THE GLOBAL MARKETPLACE

What is international marketing?

Finding global customer needs
Satisfy global consumers

Being better than the competition

Coordinating marketing activities

Recognizing constraints of the global environment

Very complex!

International maRKETING INTO THE tWENTY first CENTURY

tHE WORLD IS SHRINKING RAPIDLY with the advent of faster communication, transportation
and financial flows.
iNTERNATIONAL TRADE IS booming and accounts for most of the countries GDP

Global competition is intensifying and only few industries are now safe from foreign competition

Problems:

To compete many companies are continuously improving their products expanding into foreign
markets and becoming global firms


Global firms

High debt inflation unemployment have resulted in highly unstable government and currencies

Governments placing mre regulations on foreign firms

Proctectionist tariffs and trade barriers

Corruption

5 Decision
Look at the coutnrys external environment
Decision whether to internationalize or not (Benchmark, swot0
Deciding on which markets to enter (Segment, competitor analysis)
Market Strategies
Implementing and coordinating global marketing program (Cross border
negotiation)

Lookign at the Global marketing environment

The international trade system
tariff quota embargo exhange control nontariff trade barriers
WTO, GATT

Economic Environemnt
a. iNDUSTRIAL Structure
SUBSISTENCE ECONOMIES
rAWMATERIALS EXPORTING ECONOMIES
INDUSTRIALIZING ECONOMIES
Industrialized economics
b. Inflation
C. Interest Rates
d. exchange rates (law of one price)
e. disposable income (big mac index
Political legal enviornment
attitude toward international buying
government bureaucracy
political stability
monetary regulations
Home country enviornment
l government sponsored national activities

l financial act

l info services

l export facilitating activitis

l promotion by private irganization

l sales trading

Host country environment

ownership risk, operating risk

Cultural environment
1. How customers think about and use the product
2. Culture, tradition preference and behaviour
3. Business norms and behavior

Layers of culture: National to Business to Company to Individual

Deciding when to go international

Reasons international expansion:SEE IPHONE
TOOLS: SWOT, PEST, BENCH MARKING

Solbergs: see iphone

DECIDING WHICH MARKET TO ENTER
Degine Organizations Mrketing objectives and policies
What Volume of Foreign sales is desired?
how many countries shoud the firm go into?
what type of countries should be entered
rANK BY MARKET SIZE, COST OF DOING BUSINESS, COMPETITIVE ADVANTAGE
AND RISK LEVEL

Global marketing Orientations

Ethnocentric home coutnry is superior
polycentric multi domestic approach
regiocentric within a certain region
Glocalisation: see iphone representation of how to perfectly globalize. l

Forces for global integration

Removal of trade barriers / deregulGlobal customers
relationship management
standardized tech
worldwide markets
global village
worldwide communication
economies of scale and economies of scope

Forces of market responsiveness

Cultural differences
regionalism/protectionalism (EU, NAFTA,)
deglobalization (US GREAT AGAIN)

Direct export
producer to consumer
Indirect Export
Producer to Intermediaries to Customer

Advantages
No need for operational facilities in host country
economies of scale in home country
internet
gain global market share
increase sales potential of existing products
enhance potential

Joint Venture
tie up with foreign firms to either product market product
legally separate distinct from parent companies
Improves qhome country image
ex. disney and nbcs hulu
Contract manufacturing
Foreign sourcing w/o final commitment ex ikea
Licensing
To buy the right o use the firms manufacturing process trademark
A way to establish productionin a foreg
Advantages and dis: see iphone

Direct Investment
To enter a foreign market via the devt of foreign based assembly
PIXAR, DISNEY

International pricing
companies face many problems in setting international prices
Possibilities in setting prices include
a charge a uniform price all around the worldcharge what customers in each country
could pay use a tandard markup of its costs anywhere
International prices tend to be higher than domestic because of price escalation
Companies guilty of dumping when a goreign subsidiary charges less
Deciding on globl markeing org
Export dept to international to global org
Mcdonalds in China