Transcript International Marketing

What We Will Discuss
 Terminology
 Why
International Marketing?
 Analyzing
 The
of International Marketing
International Markets
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
 Economies
 Elements
Strategy
of Scale
of Standardization
 Businesses
seek to Change the
Environments in Which They Operate
Major Decisions in
International Marketing
Look at
Global
Environment
Decide to go
International
or Not
Decide Which
Markets to
Enter First
Decide on
Global
Marketing
Organization
Decide on
Global
Marketing
Program
Decide How
to Enter the
Market
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
 Cultural
Environment
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
 Geographic
 Economic
Factors
Factors
Factors
 Technological
 Sociocultural
 National
Factors
Factors
Goals and Plans
How to Enter the Market
 Exporting
 Licensing
 Contract
 Joint
Manufacturing
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
 Why
International Marketing?
 Analyzing
 The
of International Marketing
International Markets
Process of International Marketing