AN INTRODUCTION TO INTERNATIONAL MARKETING Session 1
WHAT IS MARKETING? <ul><li>Marketing Involves: </li></ul><ul><ul><li>Focusing on the needs and wants of customers </li></u...
WHAT IS INTERNATIONAL  MARKETING? <ul><li>Different Levels of International Marketing </li></ul><ul><ul><li>Export marketi...
ENVIRONMENTAL INFLUENCES ON INTERNATIONAL MARKETING Socio/Cultural Language Religion Aesthetics Values and attributes Soci...
SOCIAL / CULTURAL INFLUENCES <ul><li>Coca-Cola: </li></ul><ul><ul><li>2 Litre bottles too big for Spanish fridges </li></u...
SOCIAL INFLUENCES <ul><li>Emergence of a global village in which there  “..will be a nationless state marked by the conver...
WORLD’S MEGA CITIES <ul><li>By 2010, 50% of people will live in urban areas </li></ul><ul><li>By 2015, the top 5 largest c...
ENVIRONMENTAL INFLUENCES ON INTERNATIONAL MARKETING Environmental Influences on  International Marketing Legal Local domes...
THE LEGAL ENVIRONMENT <ul><li>3 dimensions in the legal environment: </li></ul><ul><ul><li>local domestic law: </li></ul><...
ECONOMIC ENVIRONMENT <ul><li>Developed  triad Economies </li></ul><ul><ul><li>account for 80% of world trade </li></ul></u...
WORKING TIME REQUIRED TO BUY A BIG MAC
ENVIRONMENTAL INFLUENCES ON INTERNATIONAL MARKETING Political Operational restrictions Discriminatory restrictions Physica...
POLITICAL ENVIRONMENT <ul><li>‘ A risk due to a sudden or gradual change in a local political environment that is disadvan...
TECHNOLOGICAL CONSIDERATIONS <ul><li>Impact of technological advances: </li></ul><ul><ul><li>Ability to gather data on mar...
GLOBAL COMMUNICATIONS..... <ul><li>Globally e-business; </li></ul><ul><ul><li>US $10 trillion (nearly all B2B) </li></ul><...
DIVERSITY OF STAKHOLDER INTEREST
THE CHALLENGES OF THE INTERNATIONAL MARKETING ENVIRONMENT #1 <ul><li>Culture </li></ul><ul><ul><li>Often diverse and multi...
THE CHALLENGES OF THE INTERNATIONAL MARKETING ENVIRONMENT #2 <ul><li>Governments </li></ul><ul><ul><li>Can be a strong inf...
THE CHALLENGES OF THE INTERNATIONAL MARKETING ENVIRONMENT #3 <ul><li>Stakeholders </li></ul><ul><ul><li>Commercial, home c...
INTERNATIONAL MARKETING STRATEGIES Success and Failure <ul><li>Failure arises from: </li></ul><ul><ul><li>inability to fin...
