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International
Marketing
An Introduction
What is International
Marketing??
The performance of business
activities that direct the flow of
company’s goods and services
to consumers or users in more
than one nation for a profit
(Cateord and Graham, 2004).
• Marketing activities take
place in more than one
country.
• Complexity and diversity
can be found in
International Marketing
Operations
Deals with controllable
and uncontrollable
elements.
Domestic vs. International
Marketing
Domestic
Smaller arena
Specified needs
Low stakes/risks
One familiar market
Deals with one
uncontrollable
elements
International
Bigger arena
More Complex
needs
Higher stakes/risks
Diverse and
unfamiliar markets
Deals with two
uncontrollable
elements
Differences Between Domestic
and International Marketing
Consumer
Purchasing Power
Product and Packaging
Currency
Payment Terms
Physical Distribution
Language
Communication
Phases of
International
Marketing
1. Domestic
Exporter
- Operates exclusively within a single country
2. Regional Exporter
- Operates w/in a geographically defined region
3. Exporter
- Finished goods distributed outside home region
4. International Exporter
- Both finished goods and intermediate products are
exported outside home region.
5. International to Global Exporter
-Runs independently and mainly self-sufficient
subsidiaries in a range of countries.
6. Global Exporter
-Highly decentralized organization operating
across a broad range of countries.
Five Distinct but Overlapping
Phases of Int’l.Mktg.
No DirectMarketing
Infrequent ForeignMarketing
Regular ForeignMarketing
InternationalMarketing
GlobalMarketing
Reasons Why
Companies
Venture into
International
Marketing
Internal Reasons
To utilize the firm’s excess capacity
To take advantage of higherpurchasing
power in overseas markets
To take advantage of the government’s
export promotion drive
To find other markets as the firm’s product
experiences a decline in sales in the home
market
Internal Reasons
To find other markets as stiffcompetition in
the domestic or home market has
reduced the firm’ssales
To diversify the firm’s power base in
different geographic locations
External Reasons
To take advantage of tax incentives and
promotional packages offered by certain
countries to foreign investors
To take advantage of low labor andraw
material costs in foreign countries
To take advantage of access tonew
technologies in foreign countries
To take advantage of the government’s
import promotion drive
Factors
Influencing
International
Marketing
Controllable Factors
Product
Price
Promotion
Place
Physicaldistribution
Presentation
Uncontrollable Factors for
Domestic
Competition
PoliticalForces
EconomicSituation
Uncontrollable Factors For
International Marketing
Culturalforces
Distribution
Geography andinfrastructure
Level oftechnology
Economicforces
Politicalforces
competition
Entry Modes in
International
Marketing
There are different modes by
which a company can enter
foreign markets. These are
franchising, licensing,
manufacturing, management
contracts and exporting
Franchising
This method of distributing products and
services is ideal for people who want to
expand their business but do not want to
manage it themselves.
Licensing
Entails only a part of a wholefranchising
aspect.
A licensee may only getthe
patent, trademark or the manufacturing
know-how of the company
Licensee has to pay royalties duethe
parent company
Manufacturing
Lumped into several categories, certain
companies are mostly concerned with the
manufacture of products. They serve as
satellites or extensions
It may form intofollowing:
Assembly plant
Contract Manufacturing
Joint Venture Wholly
owned plant
Management Contracts
Production is irrelevant to the mother
companies
Merely supply management know-how to a
foreign company that is willing to supply the
capital to them.
Exporting
Refers to the marketing of goods and
services produced in one country into
another country.
Allows a company to enter foreign
markets with a minimum change in
product lines, company organizations,
investment or company mission.
Thank You For

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