Comercio Internacional

1. Drivers and obstacles in International
Marketing
Copyright Atomic DDoogg PPuubblliisshhiinngg,, 2008

2. Levels of International Marketing
Involvement
Domestic
Marketing
Copyright Atomic DDoogg PPuubblliisshhiinngg,, 2008
Export
Marketing
International
Marketing
Global
Marketing
• Low or no
international
commitment
• Domestic focus
• Limited
international
commitment
• Direct or indirect
exporting
• Substantial
international
commitment
• Focus on
countries or
regions
• Extensive
international
commitment
• Focus on
market segments
rather than
countries or
regions

3. International Expansion: Drivers in
the Business Environment
• The primary drivers in the business
environment are:
 Competition
 Regional Economic and Political Integration
 Technology
 Improvements in Transportation and
Telecommunication
 Economic Growth
 Transition to a Market Economy
 Converging Consumer Needs
Copyright Atomic DDoogg PPuubblliisshhiinngg,, 2008

4. Drivers in the Business Environment
(contd.)
Competition
• Competitive pressure from international
companies will force the company to expand
to new markets, even less profitable ones.
 Example: McCann Erickson, the advertising
agency, followed longtime client, Coca Cola, Inc., to
all countries where Coke was present – until
recently.
Copyright Atomic DDoogg PPuubblliisshhiinngg,, 2008

5. Drivers in the Business Environment
(contd.)
Regional Economic and Political Integration
• Integration facilitates international trade for
companies in member countries, and for companies
from countries outside of the area.
• Example: Regional agreements such as NAFTA,
MERCOSUR, and the European Union lower and
eliminate barriers and promote trade within these markets.
Subsidiaries can be established in these markets to take
advantage of free trade within the region.
• Practice: look these terms up
• NAFTA
• MERCOSUR
Copyright Atomic DDoogg PPuubblliisshhiinngg,, 2008

6. Drivers in the Business Environment
(contd.)
Technology
• Media development: consumers worldwide are exposed
to similar products, services, and entertainment, and
marketing communications.
• The Internet offers small and medium enterprises in
both high- and low-income countries unlimited
international exposure.
• Technology offers a broad reach to these businesses
whose advertising budget cannot cover the high cost of
international broadcast and print advertising.
Copyright Atomic DDoogg PPuubblliisshhiinngg,, 2008

7. Drivers in the Business Environment
(contd.)
Transportation and Telecommunications
• Lower cost and higher quality communication due to
satellite technology, teleconferencing, and e-mail.
• The introduction of containers in intermodal
transportation and electronic communication between
suppliers and customers greatly facilitates the
transportation of physical goods.
Copyright Atomic DDoogg PPuubblliisshhiinngg,, 2008
Container ship in the port of
Rotterdam

8. Drivers in the Business Environment
(contd.)
Economic Growth
• Economic growth created markets of high potential
for international brands, while also opening
previously closed markets.
 Emerging middle class with increasing buying power in big
emerging markets such as those of Brazil and India.
 Opening of new markets that were previously closed, such
as those of China and Vietnam, and those of the former
Eastern Bloc.
Copyright Atomic DDoogg PPuubblliisshhiinngg,, 2008

9. Drivers in the Business Environment
(contd.)
Transition to a Market Economy
• Transition to a market economy created
important new markets and opportunities to
transform inefficient government-owned
companies into successful enterprises.
• Poland, the Czech Republic, Slovakia, Slovenia,
Hungary, Romania, and Bulgaria are members of the
European Union.
• Slovenia is already a member of the European
Monetary Union.
• China and Vietnam are opening doors to
multinationals.
Copyright Atomic DDoogg PPuubblliisshhiinngg,, 2008

10. Drivers in the Business Environment
(contd.)
Converging Consumer Needs
• Consumers’ exposure (through media, travel)
to global brands created
• demand for global products
• worldwide loyalty to international brands.
• The emergence of uniform consumer segments
facilitates marketing strategies worldwide.
• Examples of consumer segments worldwide:
• global teenagers
• global elite
Copyright Atomic DDoogg PPuubblliisshhiinngg,, 2008

11. Firm-Specific Drivers (contd.)
Experience Transfers
Companies benefit from lessons they learn in
different parts of the world and transfer their
knowledge to other markets they serve.
.
Copyright Atomic DDoogg PPuubblliisshhiinngg,, 2008

12. Obstacles to Internationalization
• The primary obstacles to internationalization are:
• the self-reference criterion
• government barriers
• competitive barriers.
Copyright Atomic DDoogg PPuubblliisshhiinngg,, 2008

13. Obstacles to Internationalization
•Self-reference Criterion
 Conscious and unconscious reference to own national
culture and home-country norms while operating in
the host country, which can prevent firms from
adapting to local business environments and serving
the needs of local consumers.
 Practice: find examples of companies who
experienced the self-reference criterion
 To counter the impact of the self-reference criterion,
the corporation must:
- Select adaptable personnel for international assignments.
- Sensitize expatriates to the local culture.
Copyright Atomic DDoogg PPuubblliisshhiinngg,, 2008

14. Obstacles to Internationalization
(contd.)
• Government Barriers
 Restrictions placed on international corporations
by imposing:
- Tariffs
- Import quotas
- Other limitations, such as restrictive import license
awards.
Copyright Atomic DDoogg PPuubblliisshhiinngg,, 2008

15. Obstacles to Internationalization
(contd.)
• Barriers Imposed by International Competition
 Among the competitive barriers international
companies commonly encounter are:
- Blocked channels of distribution
- Exclusive retailer agreements
- Price cutting
- Advertising blitzes
Copyright Atomic DDoogg PPuubblliisshhiinngg,, 2008