THE INTERNATIONAL MARKETING STRATEGY PROCESS
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Ch1

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Ch1

  1. 1. AN INTRODUCTION TO INTERNATIONAL MARKETING Session 1
  2. 2. WHAT IS MARKETING? <ul><li>Marketing Involves: </li></ul><ul><ul><li>Focusing on the needs and wants of customers </li></ul></ul><ul><ul><li>Identifying the best method of satisfying those needs and wants </li></ul></ul><ul><ul><li>Orienting the company towards the process of providing that satisfaction </li></ul></ul><ul><ul><li>Meeting organisational objectives </li></ul></ul>
  3. 3. WHAT IS INTERNATIONAL MARKETING? <ul><li>Different Levels of International Marketing </li></ul><ul><ul><li>Export marketing </li></ul></ul><ul><ul><li>International marketing </li></ul></ul><ul><ul><li>Global marketing </li></ul></ul>
  4. 4. ENVIRONMENTAL INFLUENCES ON INTERNATIONAL MARKETING Socio/Cultural Language Religion Aesthetics Values and attributes Social organisation Material culture Political Operational restrictions Discriminatory restrictions Physical actions Environmental Influences on International Marketing Legal Local domestic laws International law Home domestic law Technological Satellite Communications ISDN Internet WWW The Electronic Superhighway Economic Developed economies Emerging economies Less developed economies Currency movements
  5. 5. SOCIAL / CULTURAL INFLUENCES <ul><li>Coca-Cola: </li></ul><ul><ul><li>2 Litre bottles too big for Spanish fridges </li></ul></ul><ul><ul><li>Pronunciation in China – Kooke Koula </li></ul></ul><ul><ul><ul><li>‘ A thirsty mouthful of candle wax’ </li></ul></ul></ul><ul><li>Pepsi-Cola: </li></ul><ul><ul><li>“ Come Alive with Pepsi” in German translated to: </li></ul></ul><ul><ul><ul><li>“ Come alive out of the Grave … “ </li></ul></ul></ul><ul><li>McDonald’s: </li></ul><ul><ul><li>The white face of ‘Ronald McDonald’ </li></ul></ul><ul><ul><ul><li>A white face is seen as a death mask in Japan </li></ul></ul></ul>
  6. 6. SOCIAL INFLUENCES <ul><li>Emergence of a global village in which there “..will be a nationless state marked by the convergence of consumer needs that transcends political and cultural boundaries&quot; Omahe; 2005 </li></ul><ul><ul><li>80% world population currently live in developing countries </li></ul></ul><ul><ul><li>By 2025, 85% population will live in emerging markets </li></ul></ul><ul><ul><li>2 out of every 5 people currently live in China and India </li></ul></ul><ul><ul><li>In the next 50 years, the African population will treble </li></ul></ul>
  7. 7. WORLD’S MEGA CITIES <ul><li>By 2010, 50% of people will live in urban areas </li></ul><ul><li>By 2015, the top 5 largest cities will be: </li></ul><ul><ul><ul><li>Tokyo - Japan 26.4 million </li></ul></ul></ul><ul><ul><ul><li>Mumbai - India 26.1 million </li></ul></ul></ul><ul><ul><ul><li>Lagos - Nigeria 23.2 million </li></ul></ul></ul><ul><ul><ul><li>Dhaka - Bangladesh 21.1 million </li></ul></ul></ul><ul><ul><ul><li>San Paulo - Brazil 20.4 million </li></ul></ul></ul>Source: United Nations
  8. 8. ENVIRONMENTAL INFLUENCES ON INTERNATIONAL MARKETING Environmental Influences on International Marketing Legal Local domestic laws International law Home domestic law Economic Developed economies Emerging economies Less developed economies Currency movements
  9. 9. THE LEGAL ENVIRONMENT <ul><li>3 dimensions in the legal environment: </li></ul><ul><ul><li>local domestic law: </li></ul></ul><ul><ul><ul><li>different in every country </li></ul></ul></ul><ul><ul><li>international law: </li></ul></ul><ul><ul><ul><li>issues include piracy, treaties, patents etc </li></ul></ul></ul><ul><ul><li>domestic laws in the home country: </li></ul></ul><ul><ul><ul><li>export controls, plus duty to abide by national laws in all activities </li></ul></ul></ul>
