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International
MarketingAn Introduction
By:
Arciaga, Renier John
Fuentes, Rodney JudeMahidlawon, Jessica KimMalingin, Lovely
Tan, Brigette
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What is InternationalMarketing??
}The performance of business
activities that direct the flow ofcompanys goods and services
to consumers or users in more
than one nation for a profit(Cateord and Graham, 2004).
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Marketing activities takeplace in more than onecountry.
Complexity anddiversity can be found
in InternationalMarketing Operations
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}Deals with controllable
and uncontrollableelements.
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Domestic vs. InternationalMarketing
Domestic
} Smaller arena
} Specified needs
} Low stakes/risks
} One familiar market
} Deals with oneuncontrollable
elements
International
} Bigger arena} More Complex
needs
} Higher stakes/risks
} Diverse and
unfamiliar markets} Deals with two
uncontrollableelements
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wsd
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Differences Between Domesticand International Marketing
}Consumer
}Purchasing Power}Product and Packaging
}Currency
}
Payment Terms}Physical Distribution
}Language
}Communication
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Phases ofInternational
Marketing
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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
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4. International Exporter
- Both finished goods and intermediate products
are exported outside home region.
5. International to Global Exporter
- Runs independently and mainly self-sufficientsubsidiaries in a range of countries.
6. Global Exporter
- Highly decentralized organization operatingacross a broad range of countries.
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Five Distinct but OverlappingPhases of Intl. Mktg.
}No Direct Marketing
}
Infrequent Foreign Marketing} Regular Foreign Marketing
} International Marketing
}Global Marketing
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Reasons Why
Companies
Venture intoInternational
Marketing
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Internal Reasons
} To utilize the firms excess capacity
}
To take advantage of higher purchasingpower in overseas markets
} To take advantage of the governmentsexport promotion drive
} To find other markets as the firms productexperiences a decline in sales in thehome market
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Internal Reasons
} To find other markets as stiff competitionin the domestic or home market has
reduced the firms sales
} To diversify the firms power base indifferent geographic locations
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External Reasons
} To take advantage of tax incentives andpromotional packages offered by certain
countries to foreign investors} To take advantage of low labor and raw
material costs in foreign countries
} To take advantage of access to new
technologies in foreign countries} To take advantage of the governments
import promotion drive
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Factors
InfluencingInternational
Marketing
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Controllable Factors
} Product
} Price
} Promotion
} Place
} Physical distribution
} Presentation
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Uncontrollable Factors forDomestic
}Competition
} Political Forces
} Economic Situation
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Uncontrollable Factors ForInternational Marketing
}Cultural forces
}Distribution
}Geography and infrastructure
} Level of technology
} Economic forces
} Political forces} competition
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Entry Modes inInternational
Marketing
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There are different modes by
which a company can enterforeign markets. These are
franchising, licensing,manufacturing, management
contracts and exporting
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Franchising
} This method of distributing products andservices is ideal for people who want to
expand their business but do not want tomanage it themselves.
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Licensing
} Entails only a part of a whole franchisingaspect.
}A licensee may only get the patent,trademark or the manufacturing know-how of the company
} Licensee has to pay royalties due the
parent company
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Manufacturing
} Lumped into several categories, certaincompanies are mostly concerned with
the manufacture of products. They serveas satellites or extensions
} It may form into following:
Assembly plant
Contract ManufacturingJoint Venture
Wholly owned plant
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Management Contracts
} Production is irrelevant to the mothercompanies
}Merely supply management know-how toa foreign company that is willing to supplythe capital to them.
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Exporting
} Refers to the marketing of goods andservices produced in one country into
another country.
}Allows a company to enter foreignmarkets with a minimum change inproduct lines, company organizations,
investment or company mission.
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Thank You For Listening