INTERNATIONAL MARKETING- TOPIC 3
International Marketing
- making one or more marketing mix
decisions across national boundaries
(simplest form)
- manufacturing/processing facilities around
the world and coordinating marketing
strategies across the globe (most complex)
Marketing- identifying, anticipating, and satisfying
customer requirements profitably (Chartered
Institute of Marketing)
Entry strategies:
1. Exporting
- the most traditional and well-established
form of operating in foreign markets
- marketing of goods produced in one country
into another
Exports in the Philippines account for nearly a third
of GDP
Major exports:
• electronic products (42 percent)
• other manufactures (10 percent)
• woodcrafts and furniture (6 percent)
The Philippines is also the world’s largest producer
of coconut, pineapple and abaca
The Philippines's main export partners are:
• Japan (21 percent)
• the United States (15 percent)
• China (12 percent)
• Hong Kong (8 percent)
Advantages of exporting are:
1. manufacturing is home-based thus; it is less
risky than overseas-based
2. gives an opportunity to "learn" overseas
markets before investing in bricks-and-
mortar
3. reduces the potential risks of operating
overseas.
Disadvantage:
1. one can be at the "mercy" of overseas agents
and so the lack of control has to be weighed
against the advantages
A distinction has to be drawn between passive and
aggressive exporting
Passive exporter- awaits orders or comes
across them by chance
Aggressive exporter- develops marketing
strategies that provide a broad and clear
picture
2. Piggybacking
- organizations with little exporting skill may
use the services of one that has
- these would be geographically adjacent or
able to be served, say, on an air route
3. Countertrade
- largest indirect method of exporting is
countertrade
- organization may expand operations by
operating in markets where competition is
less intense
- used to stimulate home industries
- modem form of barter; not covered by
General Agreement on Tariffs and Trade
(GATT)
Countertrade’s two separate contracts:
• one for the delivery of and payment for the
goods supplied
• the other for the purchase of and payment
for the goods imported
Various forms of exchange like:
• Barter
• Counter purchase
• Switch trading
• Compensation (buyback)
Competitive intensity- more and more investment
in marketing

Barter
- the direct exchange of one good for another
- direct exchange of goods and services
between two parties
Simple barter
- least complex and oldest form of bilateral,
non-monetarized trade
- "straight", "classical" or "pure" barter
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BENEFITS OF INTERNATIONAL BUSINESS
Benefits to countries:
✓ Earning of Foreign exchange
✓ More efficient use of resources
✓ Improving growth prospects and
employment potential
✓ Increased standard of living
Benefits to the firm:
✓ Prospects for higher profits
✓ Increased capacity utilization
✓ Prospects for growth
✓ Way out to intense competition in domestic
market
✓ Improved business vision