BA 486International Marketing

Dr. Frankenberger

What is International Marketing?

• Standard U.S. marketing principles applied to different country markets:– Exchanges: across international borders– Satisfaction: of company & customer needs

• But with a difference in the company’s marketing environments– Internal: management’s approach to international

marketing; experience, resources, etc.– External: uncontrollable elements in the external

environment

Uncontrollable Elements in the External Environment

Standard domestic market variables…

• Economic• Political/legal• Level of technology• Consumer social-

demographics• Competitive forces

…plus special international factors…

• Geography & infrastructure

• Communication & distribution

• Cultural characteristics

Benefits of International Mktg

Product Life Cycle Considerations: opportunity to prolong product lifecycle by entering growth markets.

High New Product Development Costs: Firm look beyond home-country market to recover investment costs

Cost Reductions: Standardization, Scale Economies, Cheap Labor and/or materials.

Transfer of experience to other markets

Different Int’l Marketing Philosophies

• The Domestic Market Extension view

• The Multi-domestic (International) Market view

• The Global Marketing view

The Domestic Market Extension view

• Some to regular exporting of goods

• international not considered main focus of business

• ethnocentric in nature (products not modified for foreign market)

The Multi-domestic (International) Market view

• Exporting plus foreign production

• market on a country-by-country basis

• tailor products to differences among markets

• polycentric in nature (diff products developed to meet needs of diff countries)

The Global Marketing view

• The world (or region) is one market

• isolate commonalties among countries

• standardized product, marketing mix• takes advantage of standardization where possible, but

adapts to local needs (localization) where necessary.

• strive for scale economies

• regiocentric or geocentric in nature

Whatever the management orientation, there are different methods of entering

foreign markets…

Methods

• Exporting (direct & indirect)

• Internet (actually a form of exporting)

• Contractual Agreements

• Direct Foreign Investment

• Strategic Alliances