INTERNATIONAL MARKETING MODULE

Code: BBM-7-IMG (MAIM)

Code: BBM-7-IMK (MSc IB & MSc MC)

Lecture #1

INTRODUCTION TO INTERNATIONAL
MARKETING
I.
Introduction
II. What is marketing?
III. What is international marketing?
IV. Dimensions of International Marketing
V. Overview of the International Marketing Process
VI. Environmental challenges
VII. Model for Selecting Foreign Markets
VIII. International Market Entry Strategies
IX. International Market Positioning

I. INTRODUCTION
According to Theodore Levitt (1993):
Today, firms, irrespective of size, ignore international
focus at their own peril.
Major Driving Forces
Technological Progress
Cost pressures
Global Competition
Economic integration
Thus, the question is not whether to go international but when to go

II. WHAT IS MARKETING?

Marketing is the management process responsible for
identifying, anticipating and satisfying customer
requirements profitably (Chartered Institute of Marketing)
In this way, the firm best prepares itself :
(1) focus on customer needs and wants
(1) achieve customer value ( Value = Benefits expected/Price paid)
(2) maintain competitive advantage

These 3 principles are universal across cultures/markets

III. INTERNATIONAL MARKETING

In international Marketing, the key concepts of marketing
still apply (universal). However, these differ in terms of
practice because:
(i) marketing principles are approached at different levels ( two,
three, four countries etc.)
(ii) The existence of diverse and complex environmental forces
due to the multiplicity of markets
International marketing is the management process responsible for
identifying, anticipating and satisfying customer requirements,
across different international markets, profitably.

IV. Dimensions of international marketing

(i) Export Marketing
simplest form of international marketing
Firms make or extend one marketing mix decisions across national boundaries.
Extension strategy based more on similarities existing across markets
Firms possess an ethnocentric orientation

(ii) Multinational Marketing

Firms operate within several foreign markets
Firms adapt their marketing mixes into various external environments.
Adaptation strategy based on differences existing across markets.
Firms possess a polycentric orientation
(iii) Global Marketing
It is the most complex form of international marketing.
Firms co-ordinates, integrates and controls their marketing operations across
many markets
Global marketing focuses on both similarities and differences.
firms possess a geocentric (or global) orientation.

 Global marketers should have the ability to combine global/similar strategies

and yet adapt to local conditions. It is in this way that they can respond to
similarities and differences in world markets.
A global marketer should have the ability to think globally and act locally:
Glocalisation (Global + Local or Universal + Particular)
(R. Robertson, 1995)

The companys objective is to achieve value and maintain competitive

advantage through synergy; that is, to achieve greater value than the sum of
its subsidiaries.

V. Overview of the International Marketing Process

Review of International
Environments (P.E.S.T)
International Market
Research (Opportunities &Threats)
International Market
Selection Strategies
International Market Entry
strategies
International Market
Positioning (4 Global Ps)

VI. Environmental challenges

CULTURE AND ITS ELEMENTS

Elements of Cultures
Values what good / what's bad
Norms unwritten rules of behaviour
Rituals sets of symbolic behaviours, fixed
Myths stories that express key values of a
society
Low-context Culture Vs. High-context culture (Hall, 1960)
5. Cultural Dimensions (Hofstede, 1991)
- Collectivism Vs. Individualism
- Masculinity Vs. feminity
- Power Distance (large power distance Vs. small power distance)
- Uncertainty avoidance UA (weak UA vs. strong UA)
- Long-term vs. short-term time orientation

VII. Model for Selecting Foreign Markets

Filter 1

Macro Level Research

(Macro-economic factors)

Preliminary Opportunities
Filter 2

Market Level Research

(Market &Competition factors)

Possible opportunities
Filter 3
Filter 4

Consumer Level Research

(Consumer/marketing factors)

Probable opportunities
Internal Research
(Firms characteristics)

Country Priority Listings

or target countries

VIII. Market Entry Strategies

Investment

Profit

-JVs, SAs
-WOS, Merger &
Acquisition

Contractual
Licensing &
Franchising

Exporting
Indirect &
direct

Risk

MARKET SEGMENTATION, TARGETING AND POSITIONING

MARKET POSITIONING

INTERNATIONAL MARKETING MIX

International Channels of
Distribution

International
Product
Strategies

International
Marketing
Mix
International Pricing
Strategies

International communication
Strategies

INTERNATIONAL MARKETING MIX

International Product Strategies:

Intl. Channels: Direct Vs. Indirect

- Merchants, Agents, EMCs
- Trading Companies
- Services Provided Channels

Standardisation Vs. Modification

- Reasons for Product Adaptation
- Global Branding Policies
- Global Brands Vs. Local Brand
- Brand Protection

International
Marketing
Mix
PRICING STRATEGIES :

Global communications

- Global Vs. Differential Pricing

- Challenges of Global Promotions

- Factors affecting international pricing

- Tariffs & Non-tariff Barriers
- Exchange rates
- Export trade terms
- Transfer pricing practices

- Global Promotion Mix

- Traditional Vs. Modern Media
- Push vs. Pull communication strategy
- Global Advertising
- Personal Selling
- Sales promotion
- Direct marketing
- Exhibitions
- E-Marketing