International marketing - introduction

Alena Klapalová

albra@seznam.cz



                               Why doing/making MKT international???

n   Business across frontiers

n   Cca 4000years B.C.- trade routes round territories

n   International marketing – 20th of 20th

    http://www.referenceforbusiness.com/encyclopedia/Int-Jun/International-Marketing.html

n   Business nowadays:

      v     MASS markets

      v     transport

      v     telecommunication (ICT)

      v     nongovernmental organizations

      v     governments     

      

      GLOBALIZATION

      backward or two-way influencies  

                                  What is international marketing?

n   IMKT - ‘is concerned with the marketing issues arising in the management of the firm’s
international operations’  (Jonathan Wilson, 2006)



Phases of IMKT involvement:

             no direct foreign marketing

             infrequent foreign marketing

             regular foreign marketing – export

             international marketing

             global marketing



transnational, crosscultural, multidomestic…



                                         IMKT orientations

n   Domestic market extension orientation (Ethnocentric)

n   Multidomestic market orientation (Polycentric)

n   Global market orientation (Regioncentric or

n                                                  Geocentric)

Why market(s) abroad?

n   Small or saturated domestic market

n   Opportunity for expansion/sales growth/profit/

n   Resources

n   Leverage (i.e. advantages of operating in numerous markets simultaneously)

  q   experience transfers

  q   systems transfers

  q   scale economies

  q   resource utilisation

  q   time and effort



n   Why not?



                                              Why not?

n  Market differences - diversity

n  History

n  Management myopia as a barrier

n  Organisational culture as a barrier

n  Barriers

n  Resources



                                 International approach (strategy)

    n   global approach treats the world as a single market

    n   multinational (+ innternational) approach treats the world as a portfolio of national
    opportunities

    n   glocal approach standardizes certain core elements and localizes other elements

                       (Kotler, P., 2007)

    



                                What is international marketing? II

The process by which individuals and organizations:

n   Identify needs and wants of customers in different international markets;

n   Provide products, services and ideas competitively to satisfy needs and wants of different
customer groups concerning issues different from domestic market;

n   Communicate information about the products and services with the proper adaptation to different
customer perception rising from other country effect; and

n   Deliver the products and services internationally using one or a combination of foreign entry
modes.

                              - Wilson, J., 2006 [Bradley (2002)]

                                                adapted



                                  What is same and what different?

ü  Principles

ü  Concepts

ü  Methods

ü  Techniques



o            Tools

o            Conditions (environment)

o            Competition

o            Customers

o            Marketing practices





                      Differences between International and Domestic Marketing

n   Culture: behaviour, habits, routine….

                 business + customers

n   Data:  access, reliability

n   Politics: interests, orientation

n   Stakeholders: business + nonbusiness

           (primary + secondary)

n   Economies: unemployment, inflation, parity, purchasing power, wealth…

n   Control: possibility to control and co-ordinate and/or cooperate



                                        IMKT mix differences

n    Product       Suitability, adaptability, competitors

n    Place           Distribution channels and methods

n    Promotion   Symbol, identity, familiarity, attitude

n    Price  Customs duties, Taxes, Agent’s commission, Freight

n    Physical Evidence Descriptions of contents, expression style

n    Process  Payment terms, shipping methods, commissioning, training

n    People    Knowledge, skills, willingness

n    Packaging  Suitability, climate conditions, freight damage, fits



                                             Textbooks:

n  Czinkota, M.R., Ronkainen, I.A. International Marketing. 2004

n  Ghauri, P., Cateora, P. International marketing. 2006