Professional Documents
Culture Documents
C8 Module 6 International Marketing (2014!11!25 06-10-22 UTC)
C8 Module 6 International Marketing (2014!11!25 06-10-22 UTC)
Mod 6
International Marketing
Units 19 - 22
11/8/2013
The US Scenario
1 out of every 3 U.S. farm acres is producing for export
1 of every 6 U.S. manufacturing jobs produces for export
$1 of every $7 of U.S. sales goes abroad
1 of every 3 cars, 9 out of 10 TVs, 2 out of 3 suits, and
every CD Player sold in the U.S. is imported.
Travel and tourism is the #1 source of U.S. foreign
exchange.
$1 of every $4 of U.S. bonds & notes is issued to
foreigners.
International Marketing
Scope and Challenge
International Marketing - is concerned with planning
and conducting transactions across international
borders to satisfy the objectives of individuals and
organizations.
Identifying and satisfying consumer needs abroad;
better than the national and international competitors,
under the constraints of the internationalization stage
of the firm and the global environment - Nathalie
Prime
Some Governments pursue economic policies aimed at
increasing export earnings on a national scale.
11/8/2013
International Marketing
If we only distributed pictures in the U.S., wed
lose money. It takes the whole world now to
make the economics of movie-making work
- William Mechanic
President, 20th Century Fox
Half the people in the world have yet to take their first
picture. The opportunity is huge, and its nothing fancy.
We just have to sell yellow boxes of film.
- George M.C. Fisher
CEO, Eastman Kodak Company
11/8/2013
International Marketing
Comparing Domestic and International Marketing
Similarity:
- Both carry out transactions that meet the needs of
individuals and organizations
Differences:
- International markets have greater growth potential
- Some tasks associated with international marketing not
included (or less intense ) than in domestic marketing (e.g.,
cultural research, political factors, exchange rates, trade
laws, long distance distribution.)
IM and Exporting
International Marketing is more than exporting,
because it involves:
Marketing products that have been manufactured or
assembled in the target country
Establishing a permanents presence in the foreign
country
Licensing and franchising
Sourcing components from foreign states.
11/8/2013
Challenges
International logistics
Small business mindset
Political and economic stability
Increased competition
11/8/2013
11/8/2013
Globalisation
Many U.S.
companies
have made
the world
their market.
11/8/2013
11/8/2013
Cultural Environment
Sellers must examine the ways consumers in
different countries think about and use
products before planning a marketing
program.
Business norms vary from country to country.
Companies that understand cultural nuances
can use them to advantage when positioning
products internationally.
11/8/2013
10
11/8/2013
Joint Venturing:
Joining with foreign companies to produce or market
products or services.
Approaches:
Licensing
Contract manufacturing
Management contracting
Joint ownership
11
11/8/2013
Joint Ownership
12
11/8/2013
In India, McDonalds serves chicken, fish, and vegetable burgers, and the
Maharaja Mactwo all-mutton patties, special sauce, lettuce, cheese,
pickles, onions, on a sesame-seed bun.
13
11/8/2013
Product Adaptation:
Adapting a product to meet local conditions or
wants in foreign markets.
Product Invention:
Creating new products or services for foreign
markets.
14
11/8/2013
15
11/8/2013
International Pricing
16
11/8/2013
17
11/8/2013
18
11/8/2013
19
11/8/2013
20