International & Global Marketing:

Principles, Insights & Challenges

Syed Ferhat Anwar
Professor, IBA
University of Dhaka

International Business 1 of 2

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International business is a term used to collectively

describe all commercial transactions (private and
governmental, sales, investments, logistics,and
transportation) that take place between two or more
nations.
Usually, private companies undertake such transactions for
profit; governments undertake them for profit and for
political reasons.
International marketing is the act of marketing in more than
one society across boarders by keeping the spirit of
international business intact

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International Business 2 of 2
Means

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Modes: importing and exporting, tourism and

transportation, licensing and franchising, management
contracts, production contracts, direct investment,
outsourcing etc.
Functions: marketing, global manufacturing and value
chain management, accounting, finance, human resources
Overlaying alternatives: choice of countries, organization
and control mechanisms

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International Operations
The

conduct of international operations

depends on companies' objectives and the
means with which they carry them out.
The operations affect and are affected by
the physical and societal factors and the
competitive environment.

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International marketing defined

International marketing is defined as the
marketing carried out across international
borders. International marketing is a strategy
that uses extension from the home country of
a firm.
American Marketing Association defines it as
the international process of planning and
executing concepts to create exchanges that
satisfy an organizational and individual needs
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Global Marketing defined

Global

marketing is marketing on a
worldwide scale reconciling or taking
commercial advantage of global
operational differences, similarities and
opportunities in order to meet global
objectives".
The Internet has made global marketing a
lot easier
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International marketing is
Country

image centric
Country competitive advantage centric
Nation leading the brand

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Global marketing is
Category

image centric
Global availability centric
Brand leading the nation

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However

Both strategy is image dependent

Both can be success routes for countries
Probably we can even mix the two

BUT
WE MUST WORK ON IMAGE NOT BLANK

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Insights
In Hong Kong, a German businessperson

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is driving a Lexus made in Brazil;

wearing Bruno Magli shoes made in India;
with Irish cashmere socks made in Cambodia;
wearing a Calvin Klein neck tie made in China;
tying a Gucci belt made in Italy;
carrying a Mont Blanc pen made in Thailand;
in his Armani suit & shirt made in Bangladesh.
Hes going to meet an American investor at an
Intercontinental lounge, working on a Samsung Note Pad
made in Korea.
--- OK, thats a stretch.
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Challenges

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Huge Foreign indebtedness

Unstable governments
Foreign-exchange problems
Foreign entry and government bureaucracy
Tariffs and other trade barriers
Corruption
E-commerce inefficiencies
Technological pirating
High cost of product and communication adaptations
Political and economic power brokerage
Human and other capital scarcity or under productivity
Lack of knowledge and innovation management
Etc. etc
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International Marketing 1 of 5

Objectives:
sales expansion, resource acquisition,
risk minimization

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International Marketing 2 of 5
Physical and societal factors
Political policies and legal practices
Cultural & social factors
Economic forces
Geographical influences
Global Climate factors
Technology issues
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International Marketing 3 of 5
Economic System
Resource Allocation
Market
Command

Private
Resource
Ownershi
p
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State

Market
Capitalism

Centrally
Planned
Capitalism

Market
Socialism

Centrally
Planned
Socialism

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International Marketing 4 of 5

Rankings of economic freedom among countries

free mostly free mostly un-free repressed

Variables considered include:

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Trade policy
Taxation policy
Capital flows and foreign investment
Banking policy
Wage and price controls
Property rights
Black market

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International Marketing 5 of 5
Competitive factors
Major advantage in price, value,
innovation, or other factors.
Number and comparative capabilities
of competitors
Competitive differences by country

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Standardization and Adaptation 1 of 2

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Standardization and Adaptation 2 of 2

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Global Marketing Outlook 1 of 3

The process of focusing the
resources (people, money, and
physical assets) and objectives of an
organisation on global market
opportunities and threats
Keegan 1995

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Global Marketing Outlook 2 of 3

Mistaken assumptions about LDC
1.
2.
3.

4.
5.

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The poor have no money.

