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International marketing - introduction

International marketing - introduction. Alena Klapalová albra@seznam.cz. Why doing/making MKT international???. Business across frontiers Cca 4000years B.C.- trade routes round territories International marketing – 20th of 20th

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International marketing - introduction

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  1. International marketing - introduction Alena Klapalová albra@seznam.cz

  2. Why doing/making MKT international??? • Business across frontiers • Cca 4000years B.C.- trade routes round territories • International marketing – 20th of 20th http://www.referenceforbusiness.com/encyclopedia/Int-Jun/International-Marketing.html • Business nowadays: • MASS markets • transport • telecommunication (ICT) • nongovernmental organizations • governments GLOBALIZATION backward or two-way influencies

  3. What is international marketing? • IMKT - ‘is concerned with the marketing issues arising in the management of the firm’s international operations’(Jonathan Wilson, 2006) Phases of IMKT involvement: no direct foreign marketing infrequent foreign marketing regular foreign marketing – export international marketing global marketing transnational, crosscultural, multidomestic…

  4. IMKT orientations • Domestic market extension orientation (Ethnocentric) • Multidomestic market orientation (Polycentric) • Global market orientation (Regioncentric or • Geocentric) Why market(s) abroad? • Small or saturated domestic market • Opportunity for expansion/sales growth/profit/ • Resources • Leverage (i.e. advantages of operating in numerous markets simultaneously) • experience transfers • systems transfers • scale economies • resource utilisation • time and effort • Why not?

  5. Why not? • Market differences - diversity • History • Management myopia as a barrier • Organisational culture as a barrier • Barriers • Resources

  6. International approach (strategy) • global approach treats the world as a single market • multinational (+ innternational) approach treats the world as a portfolio of national opportunities • glocal approach standardizes certain core elements and localizes other elements (Kotler, P., 2007)

  7. What is international marketing? II The process by which individuals and organizations: • Identify needs and wants of customers in different international markets; • Provide products, services and ideas competitively to satisfy needs and wants of different customer groups concerning issues different from domestic market; • Communicate information about the products and services with the proper adaptation to different customer perception rising from other country effect; and • Deliver the products and services internationally using one or a combination of foreign entry modes. - Wilson, J., 2006 [Bradley (2002)] adapted

  8. What is same and what different? • Principles • Concepts • Methods • Techniques • Tools • Conditions (environment) • Competition • Customers • Marketing practices

  9. The international marketing environment customers Law (prohibition, Restriction, obligation firm in the international marketing environment geography competition economic forces Cultural, social and demographic technology policy

  10. Differences between International and Domestic Marketing • Culture: behaviour, habits, routine…. business + customers • Data: access, reliability • Politics: interests, orientation • Stakeholders: business + nonbusiness (primary + secondary) • Economies: unemployment, inflation, parity, purchasing power, wealth… • Control: possibility to control and co-ordinate and/or cooperate

  11. IMKT mix differences • ProductSuitability, adaptability, competitors • Place Distribution channels and methods • PromotionSymbol, identity,familiarity, attitude • PriceCustoms duties, Taxes, Agent’s commission, Freight • Physical Evidence Descriptions of contents, expression style • ProcessPayment terms, shipping methods, commissioning, training • PeopleKnowledge, skills, willingness • PackagingSuitability, climate conditions, freight damage, fits

  12. Textbooks: • Czinkota, M.R., Ronkainen, I.A. International Marketing. 2004 • Ghauri, P., Cateora, P. International marketing. 2006

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