Transcript What is International Marketing?

Chapter 1
The International Marketing
Imperative
Developed by Cool Pictures & MultiMedia Presentations
Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.
What is International Marketing?
• The process of planning and conducting transactions
across national borders to create exchanges that
satisfy the objectives of individuals and organizations.
Developed by Cool Pictures & MultiMedia Presentations
Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.
International Marketing
Questions
 Should I obtain my supplies domestically or from abroad?
 What marketing adjustments are or will be necessary?
 What threats from global competition should I expect?
 How can I work with these threats to turn them into
opportunities?
 What are my strategic global alternatives?
Developed by Cool Pictures & MultiMedia Presentations
Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.
World Trade Importance
• World trade has grown from $200 billion to more than
$7 trillion in the past three decades.
• The Iron Curtain is gone and capitalism has replaced
the old economic doctrines.
• Firms invest on a global scale.
• Increasingly more difficult to define “where” products
come from.
• New trading blocs are emerging.
Developed by Cool Pictures & MultiMedia Presentations
Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.
Global Linkages
• Global linkages bind countries, institutions, and
individuals more closely than ever.
• World trade opens up entirely new business horizons.
Developed by Cool Pictures & MultiMedia Presentations
Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.
Trade and Domestic Growth Rates
Percentage of
Growth
12%
10%
Trade
Growth
8%
6%
4%
Domestic Growth
2%
01
20
00
20
99
19
98
19
97
19
96
19
95
19
94
19
93
19
92
19
91
19
90
19
89
19
88
19
19
87
0%
Year
SOURCE: International Financial Statistics Yearbook IMF 2000.
Developed by Cool Pictures & MultiMedia Presentations
Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.
Domestic Policy Repercussions
Considerations
• Lowering of interest rates, happy U.S. customers but
what about impact of countries offering higher
interest rate?
• Agricultural and farm polices.
• Currency flows.
• Exchange rates.
Developed by Cool Pictures & MultiMedia Presentations
Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.
Meeting International
Challenges
• Be prepared and develop active
responses.
• Develop new strategies.
• New plans are needed.
• Adaptation to the new environment
and markets.
Developed by Cool Pictures & MultiMedia Presentations
Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.
Strategic Marketing
Marketing Manager’s Task
• To plan and execute programs that will ensure a
long-term competitive advantage for the company.
Developed by Cool Pictures & MultiMedia Presentations
Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.
Marketing Manager’s
Supporting Tasks
• Determine the specific target markets.
• Manage the marketing mix in order to best satisfy the
needs of individual target markets.
Developed by Cool Pictures & MultiMedia Presentations
Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.
Target Market Selection
Occupants
Opposition
Operations
Developed by Cool Pictures & MultiMedia Presentations
Objects
Target
Market
Organization
Occasions
Objectives
Outlets
Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.
Marketing Management
Product
Product
Policy
Promotion
Communication
Policy
Target
Market
Price
Pricing
Policy
Place
Distribution
Policy
Developed by Cool Pictures & MultiMedia Presentations
Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.
The Process
Stages in the Marketing Process
Analysis:
• Collect data on the eight O’s from data sources- primary and secondary,
internal and external, formal and informal. Screen data for opportunities
to employ company resources for competitive advantage.
Planning:
• Develop a marketing plan which includes a situation analysis, goals and
objectives, long-term strategies and short-term tactics, cost and profit
estimates, and anticipated changes in organizational structure.
Implementation:
• Take actions to put the plan into action. Adjust implementation activities
to account for environmental changes in market conditions.
Control:
• Use annual planning (sales to forecast), profitability, and efficiency
controls to monitor the plan’s successes and failures.
Developed by Cool Pictures & MultiMedia Presentations
Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.