International Marketing

Look at the international marketing environment Decide whether to enter Decide which markets to enter Decide how to enter Plan marketing programs Plan marketing organization ….the real issue here is what role national boundaries play in a firm’s strategic planning process.

International Marketing
Physical Environment
Climate, topography, resources
US has big products…

International Marketing
Political-Legal Environment
• Advertising restrictions • Tariffs/non-tariff barriers The political stability of the nation. Is it a democracy, communist, or dictatorial regime? Monetary regulations. Will the seller be paid in a currency that they value or will payments only be accepted in the host nation currency?

• •

International Marketing
Cultural Environment
• Language. Will language be a barrier to communication for you? Does your host nation speak your national language? What is the meaning of your brand name in your host country’s language? Customs: what customs do you have to be aware of within the country? This is important. You need to make sure you do not offend while communicating your message. Social factors: What are the role of women and family within society? Religion: How does religion affect behavior? Values: what are the values and attitudes of individuals within the market?

• • •

Economical environment
• • • • • Consumer wealth and expenditure within the country. National interests and inflation rate. Are quotas imposed on your product. Are there import tariffs imposed. Does the government offer subsidies to national players that make it difficult for you to compete?

Technological
• • • • k The technological infrastructure of the market. Do all homes have access to energy (electricity) Is there an Internet infrastructure. Does this infrastructure support broadband or dial up? Will your systems easily integrate with your host countrys?

International Marketing
What influences the decision to enter?
Stability of government Stability of currency Tariffs/non-tariff barriers Crime/corruption Protection of property rights/technology

International Marketing
How to enter:
Exporting
Export excess capacity Simplest, most direct

Licensing/joint venture
Firm in foreign market produces, distributes

International Marketing
How to enter (cont.):
Subsidiaries
Partly own firm in foreign market

Multinational
As foreign investments grow, firm loses home country identity

Key is volume growth

International Marketing
Which markets?
Current market potential Future market potential …versus risk
Russia….?

Marketing Plan
Standardize versus adapt for each market

International Marketing
Marketing Organization
Based on entry strategy Requirement for in-country participation

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