What is International Marketing?

◦ Domestic Marketing
◦ Carried out within a defined national or
geographic boundary
◦ Relatively free to plan, implement and control
marketing plans within a known marketing
environment
◦ International Marketing
◦ Begins to explore markets outsidenational
boundaries of domestic market
◦ Direct and indirect exporting to neighbouring
countries
◦ The need to manage uncontrollable
international environmental elements
◦ Emphasis on central production, planning,
implementation and control,with deference
paid to different market conditions

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 What is Global Marketing?
◦ The notion that the world has no
centre, but a ‘borderless’ global
marketplace that encompasses the
participation of allcountries
◦ Marketing operations that seeks to
lever its assets across political and
cultural boundaries
◦ Maximising opportunities and
exploiting marketing similaritiesand
differences in search for global
competitive advantage
◦ Seek to add stakeholders’ values

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 Understanding Globalization
◦ First Wave [16th century
–1914], e.g. EastIndia
trade company
◦ Second Wave [1950 –
1980], mostly between
developed countries,
Japan and USA
◦ Third Wave [1980 –
2015], some argue that
this wave is still on
going.

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Changes in the Global Market
Environment

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 The Changing Face of the Marketplace
• Changing
demographics
– Older people are the
most prosperous
group?
– Reduced birth rate –
larger proportion of
disposable incomes
concentrated on
children
• The increasing number
of ‘grey consumers’has
significant implications
on patterns of demand
and expectation
• The marketing
challenges of catering
to the ‘grey consumers’ 1
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 The New Rules of Global Engagement
◦ Post Financial Crisesin
the late 1990s and 2008-9
–New beginnings to
global political-economy
◦ New direction in global
engagement
◦ More introspective and
regionalized
◦ Reduced dependence on
developed economies
◦ The stronger voice ofBRIC

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The New Rules of Global Engagement
◦ A move away from the
one-size-fits-all US-style
capitalism towards a more
localised, equitable
economic development
◦ The new challenge for
global businesses
◦ Ability to adapt to changing
market opportunities
◦ Emphasis on partnerships that
will stimulate local businesses,
create new opportunities and
drive competitiveness forall

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 The New Breed ofConsumers
◦ Expectation of
more customized
products and
services to cater
to their individual
needs

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 Achieving Global Competitiveness
◦ ‘Market dominance’ and
‘hyper-competition’ as
bipolar extremes
◦ The challenge isto
overcome:
◦ Shortening product life
cycle
◦ Demand for high quality at
low prices
◦ The ‘green’ issue
◦ Changing rulesof
competition
◦ Demanding customers

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The New Challenges Facing Global
Businesses

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 Marketing Using New Technologies
◦ The Internet and
Communication Technologies
(ICTs) revolution
◦ The nature of interaction
between organization and
customers have changed
◦ Increasing interactivity and
transparency
◦ Fragmentation of media
◦ Technology for technology’s
sake or strategic integration?

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 The Importance of Managing
Relationships
◦ Customer acquisition can
cost up to 5 times more
than retention
◦ The Pareto 80/20 rule
◦ Competition increasingly
takes place between
networks rather than single
organizations
◦ The need to forge long-
term and profitable
relationships with
customers as well asother
stakeholders

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 Matching the Needs of New Global
Consumers
◦ Consumers born in the
1990s and 2000s grew up
in digitally enhanced
environments. They do
not respond to
conventional marketing
stimulus as previous
generations
◦ Emergence of ‘global
consumers’
◦ Convergence inglobal
consumption patterns?
◦ Diversity and subcultures

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Knowledge as a Source of Global
Competitive Advantage
◦ People and information
(the knowledge base) are
the most valuable assets in
a service economy
◦ The concept of knowledge
management makes sense
◦ How do we do it? Any step-
by-step manual?
◦ The accountant asks:do
we value it as ‘cost’ or
‘asset’?

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