international mktg

8/8/2019 International Mktg

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Introduction toInternational Marketing


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'International marketing (IM) or global marketing refers to

marketing carried out by companies overseas or across

national borderlines.

According to the American Marketing Association (AMA)"international marketing is the multinational process of

planning and executing the conception, pricing, promotion

and distribution of ideas, goods, and services to create

exchanges that satisfy individual and organizationalobjectives."


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DIFFERENCES BETWEENDOMESTIC MARKETING

AND INTERNATIONAL MARKETING

There are various differences between domestic marketing

and international marketing. Due to a language barrier

it is more difficult to obtain and interpret research

data in international marketing.

Promotional messages needs to consider numerous

cultural differences between different countries.

This includes the differences in languages, expressions,

habits, gestures, ideologies and more


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CULTURAL DIFFERENCES

When Nike learned

that this stylized Air

logo resembled Allah

in Arabic script, it

apologized and pulled

the shoes fromdistribution.


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Coke gets it wrong

The name Coca-Cola in China was first rendered as Ke-kou-ke-la.

Unfortunately, the Coke company did not discover until after thousands

of signs had been printed that the phrase means bite the wax tadpole

or female horse stuffed with wax depending on the dialect.

Coke storyCoke then researched 40,000 Chinese characters and found a close

phonetic equivalent ko-kou-ko-le, which can be loosely translated as

happiness in the mouth.


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P

epsi and KFCIn Taiwan, the translation of the Pepsi slogan

Come alive with the Pepsi Generation came

out as Pepsi will bring your ancestors backfrom the dead.

Also in Chinese, the Kentucky Fried Chickenslogan finger-lickin good came out as eat

your fingers off.


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International Marketing DecisionsInternational Marketing Decisions

Looking at theglobal environment

Deciding whetherto go international

Deciding which

markets to enter

Deciding how to enterthe markets

Deciding the globalmarketing program

Deciding on the globalmarketing organization


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LOOKING AT THE GLOBAL

MARKETING ENVIRONMENT

The International Trade System

Tariffs, quotas, exchange controls, nontarifftrade barriers

World Trade Organization and GATT

Regional free trade zones

European Union

North American Free Trade Agreement

Other free trade areas


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Economic Environment

Industrial structure

Subsistence economies

Raw material exporting economies

Industrializing economies

Industrial economiesIncome distribution


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Political-Legal Environment

Attitudes toward international buyingGovernment bureaucracy

Political stability

Monetary regulations

Countertrade: barter, compensation,counter purchase


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Cultural Environment

Impact of Culture on Marketing Strategy

Cultural traditions, preferences, behavior

Impact of Marketing Strategy on Cultures

Globalization vs. Americanization


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DECIDING WHETHER TO

GO INTERNATIONAL

Not all companies need an international presence Globalization may triggered by several factors

Risk and the ability to operate globally must be

carefully assessed


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DECIDING WHICH

MARKETS TO ENTER

Define international marketing polices andobjectives, and sales volume goals

Decide how many countries to target

Decide on the types of countries to enter

Screen and rank each of the possible international

markets using several criteriaMarket size, market growth, cost of doing business,competitive advantage, risk level


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DECIDING HOW

TO ENTER THE MARKET

Exporting

Direct vs. indirect

Joint Venturing

Licensing, contract manufacturing, managementcontracting, joint ownership

Direct Investment

Assembly facilities, manufacturing facilities


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DECIDING ON THE GLOBAL

MARKETING PROGRAM

Standardized Marketing Mix

Same basic product, advertising, distribution,

and other elements of the marketing mix are

used in all international markets.

Adapted Marketing MixThe marketing mix elements are adjusted for

each international target market.


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Product Strategies for the Global Market

Straight product expansionMarketing the product with no changes

Product adaptation

Altering the product to meet local conditions or

the wants of the foreign marketProduct invention

Creating new products or services for foreignmarkets


MARKETING PROGRAM


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MARKETING PROGRAM

Global Promotion Strategies

Standardized global communication

Advertising themes are standardized from

country to country with slight modifications

Communication adaptation

Advertising messages are fully adapted to

local markets


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Global Pricing Strategies

Companies face many problemsPrice escalation

Pricing to foreign subsidiaries

R

ecent economic and technological forcesThe Internet


MARKETING PROGRAM


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Global Distribution Channels

Whole-channel view

Sellers headquarters organization

Channels between nations

Channels within nations

Numbers and types of intermediaries


MARKETING PROGRAM


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MARKETINGORGANIZATION

Managing International Marketing Activities

Step 1: Organize export department

Step 2: Create an international division

Step 3: Become a global organization


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Thanks.

Subha Prasad Dwibedi

E-mail: [email protected] (M) +91-9749384155

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