What We Will Discuss

Terminology of International Marketing

Why International Marketing?

Analyzing International Markets

The Process of International Marketing

Domestic-Orientation

Domestic Marketing– aimed at home market – firm faces 1 set of economics, politics & markets

Export Marketing – manufactures products in the domestic market– sells products outside of the domestic market

International Marketing

Direct Involvement Overseas

Adaptation

Businesses Understand Environments in Which They Operate

Global Marketing A Cross-National Strategy

Economies of Scale

Elements of Standardization

Businesses seek to Change the Environments in Which They Operate

Major Decisions in International Marketing

Look at GlobalEnvironment

Decide to go Internationalor Not

Decide WhichMarkets to Enter First

Decide Howto Enter theMarket

Decide onGlobal Marketing Program

Decide on Global MarketingOrganization

Looking at the Global Environment 1

Trade Barriers– tariffs– quotas– intangible trade barriers

GATT – reduced average tariffs from 45% to 5%

Regional Free Trade Zones

Looking at the Global Environment 2

Economic Enviroment

Political-Legal Environment

Cultural Environment

What is Culture?

Culture

Formal Rules– taught directly as right and wrong– awareness of rule– punishment or emotional trauma from breaking

rule

Culture 2

Technical Rules– taught in a logical manner– can be verbalized and reasoned– few emotions attached to breaking rule– easily changed

Informal Rules– picked up by imitation– no awareness of rule– anxiety/exclusion for breaking rule

Deciding to Go International

Diversity of Tastes in the United States– increased immigration– fragmentation of the middle class

Increasing Opportunities Overseas– trade over $1 trillion in U.S. in 1992

A Domestic Market?– ideology of free trade

Globalization of Brand Names

Deciding Which Markets to Enter

Demographic Factors

Geographic Factors

Economic Factors

Technological Factors

Sociocultural Factors

National Goals and Plans

How to Enter the Market

Exporting

Licensing

Contract Manufacturing

Joint Venture Manufacturing

Direct Investment

risk &profit potential

The Global Marketing Program Standardization vs. Localization

– extension– adaptation: McDonalds - beer or tropical milk shakes?– invention

The Marketing Mix– price– product– promotion– distribution

Global Organization

by product

by geography

international subsidiaries: sales and profits

What We Have Discussed

Terminology of International Marketing

Why International Marketing?

Analyzing International Markets

The Process of International Marketing