International Marketing

1. INTERNATIONAL MARKETING
1 4 T H E D I T I O N
P H I L I P R. C A T E O R A
M A R Y C. G I L L Y
J O H N L . G R A H A M
The Scope and Challenge
of International Marketing
Chapter 1

2. GLOBAL BRANDS
Global Brands
Apple
Google
Microsoft
IBM
Walmart
Samsung
GE
Coca-Cola
Vodafone
Amazon.com

3. TOP 15 CITIES TO DO BUSINESS
1. Ahmedabad – India
2. Gurgao – India
3. Chengdu - china
4. Changquing –
china
5. Austin – US
6. Salt lake city – US
7. Vancouver –
8. Doha - Qatar
9. Melbourne
10.Bogota
11.San José
12.Santiago – Chile
13.Lagos – Nigeria
14.Warsaw – Poland
15.Stockholm - Sweden

4. WHAT IS INTERNATIONAL MARKETING?
International marketing is defined as the performance of
business activities designed to plan, price, promote, and
direct the flow of a company’s goods and services to
consumers or users in more than one nation for a profit
It is an approach of a company
with truly global outlook, seeking
its profit impartially around the
world, on a planned and
systematic basis.
Marketing
concepts,
processes, and
principles are
universally
applicable all
over the world

5.  According to American Marketing Association
(AMA) international marketing is the multi-
national process of planning and executing
the conception, prices, promotion, and
distribution of ideal goods and services to
create exchanges that satisfy the individual
and organizational objectives.

6. WHY GO INTERNATIONAL?
Domestic Market
constraint
Competition
Government Policies
Monopoly Power
Spin off benefits
Profit Motive

7. EVENTS AND TRENDS
AFFECTING GLOBAL BUSINESS
• The rapid growth of the World Trade
Organization and regional free trade areas
• The trend toward the acceptance of the free
market system among developing countries in
Latin America, Asia, and Eastern Europe
• The burgeoning impact of the Internet, mobile
phones, and other global media on the
dissolution of national borders
• The mandate to properly manage the
resources and global environment for the
generations to come

8. FOREIGN ACQUISITIONS
OF U.S. COMPANIES

9. SELECTED U.S. COMPANIES
AND THEIR INTERNATIONAL SALES

10.  “… globalization must be taken for granted.
There will be only one standard for corporate
success: international market share. The
winning corporations will win by finding
markets all over the world.”
 Jack Welch, CEO, GE (1994)

11. COMPETITIVE ADVANTAGE, GLOBALIZATION AND
GLOBAL INDUSTRIES
 When a company succeeds in creating more
value for customers than its competitors, that
company is said to enjoy competitive
advantage in an industry.
 Competitive advantage is measured relative
to rivals in a given industry.
 Global marketing is essential if a company
competes in a global industry or one that is
globalizing.
(Keegan and Green, 2013, p. 6)

12. GLOBALIZATION……..CONTD.
 The transformation of formerly local or national industries
into global ones is part of a broader process of globalization.
Which Thomas L. Friedman defines as…
 “Globalization is the inexorable integration of markets,
nation-states and technologies to a degree never witnessed
before—in a way that is enabling individuals, corporations
and nation-states to reach around the world farther, faster,
deeper and cheaper than ever before, and in a way that is
enabling the world to reach into individuals, corporations
and nation-states farther, faster, deeper, and cheaper than
ever before”.
 Thomas, L Friedman, The Lexus and the Olive Tree (New York: Anchor Books, 2000), P.9

13. GLOBALIZATION……..CONTD.
 From a marketing point of view, globalization presents
companies with tantalizing opportunities—and challenges—
as executives decide whether or not to offer their products
and services everywhere. At the same time, globalization
presents companies with unprecedented opportunities to
reconfigure themselves; as John Micklethwait and Adrian
Wooldridge put it, “the same global bazaar that allows
consumers to buy the best that the world can offer also
allows producers to find the best partners.”
John Micklethwait and Adrian Wooldridge, A Future Perfect: The Challenge and Hidden Promise of
Globalization (New York: Crown Publishers, 2000), p. xxvii

14. INTERNATIONAL MARKETING
 Performance of business activities designed
to
 Plan
 Price
 Promote, and
 Direct the flow of a company’s goods and
services to consumers or users in more than one
nation for a profit

15. THE INTERNATIONAL MARKETING TASK

16. ASPECTS OF THE DOMESTIC ENVIRONMENT
 Domestic Foreign Policy
 Economic Climate
 Competition

17.  Bangladesh continue following bans and restrictions on Israel.
1. Whenever any Letter of Credit (L/C) is established from a
Bangladeshi bank, there is a specific clause in the L/C document
stating, the good to be imported by Bangladesh) cannot be carried in
'Israeli flag' vessels.
2. Bangladesh Postal Service does not accept any letter or postal
materials bound Israel nor it delivers anything from Israel.
3. Bangladesh blocks telephone and fax communications with Israel.
4. Travel Ban: Bangladesh continues travel ban on Israel. In all
Bangladeshi passports, issued to civilians it is clearly written, "Valid
for all countries in the world, except Israel",
5. Trade Ban: Because of the mentioned point 1,2,3 and 4, there is
no business relations between Dhaka and Jerusalem.

