International

Marketing

© Daniel W. Baack, Barbara

Czarnecka & Donald Baack

Part One

Essentials of international

marketing

Chapter 1

Introduction to international

marketing

Learning outcomes

1. What are the meanings of the terms “multinational

corporation,” “born-global,” “home country,” and “host

country”?

2. What are the essential ingredients in the marketing mix as

they relate to international markets, needs, and wants?

3. How have the drivers of globalization influenced

international marketing?

4. How are the factors that create international marketing

complexity linked to creating a global mind-set for

marketing activities?

4

Learning outcomes

5. Why are the concepts of sustainability and bottom-of-the-

pyramid consumers linked to today’s international

marketplace?

5

Learning outcome

1. What are the meanings of the terms “multinational

corporation,” “born-global,” “home country,” and “host

country”?

6

International marketing

• The utilization and adaptation of the best marketing

practices for the purposes of conducting commerce in other

countries.

• It includes conducting commerce with customers, clients,

partners, society at large, and the overall global community.

7

Who does international marketing?

• Multinational Corporations (MNCs)

– Businesses that conduct activities in at least one other

country that differs from the home country in which the

organization is headquartered.

• Born-global firms

– Businesses that operate in two or more different countries

from inception are born-global firms.

8

9

Home vs. Host Country

• The home country is the nation in which the business is

located or the country that houses the company’s main

headquarters.

• A host country is a nation being targeted for expansion.

10

How do we organize?

• Ethnocentric management

– Use home country nationals as employees in home and host countries

• Polycentric management

– Use local nationals as employees in home and host countries

• Regiocentric management

– Use employees from the region within that region

• Geocentric management

– Use the best employees globally without a focus on country location

11

Learning objective #2

2. What are the essential ingredients in the marketing mix as

they relate to international markets, needs, and wants?

12

Marketing defined

• Marketing may be defined as “discovering consumer needs

and wants, creating the goods and services products that

meet those needs, and then pricing, promoting, and

delivering those goods and services.”

• The marketing mix consists of the major activities used to

develop and sell goods and services.

13

14

Markets, wants, and needs

• A market consists of people with wants and needs, money

to spend, plus the willingness and ability to spend money on

those wants and needs.

• Needs are the necessities of life that all humans require for

their survival and well-being.

• Wants are specific expressions of needs through the desire

for specific objects.

15

The STP process

• Market Segmentation

– Grouping consumers based on their needs, attitudes, and

interests.

• Target market

– Specific, identifiable market segment that a company

seeks to reach.

• Positioning

– Creating a perception in a consumer’s mind about the

nature of a company and its products relative to

competitors’.

16

Learning objective #3

3. How have the drivers of globalization influenced

international marketing?

17

Globalization

• The increased interconnectedness of consumers and

businesses.

• Four Drivers:

– Channels of Communication

– Lower Transportation Costs

– Immigration and Emigration Patterns

– Governmental Actions

18

19

Learning objective #4

4. How are the factors that create international marketing

complexity linked to creating a global mind-set for

marketing activities?

20

International marketing complexity

• Culture

• Language

• Political and legal systems

• Economic systems

• Infrastructure

21

Culture and this course

22

Language and this course

23

Political and legal systems and this course

24

Economic systems and this course

25

Infrastructure and this course

26

The framework for this course

27

Other course themes – Sustainability

• Sustainability or sustainable development refers to meeting

the needs of the current generation in a way that leaves

future generations with the ability to also meet their needs.

• “Enough – for all – forever.”

28

A sustainability framework

29

Other course themes – Bottom-of-the-pyramid

• Approximately 4 billion people globally live on less than $2

per day. This group of consumers is referred to as the

bottom-of-the-pyramid.

• At 4 billion consumers, even a small level of profit per sale

can lead to large profit across the entire segment.

• Targeting this group can lead to more-efficient processing

and innovations that can then be applied to more affluent

consumers.

30