1. THE CONCEPT OF INTERNATIONAL MARKETING MANAGEMENT VS GLOBALIZATION
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2. Globalization
The shift towards a more integrated and interdependent world economy.
Two components:
.The globalization of markets.
.The globalization of production.
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6. Forces Affecting Global Integration
Restraining Forces
Driving Forces
Culture
Technology
Market Differences
Culture
Costs
Market Needs
National Controls
Cost
Free Markets
Nationalism
Economic Integration
War
Peace
Management Myopia
Management Vision
Organisation History
Strategic Intent
Domestic Focus
Global Strategy & Action
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7. Being Globally Aware
 To be Globally Aware is to be:  Objective  Tolerant of Cultural Differences
 Knowledgeable of:  Cultures  History  World Market Potentials  Global Economic, Social and Political Trends
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8. Stages of International Marketing Involvement
1. No Direct Foreign Marketing
2. Infrequent Foreign Marketing
3. Regular Foreign Marketing
4. International Marketing
5. Global Marketing
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9. Trends in Global Business
Countries are striving to integrate Businesses: EU
EAC
SADC
COMESA
NAFTA
Etc
This suggests a need for global thinking
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10. New and Future (Possible) Multinational Market Groups or Trading Blocks of the 21st Century
 European Union
 European Economic Area (EC and EFTA)
 North American Free Trade Area
 Southern Cone-Mercosur
 Asean Free Trade Area (AFTA)
 Commonwealth of Independent States (CIS)
 Central European Free Trade Area (CEFTA)
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11. INTERNATIONAL MARKETING?
So…….
WHAT IS
INTERNATIONAL MARKETING?
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12. INTERNATIONAL MARKETING
“Marketing carried on across national boundaries”
Vern Tepstra
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13. 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 profit.
Philip R. Cateora
John L. Graham
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14. The International Marketing Task7
Foreign environment
(uncontrollable) 1
Political/legal
forces
Economic
forces
Domestic environment
(uncontrollable) 2 7
Competitive
structure
Political/
legal
forces
(controllable)
Competitive
Forces
Cultural
forces
Price
Product
Environmental
uncontrollables
country market A 3
Channels of
distribution
Promotion
Environmental
uncontrollables
country
market B 6
Level of
Technology
Geography
and
Infrastructure
Economic climate
Environmental
uncontrollables
country
market C 4 5
Structure of
distribution
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15. International Marketing Concepts
Concept EPRG Scheme
Domestic Market Extension Ethnocentric
Multi-Domestic Market Polycentric
Global Marketing Regionocentric/
Geocentric
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16. A Comparison of Assumptions About Global and International Companies
Application Global Companies International Companies
Products are in different
stages of the product
life cycle in each nation.
Product Life Cycle
Global product life cycles.
All consumers want the
most advanced products
Adjustments to products
initially designed for
domestic markets.
Design
International performance
criteria considered during
design stage.
Products are adapted to
global wants and needs.
Restrained concern for
product suitability.
Products adaptation is
necessary in markets
characterized by national
differences.
Adaptation
Market
Segmentation
Segments reflects group
similarities. Group similar
segments together.
Segments reflect differences
Customized products for
each segments.
Fewer standardized markets.
Expansion of segments into
worldwide proportions
Many customized markets.
Acceptance of regional/
national differences.
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17. A Comparison of Assumptions About Global and International Companies
Application Global Companies International Companies
Domestic / national competitive relationships
Competition
Ability to compete in national markets is affected by a firm’s global position
Standardization limited by requirements to adapt products to national tastes..
Production
Globally standardized production.
Adaptations are handled through modular designs.
The Consumer
Global convergence of consumer wants and needs.
Preferences reflect national differences.
Products differentiated on the basis of design, features,functions, style and image.
Product
Emphasis on value-enhancing distinction.
Consumers willing to pay more for a customized product
Price
Consumers prefer a globally standardized good if it carries a lower price
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18. A Comparison of Assumptions About Global and International Companies
Application Global Companies International Companies
National product image, sensitive to national needs.
Promotion
Global product image, sensitive to national differences and global needs.
Place
Global standardization of distribution.
National distribution channels.
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19. Self Reference Criteria (SRC):
Represents viewing rest of the world from the perspective of home market.
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20. Cross Cultural Analysis to Isolate
the SRC Influences
Step 1: Define the business problem or goal in home- country cultural traits, habits, or norms.
Step 2: Define the business problem or goal in foreign-country cultural traits, habits, or norms. Make no value judgements.
Step 3: Isolate the SRC Influence in the problem and examine it carefully to see how it complicates the problem.
Step 4: Redefine the problem without the SRC influence and solve for the optimum business goal situation.*
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21. Framework of International Marketing
Commitment to Exports
Analyse
Internal Factors
Products
Resources
External Factors
Market Environment
Competition
Decide
Target Market
Entry Method
Marketing Strategy
Set
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22. Target Implement Organise Allocate Resources Department Budget
Subsidiary
Joint Venture
Allocate Resources
Budget
Arrange Resources
Export
Review
Modify
Set New Targets
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23. Finally
‘Companies which will not accommodate the concepts of internationalization are destined to fail. The question is not whether they will fail or not but just when they are going to fail’
Elisante ole Gabriel, 2005
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