International Marketing

Marketing - very important part of any organization. It is essentially the process of

production, promotion, pricing and distribution of products and services, with the aim of fulfilling the
needs of customers, while also attaining the objectives of the organization. There are two kinds of
marketing, i.e. domestic marketing and international marketing. Domestic marketing refers to the
marketing activities carried out by a company within its national borders. International marketing
extends to different countries across the world, i.e. the marketing activities are carried out at a global
level. The world is rapidly shrinking and the borders between countries are slowly diminishing, which
is why most companies are not only concentrating on the local market, but are also trying to cater to
customers from all over the world. This is why it is important to comprehend both domestic
marketing and international marketing.

International Marketing research process

An International Marketing Research Process is the systematic gathering, recording, and analyzing

data to provide information useful to marketing decision-making. The information must be
communicated across cultural boundaries and these research tools are then often applied in foreign
markets. General information about the country, area, and/or market is necessary to forecast future
marketing. These requirements are done by anticipating social, economic, consumer, and industry
trends within specific markets or countries. Specific market information is then used to make the
product, promotion, distribution, and price decisions and develop marketing plans. In domestic
operations, most emphasis is placed on gathering specific market information because the other data
are often available from secondary sources.

Types of Information:
1. Economic and demographic: Data on growth in the economy, inflation, business
cycle trends; profitability analysis for the division’s products, specific industry economic studies,
analyses of overseas economies, key economic indicators for the US and overseas, and population
trends (migration, aging, and immigration).
2. Cultural, sociological, and political climate: A non-economic review of conditions affecting
the division’s business. Covers ecology, safety, leisure time, and their impact on the business.
3. Market conditions: Analysis of market conditions the division faces by market segment including
international conditions.
4. Technological environment: Summary of the state of the art technology as it relates to the
division’s business. Needs to be broken down by product segment.
5. Competitive situation: Review of competitor’s sales revenues, methods of market
segmentation, products, and apparent strategies on an international scope.

Research Process:
1. Define the research problem and establish research objectives.
2. Determine the sources of information to fulfil the research objectives.
3. Consider the costs and benefits of the research.
4. Gather the relevant data from secondary or primary sources or both.
5. Analyze, interpret, and summarize the results.
6. Effectively communicate the results to decision-makers.

*Variations and/or problems in implementation occur because of differences in cultural and economic
development.*
3 functions of international marketing
● scanning international environment to identify and analyse the opportunities and threats
● building MIS (marketing information system) to monitor environmental trends
● carrying a primary research (surveys) input into the development of MKT strategies and to test
feasibility of possible MKT mix options

Framework International Marketing

New environmental factors
● Many of the domestic assumptions on which the firm and its activities were founded may not
hold true internationally
● Management needs to:
a. Learn the culture of the host country
b. Understand its political systems and level of stability
c. Comprehend the existing differences in societal structures and language
d. Understand pertinent legal issues

Process of researching foreign market potentials (3 stages)

International buyer behavior research
a. Brand preference
b. Brand attitude
c. Brand awareness studies
d. Purchase behavior studies
e. Consumer segmentation studies
International Distribution Research
a. Import/export analyses
b. Channel Performance and coverage
c. Plant/ warehouse location studies
International promotion research
a. Studies of premiums, coupons, amd deals
b. Advertising effectiveness research
c. Local media research
d. Studies pertaining to personal selling activities
- Sales force compensation
- Quota
- Territory

Survey Methods Differences

Difficulties with global marketing research
● More diverse research projects: language, religions, race…
● More unknowns: market conditions
● Data collection methods
● Longer completion time
● Higher cost
● Restrictive laws
Problems with secondary data
● Availability
● Reliability
● Comparability
Problems with primary data
 ● Sampling
● Ability to communicate opinions and attitudes
● Willingness to respond
● Multicultural research
● Language and comprehension

Research Industry
An industry is a group of businesses that make or sell similar products and services. The easiest
way to think about your industry is to think about who your competitors are.

