

Prof. Mauro Cavallone

Index

• What International Marketing is: 3 definitions

• Opportunities and challenges

Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 2

• Opportunities and challenges

• The international marketplace

1) International Marketing is the way of

planning and leading transactions between

different nations in order to create exchanges

that satisfy the objective of individuals and

What International Marketing is: definition 1

Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 3

organisations.

Keyword: needs

2) International Marketing is interesting

because it combines the way of doing

business with many other disciplines, such as

economics, anthropology, cultural studies,

What International Marketing is: definition 2

Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 4

economics, anthropology, cultural studies,

geography, history, languages, jurisprudence,

statistics and demographics.

3) International Marketing is about understanding

domestic and international business: it’s a tool

used to obtain improvement in one’s present

position.

What International Marketing is: definition 3

Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 5

Keywords: grow in • numbers• profits• margins• etc.

by customer satisfaction.

Macroenvironmental factors, different constraints

and conflicts resulting from different laws, cultures

and societies are variables that the international

marketer has to face in his activity;

The basic principles of marketing still apply, but their

Opportunities and challenges

Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 6

The basic principles of marketing still apply, but their

applications, complexity and intensity can be

substantially different.

Eg. Ireland - Bulgaria

different ways to consider lobbies

Opportunities and challenges

Some of the international environment elements to consider:

• social and ethic responsibility• environment and pollution concerns• working conditions• global competition• global investment

Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 7

• global investment• corruption• technology• exchange rates• information diffusion• import/export barriers• etc.

In conclusion, in the field of International

Marketing it’s possible to observe the role

of marketing as a key agent of societal

Opportunities and challenges

Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 8

change and as a key instrument for the

development of socially responsive

business strategy.

The international marketer is part of the exchange, he

recognizes the changing nature of transactions

constantly adjusting the target subject to shifts in the

business environment.

Keyword: customization

Opportunities and challenges

Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 9

Keyword: customization

Some examples:

• Left drive - UK, NZ, AUS, JAP• Taste - Cherry Coke• Name - Fettuccini Alfredo (in Italian FETTUCCINE)• Pizza with Emmenthal in Switzerland

• How will my idea, good or service fit into the international

market?

• Should I obtain my supplies domestically or from

abroad?

• Do I need to adjust my marketing strategy?

Some questions regarding the issue

Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 10

• Do I need to adjust my marketing strategy?

• What threats from global competition should I expect?

• How can I transform present threats into future

opportunities?

• What are my strategic global alternatives?

International activities can be crucial to a firm’s

survival and growth: by transferring knowledge

around countries it’s possible to build and maintain

competitive positioning.

What are companies looking for?

Opportunities and challenges

Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 11

What are companies looking for?

• cost reduction

• more sales

• fight competitors

• green-field strategy

Firms that heavily depend on long

production runs can expand their activities

far beyond their domestic markets and

Opportunities and challenges

Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 12

far beyond their domestic markets and

benefit from reaching many more

customers.

• Market saturation can be avoided by lengthening or

rejuvenating product life cycles in other countries.

Opportunities and challenges

1680

Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 13

1895

Opportunities and challenges

Two Blades

1971

Three Blades

1998

Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 14

Four Blades

2003

Five Blades

2007

Opportunities and challenges

Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 15

• Plants can be shifted from one country to another finding new suppliers

Opportunities and challenges

Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 16

Toyota RAV4 old model DR- 5 - the first italian SUV

Opportunities and challenges

Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 17

Wuxi Little SwanXQG70-968EL

IndesitWIDL 126 S

Global Trade from the customer point of view:

Opportunities and challenges

+

• great varieties of products• lower prices• improve lifestyle and comfort

Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 18

-

• social gap increases• wages and purchasing power lower• decrease of national production capability

Exploration is the first step of

internationalization: what is needed is an

awareness of global developments, an

Opportunities and challenges

Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 19

understanding of their meaning, and a

development of capabilities to adjust to change.

The western baby

• In Switzerland she will live to the age of 82, while he will live

to the age of 75;

• In Netherlands there’s a 1% risk he will not see his fifth

birthday and a 9% risk of not seeing his sixtieth;

• In the U.S. her family’s income will likely exceed $21,541 per

Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 20

• In the U.S. her family’s income will likely exceed $21,541 per

annum;

• In Canada he will share 1 square mile with eight other

people;

• In Italy she will be living in a city, as 90% of the population

does.

The baby of the less developed world

• In Sierra Leone she will live to the age of 39, while he will

live to the age of 36;

• In Niger he will run a 9% risk of not seeing his fifth

birthday and a 36% risk of not seeing his fortieth;

• In Uganda her family’s annual income is likely to be

Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 21

about $602;

• In China he will share 1 square mile with 327 other

people;

• In India she will be living in the rural area, as 72% of the

population does.

Two differences:

1. To export (to sell abroad)

The focus of our course

Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 22

2. To internationalize the company

• Overcapacity

• Search of money

To export (to sell abroad)

Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 23

• Search of market opportunities

• Focus on selling

• High marketing-orientation

• Specific of goods and services

• High customisation

To internationalise the company

Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 24

• Understanding reasons of success

• Import the knowledge of success in the home

country in order to strengthen internal competition

• Focus on deeply understanding the market

Acknowledgments

• “International Marketing” by Michael R. Czinkota, Ilkka A.

Ronkainen; Thompson South-Western edition 2006.

• “Marketing Management” by Philip Kotler.

• “Marketing Internazionale” by Giorgio Pellicelli.

Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 25

• “Competitive Advantage” by Michael Porter, New York, Free

Press 1987.

• “Marketing Globale” by Enrico Valdani 2000.

• “Consumer Behavior” by William Wilke; John Wiley & Sons

Inc. Third edition.