International Marketing

VTHN
Email: ngocvth@uel.edu.vn
 Chapter 1: An Overview
CONTENT

1. An overview of IM
2. The differences between domestic marketing & IM
3. The Orientation of IM
4. IM process
1.1 The concept of IM

International marketing focuses on the need to create, communicate

and deliver value internationally (Czinkota and Ronkainen, 2012).

International marketing is the performance of business activities

designed to plan, price, promote, and direct the flow of a company’s
goods and services to consumers or users in more than one nation for a
profit. (Philip R. Cateora, 2015)
 Concepts
“Foreign and domestic marketing are the same in that the purpose
is to create and manage profitable exchange relationships between
an organisation and its markets.

This is done by satisfying the needs and wants of a particular

market more efficiently than competitors.

Essentially the same marketing principles, concepts and

techniques are used internationally as are at home”

(Toyne & Walters, 1989)

 1.2 Reasons for entering
international markets
Domestic market International market Other
- small, fragmented, saturated - large market size - suppliers follow their
- slow growth - market expansion customers internationally
- competitive pressure - investment opportunities - extending PLC
- excess capacity - benefits of
- compete successfully internationalization
- policies to promote foreign - search for resources
markets
 GROWTH
RATE
SCALE PRODUCT
EFFECTS UNIQUENESS

INTERNATIONAL
MARKETING
PROFIT MARKET OPPORTUNITIES

DISTRIBUTED REDUCE R&D

RISK COSTS
ACCESS TO
INPUT SOURCES
Requitements for implementing IM
Must maintain the market share and its position
01
within the domestic market

02 Build global awareness

- cultural immersion
- Knowledge of different cultures, histories, global market
potential & economy, social and political trends

03 IM orientation
 IM
task
 Marketing Decision Factors

Controllable elements Uncontrollable elements

- Marketing mix - Domestic environment
- Firm characteristics (Political/legal forces, Economic
climate, Competitive structure)
- Research
- Foreign environment
(7 factors)
 The Self-Reference Criterion &
Ethnocentrism
● The SRC is an unconscious reference to
one’s own cultural values, experiences, and
knowledge as a basis for decisions.

● Closely connected is ethnocentrism, that

is, the notion that people in one’s own
company, culture, or country know best
how to do things.
 Analytical Framework to avoid
errors in business decisions
● Define the business problem or goal in home-country cultural traits,
habits, or norms.
● Define the business problem or goal in foreign-country cultural
traits, habits, or norms through consultation with natives of the target
country. Make no value judgments.
● Isolate the SRC influence in the problem and examine it carefully to
see how it complicates the problem.
● Redefine the problem without the SRC influence and solve for the
optimum business goal situation.
 Stages of IM Involvement
No Direct Infrequent Regular
International Global
Foreign Foreign Foreign
Marketing Marketing
Marketing Marketing Marketing

Do not Temporary Firm has - Fully - Treat the world

actively surpluses permanent committed to IM as on market
cultivate caused by productive activities - market segments
customers variations in capacity devoted - Seek markets are defined by
outside production to the all over the income levels,
national levels or production of world and sell usage patterns, or
boundaries demand goods and products for other factors that
overseas services to be markets in frequently span
marketed in various countries and
foreign markets countries regions
 2. The differences between
domestic marketing & IM
Basis for comparison Domestic marketing International marketing
Business operation In a single country More than one country

Nature of customers Almost same Variation in customer tastes and preferences.

Area served Small Large

Government interference Less Comparatively high

Risk factor Low Very high

Capital requirement Less Huge

Use of technology Limited Sharing and use of latest technology.

Research Required but not to a very Deep research of the market is required because
high level. of less knowledge about the foreign markets.
 Comparison of Single-Country Marketing
Strategy & Global Marketing Strategy
Single-Country Marketing strategy Global Marketing Strategy

Target market strategy Global market participation

MM development MM development
- Product - Product (adaption or standardization)
- Price - Price (adaption or standardization)
- Place - Place (adaption or standardization)
- Promotion - Promotion (adaption or standardization)
Concentration of marketing activities
Coordination of marketing activities
Integration of competitive moves
 3. The Orientation of IM
(Keegan & Green 2007, adapted from Permlutter 1969)
1 2 3 4

Ethnocentric Polycentric Regiocentric Geocentric

orientation orientation orientation orientation
- do not adapt their - equal importance - economic, - to target “global
products to the to every country’s cultural or political consumers” who
needs and wants of domestic market similarities among have similar tastes
other countries - believe in regions - to borrow from
where they have uniqueness of every country what
operations every market is best
 38% of European SMEs are
now 'internationally active' i.e.
exporting products to at least
one other country according to
recent research

Binks (2015)
 4. IM process Implement &
evaluate MM

Product/service
Market & planning and
potential market development Develop
analysis Select target marketing mix
markets & entry
modes
1. From a marketing perspective consider the evidence for
and against the idea that we are moving towards a global
world.

2. Bring current international stories relating to organisations,

countries or people