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Introduction toInternational Marketing
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'International marketing (IM) or global marketing refers to
marketing carried out by companies overseas or across
national borderlines.
According to the American Marketing Association (AMA)"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 organizationalobjectives."
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DIFFERENCES BETWEENDOMESTIC MARKETING
AND INTERNATIONAL MARKETING
There are various differences between domestic marketing
and international marketing. Due to a language barrier
it is more difficult to obtain and interpret research
data in international marketing.
Promotional messages needs to consider numerous
cultural differences between different countries.
This includes the differences in languages, expressions,
habits, gestures, ideologies and more
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CULTURAL DIFFERENCES
When Nike learned
that this stylized Air
logo resembled Allah
in Arabic script, it
apologized and pulled
the shoes fromdistribution.
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Coke gets it wrong
The name Coca-Cola in China was first rendered as Ke-kou-ke-la.
Unfortunately, the Coke company did not discover until after thousands
of signs had been printed that the phrase means bite the wax tadpole
or female horse stuffed with wax depending on the dialect.
Coke storyCoke then researched 40,000 Chinese characters and found a close
phonetic equivalent ko-kou-ko-le, which can be loosely translated as
happiness in the mouth.
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P
epsi and KFCIn Taiwan, the translation of the Pepsi slogan
Come alive with the Pepsi Generation came
out as Pepsi will bring your ancestors backfrom the dead.
Also in Chinese, the Kentucky Fried Chickenslogan finger-lickin good came out as eat
your fingers off.
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International Marketing DecisionsInternational Marketing Decisions
Looking at theglobal environment
Deciding whetherto go international
Deciding which
markets to enter
Deciding how to enterthe markets
Deciding the globalmarketing program
Deciding on the globalmarketing organization
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LOOKING AT THE GLOBAL
MARKETING ENVIRONMENT
The International Trade System
Tariffs, quotas, exchange controls, nontarifftrade barriers
World Trade Organization and GATT
Regional free trade zones
European Union
North American Free Trade Agreement
Other free trade areas
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LOOKING AT THE GLOBAL
MARKETING ENVIRONMENT
Economic Environment
Industrial structure
Subsistence economies
Raw material exporting economies
Industrializing economies
Industrial economiesIncome distribution
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LOOKING AT THE GLOBAL
MARKETING ENVIRONMENT
Political-Legal Environment
Attitudes toward international buyingGovernment bureaucracy
Political stability
Monetary regulations
Countertrade: barter, compensation,counter purchase
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LOOKING AT THE GLOBAL
MARKETING ENVIRONMENT
Cultural Environment
Impact of Culture on Marketing Strategy
Cultural traditions, preferences, behavior
Impact of Marketing Strategy on Cultures
Globalization vs. Americanization
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DECIDING WHETHER TO
GO INTERNATIONAL
Not all companies need an international presence Globalization may triggered by several factors
Risk and the ability to operate globally must be
carefully assessed
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DECIDING WHICH
MARKETS TO ENTER
Define international marketing polices andobjectives, and sales volume goals
Decide how many countries to target
Decide on the types of countries to enter
Screen and rank each of the possible international
markets using several criteriaMarket size, market growth, cost of doing business,competitive advantage, risk level
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DECIDING HOW
TO ENTER THE MARKET
Exporting
Direct vs. indirect
Joint Venturing
Licensing, contract manufacturing, managementcontracting, joint ownership
Direct Investment
Assembly facilities, manufacturing facilities
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DECIDING ON THE GLOBAL
MARKETING PROGRAM
Standardized Marketing Mix
Same basic product, advertising, distribution,
and other elements of the marketing mix are
used in all international markets.
Adapted Marketing MixThe marketing mix elements are adjusted for
each international target market.
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Product Strategies for the Global Market
Straight product expansionMarketing the product with no changes
Product adaptation
Altering the product to meet local conditions or
the wants of the foreign marketProduct invention
Creating new products or services for foreignmarkets
DECIDING ON THE GLOBAL
MARKETING PROGRAM
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DECIDING ON THE GLOBAL
MARKETING PROGRAM
Global Promotion Strategies
Standardized global communication
Advertising themes are standardized from
country to country with slight modifications
Communication adaptation
Advertising messages are fully adapted to
local markets
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Global Pricing Strategies
Companies face many problemsPrice escalation
Pricing to foreign subsidiaries
R
ecent economic and technological forcesThe Internet
DECIDING ON THE GLOBAL
MARKETING PROGRAM
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Global Distribution Channels
Whole-channel view
Sellers headquarters organization
Channels between nations
Channels within nations
Numbers and types of intermediaries
DECIDING ON THE GLOBAL
MARKETING PROGRAM
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DECIDING ON THE GLOBAL
MARKETINGORGANIZATION
Managing International Marketing Activities
Step 1: Organize export department
Step 2: Create an international division
Step 3: Become a global organization
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Thanks.
Subha Prasad Dwibedi
E-mail: [email protected] (M) +91-9749384155