International Marketing Course

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International Marketing Course

Uploaded by

Mico Ugalde

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BME 300; International Marketing

Course Outline
Unit I: Understanding International
Marketing

1. Evolution of Global Marketing

2. International Marketing Defined
a. Domestic Marketing vs International Marketing
b. Reasons why companies venture into International Marketing
3. International Marketing Environments
a. Culture
b. Economic Environment
c. Political and Legal Environment
BME 300; International Marketing

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Unit I:
International
Marketing Environment
Domestic
Marketing

Export
Marketing

International
(Country-by-country)
Marketing

Multinational
(Region-by-region)
Marketing

Global
Marketing
Evolution of Global Marketing
Domestic Marketing

• An approach to marketing in which organizations focus on the domestic market and

domestic competition only.
• Ethnocentric
Export Marketing

• A marketing approach in which organizations sell their product and service directly
and indirectly to overseas buyers.
• Ethnocentric
International
(Country-by-country) Marketing

• Marketing characterized by overseas expansion focusing on a polycentric

orientation.
• Multi-domestic marketing
Multinational
(region-by-region) Marketing

• A marketing approach in which organizations realizes economies of scale by

standardizing operations on a regional basis.
• Regiocentric
Global Marketing

• A marketing approach in which an organization strives for efficiencies of scale by

developing a standardized marketing mix across national, regional and global
markets.
• Geocentric
• Global Marketing refers to marketing activities by organizations that emphasize the
following:
• Standardization Efforts
• Coordination Across Markets
• Global Integration
Marketing

• Marketing is the activity, set of institutions,

and processes for creating,
communicating, delivering, and
exchanging offerings that have value for
customers, clients, partners, and society
at large
- American Marketing Association
International Marketing
It consists of the activity, institutions, and processes across
national borders that create, communicate, deliver, and
exchange offerings that have value for stakeholders and
society.
Czinkota and Ronkkainen 2015
Domestic vs International Marketing
Domestic vs International Marketing

1. Consumer
2. Purchasing Power
3. Product and Packaging
4. Currency
5. Payment Terms
6. Physical Distribution
7. Language
8. Communication
Domestic vs International Marketing
Domestic Marketing Domestic Marketing
A Filipino manufacturer selling A Filipino manufacturer selling to a US
locally importer

Consumer Filipinos like sweet Americans prefer bland

Purchasing Power Low High
Product and Remains the same Changes may be needed
Packaging
Currency Peso Dollar
Payment Terms Cash or Credit Card Thru Banks
Physical Distribution Short Haul Long Haul
Language Filipino or English English
Communication Likely to be cheaper Likely to be expensive
Reasons why companies venture into International
Marketing

Internal Reasons
1. To utilize the firms excess capacity
2. To take advantage of higher purchasing power in overseas market
3. To take advantage of the government’s export promotion drive
4. To find other markets when the firms product experiences a decline in sales in the home
market
5. To find other markets when stiff competition in the domestic or local market reduces the firms
sales
6. To diversify the firms power base into different geographical locations
Reasons why companies venture into International
Marketing

External Reasons
1. To take advantage of tax incentives and promotional packages offered by certain
counties to foreign investors
2. To take advantage of low labor and raw materials cost in foreign countries
3. To take advantage of access to new technologies in foreign countries
4. To take advantage of the government’s import promotion drive
International Marketing

Going international means greater risk and bigger

adjustments but when done right, can be
beneficial
Should I offer my product
internationally?

International Marketing is not for every firm

Factors Influencing International Marketing
International Marketing Variables
Product
Price
Place
Controllable Promotion
Physical Distribution
Presentation
Competition
Uncontrollable Political Forces
(Domestic) Economic Situation

Cultural Forces
Distribution
Uncontrollable Geography and Infrastructure
Level of Technology
(International) Economic Forces
Political Forces
Competition
Roles of Culture

Culture is an integrated system of learned behavior patterns that are Distinguishing

characteristics of the members of any given society
“Every person is encultured into a particular culture learning the right way of doing
things”

Acculturation – adjusting and adapting to a specific culture other ones own

Cultural imperialism - refers to how an ideology or a way of life is exported from one
country to another through movement of cultural goods
Elements of Culture

Language Religion