  10. 10. ECONOMIC ENVIRONMENT <ul><li>Developed triad Economies </li></ul><ul><ul><li>account for 80% of world trade </li></ul></ul><ul><li>Emerging Economies </li></ul><ul><ul><li>huge and growing consumer demand </li></ul></ul><ul><ul><li>government directed economic reforms </li></ul></ul><ul><ul><li>‘ dual economy’ </li></ul></ul><ul><li>Less Developed Countries (LDCs) </li></ul><ul><ul><li>low GDP, limited manufacturing base </li></ul></ul><ul><ul><li>infrastructure weaknesses </li></ul></ul><ul><ul><li>heavy reliance on one product/one trading partner </li></ul></ul>
  11. 11. WORKING TIME REQUIRED TO BUY A BIG MAC
  12. 12. ENVIRONMENTAL INFLUENCES ON INTERNATIONAL MARKETING Political Operational restrictions Discriminatory restrictions Physical actions Environmental Influences on International Marketing Technological Satellite Communications ISDN Internet WWW The Electronic Superhighway
  13. 13. POLITICAL ENVIRONMENT <ul><li>‘ A risk due to a sudden or gradual change in a local political environment that is disadvantageous or counter productive to foreign firms and markets’ </li></ul><ul><li>Government actions which may constitute potential risk for the firm: </li></ul><ul><ul><li>Operational restrictions eg. exchange controls or employment policies </li></ul></ul><ul><ul><li>Discriminatory restrictions eg. special taxes and tariffs </li></ul></ul><ul><ul><li>Physical actions eg nationalisation, riots and war </li></ul></ul>
  14. 14. TECHNOLOGICAL CONSIDERATIONS <ul><li>Impact of technological advances: </li></ul><ul><ul><li>Ability to gather data on markets </li></ul></ul><ul><ul><li>Management control capabilities </li></ul></ul><ul><ul><li>Operational practicalities of electronic communication </li></ul></ul><ul><li>Global access to the World Wide Web </li></ul><ul><ul><li>Est. 1.2 billion users in 2007 </li></ul></ul><ul><ul><li>17% of global population </li></ul></ul><ul><li>Importance of English language for web users </li></ul>
  15. 15. GLOBAL COMMUNICATIONS..... <ul><li>Globally e-business; </li></ul><ul><ul><li>US $10 trillion (nearly all B2B) </li></ul></ul><ul><li>HOWEVER..... </li></ul><ul><ul><li>Some countries have been bypassed by the global electronic highway </li></ul></ul><ul><ul><li>Only 10% have direct access to a pc </li></ul></ul><ul><ul><li>Only 7% have direct internet access </li></ul></ul>
  16. 16. DIVERSITY OF STAKHOLDER INTEREST
  17. 17. THE CHALLENGES OF THE INTERNATIONAL MARKETING ENVIRONMENT #1 <ul><li>Culture </li></ul><ul><ul><li>Often diverse and multicultural </li></ul></ul><ul><li>Markets </li></ul><ul><ul><li>Widespread and sometimes fragmented </li></ul></ul><ul><li>Data </li></ul><ul><ul><li>Difficult to obtain and sometimes expensive </li></ul></ul><ul><li>Politics </li></ul><ul><ul><li>Regimes vary in stability, political risk becomes an important variable </li></ul></ul>
  18. 18. THE CHALLENGES OF THE INTERNATIONAL MARKETING ENVIRONMENT #2 <ul><li>Governments </li></ul><ul><ul><li>Can be a strong influence in regulating importers and foreign business ventures </li></ul></ul><ul><li>Economies </li></ul><ul><ul><li>Varying levels of development </li></ul></ul><ul><li>Finance </li></ul><ul><ul><li>Many differing finance systems and regulatory bodies </li></ul></ul>
  19. 19. THE CHALLENGES OF THE INTERNATIONAL MARKETING ENVIRONMENT #3 <ul><li>Stakeholders </li></ul><ul><ul><li>Commercial, home country and host country </li></ul></ul><ul><li>Business </li></ul><ul><ul><li>Diverse rules, culturally influenced </li></ul></ul><ul><li>Control </li></ul><ul><ul><li>Difficult to control and co-ordinate across markets </li></ul></ul>
  20. 20. INTERNATIONAL MARKETING STRATEGIES Success and Failure <ul><li>Failure arises from: </li></ul><ul><ul><li>inability to find right market niche </li></ul></ul><ul><ul><li>unwilling to adapt products </li></ul></ul><ul><ul><li>products not perceived as sufficiently unique </li></ul></ul><ul><ul><li>vacillating commitment </li></ul></ul><ul><ul><li>assigning the wrong people </li></ul></ul><ul><ul><li>picking the wrong partners </li></ul></ul><ul><ul><li>inability to manage local stakeholders </li></ul></ul><ul><ul><li>mutual distrust/lack of respect between HQ & management </li></ul></ul><ul><ul><li>inability to leverage ideas to all countries </li></ul></ul>
  21. 21. THE INTERNATIONAL MARKETING STRATEGY PROCESS

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