The poor will not waste money on nonessential goods.
Entering developing markets is fruitless
because goods there are too cheap to make a
profit.
People in BOP (bottom of the pyramid)
countries cannot use technology.
Global companies doing business in BOP
countries will be seen as exploiting the poor.
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Global marketing Outlook 3 of 3

Theory of International Product Life Cycle (IPLC)
(0) Local innovation, (1) Overseas innovation, (2) Maturity,
(3) Worldwide imitation, (4) - Reversal

Exporting
0

Other advanced nations

LDCs

USA (initiating country)

Importing
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Source: Sak Onkvist and John J, Shaw, An Examination of the International Product Life
Cycle and Its Application within Marketing, Columbia Journal of World Business 18 (Fall,
1983)

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Globalization 1 of 3
growth

to a global or worldwide
scale; "the globalization of the
communication industry.
The tendency of world investment
and business to move from national
and domestic markets to a
worldwide environment.
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Globalization 2 of 3
Worldwide

economic integration of
many formerly separate national
economies into one global economy,
mainly through free trade and free
movement of capital as by
multinational companies, but also by
easy or uncontrolled migration and
single technology frame.

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Globalization 3 of 3

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Technology is expanding, especially in transportation and

communications.
Governments are removing international business
restrictions.
Institutions provide services to ease the conduct of
international business.
Consumers know about global goods and services.
Competition has become more global.
Political relationships have improved among some major
economic powers.
Countries cooperate more on transnational issues.
Cross-national cooperation and agreements.
Governance and legal issues are being standardized
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Show V4. One World one

company video

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Global Integration Forces 1 of 2

Driving Forces

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Technology
Culture
Market Needs
Costs
Free Markets
Economic Integration
Peace
Strategic Intent
Management Vision, Strategy and Action

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Global Integration Forces 2 of 2

Restraining Forces

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Culture
Market Differences
Costs
National Controls
Nationalism
Peace vs. War/ Stability
Management Myopia
Organization History
Domestic Focus

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Challenges
Markets

can present higher profit

opportunities than present markets.
Markets can offer size but not profits.
Company needs a larger customer base
for economies of scale.
Present customers are needing service
and products as they go international.
Global political forces may dictate terms
for country of origin Made in the World
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Show V5. Made in the World

Major Decisions
Deciding

to go Global
Deciding which markets
Deciding how to design International
Partnerships
Deciding on marketing programs
Deciding on marketing organization

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Positioning in Global Marketing 1 of 6

STP
Segmentation, Targeting and Positioning
Process of segmenting. Look at demographics,
geographic, psychographics and behavior
variables.
Look for market opportunities.

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Positioning in Global Marketing 2 of 6

Six

different segments.
Six segments in a Youth World Values
research study.
But remember that even in a specific
country the youth are not homogeneous.

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Positioning in Global Marketing 3 of 6

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Thrills and Chills. Driving principles---fun,

excitement, irreverence and friends. Expect
everything in life. Make it a goal to get as much
and as many good times. Popular kids in schools.
Brand loyal. Mostly in Germany, England, Greece,
South Africa, Netherlands, US, Belgium, China
and Canada. 18%
Resigned: Fun, Friends and Low expectations.
Little discretionary income. Cynical. Denmark,
Sweden, Korea, Norway, Germany, Belgium,
Argentina, Canada, India and Turkey 14%
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Positioning in Global Marketing 4 of 6

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World Savers. Defining principles: Fun,

Humanism, and friends. Models of what gives
hope to next generation. Good kids, who care.
Technologically advanced. Motivated by new and
exciting. Attracted by honest and sincere
messages. Sophisticated, sense of humor.
Hungary, Philippines, Venezuela, Brazil, Spain,
Argentina, Russia, France, Poland. 12%
Quiet Achievers. Success, quiet, antiindividualism, social optimism. Have
determination and restraint. Study hard. Do well
in school. Limit outside activities. Thailand, India,
China, Hong Kong, Korea, Russia, Peru. 15%
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Positioning in Global Marketing 5 of 6

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Bootstrappers. Defining principles: Achievement,

Individualism, optimism, determination, power.
Try hard to please parents. Determined to
succeed. Positive values. One in four in US; 14%
overall. Nigeria, Mexico, US, India, Chile, Puerto
Rico, Peru and Venezuela.
Upholders. Family, tradition, respect for
individuals. Dreamy. Quiet. Good teens. Follow
their parents. Dont like risks. Use proven
products. Vietnam, Indonesia, Taiwan, China,
Italy, Peru, India, 16%
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Positioning in Global Marketing 6 of 6

Positioning:

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The act of designing the product or service

(companys offering and image) to occupy a
distinctive place in the target markets mind.
Ultimate goal of product. Differentiation
Relationship to other products.

