1. International marketing - Introduction

2. Overview of course 1. Competing in International Markets
Company – Pros and Cons
Industry – Competitive Advantage
Market – Consumer behavior
How to enter new Markets

3. Overview of course 2. Market Assessment and Development
International market research – Differences between domestic and international market research. Market segmentation and product positioning.

4. Overview of course
3. Managing International Marketing Programs International branding and advertising Product Adaptation – 4ps International supply chain

5. Definitions
Global – Most of the world, presence on almost all continents.
International – More than 1 country.
Domestic – Only home country.

6. Definitions
International trade – Importing or exporting goods
International Business – A company has international operations and production and becomes a Multinational Enterprise (MNE)

7. Opening Side
Definition
International marketing - the performance of business activities designed to plan, price, promote, and direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit.

8. Discussion
How is the international marketing task different to domestic marketing?

9. The International Marketing Task
Exhibit 1.3

10. International Marketing Involvement - Stages
Opening Side
International Marketing Involvement - Stages
No Direct
international Marketing
Infrequent international
Marketing
Global
Marketing
Regular international
Marketing
International
Marketing

11. No Direct international Marketing – Reactive
Opening Side
No Direct international Marketing – Reactive
Products “indirectly” reach international markets
Trading companies
International customers who contact firm
Domestic distributors
Internet orders

12. Infrequent international Marketing – Reactive
Opening Side
Infrequent international Marketing – Reactive
Caused by temporary surpluses so sales to international markets are made as goods become available
Firm does not want to maintain continuous market representation

13. Regular international Marketing – Proactive
Opening Side
Regular international Marketing – Proactive
Dedicated production capacity for international markets
Strategy:
Firm employs domestic or international intermediaries
Uses its own sales force or sales subsidiaries

14. Regular international Marketing – Proactive
Products are adapted for international markets as domestic demand grows
Firms depend on profits from international markets

15. International Marketing – Proactive
Opening Side
International Marketing – Proactive
Fully committed and involved in international markets and international activities
Production takes place on international land.
E.g. Fedders - After lower U.S. sales they designed new types of air conditioner units for the Chinese market

16. Global Marketing – Proactive
Opening Side
Global Marketing – Proactive
A global view on all aspects of the marketing mix
Marketing mix - product, price, placement, and promotion (the 4 Ps)
Market segmentation is now defined by income levels, usage patterns, or other factors that span the globe

17. Definitions
Features – How the product looks physically e.g. The chair is black and 1metre high.
Benefits – What the product helps us with. E.g. The chair allows us to sit comfortably.

18. Definitions
Standardized - more or less similar features and benefits of the product or service.
Customized – A product made or adapted specifically for one person, group or country

19. Definitions
Economies of scale - A cost advantage. The more of a good produced, the lower the per-unit fixed cost (e.g. the cost of building a factory) because these costs are shared over a larger number of goods

20. Definitions
Product – Something which a person or company makes which I can touch. E.g. A pencil
Service – Something which a person or company provides which I cannot touch. E.g. A night’s stay in a hotel.

21. Discussion
What kind of standardized products or services can be sold all over the world?
What features and benefits do these products or services have?

22. Discussion
What technologies have helped to share similar ideas across the world?
Do you think consumers tastes are becoming more similar or more different?

24. International Business has grown since WW2
Opening Side
International Business has grown since WW2
Growth of the World Trade Organization.
Growth of free trade agreements E.g. NAFTA, the EU, Korea-US FTA.
The free market system has conquered – 3 billion new consumers E.g. China, India
The growing impact of the Internet and TV.

25. Economies of Simplicity
Theodore Levitt – 1983
Companies should grow by selling standardized products all over the world
“Gone are accustomed differences in national and regional preferences.”
This idea lasted for a decade but consumers had trouble relating to homogeneous products.

26. Opening Side
Deciding on strategy
Depending on the product and market, firms may pursue a global market strategy for one product but a local strategy for another product. E.g. P&G diapers- Global, detergents - Local.

27. Glocal
“Glocal” strategy  - A hybrid strategy combining both global and local aspects of business.

28. Video Discussion
What is the advantage of a global strategy?
What is the advantage of a local strategy?
Why does the lady from Pepsi like a Glocal strategy?