International

marketing and
Exporting
Introduction

• Name
• What do you know about Export Marketing?
• What are you expectations from this course?
History of international trade

• How old is international trade?

• Ancient civilizations that focused on international trade
• What benefits did they reap from this trade?
Being effective: the nature and practice of
international marketing

• Definition of international marketing

• International marketing is the marketing of goods,
services, and information across political boundaries. It
includes the same elements as domestic marketing:
planning, promoting, distributing, pricing, and support
for the goods, services, and information to be provided
to intermediate and ultimate consumers.
Process of marketing

• Marketing is conceived as an integral part of two

processes

• Technical process: Non human factors i.e. 4ps of marketing, most

elements in this process remain the same for domestic and
international marketing
• Social process: Related to human elements such as behavior
patterns, characteristics of society, attitudes, customs and values
etc, that differ significantly across countries and peoples
The growing importance of international
marketing and export management?
• The great recession and need of international trade for
renewed growth
• Increased international interdependence
• International marketing no longer a domain of large businesses
only
• International trade is applicable to businesses at every step of
supply chain
• Consumers demand variants and have direct access to them
through emerging trends of international marketing
• Export as one engine of growth
• Dependence on exports for economic growth and source of
foreign exchange for imports
• Innovation and entrepreneurship, other engines of growth
Reasons why rapid growth in international
business will continue
• Information revolution
• Development of logistics and supply chain management
• Increased focus on innovation
• Recognition of and accessibility to niches around the world
• Lowering of governmental and other barriers to trade
Increasing competitive demands on
business world wide
• Reasons for increased competition
• Entrepreneurial innovations coupled with increased speed with
which they cross borders
• World wide web
• Decreasing trade barriers and economic zones
• Influx of low cost substitutes from international competition

• Strategies to counter the competition

• Customer focus
• Innovation/quality/efficiency/service
• Identifying and exploiting appropriate market segment
International marketing problems and
needs
• Piracy on the high seas
• Piracy of intellectual properties
• Fake/counterfeit products
• Contaminated food products
• Terrorism
• Wars and threats of wars
• Prohibition of export of certain products
• Prohibition of export to certain countries
• Embargos
• Diseases leading to import bans
• Protectionist regulations
Factors explaining internationalization
Being effective: the nature and practice of
international marketing

• More complexity due to variation in environment

• Culture
• Consumer needs
• Economic level
• Infrastructure
• Market structure
• Available channels
• Ways of doing business
• Laws and regulations
Being effective: the nature and practice of
international marketing

• Business activities to adjust and accommodate

differences in international markets
• Analysis of existing and potential markets
• Product development to match variations in consumer needs
• Distribution of products through suitable channels
• Promotion
• Pricing
• Support
• Organization structure management
Internationalization and the global
marketer

• Internationalization
• A process or an end result or a way of thinking
• Planned and orderly or arise from perceived new opportunities
and threats
• Most effective when developed as a carefully planned process
Internationalization and the global
marketer
• International marketing
• Can be anything form selling a single product to single user to
major effort of marketing wide range of products to many
markets
• Multinational marketing
• Strong commitment to international marketing with separate
marketing strategy for each market
• Global marketing
• Sell the same product in the same way everywhere and achieve
economies of scale
• Factors limiting global marketing
• Differences in demand and preferences
• As income rise, consumers become less cost sensitive and demand
customization
• Modern production techniques and logistics make it possible to run
smaller production batches at lower cost
Internationalization and the global
marketer

• Modern day “Global Marketing” entails

• Evaluating and entering markets worldwide based on their
potential both as an individual market and as part of a worldwide
strategy
• Procuring capital and investing funds on a worldwide basis
according to costs and opportunities
• Purchasing raw material, components, equipment, and supplies
from sources worldwide
• Staffing their organizations with the managers and employees
best suited to carry out their operations without regard to
national origin
Internationalization and the global
marketer

• International marketing models

• Exporting
• Establishing sales subsidiary
• Licensing
• Establishing production setup
• Joint venture
International marketing management

• Three basic decisions

• First, whether to engage in international marketing
• Second, what specific individual markets are to be served
• Finally, how to serve these markets

• Major dimensions of international marketing

• Exporting
Interrelated
• Importing
• Management of international operations
Schematic model of export marketing mix
Some characteristics of export marketers

• Technical competence in marketing

• Specialized knowledge of factors in the international
environment that are dissimilar from domestic environment
• Ability to utilize such knowledge in working with others, at
home or abroad, to develop and implement sound marketing
programs
Export marketing planning and strategy

• Goal
• Program
• Organization
• Demand management
Export marketing planning and strategy
Dimensions of export barriers
How can a company cope with barriers to export ?
The impact of technology

• Trade in technology related products

• Role of technology in improving business organization
and implementation
• Cutting edge communication technology
• Logistics
• Research and development
• Consumer research and information
• Design and manufacturing
Entrepreneurial approaches to international
marketing
• Online marketplaces
• Virtual companies
• Business – government alliances
Non-traditional exports

• Services of knowledge-industry
• Exporting business models
• Importing customers