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Integration in Global Marketing 1 of 4

Integrated Marketing:
Marketing is everyones business.
Marketing Community

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Integration in Global Marketing 2 of 4

Integration:
Learn about the needs and wants.
There are no average customers.
Concentrate on the individual differences while
looking at segmentation, targeting and
positioning.

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Integration in Global Marketing 3 of 4

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When all of the departments work together to

serve the customers interests.
Works on two different levels: All of the various
marketing functions work together: sales force,
sales promotion, advertising, PR, Product
development, Marketing research
Plus all of the departments work together. They
must Think Customer.

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Integration in Global Marketing 4 of 4

More on Integration:
Plan for and review differences in culture,
markets, economic development, consumer
differing needs, usage patterns, media availability
and legal restrictions.

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Global Marketing 1 of 4

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Marketing has become more complex.

Increases in new products, product extensions, high cost
of distribution and shelf space.
Expansion of retailer control and power, changing media
habits, overload of information, and array of
communication choices.
Ultimate goal of programs
Timing goals

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Global Marketing 2 of 4

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Denotes the use of advertising and marketing on a global

basis.
Marketing is at the threshold of a new and exciting era: ebusiness, e-commerce and e-marketing
Because the purpose of business is to create a customer,
business enterprise has two and only these two - basic
functions: marketing and innovation (Peter Ferdinand Drucker)
New era of competition, demanding customers
More stakeholders (customers, employees, media).

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Global Marketing 3 of 4

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Companies need new set of guidelines, values and insight

Marketing is a Strategic Business Concept
marketing and innovation produce results; all the rest
are costs. Marketing is the distinguishing, unique function
of the business. (Peter F Drucker)
Marketing is too important to be left to the Marketing
Department. (David Packard)
Formulated, integrated, long-term
Hold to the responsibilities of customers, employees,
investors

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Global Marketing 4 of 4

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Advantages, especially if the companies

emphasize selection, availability, quality,
reliability and lower prices.
Economies of scale.
Lower marketing and advertising costs in
planning and control. Lower advertising
production costs.
Exploiting your best ideas on a worldwide basis.

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Global Marketing Principles 1 of 14

Principle of Standardization or Adaptation

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Toyota built the Corolla on a world platform. McDonalds

uses chili sauce (salsa) on its hamburgers in Mexico.
Adaptation elements: Product features, brand name,
labeling, packaging, colors, materials, prices, sales
promotion, advertising themes, media, execution.
Marketing programs do work best when they are tailored to
each target group.
The most important is to appreciate Cultural Intelligence
Must realize that at the Micro level there still resides the
Global Village.

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Global Marketing Principles 2 of 14

Principle of Selling:
Integrate Company, Customers and
Relationships/Partnerships.
Create long-term relationships with customers.
More than personal selling.
Features and benefits of the product.
AIDA: Awareness-Interest-Desire-Action.
Manage communication.

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Global Marketing Principles 3 of 14

Principle of Research

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Understand how globalization will impact the society.

Understand the consumer-behavior perspectives.
Be sure you are asking right questions.
Use appropriate research techniques and controls.
Present clear, comprehensive and actionable
results.
We study people using geographic, demographics,
psychographics, lifestyles, and behaviors.

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Global Marketing Principles 4 of 14

Principle of Competition: Value War
Create long-tern customer value.
Continuously and consistently crated customer
value.
Look at total customer benefits vs. customer
expenses
Ultimate goal of project
Relationship to other projects
High-level timing goals
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Global Marketing Principles 5 of 14

Principle of Global Experience
Counts for companies
Counts in the job market for employees.
Marketing Audits.
Marketing is not a destination, or a goal. Its a
process. A moving target.

