International MarketingAn Introduction

By:Arciaga, Renier JohnFuentes, Rodney JudeMahidlawon, Jessica KimMalingin, LovelyTan, Brigette

What is International Marketing??The performance of business

activities that direct the flow of company’s goods and services to consumers or users in more than one nation for a profit (Cateord and Graham, 2004).

• Marketing activities take place in more than one country.

• Complexity and diversity can be found in International Marketing Operations

Deals with controllable and uncontrollable elements.

Domestic vs. International Marketing

Domestic Smaller arena Specified needs Low stakes/risks One familiar market Deals with one

uncontrollable elements

International Bigger arena More Complex needs Higher stakes/risks Diverse and

unfamiliar markets Deals with two

uncontrollable elements

wsd

Price

Research

Distribution

Promotion

Product

Domestic Environment

Economic Climate

Political and Legal Forces

Competitive

Structure

Foreign Environment

Economic Forces

Political/Legal Forces

Competitive Forces

Cultural Forces

Level of Technolog

y

Geographyand

Infrastructure

Structure of Distribution

Uncontrollable

Controllable

Differences Between Domestic and International MarketingConsumerPurchasing PowerProduct and PackagingCurrencyPayment TermsPhysical DistributionLanguageCommunication

Phases of International Marketing

1. Domestic Exporter- Operates exclusively within a single country

2. Regional Exporter- Operates w/in a geographically defined region

3. Exporter- Finished goods distributed outside home region

4. International Exporter- Both finished goods and intermediate productsare exported outside home region.

5. International to Global Exporter- Runs independently and mainly self-sufficientsubsidiaries in a range of countries.

6. Global Exporter- Highly decentralized organization operating across a broad range of countries.

Five Distinct but Overlapping Phases of Int’l. Mktg. No Direct Marketing Infrequent Foreign Marketing Regular Foreign Marketing International Marketing Global Marketing

Reasons Why Companies Venture into International Marketing

Internal Reasons To utilize the firm’s excess capacity To take advantage of higher purchasing

power in overseas markets To take advantage of the government’s

export promotion drive To find other markets as the firm’s

product experiences a decline in sales in the home market

Internal Reasons To find other markets as stiff

competition in the domestic or home market has reduced the firm’s sales

To diversify the firm’s power base in different geographic locations

External Reasons To take advantage of tax incentives and

promotional packages offered by certain countries to foreign investors

To take advantage of low labor and raw material costs in foreign countries

To take advantage of access to new technologies in foreign countries

To take advantage of the government’s import promotion drive

Factors Influencing International Marketing

Controllable Factors Product Price Promotion Place Physical distribution Presentation

Uncontrollable Factors for Domestic Competition Political Forces Economic Situation

Uncontrollable Factors For International Marketing Cultural forces Distribution Geography and infrastructure Level of technology Economic forces Political forces competition

Entry Modes in International Marketing

There are different modes by which a company can enter foreign markets. These are franchising, licensing, manufacturing, management contracts and exporting

Franchising This method of distributing products and

services is ideal for people who want to expand their business but do not want to manage it themselves.

Licensing Entails only a part of a whole franchising

aspect. A licensee may only get the patent,

trademark or the manufacturing know-how of the company

Licensee has to pay royalties due the parent company

Manufacturing Lumped into several categories, certain

companies are mostly concerned with the manufacture of products. They serve as satellites or extensions

It may form into following:Assembly plantContract ManufacturingJoint VentureWholly owned plant

Management Contracts Production is irrelevant to the mother

companies Merely supply management know-how

to a foreign company that is willing to supply the capital to them.

Exporting Refers to the marketing of goods and

services produced in one country into another country.

Allows a company to enter foreign markets with a minimum change in product lines, company organizations, investment or company mission.

Thank You For Listening