İnternatıonal marketıng

International Marketing & Export Management

International Marketing

Serhat KAKI Marketing113000116051

LEARNING OBJECTİVES

What is Internatıonal Marketing, Special Problems in International Marketing Why firms go İnternational, Benefits of İnternational Marketing Cultural Differences, İnternational Marketing İnvolves, The Importance of world trade agreements, Major Regional Trade Agreements, Characteristics of Behaviour Attidues , Why Export , What is Export Management, How can Firms Improve Export Management Performance , Most Common Mistakes New Exporters , Conclusion ,

WHAT IS INTERNATIONAL MARKETING?

International marketing is the multinational process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives

Forms of international marketing include export–import trade, licensing, joint ventures, wholly owned subsidiaries, turnkey operations, and management contracts

SPECIAL PROBLEMS IN INTERNATIONAL MARKETING

Political and legal Differences , Cultural Differences, Economic Differences , Differences in Currency Unit, Differences in the marketing infrasturacture

, Trade Restrictions High Costs of Distance , Diffences in Trade Practices ,

WHY FIRMS GO INTERNATIONAL

Proactive Stimuli Profit advantage Unique products Technological

advantages Exclusive

information Economies of scale Market size

Reactive Stimuli Competitive

pressures Overproduction Stable or declining

domestic sales Excess capacity Saturated domestic

markets

BENEFİTS OF INTERNATIONAL MARKETING

Survival and Growth Sales and Profits Diversification Inflation and Price Moderation Employment Standards of Living Understanding of Marketing Process

Uncontralble Marketing Environment Made Up Of ( SLEPT )

Social Legal Economy Political Technological

CULTURAL DIFFERENCES General Motor whose brand name “Nova “ was

unsuccesful in Spain.(Nova in Spanish means NO GO)

Coca –Cola enormuos problems in China as Coca –Cola souded like Kooke Koule which translate into “ A thirsty mounthful of candle wax. They managed to find a new pronunciation. “ Kee Koou Keele “ which means “Joyful tastes and hapiness “

The number 7 is considered bad luck in Kenya and good luck in Czechoslovakia, and it has magical connotations in Benin. The number 10 is bad luck in Korea, and 4 means death in Japan.

Red is a positive color in Denmark, but it represents witchcraft and death in many African countries.

A nod means no in Bulgaria, and shaking the head from side to side means yes.

The "okay" sign commonly used in the United States and the United Kingdom (thumb and index finger forming a circle and the other fingers raised) means zero in France, is a symbol for money in Japan, and carries a vulgar connotation in Brazil.

INTERNATIONAL MARKETİNG İNVOLVES ;

Focusing the needs and wants of customers

Identifiying the best method of satisfying those needs and wants.

Orienting the company towards process of providing that satisfaction

Meeting organizational objectives.

THE GLOBAL ECONOMY

THE IMPORTANCE OF WORLD TRADE AGGREMENTS

Trading blocs encourage trade relations between their members through rules and standards, and also affect the trade and investment flows of nonmember countries.

Trading blocs include the European Union in Europe, NAFTA in North America, Mercosur in Latin America, and ASEAN in Asia.

MAJOR REGIONAL TRADE AGREEMENTS

MAJOR REGIONAL TRADE AGREEMENTS

CHARACTERISTICS OF BEHAVİOUR ATTIDUTES

Definition by Behavior- ethnocentricity- polycentricity- geocentricity

BEHAVIOR/ ATTITUDE

Ethnocentricity - orientation toward home country - centralization of decision making - efficient but not effective

BEHAVIOR/ ATTITUDE

Polycentricity - strong orientation to host country- decentralization of decision making- effective but not efficient

BEHAVIOR/ ATTITUDE

Geocentricity - world orientation - centralization + decentralization +

coordination- efficient and effective

WHY EXPORT?

Exporting is a way to increase market size and profits increasing thanks to lower trade barriers under the

WTO and regional economic agreements such as the EU and NAFTA

Large firms often proactively seek new export opportunities, but many smaller firms export reactively often intimidated by the complexities of exporting

Exporting firms need to identify market opportunities deal with foreign exchange risk navigate import and export financing understand the challenges of doing business in a

foreign market

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WHAT IS EXPORT MANAGEMENT

In simple terms, export management is the application of managerial process to the functional area of exports. It is a form of management which is required to bring about coordination and integration of all those involved in an export business The main objectives of export management (i) secure export orders and (ii) to ensure timely shipment of goods as per prescribed norms of quality and other specifications including terms and conditions agreed to between the export and the importer.

WHY EXPORT MANAGEMENT

Reasons to export To serve markets

where the firm has no

production facilities.

the local plant does not produce the firm’s complete product mix

To satisfy a host government’s requirement that the local subsidiary export

To remain competitive in the home market

To test foreign markets and foreign competition inexpensively

To meet actual or prospective customers’ requests for the firm to export

To offset cyclical sales of the domestic market

HOW CAN FIRMS IMPROVE EXPORT MANAGEMENT PERFORMANCE?

Many firms are unaware of export opportunities available

Firms need to collect information Firms can get direct assistance from

some countries and/or use an export management companies both Germany and Japan have developed

extensive institutional structures for promoting exports

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MOST COMMON MISTAKES FOR NEW EXPORTERS

Failure to develop an international marketing plan

Insufficient commitment by top management

Insufficient care in selecting overseas distributors

Chasing orders from around the world

Neglecting export business when the home market booms

Failure to treat international distributors on an equal basis with domestic

Assuming automatic success

Unwillingness to modify products

Failure to print service, sale and warranty messages in local language

Failure to consider use of an export management company

Failure to consider licensing or joint venture

Failure to provide readily available service for the product

HOW DOES AN INTERNATIONAL TRADE AND EXPORT MANAGEMENT TRANSACTION WORK?

A Typical International Trade Export Transaction

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CONCLUSION

The benefits of international marketing are considerable.Trade moderates inflation and improves both employment and the standard of living, while providing a better understanding of the marketing process at home and abroad. For many companies,survival or the ability to diversify depends on the growth, sales, and profits from abroad. The more commitment a company makes to overseas markets in terms of personnel, sales, and resources, the more likely it is that it will become a multinational corporation. This is especially true when the management is geocentric rather than ethnocentric or polycentric. Since many view MNCs with envy and suspicion, the role of MNCs in society, their benefits as well as their abuses will continue to be debated. The marketing principles may be fixed, but a company’s marketing mix in the international context is not