International Marketing

Jeremy Kees, Ph.D.

Why is International Marketing Important?

• The global economy accounts for $7 trillion

• For 20 years, U.S. exports have grown about 10 percent annually

• The Internet makes it possible for every marketer to become an international marketer

Why Go Global??Company-Level Benefits

• More customers– Additional revenues

– Economies of Scale

• New insights into consumer behavior• Positioned well to compete effectively

with foreign competitors– Employees and best business practices

• Lower risk– Diversification

Challenges for doing business abroad

• Marketers in developing countries may face ___________ challenges

• Capitol Investments– Product Adaptations– Understanding CB– Transportation/Logistics

• Lack of Expertise

International Environmental Considerations

International Marketing

mix International technologicalenvironment

International economic

environment

International political-legal environment

International social-cultural environment

International Political-Legal Environment

Other Environmental Factors?

• Trade Barriers– Tariffs– Administrative Barriers

International Entry Strategies

• Exporting

• Contractual Agreements

• International Direct Investment

International Marketing Mix Decisions

Same ProductSame Product Product Product AdaptationAdaptation

New ProductNew Product

Same Same

PromotionPromotion

Straight Extension Product Adaptation

Product Invention

DifferentDifferentPromotionPromotion

Promotion Adaptation

Dual Adaptation

Promotion Adaptation

International Marketing Mix Decisions

• Pricing Decisions– Often uncontrollable

• Distribution Decisions– Infrastructure Issues /

Non-Traditional Channels