Industry analysis
1. KEY PLAYERS
2. GROWTH
3. TRENDS
4. COMPETITORS

The goal of these assessments is to determine how to best compete with the largest corporations in
your industry and achieve your desired profits.

Importance of researching industry

Many companies and markets are developing, and market research can assist in identifying new
potential emerging markets, highlighting potentially damaging trends, and highlighting significant
product breakthroughs and research among an industry's top competitors.

Importance of conducting industry analysis

It aids a company's understanding of market dynamics. It assists them in forecasting demand and
supply, as well as financial returns from the firm. When it comes to business, industry analysis entails
evaluating the competition in the industry; the interaction of supply and demand in the industry; how
the industry compares to other emerging and competing industries; the likely future of the industry,
particularly in light of technological advances; how credit works in the industry; and the exact scope
to which external factors have an impact on the industry.

International Marketing Research – research that crosses national boundaries and involves the
respondents and researchers from various countries and cultures. It may be conducted
simultaneously in multiple countries or sequent over a period of time.

Scope of international marketing research

1. Analysis of the market size according to the age gender, income, profession and standard of
living of customers.
2. Estimating the regional or territorial demand of different markets.
3. Understanding the diverse consumer demands and consumer behavior and then translate their
behaviors into the market strategies and collecting information about the existing and
prospective customers.
4. Information needs for international market entry, which includes micro issues (for instance
product and services sales potential, market growth rate and competitive intensity) and micro
issues E.G. (political, legal and regulatory environment for each international country)
5. Analyzing the working of various channels of distribution and their role in creating market
demand of the product
6. Forecasting the profitability of different markets and marketing segments.
Research Industry , Market Characteristic and trends
Acquisition – this is an important part of the acquisition due diligence process. To get complete
picture of the market, it is important to get information on your own rather than relying on
information from the target company. Because of this many companies look for third party, objective
information about market and customer base before making a big investment in a new business.
Diversification – adding new product lines or entering a new market to reignite the growth of your
business. The aim of this strategy is to take advantage of momentum in a new market, or to
minimize the risk of your core market
Market share – how much of an industry’s total sales come from a single company. Calculating
market share is done by taking the company’s sale of the industry over the same period. This metric
is used to give general idea of how big a company is in relation to its market and other businesses. It
is the company with the largest share of the market who is market leader. the portion of a market
controlled by a particular company or product

International Economic Environment

One system all over the world which only used for the trade internationally among the developed and
developing countries is called International Economic environment. It is a sub-field of economics that
is concerned with environmental issues. Environmental economics is distinguished from ecological
economics in that it emphasizes the economy as a subsystem of the ecosystem with its focus upon
preserving natural capital. These are factors outside the company which are uncontrollable that
affects the company’s performance such as unemployment, fortuitous events, fluctuation of the
demand, inflation and so forth.

Globalization
word used to describe the growing interdependence of the world's economies, cultures, and
populations, brought about by cross-border trade in goods and services, technology, and flows of
investment, people, and information. the speed of global movements and exchanges (of people,
goods and services, capital, technologies, and cultural practices). One of the consequences of
globalization is that it encourages and expands interactions between different regions and
communities around the world.

Tariff Barriers
is a tax imposed by a government of a country or of a supranational union on imports or exports of
goods. Besides being a source of revenue for the government, import duties can also be a form of
regulation of foreign trade and policy that taxes foreign products to encourage or safeguard domestic
industry.

a. Specific tariff - levied as a fixed fee based on the type of item, such as a $1,000 tariff on a
car. A fixed fee levied on one unit of an imported good is referred to as a specific tariff. This
tariff can vary according to the type of goods imported. For example, a country could levy a
$15 tariff on each pair of shoes imported, but levy a $300 tariff on each computer imported.
b. Ad-valorem - tariff is levied based on the item's value, such as 10% of the value of the
vehicle. The phrase "ad valorem" is Latin for "according to value," and this type of tariff is
levied on a good based on a percentage of that good's value. An example of an ad valorem
tariff would be a 15% tariff levied by Japan on U.S. automobiles. The 15% is a price increase
on the value of the automobile, so a $10,000 vehicle now costs $11,500 to Japanese
 consumers. This price increase protects domestic producers from being undercut but also
keeps prices artificially high for Japanese car shoppers.
c. License - A license is granted to a business by the government and allows the business to
import a certain type of good into the country. For example, there could be a restriction on
imported cheese, and licenses would be granted to certain companies allowing them to act
as importers. This creates a restriction on competition and increases prices faced by
consumers.

