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International Marketing Courseat Institute of Business Management byProfessor Riaz Khan

TheobjectiveofthiscourseistointroducestudentstoconceptsassociatedwithInternationalMarketing

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Chapter1:TheScopeandChallengeofInternational

MarketingChapter2:TheDynamicEnvironmentofInternational

Trade

Chapter3:CulturalDynamicsinAssessingGlobal

MarketsChapter4:ThePoliticalEnvironment:ACritical

Concern

Chapter5:TheInternationalLegalEnvironment:

Playing bytheRulesChapter6:DevelopingaGlobalVisionThrough

Marketing Research

Chapter7:EmergingMarkets

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Chapter8:MultinationalMarketRegionsand MarketGroups

Chapter9:GlobalMarketingManagement:Planning

and Organization

Chapter12:InternationalMarketingChannelsChapter13:ExportingandLogistics:SpecialIssues

for Business

Chapter14:IntegratedMarketingCommunications

and InternationalAdvertisingChapter15:PersonalSellingandSalesManagement

Chapter16:PricingforInternationalMarkets

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TheScopeandChallengeof

InternationalMarketingChapter1

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GlobalizationofMarkets

4Prevailingtrendsthathavethemostimpactoninternationalbusinessinthefuture: 1.GrowthoftheWorldTradeOrganization

andregionfreetradeareas(NAFTA,EuropeanUnion..)

2.Trendofdevelopingcountries(suchasAsia,LatinAmerica,EasternEurope)

acceptingthefreemarketsystem 3.Impactoftheinternetandotherglobalmediacompanies(CNN)

4.Mandateforcompaniestoproperlymanageresources

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GlobalizationofMarkets

Whyinternationalmarketingissoimportant: Companiescannolonger

ignoretheeffectsofinternationallymarketing Competitionnolongerexistsjustfromdomesticcompanies

Inordertosustainprofitabilityandgrowthmarginsofthepast,companieshavetolookforalternativemethodsofmarketingtheirproductsand

services 6

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GlobalizationofMarkets

DefinitionofInternationalMarketing: Theperformanceofbusinessactivitiesdesignedto

plan,price,promoteanddirectthecompanysflowofgoodsandservicestoconsumersorusersinmorethanonenationforaprofit

Whatisthedifferencebetweenmarketingdomesticallyandinternationally Marketingconceptsareuniversal(goalistomakeaprofit)

DifferenceisthatininternationalmarketingALLenvironmentshavetobetakenintoconsiderationwhenthemarketingplanisdevelopedandexecuted

Mustconsiderthelegalenvironment,governmentalcontrols,climate&weather,culturalbeliefs,buyerbehavior(uncontrollableelements)

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InternationalMarketingTask

TheInternationalMarketingTask MarketingPlan(controllable)

Price,Promotion,Product,Place(distribution)

DomesticEnvironment(uncontrollable) Political/legal,competition,economy

ForeignEnvironment(uncontrollable)

Structureofdistribution,geographyandinfrastructure,culture,political/legal,economy,competition,leveloftechnology

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InternationalMarketingTask

OtherFactorswithintheForeign

Environmenttoconsider:

Leveloftechnology

CrossingBorders

Politicalandlegalissues

Culture

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InternationalMarketingTask

Importanceofuncontrollableelements Inordertosucceedinternationallyaforeigncompanymustunderstandtheimpactoftheuncontrollableelementsthatmakeupthat

countrysculture Culturalunderstandingislikeanicebergwearenotawareofnine-tenthsofit

Inordertobesuccessfulinadaptingtotheinternationalmarkets,themarketplanneedsto

incorporatestrategiestoanticipateasmuchoftheuncontrollablefactorsthatinfluenceboththeforeignanddomesticmarketsandallowformaximumflexibilitytoadjustforfuturechanges

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InternationalMarketingTask

Obstaclestosuccessininternational

marketing: Usingonesculture,values,experiencesas

abasisfordecisionsininternationalsituations

Byreactingtosituationsinthismanner,cultural

differencesareignored,andbehaviormightbe

offensive

Thelessego-centricacompanyis,thegreatersuccessitwillhaveinmarketingitsproductsand

services

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DevelopingGlobalAwareness

Tobegloballyaware,acompany

musthavethefollowing

Objectivity

Toleranceofculturaldifferences

Knowledgeofcultures,history,world

marketpotential,andglobal

economic,social,andpoliticaltrends

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ageso n erna ona ar e ngInvolvement

1.NoDirectForeignMarketing Companydoesnotactivelypursuecustomersinforeignmarkets,butreceivesthemthruunintendedchannels

Productsareboughtabroadthroughdomesticwholesalers/distributors,websiteontheinternet

2.InfrequentForeignMarketing Companysellstoforeignmarketsonlywhenatemporarysurplusofproductexists Oncesurplusisgone,foreignactivityisgone

Fewcompaniesfitthismodelbecauseoftheneedtodeveloplongtermrelationshipsinforeigncountries

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ageso n erna ona ar e ngInvolvement

3.RegularForeignMarketing

Companiesproducetheirproductsand

servicestoprimarilyselldomestically,butalso

internationally

Throughdomestic/foreignmiddlemen,salesforcein

foreigncountries

4.InternationalMarketing

Companiesarefullyengagedininternational

marketingstrategies

Companiesarenowinternationalormulti-national

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ageso n erna ona ar e ngInvolvement

5.GlobalMarketing Changefromitsmarketingactivitiestoallactivitiesfocusedinaglobal

perspective Inmostcasescompaniessalesrevenuesaremorethanofitstotalrevenues

Treattheworldasonemarket

Marketsegmentisnolongerfocusedonnationalborders,rathersuchthingsasincomelevels,usagepatterns,orotherfactorsarelookedacrossborders

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ra eg c pproac es oMarketingInternationally

1.DomesticMarketExtensionOrientation Internationalmarketsaresecondarytoitsdomesticmarkets

2.MultidomesticMarketOrientation Eachcountryhasaspecificandseparatemarketingplantoadjusttodifferences

3.GlobalMarketingOrientation Marketingactivitiesareglobal

Strivesforefficienciesofscalethroughstandardization

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The International MarketingTask

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7

Political/legalforces

Economicforces

1

2

Environmentaluncontrollablescountry market A

Environmentaluncontrollablescountry

market B

Environmentaluncontrollablescountrymarket C

Competitivestructure Competitive

Forces

Level ofTechnology

Price Product

PromotionChannels of

distribution

Geographyand

Infrastructure

Foreign environment(uncontrollable)

Structure ofdistribution

Economic climate

Cultural

forces

3

45

6

7Political/

legalforces

Domestic environment(uncontrollable)

(controllable)