International Marketing Jeremy Kees, Ph.D.

Why is International Marketing Important? The global economy accounts for $7 trillion For 20 years, U.S. exports have grown about 10 percent annually The Internet makes it possible for every marketer to become an international marketer

Why Go Global?? Company-Level Benefits More customers –Additional revenues –Economies of Scale New insights into consumer behavior Positioned well to compete effectively with foreign competitors –Employees and best business practices Lower risk –Diversification

Challenges for doing business abroad Marketers in developing countries may face ___________ challenges Capitol Investments –Product Adaptations –Understanding CB –Transportation/Logistics Lack of Expertise

International Environmental Considerations International Marketing mix International technological environment International economic environment International political-legal environment International social-cultural environment

International Political-Legal Environment

Other Environmental Factors? Trade Barriers –Tariffs –Administrative Barriers

International Entry Strategies Exporting Contractual Agreements International Direct Investment

International Marketing Mix Decisions Same Product Product Adaptation New Product SamePromotion Straight ExtensionProduct Adaptation Product Invention Different Promotion Promotion Adaptation Dual Adaptation

Promotion Adaptation

International Marketing Mix Decisions Pricing Decisions –Often uncontrollable Distribution Decisions –Infrastructure Issues / Non-Traditional Channels