Non-tariff Barriers
is a way to restrict trade using trade barriers in a form other than a tariff. As part of their
political or economic strategy, some countries frequently use nontariff barriers to restrict the
amount of trade they conduct with other countries.

a. Embargoes - An embargo is a government order that restricts commerce with a specified

country or the exchange of specific goods. An embargo is usually created as a result of
unfavorable political or economic circumstances between nations. It is designed to isolate
a country and create difficulties for its governing body, forcing it to act on the issue that led to
the embargo. Embargoes can have serious negative consequences on the affected nation's
economy Decisions on trade embargoes and other economic sanctions are often based on
mandates by the United Nations. Embargoes tend to have little effect on changing the actions
and policies of the country they are placed on.
b. Quota - A quota is a government-imposed trade restriction that limits the number or
monetary value of goods that a country can import or export during a particular period.
Countries use quotas in international trade to help regulate the volume of trade between them
and other countries. Countries sometimes impose quotas on specific products to
reduce imports and increase domestic production. In theory, quotas boost domestic
production by restricting foreign competition. Government programs that implement quotas
are often referred to as protectionism policies. Additionally, governments can enact these
policies if they have concerns over the quality or safety of products arriving from other
countries. (pinapadalang nurse sa korea, England galing pnas dahil nagkaron ng shortage pero
at tha same time limited lang dapat.)

World Trade Organization – only international organization dealing with the global rules of trade .
Its main function is to ensure that trade flows as smoothly predictably and freely as possible. formed
to monitor and liberalize global commerce The World Trade Organization (WTO) is the successor to
the General Agreement on Tariffs and Trade (GATT), which was established in 1947 with the
intention that it would be quickly replaced by a specialized agency of the United Nations (UN)
known as the International Trade Organization (ITO). Although the ITO never materialized, the
GATT was a huge success in liberalizing global commerce during the next five decades. By the late
1980s, there were calls for a more powerful multilateral agency to oversee trade and settle trade
disputes. The World Trade Organization (WTO) began operations on January 1, 1995, following
the conclusion of the Uruguay Round of international trade negotiations (1986–94).
Regional trading blocs - A regional trading bloc (RTB) a group of countries or a co-operative union
within a given geographical area. Imports from non-member countries are protected by its member
nations within that region. A unique sort of economic integration known as a trading bloc. A regional
trading bloc (RTB) is a co-operative union or group of countries within a
specific geographical boundary. RTB protects its member nations within that region from
imports from the non-members. Trading blocs are a special type of economic integration.
There are four types of trading blocs
Preferential Trade Area − Preferential Trade Areas (PTAs), the first step towards making a full-
fledged RTB, exist when countries of a particular geographical regionagree to decrease or eliminate
tariffs on selected goods and services imported from other members of the area.
Free Trade Area − Free Trade Areas (FTAs) are like PTAs but in FTAs, the participating countries
agree to remove or reduce barriers to trade on all goods coming from the participating members.
Customs Union − A customs union has no tariff barriers between members, plus they agree to a
common (unified) external tariff against non-members. Effectively,
the members are allowed to negotiate as a single bloc with third parties, including other trading
blocs, or with the WTO.
Common Market − A ‘common market’ is an exclusive economic integration. The
member countries trade freely all types of economic resources – not just tangible
goods. All barriers to trade in goods, services, capital, and labor are removed in
common markets. In addition to tariffs, non-tariff barriers are also diminished or
removed in common markets.

