Aspects of International Marketing

Chapter 1 International Marketing

Dr. Amr Kheir-El-Din

International Marketing
International Marketing is :

Satisfying customer needs across national borders

Why Go International?
1. Market Saturation Ex: cigarettes, entertainment, fast food, consumer electronics. 2. Foreign Competition Ex: cars, copying machines, photographic, construction 3. Emergence of new markets Ex: China, India, Eastern Europe, NICs

Why Go International?
4. Globalization of Markets 5. Opportunities via Foreign Aid programs 6. Other reasons a. Economies of scale b. Labor cost c. Tax incentives d. The desire to test products overseas e. The desire to have access to technological advances

Stages of International Marketing Expansion

1. 2. 3. 4. 5. 6.

Domestic Regional Exporter Exporter International International to Global Global

Framework of International Marketing

Political/Legal Economic Environment

Product

Price

International Customers

Promotion
Socio Cultural Environment

Place
Technological Environment

MNE
Definition An MNE is a firm that owns, manages, and controls income generating assets in more than one country. Number of nations In more than 6 countries.

Ratio of Foreign (F) to total (T) operations

At least 25% of its sales, assets, and profits are generated outside the home base.

Management Attitude
Ethnocentric = Are home country oriented

Polycentric = Are host country oriented

Geocentric = Are world-wide oriented

MNE: Characteristics
Economic Power. Oligopolistic Market structure. Large percentage of sales, assets, and profits are generated outside the home base. The product of developed nations.