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Prof. Dr. Ing.

Elena Horsk
Slovak University of Agriculture in Nitra

The Scope and Challenges


of International Marketing
Under influence of globalization the separate parts of
marketing management activities are actual:
1. In the relations with customers there is emergent real
time management, online communication, internet based
organization, faster product diffusion

2. Transferable market is based on global customer needs,


with strong power of distribution channels, economic
power of a few lead countries and globalized competition.

3. Paradox of high level of product standardization and


product adaptation, with short innovation cycles, high
costs of product development, fast changing technology
and powerful brand policy.

1. New forms of marketing, innovative marketing, enjoyment


marketing, event marketing, e-marketing, relationship
marketing (Calvin Klein, Madona video + Where the hell is
Matt)
International marketing is a hard work....
Making sales calls is no
vacation even in Paris when
youare been there ten times
before. But international
marketing is important work.
It can enrich you, your family,
your company, and your
country. And, when
international marketing is
done well, by large
companies or small, the
needs and wants of
customers in other lands are
well understood, and
prosperity and peace are
promoted along the way.
International
marketing is defined
as the performance of
business activities
designed to plan,
price, promote, and
direct the flow of a
companys goods and
services to consumer
or users in more than
one nation for a profit.

Marketing principles,
processes and
concepts are universally
applicable all over the
world.
Video: Go internationally why and how?
Global marketing opportunities and
threats:

Opportunities:
Increase in market potential
Trade and investment potential
Resources accessibility

Threats:
Increasing number of competitors
Increase in intensity of competition coupled with higher
market uncertainty
Reasons for marketing abroad

Economies of scale and scope.


Lucrative markets which do not exist at
home, but which do exist abroad.
Saturated markets at home.
Response to incoming competitive
activity.
Foreign demand drivers

Non-availability of appropriate products


from domestic producers.
Price differences between imported
goods and local goods.
Exotic image attaching to foreign
products.
Local problems that prevent domestic
firms from supplying goods.
Exporting vs. international
marketing
Exporting means making it here, selling it there.
International marketing also might include:
1. Marketing products manufactured in the target
country, or in a third country.
2. Establishing a permanent presence in the target
country.
3. Licensing or franchising the firms systems to foreign
businesses.
4. Sourcing components from foreign countries.
Forces for market responsiveness

Cultural differences

Regionalism/protectionism

Deglobalization trend
Corporate social responsibility

Specific issue connecting both forces for


market responsiveness and forces for
global coordination

Videocase: Commercial versus social?


Global versus local?
Models of internationalization
Uppsala model: firms begin by exporting,
then establish a marketing presence, then a
manufacturing presence, then become fully
multinational.
Dunnings model: firms may enter the market
in any of the above ways, as appropriate to
the firm (ownership, locational and
internalization advantages)
Network approach
Born global
Crossing borders: questions and discussion
Analysis of strengths and weaknesses of SME in processes
of internationalization....

Which strenghts and


weaknesses do you consider as
the most important?
How to use the theory of
international marketing?

1. What are the opportunities for


SME companies in terms to use
international marketing
approach...? Why to go globally?
How to be successful?