INTRODUCTION TO

INTERNATIONAL
MARKETING
Introduction

 Ever-increasing number of domestic firms

exporting, importing, and/or
manufacturing abroad mo, GSM,
 The number of foreign-based firms
operating in most markets Give examples
 The growth of regional trade areas eu, APEC,

NAFTA

 The rapid growth of world markets Brazil, china,

India

 The increasing number of competitors for

global markets give examples
Let me take you
back to BUS 111
Lets us begin with what
is a market.
Then, what is
marketing?
Definition of marketing
Marketing Marketingrefers to the various
groups of activities that take place
in a market.

These activities are planned. For

example, production, assembling,
distribution and storage could be
planned.
Definition of marketing
Kotler “Marketing is a societal process by
which individuals and groups
obtain what they need and want
through creating, offering, and
freely exchanging products and
services of value with others.”
Definition of marketing
AMA “Marketing is an organizational
Creating
function and a set of process
Commu
nicating for creating, communicating
Relation value to customers and for
ship managing customer
relationships in ways that
benefit the organization and its
stakeholders."
Begins with..
Research Then
to identify  Creating
customer  Communicating
needs and  Delivering
wants
 And exchange of offering that
have value to customer while
building a strong bond.
International Marketing
The concept
remains the
same What changes is the
environment that
the firm operate
NOTE
Marketing concepts, processes, and
principles are universally applicable
and the marketer’s task is the same
whether doing business in London,
Cairo, Tokyo, or Dar es salaam,
Tanzania. Business’s goal is to make a
profit by promoting, pricing, and
distributing products for which there is
a market.
THE NATURE AND SCOPE OF
INTERNATIONAL MARKETING
Nowadays,  Technology
most business  Research
activities are  Capital investment
global in  Production
scope
 Marketing
 Distribution
 Communication network.
International marketing
Meaning International marketing takes
care of functions like
international market research,
selection of products, pricing,
distribution channels,
advertising and promotion in
selected countries
Meaning
International marketing may be
defined as the performance of
business activities designed to plan,
price, promote and direct the flow of
a company’s goods and/or services to
consumers or users in more than one
nation for a profit.
How does it differ from domestic
marketing
The activities in international
marketing take place in more than one
country. But this minor difference
accounts for the complexity and
diversity found in international
marketing operations.
How does it differ from domestic
marketing
International marketing differs from
local marketing as it has to deal with
the rules and regulations of the host
countries as well as take care of the
cultural diversities that exist between
nations.
OBJECTIVES OF STUDYING
INTERNATIONAL MARKETING
To develop skills in analyzing marketing
challenges and opportunities.
To develop decision – making capabilities
in marketing.
To gain experience in developing
marketing strategies and plans.
OBJECTIVES OF STUDYING
INTERNATIONAL MARKETING
To introduce students to the latest
thinking in the field of marketing
theory.
To develop both the intuition and
analytical skills necessary for success
in business.
INTERNATIONAL MARKETING ENVIRONMENT
AGAINST DOMESTIC ENVIRONMENT

The difference between international

marketing and domestic marketing lies not
with different concepts of marketing but
with the environment within which
marketing plans must be implemented
 TASK OF THE INTERNATIONAL
MARKETER
The international marketer’s task is more
complicated than that of the domestic marketer
from the reason that, the international
marketer must deal with at least two levels of
uncontrollable uncertainty insisted of one.
These two levels are:-
 Domestic environment
 Foreign environment
 TASK OF THE INTERNATIONAL
MARKETER
Domestic Foreign
Competitive Economic forces 2008
structure Competitive forces
Economic climate Level of technology
Structure of distribution
Political legal
Cultural forces
forces
Political/legal forces.
Decisions of which companies have to
take as they plan international marketing
 The decision on the level of involvement they
want to have with respect to financial, human ,
managerial and technological inputs in the host
country.
 The decision on the marketing organization best
suited to the host country.
 The decision on advertising and promotional
plans.
 The decision on selection of the distribution
channels.
Decisions of which companies have to take
as they plan international marketing
 The decision on optimizing resource usage
(human resources, finance, information
and technology) with better allocation
and monitoring.
 The decision on global or mult-domestic
management positioning.
 INTERNATIONAL MARKETING
CONCEPTS
Ethnocentric plan.
 This plan is which take into account only the
host country’s cultural
ambience/environment atmosphere of that
host country.
Polycentric plan.
 These plans consider the cultural values of
both the foreign country and the home
country.
INTERNATIONAL MARKETING CONCEPTS

Regional – centric plans.

 These plans consider the culture and
values only of the region in which the
company is operating.
Geocentric plans.
 Are the plans which view takes the cultural
moral values/ethos of the geographic
coverage company plans to have.
 THE FACTORS TO BE CONSIDERED IN
GOING INTERNATIONAL

 Demographic  Macroeconomic
 Social  Technology
 Cultural
 Political
 Legal
 THE FACTORS TO BE CONSIDERED IN
GOING INTERNATIONAL
Demographic These involve information like
population dispersion in towns
and villages, income levels of
families, sex rates and
affiliations to religious groups
are available through the
census of the host country.
 THE FACTORS TO BE CONSIDERED IN
GOING INTERNATIONAL
CULTURALEvery country has different cultural
heritage. Marketers and advertisers take full
FACTORS season in different parts of the particular
country.

For example around Eid, Muslims buy new

clothes, household articles and exchange
gifts, while Christians shop a lot around
Christmas. The cultural moral takes and
provides in vulnerable themes for promoting
sales.
 THE FACTORS TO BE CONSIDERED IN
GOING INTERNATIONAL
POLITICAL  Stability
FACTORS  Liberalization
 THE FACTORS TO BE CONSIDERED IN
GOING INTERNATIONAL
LEGAL Different laws governing
FACTORS
business should be considered
very important especially in
host country. Ignoring the law of
the host country can be
detrimental to the interests of
firms operating in the foreign
country.
THE FACTORS TO BE CONSIDERED IN GOING
INTERNATIONAL
MACROECON The interest rates, taxes and
OMICS
duties, fluctuations in foreign
FACTORS
currency rates and the like are
all macroeconomic factors that
have a major impact on business
and they must be well
understood by business experts.
THE FACTORS TO BE CONSIDERED IN GOING
INTERNATIONAL
TECHNOLOG These change rapidly,
Y FACTORS
especially in the developed
countries. If not keen
observed you may end up
dealing with obsolete
products.