DEFINITION<br />International marketing refers to the process of identifying the goods and services that customers outside the home country want and then providing them at the right price and the right place<br />
Benefits <br />Survival <br />Growth of overseas market<br />Sales and profit <br />Diversification<br />Inflation and price moderation<br />Standard of living <br />
Select marketing mix to suit foreign market.</li></li></ul><li>Triggers of Internationalization<br />Domestic Market Saturation<br />Trade Deficit<br />Foreign Competition<br />New Market Opportunities<br />Economies of Scale<br />Others<br />
MARKET SEGMENTATION<br /><ul><li>The process of identifying groups of consumers whose purchasing behavior is unique in important ways</li></ul>Is based on demography, geography, social-cultural factors, psychological factors<br />Allows firms to adjust marketing mix to meet the needs of separate market segments<br /><ul><li>Marketing mix variables: product-price-place (distribution)-promotion</li></li></ul><li>Market Segmentation Across National Markets<br /><ul><li>Standardization: companies may</li></ul>Offer same products <br />Adjust balance of marketing mix to market segments with similar needs across countries<br /><ul><li>Adaptation: companies may</li></ul>Offer different products<br />Adjust balance of marketing mix to market segments with differing needs across countries <br />
MAJOR ACTIVITIES IN INTERNATIONAL MARKETING<br />
INTERNATIONAL MARKET ASSESSMENT<br />Assess alternative foreign markets<br />Evaluate the respective costs, benefits and risks of entering each market<br />Select those that hold the most potential for entry or expansion<br />
International Marketing Mix: Product<br /><ul><li>Product: a bundle of attributes</li></ul>Hamburger: meat type, taste, texture, size<br />Automobile: power, design, quality, performance, comfort, size/capacity<br /><ul><li>Attributes need to be adapted to a greater or lesser extent to satisfy</li></ul>Consumer preferences/tastes due to culture<br />Economic development levels affect consumer behavior<br />National product/technical standards state mandated<br />
International Marketing Mix: Place<br /><ul><li>Optimal channel a company chooses to deliver the product
The most locally responsive element of marketing mix because distribution channels vary dramatically across countries</li></ul>Retail system: concentrated-fragmented<br />Channel length: long, short<br />Channel exclusivity<br />
International Marketing Mix: Promotion<br /><ul><li>How firm communicates the product attributes / benefits to customers
Barriers to international communication</li></ul>Cultural barriers<br />Source effects (country of origin effects)<br />Noise levels<br /><ul><li>Standardized advertising strategy possible; standardized advertising strategy execution more difficult (culture, laws)</li></li></ul><li>International Marketing Mix: Promotion<br /><ul><li>Push vs pull strategies</li></ul>Push strategy: personal selling emphasis<br />Industrial products; complex new products<br />Short distribution channels<br />Few print or electronic media<br />Pull strategy: mass media advertising emphasis<br />Consumer goods<br />Long distribution channels<br />Marketing message may be carried via print / electronic media<br />
Promotion issue and policies<br /><ul><li>Cultural differences.
Political and legal factors.</li></li></ul><li>International Marketing Mix: Price <br /><ul><li>Price discrimination: demand elasticity
Strategic pricing</li></ul>Predatory (quick share-of-market focus): <br />lower prices to drive competitors out, then raise prices<br />Multipoint pricing: <br />pricing in one market may have an impact in another market; subsidize low pricing in one market from profits in another<br />Experience curve: <br />use aggressive pricing to build volume and move firm down experience curve (lower marginal costs)<br /><ul><li>Regulatory issues: </li></ul>antidumping, monopoly restriction<br />
Dumping<br /><ul><li>WTO: Sale of an imported product at ‘less than fair value’ and causes ‘material injury to a domestic industry’.
US: An unfair trade practice that results in injury, destruction, or the prevention of the establishment of an American industry.
US considers dumping when price is >5% below home market price or,
Price is below cost of production</li></li></ul><li>TYPES OF DUMPING <br />Sporadic<br />Predatory<br />Persistent<br />Reverse<br />