18. Bangladesh, Taiwan joint business council soon
Ahmede Mainul Hussain- Reporting from Dhaka, Bangladesh
Dhaka, 29 September, [Asiantribune.com]: Bangladesh and
Taiwan will form a joint business council to increase investment and
boost co-operation in a technology transfer.
A Taiwanese business delegation will visit Bangladesh from
October 2 and is expected to sign a deal to form a joint business
body the next day.
'Taiwan is eager to invest in the Bangladeshi textile sector,' Awal
told the “Asian Tribune”.
‘However, the issue of conducting business with Taiwan is a thorny
one in the country. Dhaka allowed Taiwan to setup a business-
centre in the country, but later backed off when China threatened
the country with dire consequences. Amir Khasru Mahmud
Chowdhury, the then commerce minister resigned after the
government decided to cancel the permission.
- Asian Tribune -

19. The local entrepreneurs said Bangladesh is a competitive
investment hub since it has skilled, easily trainable and competitive
workforce and the cost of doing business in the country is lower
compared with many other countries in Asia.
Bangladesh is now exporting leather and leather goods to 53
countries that include China, Japan, Italy, Germany, Spain, the USA,
France, UK and others.
Publish : 31 May, 2015 00:00:00
Facilitate FDI in IT, leather, pharma
Businesses urge foreign diplomats
Financial EXpress Report

20. 81.16 per cent of the country's export come from RMG that
contributes more than 14 per cent to the country's gross domestic
product (GDP). Nearly 4.4 million people are now employed in the
sector, of which 80 per cent are female.
Managing Director (MD) of Incepta Pharmaceuticals Ltd Abdul
Muktadir said Bangladesh will export medicines to almost all the
countries within a few years given the quality and their competitive
prices.

21. Publish : 05 May, 2015 00:00:00
Entrepreneurs want to invest overseas
It must be ensured that govt does not lose money: Mashiur
FE Report
Leading businessmen and entrepreneurs at a meeting called on Monday
for allowing Bangladeshi entrepreneurs to invest abroad coming out
of its decade-old nervousness about overseas investment.
"Once investment allowed outside the country, the government will not
have any control over such investments. But it must be ensured that the
government does not lose money," said the adviser.
Entrepreneurs earlier argued that the country has a fairly modest foreign
currency reserve, which can meet seven months' import value. They said
unless used efficiently, such a reserve may lead to inflationary pressure
on the economy. They urged the government to allow private
entrepreneurs to go for international expansion using the large reserve.

22. DOMESTIC V/S INTERNATIONAL
SIMILARITIES DIFFERENCES
• Understan
ding
buyers
needs
• Building
Goodwill
• Research
Developme
nt
• Political Entities
• Legal systems
• Cultural differences
• Different monetary
systems
• Marketing infrastructure
• Trade Restrictions
• Procedures and
documentations
• Highly unpredictable

23. Environmental Adaptation Needed
Differences are in the uncontrollable environment of international
marketing
Adaptation is a conscious effort on the part of the international marketer to
anticipate the influences of both the foreign and domestic uncontrollable factors on
a marketing mix and then to adjust the marketing mix to minimize the effects.
Adaptation
(of Marketing Mix)
Standardization
(of Marketing Mix)
Continuum
INFLUENCED BY 7 ENVIRONMENTAL FACTORS
Firms must adapt to uncontrollable environment of international
marketing by adjusting the marketing mix (product, price,
promotion, and distribution)

24. THE SELF-REFERENCE CRITERION
AND ETHNOCENTRISM
 The key to successful international marketing
is adaptation to the environmental
differences from one market to another
 Primary obstacles to success in international
marketing
 SRC
 Associated ethnocentrism

25. SRC AND ETHNOCENTRISM
 SRC is an unconscious reference to
 One’s own cultural values, experiences, and knowledge
as a basis for decisions
 Dangers of the SRC
 Failing to recognize the need to take action
 Discounting the cultural differences that exist among
countries
 Reacting to a situation in an offensive to your hosts
 Ethnocentrism
 Notion that one’s own culture or company knows best

26. SRC AND ETHNOCENTRISM
 Ethnocentrism and the SRC can influence an
evaluation of the appropriateness of a
domestically designed marketing mix for a
foreign market
 The most effective way to control the
influence of ethnocentrism and the SRC is to
recognize their effects on our behavior