Regional Trading Blocs – Advantages

The advantages of having a Regional Trading Bloc are as follows
Foreign Direct Investment − Foreign direct investment (FDI) surges in TRBs and it benefits the
economies of participating nations.
Economies of Scale − the larger markets created results in lower costs due to mass manufacturing
of products locally. These markets form economies of scale.
Competition − trade blocs bring manufacturers from various economies, resulting in greater
competition. The competition promotes efficiency within firms.
Trade Effects − as tariffs are removed, the cost of imports goes down. Demand changes and
consumers become the king.
Market Efficiency − the increased consumption, the changes in demand, and a greater amount of
products result in an efficient market.

Regional Trading Blocs – Disadvantages

The disadvantages of having a Regional Trading Bloc are as follows
Regionalism − trading blocs have bias in favor of their member countries. These economies
establish tariffs and quotas that protect intra-regional trade from outside forces. Rather than
following the World Trade Organization, regional trade bloc countries participate in regionalism.
Loss of Sovereignty − a trading bloc, particularly when it becomes a political union, leads to partial
loss of sovereignty of the member nations.
Concessions − the RTB countries want to let non-member firms gain domestic market access only
after levying taxes. Countries that join a trading bloc needs to make some concessions.
Interdependence − the countries of a bloc become interdependent on each other.
A natural disaster, conflict, or revolution in one country may have adverse effect on
the economies of all participants.

International Monetary system - The system and laws that control the usage and exchange of
money around the world and between countries are referred to as the international monetary system.
The regulations for pricing and exchanging various currencies are governed by the international
monetary system, which oversees each country's own currency. International monetary system refers
to the system and rules that govern the use and exchange of money around the world and between
countries. Each country has its own currency as money and the international monetary system
governs the rules for valuing and exchanging these currencies. As mentioned earlier in this section,
ancient societies started using gold as a means of economic exchange. Gradually more countries
adopted gold, usually in the form of coins or bullion, and this international monetary system became
known as the gold standard.

exchange rate is the price of one currency in terms of a second currency. In the gold standard
system, each country sets the price of its currency to gold, specifically to one ounce of gold. A fixed
exchange rate stabilizes the value of one currency vis-à-vis another and makes trade and investment
easier.

Demographic – profile, age, gender, Consumer behavior in demographics refer to statistical

information about the characteristics of a population. Social class
Geographic – location, distance. determined on the basis of the analysis of various geographical
units such as, neighbourhoods, cities regions, states and nations etc. The business firm operates its
business in one or a few geographical areas or in all but pay its specific attention on the potential
areas.
Psychographic - the study of consumers based on their activities, interests, and opinions (AIOs). It
goes beyond classifying people based on general demographic data, such as age, gender, or race.
Psychographics seeks to understand the cognitive factors that drive consumer behaviors
Sociological - concerning the development, structure, and functioning of human society.

Consumer behavior refers to the activities directly involved in obtaining products /services, so it
includes the decision-making processes that precede and succeed these actions. Thus, it appears that
the advertising message can cause a certain psychological influence that motivates individuals to
desire and, consequently, buy a certain product/service.

Impulsive buyer - triggered by an irresistible force to buy and an inability to evaluate its
consequences. Despite being aware of the negative effects of buying, there is an enormous desire to
immediately satisfy your most pressing needs. his type of purchase obeys non-rational reasons that
are characterized by the sudden appearance and the (in) satisfaction between the act of buying and
the results obtained also refer that a considerable percentage of sales comes from purchases that are
not planned and do not correspond to the intended products before entering the store. causes an
emotional lack of control generated by the conflict between the immediate reward and the negative
consequences that the purchase can originate, which can trigger compulsive behaviors that can
become chronic and pathological

Seasonal buyer

International marketing research can be defined as a research that crosses the national boundaries.
True
International monetary system is the _____and the ____ that control the usage and exchange of
money around the world. System, laws
Global marketing strategy is the process of adjusting the company’s marketing strategies to reflect
condition in consumer taste and demand different False (di me sure kasi nakalagay sa google
consumer trends)
The sale of products and services in foreign countries that are sourced or made in the home country-
EXPORT

