CHAPTER 1

INTERNATIONAL MARKETING
International marketing is the utilization and adaptation of the best marketing
international marketing: practices for the purposes of conducting commerce in other
countries. It includes using the marketing conducting commerce with customers,
clients, partners, society at large, and the mix to meet the overall global community.
The worldwide marketplace (Thị trường trên toàn thế giới)
To be successful in the international marketplace, marketers learn about new
cultures as they adapt to changes in the environment. About different languages,
Various laws and regulations, Consumer wants for purchasing vary across and within
countries.
TYPES OF GLOBAL BUSINESSES
There are 4 types of global businesses:

 Multinational Corporations (MNCs): Businesses that conduct activities in at

least one other country that differs from the home country in which the
organization is headquartered. Exemple: The Coca-Cola Corporation
engages in commerce in more than 200 countries, with different products
and brands in many of them.
 Born-global firms: Businesses that operate in two or more different
countries from inception are born-global firms.
 Home vs. Host Country:
- Home country: The home country is the nation in which the business is located
or the country that houses the company’s main headquarters.
- Host country: A host country is a nation being targeted for expansion.
Example: Nestlé's home country is Switzerland. If the marketing team at Nestlé
decides to enter the nation of Vietnam by selling chocolate products, Vietnam
becomes the host country.
THE ESSENCE OF MARKETING
Marketing Defined
 "Discovering consumer needs and wants, creating the goods and services
that meet those needs, and then pricing, promoting and delivering those
goods and services."
The essential ingredients in marketing consists of: marketing – mix, markets, needs
and wants, and STP

 Marketing – mix: Companies seeking to successfully market items in other

countries employ all of the elements of the marketing mix, which consists of
 the major activities used to develop (or distribution), and promotion. The
four Ps of the marketing mix are product, price, place and promotion.
- Product: A good or service that satisfies consumer needs by providing value
- Price: The value of what is exchanged in return for the product
- Place: Movernent of the product from the seller to the buyer
- Promotion: Communication of product value from the buyer to the seller.
 Markets, needs and wants
- Markets: A market consists of people with wants and needs, money to spend,
plus the willingness and ability to spend money on those wants and needs.
- Needs: Needs are the necessities of life that all humans require for their
survival and well- being. Abraham Maslow's hierarchy of needs approach
suggests that physiological needs include food, clothing, shelter, air, water, and
sex for the purposes of procreation.
- Wants: Wants are specific expressions of needs through the desire for specific
objects. For example, a person who is thirsty may wants for a carbonated drink
such as Coca-Cola to satisfy his or her needs. And A higher-priced car has a
smaller demand because fewer consumers are willing and able to pay what is
needed to buy the product.
 STP
- Market segmentation: Any given product will have different uses for certain
types of customers. For example, some people use corn for food and others use
it for decoration. So, Grouping consumers based on their needs, attitudes, and
interests.
- Target market: consists of a specific, identifiable market segment that a
company seeks to reach. Example, A company's marketing team might identify
ten market segments but choose to only target five of those segments, which is
the process of target marketing.
- Positioning: Creating a perception in a consumer’s mind about the nature of a
company and its products relative to competitors’. Most companies seek to
position products as being different from those of competitors. An emphasis on
a unique benefit or component of a product that separates an item from
competitors' products results in differentia- tion.
THE DRIVERS OF GLOBALIZATION
Countries around the word are undoubtedly more interconnected now than at any
point in history. These connections are partly derived from commerce, but are also
the result of improved methods of communication, increased travel, and greater ties
across borders. The increased interconnectedness of consumers and businesses is
globalization. Globalization is driven by a variety of forces, including
Channels of communication
  Globalization results from a variety of technological and structural changes.
 Technology has reduced the costs of communication and created greater access
to communication channels, which reduces barriers to communication across
borders.
 The decreased costs of communication allow employees within a company to
interact and work together on projects through technologies such as company
intranets and online video conferencing.
 Communications between companies and consumers have also been affected.
Lower transportation costs
 Technology has also decreased the cost of transportation, including the
movement of both people and products.
 Lower costs associated with entering new markets and moving operations to
new countries creates new marketing and business opportunities.
Immigration and emigration
 Globalization has been enhanced by changing patterns of immigration and
emigration.
 It also presents marketing opportunities. Someone who has moved into new
country may still desire products from her former home
Government Actions
 One governmental action been to reduce barriers to commerce. Lifting barriers
was designed to stimulate trade.
 Besides this has also reduced the cost of moving many business processes to
low cost or highly specialized locations.

THE FACTORS THAT CREATE INTERNATIONAL MARKETING

COMPLEXITY

Culture
 Culture exhibits a powertul influence on all aspects of international marketing
 Finding local partners to help navigate these differences should be one of first
steps when expanding operations into a new country .
 The understanding cultural differences will then be applied to international
marketing activities as market segementation , or the grouping of consumers
into identifiable targets
 Culture also strongly influences product positioning eliorts , because cultural
nuances lead consumers in different countries to view products in unique ways
 Culture plays a substantial role in the promotion of products .
Language
  The movement of products across boundaries may require translation and
adaptation of advertising, labels on products, and basic communication
between host and home country marketers
 In international settings, language presents a key barrier to success
 Language affects marketing communications, personal selling, and sales
promotions.
 Language can become a segnenting tool.
Political and legal systems
 Governmental activities, through both regulations and the actions of
governmental officials, constrain what marketers can do within a country's
borders. These directives include packaging and labeling requirements,
regulation of advertising, and may be as severe as banning certain products.
 Political and legal systems regulate international finance and, in turn, affect
international marketing activities.
 Legal systems also influence the information technology capabilities within
countries, with many countries restricting, to at least some degree, the flow of
information.
Economic systems
 The types of economic systems present in international commerce include
capitalist, communist, and mixed structures.
 In communist systems, the government oversees the means of production and
exerts nearly total control over business activities. The interplay between the
government and the economic system in communist countriest can create
additional barriers for companies seeking to enter markets.
 In contrast, a capitalist economy invites investment and entrepreneurship.
When the system allows for the ownership of private property and protection of
intellectual property, market opportunities expand at a faster rate
 The economic system affects market segmentation. At the same time, it also
plays an important role in price setting and in international finance as a whole.
Global trade, an important component of international marketing, is also
influenced by economic systems.
Infrastructure
 Marketers identify differences in infrastructure in host markets.
 Examples of the presence or lack of infrastructure include the availability of
roads, the degree of Internet access, the percentage of the population owning
cell phones, the quality of educational institu- tions, and the availability of
water, electricity, or natural gas
 A poor infrastructure can increase production and marketing costs
SUSTAINABILITY AND THE BOTTOM OF THE PYRAMID

Sustainability
 Sustainabity refers to meeting the needs of the current generation in a way that
leaves future generations with the ability to also meet their needs
 Some businesses may view sustainability efforts as representing a cost rather
than in terms of potential profit. Hopefully instead, many marketing and
management profes- sionals will begin to view sustainability not as a burden
but rather as process that can reduce costs and lead to innovations that can give
a company an advantage over competitors
 Sustainability reflects a fundamental shift in business practices and can become
a mindset that views sustainability as a potential source of profit.
Bottom of the pyramid
 Bottom-of-the-pyramid: the approximately 4 billion people globally living on
less than $2 per day
 Targeting this group can lead to more efficient processing and innovations that
can then be applied to more affluent sumers