Programa de

Negocios
Internacionales

International
Marketing
Session 8

Topic:
Determination of the objectives
of the marketing plan and the
modes of entry to international
markets. Professor: Ms. Enrique Barrueto Castillo
E-
Learning outcome Learning Evidence:

Design international marketing strategies Report: Market Trends

according to the principles of international
management principles and international trade
policy.
Contenido
Session Content

• Determination of the objectives

of the marketing plan and the
modes of entry to international
markets.
Watch this
video

https://www.youtube.com/watch?v=8fiANopZV6A
After watching the video, answer the following
questions:

01 What is SMART?

02 Why this methodology is useful?

03 Why it is important to have clear objectives in

marketing?
 Tema
Determination of the
objectives of the
marketing plan and
the modes of entry to
international markets.
Elements of the Marketing Plan international

Analysis of the Define strategies Pin up objectives

situation • Define the general strategies • From general objectives to
• Compile the most relevant as well as the different in a coordinated way and
historical information specific strategic options for consistently reach specific
regarding products , markets , each country. marketing objectives.
competitors and the
customers.
• Where we are? Y How did
we get to Current situation?
 Examples of objectives

Objectives from Market (%) Share from Cost Objectives from

sales effectiveness image

• in volume • Participation • Benefits • improve the

from sales from market image of the
company or
product in a
certain
market
 MARKETING OBJECTIVES

• Once the diagnosis of the situation is completed

and before formulating the marketing strategy,
we must formulate our objectives. Otherwise, it
will be difficult for us to know if the strategy we
are adopting is the correct one.

• If we do not know where we are going, we can

hardly know if the path we are following is the
right one.

• Marketing objectives must be subordinate to

corporate objectives.
 DEFINITION OF OBJECTIVES
SMART METHOD

• SPECIFIC

S • It should be as specific as possible. Anyone who reads it will know exactly what it is intended to do and how. It will
answer questions such as: What exactly is it intended to achieve? Who is involved? What benefits will be obtained if
they are achieved?

• MEASURABLE

M • It must be measurable, so it must be a quantifiable goal. It is necessary to clearly define the measurement method or
system, establishing the indicators to be used to evaluate the degree of achievement of the objective.

• ATTAINABLE

A • It must be ambitious, but possible. You have to give the option to readjust the objectives if there are changes in the
environment. It will answer questions such as: Do you have the resources? If I don't have the resources, is it possible
for us to obtain them? What is the action that will be developed to obtain them?, etc.

R
• RELEVANT
• It must generate a significant effect within the project.

• TIME-BASED

T • Each objective must be defined in time, since it will help us to mark the different stages that will allow us to reach the
proposed goal.
 INTERNATIONAL ENTRY AND EXPANSION

• Doing business on an international scale provides

opportunities for companies to bring innovations to
the world.
• International expansion can be the key to prosperity
for corporations and employees.
• Firms that export grow faster, are more productive,
and have employees who tend to earn more.
• Although some companies have international
operations from the beginning, most of them
undertake them gradually.
• New activities in an unknown environment increase
the risk of the company. Therefore, companies must
prepare their activities and adjust to the needs and
opportunities of international markets in order to
become long-term participants.
 INCENTIVE FOR INTERNATIONALIZATION

• In most business activities, it is rare for a single factor to explain a given measure. Usually, a
combination of factors causes companies to take steps in a certain direction.

• This is valid for internationalization; there are numerous stimuli that encourage companies to
take the path of internationalization.

• There are proactive and reactive motivations. The proactive ones represent the stimuli to try
the strategic change. The reactive ones include companies that respond to changes in the
environment that force them to modify their activities over time: proactive companies
internationalize because they want to; the reactive ones do it because they have to.

Proactive incentive Reactive incentive

• Profit advantage. • Competitive pressure.
• Unique products. • Overproduction.
• Technological advantage. • Decline in domestic sales.
• Exclusive information. • Excess capacity.
• Scale economics. • Saturated domestic markets.
• Size of the market. • Proximity to customers and ports.
 CHANGE'S AGENTS
• Someone or something inside and outside the company must initiate the change and guide it
through to implementation.

• These people or variables that intervene are called agents of change, which can be internal or
external.

Internal External
• Knowledgeable management. • Demand.
• New management. • Competence.
• Significant internal event. • domestic distributors.
• Service companies.
• Industrial associations.
• Government activities.
• Export intermediaries.
• Export management companies.
• Trading companies.
 INTERNATIONALIZATION
• For many companies, internationalization is a gradual process. However, particularly in small markets, it is quite possible for
companies to be born global, founded with the explicit purpose of selling abroad because the domestic economy is too small
to support their activities.
• There are three main methods for entering new markets. These are: export, licensing and franchising , and foreign
investment.

EXPORT LICENSING AND FRANCHISING FOREIGN DIRECT INVESTMENT

In some countries, more than a third of
exporting companies started their export
activities less than two years after their
foundation.
Companies with a strong e-commerce
orientation quickly gain global exposure
through ease of reach and access.
Companies that decide to export their
products do so in different ways. They can
do it directly or through intermediaries
Licensing and franchising are market
expansion alternatives used by all types of
companies, large or small, because they
offer flexibility and reflect the needs of the
company and the market.
Licensing allows a company to use
intellectual property in exchange for a
consideration designated as a royalty.
In franchising , a parent company grants
another independent company the right to
do business in a specific way (model).
Foreign investment represents international
investment flows to acquire real estate and
factories. The international company makes
these investments to create or expand a
long-term interest in a company with some
degree of control.
Different levels of ownership affect
flexibility, control, and risk exposure. It can
be Total Ownership (100% ownership), Joint
Ventures (joint ventures), Strategic
Alliances (more flexible than joint Ventures
since they adapt and dissolve quickly),
Government Consortiums (government
support or subsidy).
 • What did you think of today's
Conclusiones

lesson?
• What did we learn?
• Why is what we learned today
important for us?
Work in groups
Session 8
Using our new
knowledge:
Graphic
organizer:

Design of retail
objectives and
entry strategies to
foreign markets
through the
simulator.
 • Gomes, Gomes, E., Sousa, C., & Vendrell-Herrero, F. (2019).
International marketing review? international marketing agility
(Gomes, C. Sousa, & F. Vendrell-Herrero, Eds.). Emerald Publishing.
Referencias

https://ucv.primo.exlibrisgroup.com/permalink/51UCV_INST/175ppo
i/alma991002898379707001

• Jaime Rivera Camino. (2013). Marketing Internacional. Pearson

Educación. https://www.ebooks7-24.com:443/?il=10377

• Michael Czinkota. (2013). Marketing internacional. Cengage.

https://www.ebooks7-24.com:443/?il=9467

• Zou, Xu, H., & Shi, L. H. (2015). Entrepreneurship in international

marketing (First edition.). Emerald.
https://ucv.primo.exlibrisgroup.com/permalink/51UCV_INST/175ppo
i/alma991002840977507001