Topic 1

The International Marketing

Concept

Imanuel Hutagalung -- Semester 2 --2008-2009

GLOBALIZATION
 Marketing Management and the
Marketing Mix

1. Marketing management and the

marketing mix
– Marketing management consists of
planning, organization, implementation
and control of marketing activities.
– The marketing activities (marketing
mix) are “controllable”.
 The planning and development of
products or services that customers
require – PROD UCT
 The distribution of products through
appropriate channels – PLACE
 The establishments of prices that
offer value to customers and to the
supplier – PRICE
 Promotion of the products or services
-- PR OMO TIO N
 Global Perspective

Foreign Environment
(Uncontrollables)
7. Structure of 1. Competition
Distribution Domestic environment
(Uncontrollables)
(Controllables) 1. Competition
Price Product 2. Technology
5. Political- Target
Market 7
6. Geography and Legal
Infrastructure Promotion Place or 2 .Technology
Distribution
4.
Culture
3. Economy
5. Political- 3. Economy
Legal
4. Culture
STEEPL E A NAL YSIS
 The Marketing Environment

 Marketer must take into account environmental factors:

STEEPLE
– S: Social/cultural
– T: Technological
– E: Economic and market competition
– E: Education, training and employment
– P: Political
– L: Legal
– E: Environmental Protection
 The challenge for marketing management is: to devise
marketing mix that will enable the organization to adapt
to its environment in such a way that profit and other
objectives are achieved
 The International Marketing
Environment
– The “uncontrollable” environment factors:
STEEPLE + Competitors
 Task: to tailor the marketing mix into the
environment (within any nation and between
nations)
 STEEPLE provides the base framework just as at
does at home market.
 Aspects require in international marketing are
for examples: licensing, joint ventures, agents,
counter trade.
 The D efi nitio n o f I ntern atio nal
Mar keti ng
1. The marketing of goods, services or ideas
across national boundaries

2. The marketing operations of an organizations

that sells or produces within a given country
when:
That organization is part of, associated with,
an enterprise which also operates in other
countries
There is some degree of control of, or
influence on, that organization’s marketing
activities from outside the country in which
it sells and or produces.
 Multinational Company (MNC)

 A company which has a direct investment

base in several countries; which generally
derives from 20% to 50 % or more of its net
profits from foreign operations; and whose
management makes policy decisions based on
the alternatives available anywhere in the
world.
INT’L MKT
DEC.
PRODUCT
MKT
PLACE
MARKET MARKET MKT MIX ORGANI-
SELECTION ENTRY DEC.
PRICE ZATION
DEC. DEC. PROMOTION DEC.

INFORMATION BASE

MARKET RESEARCH