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Global Marketing Principles 6 of 14

Principle of Customer Satisfaction and
Retention
Look at overall satisfaction and
customer loyalty
Easier to retain a customer than to
gain or win a new one.
Consistently improve customer value
to win the marketing war.
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Global Marketing Principles 7 of 14

Principle of Anticipation and Being Proactive. Not
Reactive.
Are you ready for change?
Being adaptive to the marketplace.
Macro environment Changes. The high income growth
country has shifted from Japan to US.
Low to medium has been concentrated in Southeast
Asia and southern Asia with China and India to a certain
extent as a unique, high-growth, large country in the
region and the world.
Huge incomes in Singapore, Taiwan and South Korea.
Big health and income shifts in Philippines, Egypt,
Bangladesh, Malaysia, Peru
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Global Marketing Principles 8 of 14

Principle of Technology and Productivity
The old trade model is just old.
It stated that as a product matures, production
would shift to low-wage countries.
Today, must look at transportation costs,
availability of skilled labor, market
responsiveness, market access and innovation in
product design and manufacturing.
Especially of products with less than 15% of
labor in total cost.
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Global Marketing Principles 9 of 14

Principle of Service:
Service before, during and after sale.
Create long-term value and connect with
customer.
Both products and services. Its creating more
value.

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Global Marketing Principles 10 of 14

Principle of Process:
Commands the company to be the captain of its
value-chain. It should manage from raw materials
to finish goods. Enhance value-creating
activities.
Look at Strategic Alliances/Partners . Can be
suppliers, customers and even parts of
competitors. Benchmarking, reengineering,
outsourcing, mergers, and acquisitions are
examples.
Brand, service and process are three valuecreating principles and drivers to win customers
share.
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Global Marketing Principles 11 of 14

Principle of Balance:
After focusing on the elements of marketing--segmentation, targeting, positioning (STP),
differentiation, marketing mix, selling, branding,
service and process, you need to balance the
strategies, tactics and implementation.
Share of Mind, Heart and Spirit (Kotler & Hermawan)
Share of Voice for WOM.
Dynamic environment. Timing The Real Time.
High-level timing goals
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Global Marketing Principles 12 of 14

Principle of Future:

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Manage todays products by managing a profit

and by servicing customers of today and
tomorrow.
Develop tomorrows products.
There is no such thing as permanent advantage.
Governance in societal norms leads to total
sustainability.
Avoid Marketing Myopia (Theodore Levitt)
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Global Marketing Principles 13 of 14

Principle of Differentiation:
Dont be different just to be different.
Design and plan for meaningful differences
versus the competitors.
Design truly different and unique products for
customers.
Differentiate or Die (Al Ries)
Leadership is in differentiation resulting in
creation of brands
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Global Marketing Principles 14 of 14

Principle of Brand Management:
The umbrella. Determines price and value. Be
more than a commodity.
A brand is a name, term, sign, symbol, or design
or a combination of them to identify the goods
and services of a seller and to differentiate them
from the competitors.
Identifies seller or maker. We see a huge increase
in the global brands for autos, food, clothing,
electronics and more.
Increasing number of cross-border marketing
alliances.
What has happened to the country of origin
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Political Window 1 of 2

World economic development and well being are

linked to freedom and democracy.
This correlation is the key that explains our world society:

Freedom => Knowledge => Technical progress =

Economic development
This trilogy is the basic equation for development.
Global leaders have to repeat again and again this golden rule.

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Political Window 2 of 2
We have 10 criteria by which to measure
knowledge:

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Education rate,
Number of scientists,
Illiteracy rate,
Number of internet users,
Proportion of exports,
Population parameters,
Health status,
Purchasing and spending powers,
Geopolitical maturity,
International relations.

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The People in Global Marketing 1 of 4

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Most companies are either international or

compete with international companies.
Modes of operation may differ from those used
domestically.
The best way of conducting business may differ
by country.
An understanding helps you make better career
decisions.
An understanding helps you decide what
governmental policies to support.
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The People in Global Marketing 2 of 4

Factors

contributing to the need for

international managers
Increased internationalization of operations
Recognition that poor overseas performance can be
costly
Perceived shortage of international managers
Recognition of differing national culture/institutional
arrangements within which firms operate
Firms operate in increasingly internationally regulated
business environments

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The People in Global Marketing 3 of 4

1.
2.
3.
4.

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The Ideal International Manager

Four major variables:
technical competence
personal traits or relational abilities
ability to cope with environmental variables
family situation

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The People in Global Marketing 4 of 4

The Ideal International Manager (Continued)

Technical ability
Managerial skills
Cultural empathy and crosscultural communication
skills
Adaptability and an active
desire to adjust to living and
learning in the local culture
Non-judgemental
Diplomacy and tolerance
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Language ability
Positive attitude
Emotional stability and
maturity
Adaptability of family
Negotiating ability

Thank you

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