International Marketing Course at “Institute of Business Management” by

Professor Riaz Khan

The objective of this course is to introduce students to concepts associated with International Marketing

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Chapter 1: The Scope and Challenge of International Marketing Chapter 2: The Dynamic Environment of International Trade Chapter 3: Cultural Dynamics in Assessing Global Markets Chapter 4: The Political Environment: A Critical Concern Chapter 5: The International Legal Environment: Playing by the Rules Chapter 6: Developing a Global Vision Through Marketing Research Chapter 7: Emerging Markets 2 .

Chapter 8: Multinational Market Regions and Market Groups Chapter 9: Global Marketing Management: Planning and Organization Chapter 12: International Marketing Channels Chapter 13: Exporting and Logistics: Special Issues for Business Chapter 14: Integrated Marketing Communications and International Advertising Chapter 15: Personal Selling and Sales Management Chapter 16: Pricing for International Markets 3 .

The Scope and Challenge of International Marketing Chapter 1 4 .

Globalization of Markets • 4 Prevailing trends that have the most impact on international business in the future: – 1. European Union.) – 2. Mandate for companies to properly manage resources 5 . Impact of the internet and other global media companies (CNN) – 4. Latin America. Growth of the World Trade Organization and region free trade areas (NAFTA.. Eastern Europe) accepting the “free market system” – 3. Trend of developing countries (such as Asia.

Globalization of Markets • Why international marketing is so important: – Companies can no longer ignore the effects of internationally marketing • Competition no longer exists just from domestic companies • In order to sustain profitability and growth margins of the past. companies have to look for alternative methods of marketing their products and services 6 .

buyer behavior… (uncontrollable elements) 7 . climate & weather. price.Globalization of Markets • Definition of International Marketing: – “The performance of business activities designed to plan. cultural beliefs. governmental controls. promote and direct the company’s flow of goods and services to consumers or users in more than one nation for a profit” • What is the difference between marketing domestically and internationally – Marketing concepts are universal (goal is to make a profit) – Difference is that in international marketing ALL environments have to be taken into consideration when the marketing plan is developed and executed • Must consider the legal environment.

level of technology… 8 . economy – Foreign Environment (uncontrollable) • Structure of distribution. political/legal.International Marketing Task • The International Marketing Task – Marketing Plan (controllable) • Price. Promotion. economy. Product. culture. competition. geography and infrastructure. competition. Place (distribution) – Domestic Environment (uncontrollable) • Political/legal.

International Marketing Task • Other Factors within the Foreign Environment to consider: – Level of technology • Crossing Borders – Political and legal issues – Culture 9 .

the market plan needs to incorporate strategies to anticipate as much of the uncontrollable factors that influence both the foreign and domestic markets and allow for maximum flexibility to adjust for future changes 10 .International Marketing Task • Importance of “uncontrollable elements” – In order to succeed internationally a foreign company must understand the impact of the uncontrollable elements that make up that country’s culture • “Cultural understanding is like an iceberg – we are not aware of nine-tenths of it” • In order to be successful in adapting to the international markets.

experiences as a basis for decisions in international situations – By reacting to situations in this manner. values. cultural differences are ignored.International Marketing Task • Obstacles to success in international marketing: • Using one’s culture. and behavior might be offensive – The less ego-centric a company is. the greater success it will have in marketing it’s products and services 11 .

social. world market potential.Developing Global Awareness • To be globally aware. a company must have the following – Objectivity – Tolerance of cultural differences – Knowledge of cultures. and political trends 12 . and global economic. history.

No Direct Foreign Marketing – Company does not actively pursue customers in foreign markets. but receives them thru unintended channels • Products are bought abroad through domestic wholesalers/distributors. website on the internet • 2. Infrequent Foreign Marketing – Company sells to foreign markets only when a temporary surplus of product exists • Once surplus is gone. foreign activity is gone • Few companies fit this model because of the need to develop long term relationships in foreign countries 13 .Stages of International Marketing Involvement • 1.

International Marketing – Companies are fully engaged in international marketing strategies • Companies are now international or multi-national 14 .Stages of International Marketing Involvement • 3. sales force in foreign countries • 4. Regular Foreign Marketing – Companies produce their products and services to primarily sell domestically. but also internationally • Through domestic/foreign middlemen.

usage patterns. rather such things as income levels. or other factors are looked across borders 15 . Global Marketing – Change from its marketing activities to all activities focused in a global perspective • In most cases companies sales revenues are more than ½ of its total revenues • Treat the world as one market • Market segment is no longer focused on national borders.Stages of International Marketing Involvement • 5.

Multidomestic Market Orientation – Each country has a specific and separate marketing plan to adjust to differences • 3.Strategic Approaches to Marketing Internationally • 1. Global Marketing Orientation – Marketing activities are global – Strives for efficiencies of scale through standardization 16 . Domestic Market Extension Orientation – International markets are secondary to its domestic markets • 2.

The International Marketing Task Foreign environment (uncontrollable) Political/legal forces 1 Domestic environment (uncontrollable) (controllable) Economic forces 7 Cultural forces Political/ legal forces Competitive structure Competitive Forces 2 Price Promotion Product Channels of distribution 7 3 Environmental uncontrollables country market A Environmental uncontrollables country market B Environmental uncontrollables country market C 6 Geography and Infrastructure Economic climate Level of Technology 5 4 Structure of distribution 17 .

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