The International Marketing Imperative Chapter 1 The International Marketing Imperative

What is International Marketing? The process of planning and conducting transactions across national borders to create exchanges that satisfy the objectives of individuals and organizations.

International Marketing Questions Should I obtain my supplies domestically or from abroad? What marketing adjustments are or will be necessary? What threats from global competition should I expect? How can I work with these threats to turn them into opportunities? What are my strategic global alternatives?

World Trade Importance World trade has grown from $200 billion to more than $7 trillion in the past three decades. The Iron Curtain is gone and capitalism has replaced the old economic doctrines. Firms invest on a global scale. Increasingly more difficult to define “where” products come from. New trading blocs are emerging.

Global Linkages Global linkages bind countries, institutions, and individuals more closely than ever. World trade opens up entirely new business horizons.

Trade and Domestic Growth Rates Trade Growth Domestic Growth SOURCE: International Financial Statistics Yearbook IMF 2000.

Domestic Policy Repercussions Considerations Lowering of interest rates, happy U.S. customers but what about impact of countries offering higher interest rate? Agricultural and farm polices. Currency flows. Exchange rates.

Meeting International Challenges Be prepared and develop active responses. Develop new strategies. New plans are needed. Adaptation to the new environment and markets.

Strategic Marketing Marketing Manager’s Task To plan and execute programs that will ensure a long-term competitive advantage for the company.

Marketing Manager’s Supporting Tasks Determine the specific target markets. Manage the marketing mix in order to best satisfy the needs of individual target markets.

Target Market Selection Occupants Objects Occasions Target Market Opposition Objectives Operations Organization Outlets

Marketing Management Product Product Policy Promotion Communication Policy Price Pricing Policy Target Market Place Distribution Policy

The Process Stages in the Marketing Process Analysis: Planning: Collect data on the eight O’s from data sources- primary and secondary, internal and external, formal and informal. Screen data for opportunities to employ company resources for competitive advantage. Planning: Develop a marketing plan which includes a situation analysis, goals and objectives, long-term strategies and short-term tactics, cost and profit estimates, and anticipated changes in organizational structure. Implementation: Take actions to put the plan into action. Adjust implementation activities to account for environmental changes in market conditions. Control: Use annual planning (sales to forecast), profitability, and efficiency controls to monitor the plan’s successes and failures.