International Marketing International Marketing & Export Management Serhat KAKI Marketing 113000116051
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 ,
International marketing is the multinational process of planning andexecuting the conception, pricing, promotion and distribution of ideas,goods, and services to create exchanges that satisfy individual andorganizational objectivesForms of international marketing include export–import trade,licensing, joint ventures, wholly owned subsidiaries, turnkeyoperations, and management contracts
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 ,
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
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.
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.
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.
Definition by Behavior- ethnocentricity- polycentricity- geocentricity
Ethnocentricity- orientation toward home country- centralization of decision making- efficient but not effective
Polycentricity- strong orientation to host country- decentralization of decision making- effective but not efficient
Geocentricity- world orientation- centralization + decentralization + coordination- efficient and effective
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 15-18
In simple terms, export management is the application of managerialprocess to the functional area of exports. It is a form of managementwhich is required to bring about coordination and integration of allthose involved in an export businessThe main objectives of export management (i) secure export ordersand (ii) to ensure timely shipment of goods as per prescribed norms ofquality and other specifications including terms and conditions agreedto between the export and the importer.
Reasons to export To remain competitive in To serve markets where the home market the firm has no To test foreign markets and production facilities. foreign competition the local plant does not inexpensively produce the firm’s To meet actual or complete product mix prospective customers’ To satisfy a host requests for the firm to government’s export requirement that the To offset cyclical sales of local subsidiary export the domestic market
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 15-21
Failure to develop an Assuming automatic success international marketing plan Unwillingness to modify Insufficient commitment by products top management Failure to print service, sale Insufficient care in selecting and warranty messages in overseas distributors local language Chasing orders from around Failure to consider use of an the world export management company Neglecting export business Failure to consider licensing when the home market booms or joint venture Failure to treat international Failure to provide readily distributors on an equal basis available service for the with domestic product
A Typical International Trade Export Transaction 15-23
The benefits of international marketing areconsiderable.Trade moderates inflation and improves both employmentand the standard of living, while providing a better understanding ofthe marketing process at home and abroad. For manycompanies,survival or the ability to diversify depends on the growth,sales, and profits from abroad. The more commitment a companymakes 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 thanethnocentric or polycentric. Since many view MNCs with envy andsuspicion, the role of MNCs in society, their benefits as well as theirabuses will continue to be debated. The marketing principles may befixed, but a company’s marketing mix in the international context isnot