27. FRAMEWORK
FOR CROSS-CULTURAL ANALYSIS
1. Define business problem or goal
• Home-country vs. foreign-country cultural traits,
habits, or norms
• Consultation with natives of the target country
2. Make no value judgments
3. Isolate the SRC influence
• Examine it carefully to see how it complicates the
problem
4. Redefine the problem
• Without SRC influence
• Solve for the optimum business goal situation

28. DEVELOPING A GLOBAL AWARENESS
 Objectivity
 Tolerance of cultural differences:
 Understanding cultural differences and accepting
and working with others whose behavior may be
different from yours
 Knowledge of cultures, history, world market
potential, and global economic, social, and
political trends

29. APPROACHES TO GLOBAL AWARENESS
 Select individual managers specifically for
their demonstrated global awareness
 Develop personal relationships in other
countries
 Have a culturally diverse senior executive
staff or board of directors

30. STAGES OF INTERNATIONAL
MARKETING INVOLVEMENT
 No direct foreign marketing
 Infrequent foreign marketing
 Regular foreign marketing
 International marketing
 Global marketing

31. NO DIRECT FOREIGN MARKETING
 Products reach foreign markets indirectly
 Trading companies
 Foreign customers who contact firm
 Wholesalers
 Distributors
 Web sites
 Foreign orders pique a company’s interest to
seek additional international sales

32. INFREQUENT FOREIGN MARKETING
 Caused by temporary surpluses
 Variations in production levels
 Increases in demand
 Firm has little or no intention of maintaining
continuous market representation
 Foreign sales decline when demand or surplus
decreases
 May withdraw from international markets
 Little or no change in company organization or
product lines

33. REGULAR FOREIGN MARKETING
 Firm has production capacity devoted to
foreign markets
 Firm employs domestic or foreign
intermediaries
 Uses its own sales force
 Sales subsidiaries in important markets
 Products allocated or adapted to foreign
markets as demand grows
 Firm depends on profits from foreign markets

34. INTERNATIONAL MARKETING

35. GLOBAL MARKETING
 Company treats world, including home
market as one market
 Market segmentation decisions no longer
focused on national borders
 Defined by income levels, usage patterns, or
other factors
 More than half of revenues come from
abroad
 Organization takes on global perspective

36. STRATEGIC ORIENTATION
 Domestic market extension orientation
 Multidomestic market orientation
 Global market orientation

37. DOMESTIC MARKET ORIENTATION
 International operations viewed as secondary
 Prime motive is to market excess domestic
production
 Firm’s orientation remains basically domestic
 Minimal efforts are made to adapt product or
marketing mix to foreign markets
 Firms with this approach are classified as
ethnocentric

38. MULTIDOMESTIC MARKET ORIENTATION
 Companies have a strong sense that foreign
country markets are vastly different
 Market success requires an almost
independent program for each country
 Separate marketing strategies
 Subsidiaries operate independently of one
another in establishing marketing objectives and
plans
 Products are adapted for each market
 Control is decentralized

39. GLOBAL MARKET ORIENTATION
 Company guided by global marketing orientation
 Marketing activity is global
 Market coverage is the world
 Firm develops a standardized marketing mix
applicable across national boundaries
 Markets are still segmented
 Each country or region is considered side by side
with a variety of other segmentation variables
 Fits the regio-centric or geocentric classifications

40. TOP GLOBAL BRANDS
 Coca Cola
 Microsoft
 IBM
 GE
 Intel
 Nokia
 Disney
 McDonald’s
 Marlboro
 Mercedes

41. GLOBAL LOCALIZATION- THINK GLOBALLY,
ACT LOCALLY
Global Marketing requires marketers to
behave in a way that is global and local
at the same time by responding to
similarities and differences in world
markets.

42. Strategic Orientation: EPRG Schema
Orientation EPRG Schema
Domestic Marketing
Extension
Multi-Domestic
Marketing
Global Marketing
(Ethnocentric)
(Polycentric)
(Regio/Geocentric)

43. Generally, four distinctive approaches dominate strategic thinking in
international marketing:
Strategic Orientation: EPRG Schema
1. Ethnocentric or Domestic Marketing Extension Concept:
2. Polycentric or Multi-Domestic Marketing Concept:
Opposite of ethnocentrism .
Management of these multinational firms place importance
on international operations as a source for profits.
Management believes that each country is unique and
allows each to develop own marketing strategies locally.
Home country marketing practices will succeed elsewhere
without adaptation; however, international marketing is
viewed as secondary to domestic operations.

44. Generally, four distinctive approaches dominate strategic thinking in
international marketing:
Strategic Orientation: EPRG Schema
3. Regiocentric and Geocentric:
Regiocentric and Geocentric are synonymous with a Global
Marketing Orientation where a uniform, standardized
marketing strategy is used for several countries, countries in
a region, or the entire world.

45. CLASS ACTIVITY
 In a group, discuss 3 products under each
type of market orientation and discuss the
pros and cons of global orientation from your
point of view.