1. International Marketing
LECTURE1
International Marketing
Dr. Mohamed Hesham Mansour

2. Standards of Evaluation
Attendance&
Participation
10%
Assignments
Project
Midterm
20%
Final Exam
40%

3. Topics to be discussed
The scope and challenge of international marketing
The dynamic environment of international trade
The cultural environment of global markets
Assessing global market opportunities
Developing global marketing strategies
Implementing global marketing strategies

5. Defining Marketing

6. The Market

8. What is a Market?
PEOPLE

9. What is a Market?
BUT - not just ANY people, they have to have
Willingness to buy
Purchasing power (money)
Authority to buy

10. Exercise Define Marketing

11. Meeting Needs Profitably

12. Marketing - Formal definition-1
Process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individuals and organizational objectives.

13. Marketing - Formal definition-2
Marketing consists of individual and organizational activities that facilitate and expedite satisfying exchange relationships in a dynamic environment through the creation, distribution, promotion and pricing of goods, services and ideas.

14. Marketing is an organizational function
What is Marketing?
Marketing is an organizational function
and a set of processes for creating,
communicating, and delivering value
to customers and for managing
customer relationships
in ways that benefit the
organization and its stakeholders.

15. The Value Delivery process15

16. What Marketing is all about ?
Exchange

17. What Marketing is all about ?
Conditions for exchange to take place:
Two or more people or organizations having needs to be satisfied.
Voluntarily involved
Each party has something of value to contribute.
Communications between parties.

18. HOW TO CREATE NEEDS?

19. We do not create Needs we Create Demands

20. The Marketing Concept Customer Orientation Coordinated Marketing
Activities
Customer
Satisfaction
Organization
Success
Organization's
Performance
Objectives

21. Alternative Approaches to the Market Place
Recognition of market segments
Mass
Market
Approach
Segmented
Market
Approach
Recognition of product differences
Recognition of market mix

23. Exercise Define Marketing Management

24. What is Marketing Management?
Marketing management is the
art and science
of choosing target markets
and getting, keeping, and growing
customers through
creating, delivering, and communicating
superior customer value.

27. The Scope and Challenge of International Marketing
Chapter 1
The Scope and Challenge of International Marketing
McGraw-Hill/Irwin
International Marketing, 13/e
© The McGraw-Hill Companies, Inc., All Rights Reserved.

28. Chapter Learning Objectives
The changing face of U.S. business
The scope of the international marketing task
The importance of the self-reference criterion (SRC) in international marketing
The progression of becoming a global marketer
The increasing importance of global awareness

29. Global Perspective: Global Commerce Causes Peace
Global commerce thrives during peace time
Commercial aircraft and space vehicle industries
145 countries, employees, jets, 1 billion travelers/y
Mobile phone industry
700 million phones connecting about ¼ of all people on the planet
Individuals and small companies
Peace Works and Moshe& Ali’s basil pesto
International markets are ultimately unpredictable
Flexibility means survival

30. Why International Marketing?

31. THE DISASTERS’ CHAIN Enron 2001 September 11-2001
Wars in Afghanistan& Iraq 2001 to go
SARS 2003
Tsunami 2004
Oil at over $60
Recession 2008 to go

32. Events and Trends Affecting Global Business
The rapid growth of the World Trade Organization and regional free trade areas - NAFTA
The trend toward the acceptance of the free market system among developing countries in Latin America, Asia, and eastern Europe
The rapidly increasing impact of the Internet, mobile phones, and other global media on the dissolution of national borders
The mandate to properly manage the resources and global environment for the generations to come (Sustained Development)

33. The Internationalization of U.S. Business
Increasing globalization of markets
Increasing number of U.S. companies that are foreign controlled
$9.6 trillion in foreign investment in the U.S. – $2.6 trillion more than American overseas investment
Increasing number of foreign companies building and buying manufacturing plants in the U.S.
Increasing difficulty for domestic markets to sustain customary rates of growth