Research that crosses national boundaries and involves the respondents and researchers from various
countries and culture -INTERNATIONAL MARKETING RESEARCH

It is done by taking the company's sales over the period and dividing them by the total sales of the industry
over the same period- MARKET SHARE
A strategy used to enter new markets by launching or acquiring new products – DIVERSIFICATION

Because of this, many companies look for third party, objective information about the market and customer
base before making a big investment in a new business – ACQUISITION
The following activities are included in international marketing research except - Analyzing profitability of
market segments

A non-economic review of conditions affecting the division’s business. Covers ecology, safety, leisure time,
and their impact on the business - Cultural , sociological and political climate

To get a complete picture of the market it is important to get - Information on your own rather than relying on
information from the target company.

Diversification is about adding - New product lines & entering a new market
A company with the largest market share in an industry - Market Leader

Competitive situation is a review of competitor’s sales revenues, methods of market segmentation, products,
and apparent strategies on an international scope – True

Market conditions is a analysis of market conditions the division faces by market segment including national
conditions – Fales

For the third party, partial information about the market and customer base before making a big investment
in a new business – False
The information must be communicated across cultural boundaries and these research tools are then often
applied in foreign markets - True
One system all over the world which only used for the trade internationally among the developed and
developing countries is called-International Economic environment

The growing interdependence of the world's economies, cultures, and populations, brought about by
cross-border trade in goods and services, technology, and flows of investment, people, and
information- Globalization 

The larger markets created results in lower costs due to mass manufacturing of products locally. These
markets form economies of scale- Economies of Scale

The countries of a bloc become interdependent on each other. A natural disaster, conflict, or revolution
in one country may have adverse effect on the economies of all participants-Interdependence

True-International Economic environment is a sub-field of economics that is concerned with

environmental issues.

False-Globalization is distinguished from ecological economics in that it emphasizes the economy as a

subsystem of the ecosystem with its focus upon preserving natural capital.(Environmental Economics)

True-International Economic Environment means the environment in different countries, with

conditions similar to the home environment of the institutions, influencing decision-making on
capabilities and resource use.

True-Economic Environment means the effect of the working on the business all over the world. It
studies trade system, policies, structure, and nature of an economy, level of income, distribution of
income and wealth etc.

True-Globalization provides businesses with a competitive advantage by allowing them to source raw
materials where they are inexpensive.

It is a co-operative union or group of countries within a specific geographical boundary. Also protects
its member nations within that region from imports from the non-members. - Regional trading bloc

Refers to the system and rules that govern the use and exchange of money around the world and
between countries. Each country has its own currency as money and governs the rules for valuing and
exchanging these currencies. - International Monetary System

These are a special type of economic integration. - Trading blocs

True - Customs union has no tariff barriers between members, plus they agree to a common (unified)
external tariff against non-members.

True - Regionalism trading blocs have bias in favor of their member countries. These economies
establish tariffs and quotas that protect intra-regional trade from outside forces.

True - Economies of Scale the larger markets created results in lower costs due to mass manufacturing
of products locally. These markets form economies of scale.
True – There are four types of trading blocs?
world trade organization-is the only international organization dealing with the global rules of trade.
Non-tariff barrier-is a way to restrict trade using trade barriers in a form other than a tariff.
tariff-is a tax imposed by a government of a country or of a supranational union on imports or exports
of goods. Besides being a source of revenue for the government, import duties can also be a form of
regulation of foreign trade and policy that taxes foreign products to encourage or safeguard domestic
industry.

false-quotas are one example of tariff barriers

true-one function of the world trade organization is to asure that the trade between countries flows
smoothly and as freely as possible.
false-tariff restricts the amount of trade the country conduct with other countries 
false-Ad valorem is an example of a Non-tariff barrier.
true-tariff is one of the sources of income of the government.