1.01Understand what drives the needs

for international marketing.http://www.youtube.com/watch?v=zLYECIjmnQsWinners or losers?

International Marketing

A series of activities that creates an exchange and satisfies the individual customer across national borders

◦ Identify customer needs◦ Planning to meet those customer needs◦ More complicated than domestic marketing:

Cultural differences Political/legal differences Geographic differences

Competitive differences

Strategies for international marketing

◦ Import/export Simplest and least risky strategy

◦ Contracting Contractual agreement to work with a foreign business partner

◦ Licensing agreements An agreement giving foreign companies the right to sell a

company’s product for a fee

◦ Joint ventures Two or more businesses combine to create a new business

◦ Direct investment Purchasing business assets to run a business in a foreign

country

Drivers of international marketing

Advanced technology Improved transportation New market opportunities

Drivers of international marketing

Advanced technology◦ Internet connects customers and businesses world-

wide◦ Same movies, television shows, and Internet content

are seen everywhere◦ Companies can use the same media to send messages

around the globe

Drivers of international marketing

Improved transportation systems◦ Faster and cheaper than in the past◦ Sealed containers available for ocean shipping◦ Satellite technology to avoid bad weather◦ Numerous world-wide shipping companies (for

example, UPS, FedEx)

Drivers of international marketing

New market opportunities◦ Fall of iron curtain in 1989 opened eastern Europe◦ Opening of trade in China—largest market on earth◦ Economic development in South America, Africa,

Southeast Asia◦ Increased personal income world-side

Planning for international marketing

Increased risk increases the need for an international marketing plan

Must create and deliver value to differing customers

Manage customer relationships Create a profit Understand how marketing activities differ in

different cultural and political/legal environments

International professional development

Careers are diverse--some require a college degree, some only high school

Ability to communicate in a foreign language is helpful

Should develop a cultural understanding of the country where you will work

Global businesses require more technology skills

Experiences traveling, studying, or living abroad are helpful

Marketing core standards

Involved in every transfer of goods and services to the consumer

Distribution Marketing-information managementPricing Product-service managementPromotion SellingFinancing

Marketing core standards

Distribution◦ Determining the best ways to allow customers to locate

and obtain the products & services of a business◦ Involves shipping, handling, and storing of products

Marketing core standards

Marketing-information management Obtaining, managing, and using marketing information to

improve business decision-making Marketing research Developing databases of product, customer, and

competitive information

Marketing core standards

Pricing◦ Establishing a price for goods and services◦ Should set prices low enough to encourage customer

purchase, and high enough to make a profit◦ Manage international currency exchange rates

Marketing core standards

Product/service management◦ Designing, developing, maintaining, improving, and

acquiring products to meet consumer needs and wants◦ Producers and manufacturers develop products

Marketing core standards

Promotion◦ Communicating to potential customers about products

and services◦ Advertising◦ Publicity/public relations◦ Sales promotion◦ Personal selling

Marketing core standards

Selling◦ Communicating directly with prospective customers to

assess and satisfy needs◦ Two-way interaction with customer◦ May be face-to-face, via telephone, or Internet tools

Marketing core standards

Financing◦ Budgeting for marketing activities◦ Obtaining funds for business operations◦ Developing payment and credit systems to help

customers purchase goods and services