34. Foreign Acquisitions of U.S. Companies

35. Selected U.S. Companies and Their International Sales

36. International Marketing Defined
International marketing is 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.

37. The International Marketing Task

38. Environmental Adaptation Needed
Be able to interpret effectively the influence and impact of the culture in which you hope to do business
Cultural adjustments (STARBUCKS IN CHINA)
Establish a frame of reference
Avoid measuring and assessing markets against the fixed values and assumptions of your own culture

39. The Self-Reference Criterion and Ethnocentrism
The key to successful international marketing is adaptation to the environmental differences from one market to another.
Primary obstacles to success in international marketing:
SRC – personal space
Associated ethnocentrism
SRC is an unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decisions.
Ethnocentrism is the notion that one’s own culture or company knows best how to do things.

40. The Self-Reference Criterion and Ethnocentrism (continued)
Dangers of the SRC:
Failing to recognize the need to take action
Discounting the cultural differences that exist among countries. Social Distance
Reacting to a situation in a way offensive to your hosts. Waiting time
Ethnocentrism and the SRC can influence an evaluation of the appropriateness of a domestically designed marketing mix for a foreign market. Unilever detergent in Brazil- Mahraja Mac in India
The most effective way to control the influence of ethnocentrism and the SRC is to recognize their effects on our behavior. Daily sales meetings in Japan

41. Framework for Cross-cultural Analysis
Define the business problem or goal in home-country cultural traits, habits, or norms.
Define the business problem or goal in foreign-country cultural traits, habits, or norms through consultation with natives of the target country. Make no value judgments.
Isolate the SRC influence in the problem and examine it carefully to see how it complicates the problem.
Redefine the problem without the SRC influence and solve for the optimum business goal situation.

43. Developing a Global Awareness
Tolerance of cultural differences:
Understanding cultural differences and accepting and working with others whose behavior may be different from yours
Knowledge of cultures, history, world market potential, and global economic, social, and political trends
Approaches to global awareness:
Select individual managers specifically for their demonstrated global awareness
Develop personal relationships in other countries
Have a culturally diverse senior executive staff or board of directors

44. Stages of International Marketing Involvement
No direct foreign marketing
Infrequent foreign marketing
Regular foreign marketing
International marketing
Global marketing

45. Strategic Orientation
Domestic market extension orientation
Multidomestic market orientation
Global market orientation

46. Global Corporate Strategies
High
Transnational
Strategy
Seeks to balance global efficiencies and local responsiveness
Combines standardization and customization for product/advertising strategies
Globalization
Strategy
Treats world as a single global market
Standardizes global products/advertising strategies
Need for Global Integration
Export
Strategy
Domestically focused
Exports a few domestically produced products to selected countries
Multi-domestic Strategy
Handles markets independently for each country
Adapts product/advertising to local tastes and needs
Low
Low
Need for National Responsiveness
High

47. The Orientation of International Marketing
An environmental/cultural approach to international strategic marketing.
Intended to demonstrate the unique problems of international marketing.
Discussion of international marketing ranges from the marketing and business practices of small exporters to the practices of global companies.

48. Foreign Policy’s Global Top 20

49. Summary
The internationalization of American business is proceeding with increasing pace.
The globalization of markets and competition necessitates all managers to pay attention to the global environment.
International marketing is defined as the performance of business activities across national borders.
Environmental differences such as laws, customs, and cultures must be taken into account if firms are to market products and services at a profit in other countries.

50. Summary (continued)
Self-reference criteria and ethnocentrism limit the international marketer’s abilities to understand and adapt to differences prevalent in foreign markets. Solutions:
Global awareness
Sensitivity
Strategic orientations found among managers of international marketing operations:
Domestic market extension orientation
Multidomestic market orientation
Global market orientation

51. Assignment # 1 (Individuals) (29/04/2010)
Search for other definitions for International Marketing
Analyze and Criticize
Define International Marketing in your own words and Justify

52. THANK YOU