International Marketing

Welcome to This Class!

Instructor:
Selima Ben Mrad

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
What is Marketing?
 Marketing is an organizational function and a set of
processes for creating, communicating, and
delivering value to customers and for managing
customer relationships in ways that benefit the
organization and its stakeholders.” AMA 2006
 Marketing does not include only businesses but also
governmental and business units as well.
• Value to customers
• Managing customer relationships
• Relationship
• Benefit the organization and stakeholders

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Strategic Marketing
 Determine the specific target markets.
 Manage the marketing mix in order to best satisfy
the needs of individual target markets.

 Marketing mix: 4Ps’ : Product, Price, Place, and

Promotion

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Target market Selection

 The characteristics of the target market can be

summarized by the 8 O’s:
• Occupants: which customers to approach, demographics,
geography, product-oriented variables (usage rate),
psychographics (attitudes)
• Objects: products, services
• Occasions: when customers take advantage of some
occasions to buy products (sales)
• Objectives: Motivations behind the purchase or adoption
of the marketed concept.

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Target market Selection
• Outlets: are places where customers expect to be able to
procure a product or to be exposed to messages
• Organization: describes how the buying or acceptance of
new ideas take place( family, individual).
• Operations: the behavior of the organization buying
products and services.
• Opposition: Competition faced in the marketplace.

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 The Scope and Challenge of
International Marketing
Chapter 1

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
LO1 The benefits of international markets
LO2 The changing face of U.S. business
LO3 The scope of the international marketing task
LO4 The importance of the self-reference criterion
(SRC) in international marketing
LO5 The increasing importance of global awareness
LO6 The progression of becoming a global marketer

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 What is International
Marketing?
• The process of planning and
conducting transactions across
national borders to create
exchanges that satisfy the
objectives of individuals and
organizations.

• It is a combination of the science

and the art of business, with
following ingredients: economics,
anthropology, cultural studies,
geography, history, language,
jurisprudence, statistics,
demographics, technologies, etc.
Global Commerce Causes Peace
 Global commerce thrives during peacetime
 Economic boom in North America in the late 1990s
largely due to the end of the cold war

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The Internationalization of U.S. Businesses

Exhibit 1.1 Foreign Acquisitions of U.S. Companies, Sources: Compiled from annual
reports of listed forms, 2012. 1-10
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The International Marketing Task

Four One

Three Two

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Exhibit 1.2 Selected U.S. Companies and
Their International Sales

Source: Compied from annual reports of listed firms, 2012

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Self-Reference Criterion & Ethnocentrism

 Self-Reference Criterion (SRC) is an unconscious

reference to one’s own cultural values, experiences,
and knowledge as a basis for decisions.
 Ethnocentrism is the notion that people in one’s own
company, culture, or country know best how to do
things.
 Both the SRC and ethnocentrism impede the ability
to assess a foreign market in its true light.

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Developing Global Awareness
To be globally aware is to have:
 tolerance of cultural differences and
 knowledge of cultures, history, world market
potential, and global economic, social, and political
trends

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Stages of International Marketing
Involvement
 No Direct Foreign Marketing
 Infrequent Foreign Marketing
 Regular Foreign Marketing
 International Marketing
 Global Marketing

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Factors Favoring Faster
Internationalization
 Companies with either high technology and/or
marketing-based resources are better equipped to
internationalize than more traditional manufacturing
companies (Tseng et. al., 2007)
 Smaller home markets and larger production
capacities favor internationalization (Fan & Phan,
2007) and
 Firms with key managers well networked
internationally are able to accelerate the
internationalization process (Freeman and Cavusgil,
2007)

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The Orientation of International
Marketing
 Environmental/cultural approach
 Relate the foreign environment to the marketing
process
 Illustrate how culture influences the marketing task
 The cultural environment within which the marketer
must implement marketing plans can change
dramatically from country to country

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 New challenges for
international marketing

• How does the marketing

concept fit into the emerging
economies?
• How can marketing contribute
to economic development ?
• How should the distribution
systems be organized?
• How can the price mechanism
work?
How to achieve success in
intl marketing
• Questions should be asked by the
marketer:
– Should I obtain my supplies
domestically or from abroad
– What marketing adjustments
are necessary?
– What threats from global
competition should I expect?
– How can I work with these
threats to turn them into
opportunities?
– What are my strategic global
alternatives?
 Globalization

• Thomas Friedman (2005)

“Tom, The Playing Field is

being Leveled. Indians and
Chinese were going to
compete for work like
never before and
Americans were not ready”
What Helped Globalization?

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What Helped Globalization?

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What Helped Globalization?

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What helped Globalization?

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What helped Globalization?

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What helped Globalization?

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What Helped Globalization?

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What helped Globalization?

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What Helped Globalization?

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What helped Globalization?

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The world is Smaller?

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World Trade Importance

 World trade has grown tremendously in the past

three decades.
 The Iron Curtain is gone and capitalism has
replaced the old economic doctrines.
 Firms invest on a global scale.
 New technologies have changed the way we do
business.
 New trading blocs are emerging.

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Examples of Trading Blocs

• European Union in Europe

• NAFTA in North America
• Mercosur in Latin America
• ASEAN in Asia
Importance of international
Marketing

• Because US is providing and

consuming less than 25% of the
worldwide products,
companies went international
in order to keep up with
competition and have more
global opportunities.
• Companies such as General
Motors, Mitsubishi, Microsoft,
and Exxon earn profits greater
than the GDP of many
developing countries.