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

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
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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
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The Scope and Challenge of International Marketing Chapter 1

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

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

Globalization of Markets
Definition of International Marketing:
The performance of business activities designed to plan, price, promote and direct the companys 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, governmental controls, climate & weather, cultural beliefs, buyer behavior (uncontrollable elements)

International Marketing Task

The International Marketing Task
Marketing Plan (controllable)
Price, Promotion, Product, Place (distribution)

Domestic Environment (uncontrollable)

Political/legal, competition, economy

Foreign Environment (uncontrollable)

Structure of distribution, geography and infrastructure, culture, political/legal, economy, competition, level of technology

International Marketing Task

Other Factors within the Foreign Environment to consider:
Level of technology
Crossing Borders

Political and legal issues Culture

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 countrys 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, 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

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International Marketing Task

Obstacles to success in international marketing:
Using ones culture, values, experiences as a basis for decisions in international situations
By reacting to situations in this manner, cultural differences are ignored, and behavior might be offensive The less ego-centric a company is, the greater success it will have in marketing its products and services

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Developing Global Awareness

To be globally aware, a company must have the following
Objectivity Tolerance of cultural differences Knowledge of cultures, history, world market potential, and global economic, social, and political trends

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Stages of International Marketing Involvement

1. 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

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Stages of International Marketing Involvement

3. Regular Foreign Marketing
Companies produce their products and services to primarily sell domestically, but also internationally
Through domestic/foreign middlemen, sales force in foreign countries

4. International Marketing
Companies are fully engaged in international marketing strategies
Companies are now international or multi-national

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Stages of International Marketing Involvement

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

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Strategic Approaches to Marketing Internationally

1. Domestic Market Extension Orientation
International markets are secondary to its domestic markets

2. Multidomestic Market Orientation

Each country has a specific and separate marketing plan to adjust to differences

3. Global Marketing Orientation

Marketing activities are global Strives for efficiencies of scale through standardization

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The International Marketing Task

Foreign environment (uncontrollable) Political/legal forces

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Domestic environment (uncontrollable) (controllable)

Economic forces

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Cultural forces

Political/ legal forces

Competitive structure Competitive Forces

Price Promotion

Product
Channels of distribution

Environmental uncontrollables country market A Environmental uncontrollables country market B Environmental uncontrollables country market C

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Geography and Infrastructure

Economic climate

Level of Technology

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Structure of distribution

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