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INTERNATIONAL MARKETINGALIREZA AHMADI

15.10.2020 International Marketing, Alireza Ahmadi, Wintersemester 2020-2021 2

International Marketing (Wintersemester 2020-2021)

Alireza [email protected]

Source / Learning Material


International MarketingAnalysis and strategyFifth editionSak Onkvisit and John J. Shaw

Content


- NATURE OF INTERNATIONAL MARKETING: CHALLENGES AND OPPORTUNITIES

- TRADE THEORIES AND ECONOMIC DEVELOPMENT

- TRADE DISTORTIONS AND MARKETING BARRIERS

- CULTURE

- CONSUMER BEHAVIOR IN THE INTERNATIONAL CONTEXT: PSYCHOLOGICAL AND SOCIAL DIMENSIONS

- MARKETING RESEARCH AND INFORMATION SYSTEM

- FOREIGN MARKET ENTRY STRATEGIES

- PRODUCT STRATEGIES: BASIC DECISIONS AND PRODUCT PLANNING

- PRODUCT STRATEGIES: BRANDING AND PACKAGING DECISIONS

- CHANNELS OF DISTRIBUTION

- PHYSICAL DISTRIBUTION AND DOCUMENTATION

- PROMOTION STRATEGIES: PERSONAL SELLING, PUBLICITY, AND SALES PROMOTION

- PROMOTION STRATEGIES: ADVERTISING

- PRICING STRATEGIES: BASIC DECISIONS

NATURE OF INTERNATIONAL MARKETING

Chapter Outline

• Process of International Marketing

• International Dimensions of Marketing

• Domestic Marketing vs. International Marketing

• Multinational Corporations (MNCs)

- Pros and Cons

- Multinationality and Market Performance

- Characteristics of MNCs

• The Process of Internationalization

• Benefits of International Marketing


Definition of International Marketing

Multinational process of planning and executing the conception, pricing,

promotion, and distribution of ideas, goods, and services and to create exchanges

that satisfy individual and organizational objectives

Business-to Business marketing

- transaction between two organizations



Transaction between two organizations

Business-to Business Marketing

Essential characteristics of international marketing

First, what is to be exchanged is not restricted to tangible products (goods) but may

include concepts and services as well.

Second, the definition removes the implication that international marketing applies

only to market or business transactions.


Essential characteristics of international marketing

Third, the definition recognizes that it is improper for a firm to create a product

first and then look for a place to sell it

Fourth, the definition acknowledges that

“place” (distribution) is only part of the

marketing mix and that the distance between

markets makes it neither more nor

less important than the other parts of the mix.

Finally, the “multinational process” implies that the international marketing

process is not a mere repetition of using identical strategies abroad.


Dimensions of Marketing

• Consumer Marketing vs. Business-to-Business Marketing

• Domestic Marketing vs. Foreign Marketing

• Comparative Marketing

• International Marketing vs. Global/Multinational Marketing

• Domestic Marketing vs. International Marketing

- similar in nature but not in scope (scale)?

- different in degree but not in kind?


THE APPLICABILITY OF MARKETING

- Marketing is a universal activity

- But, Consumers in all parts of the world must or should be satisfied in exactly

the same way.

- Consumers are significantly different

due to varying culture, income, level

of economic development, and ...


MNCs (MULTINATIONAL CORPORATIONS)


Cons Pros

Exploitation Power and Prestige

Erosion of a Nation's

Sovereignty

Social Responsibility

Market Performance

MNCs …

MNCs have power and prestige.


Multinationality and market performance

The positive impacts originate in MNCs’ ability to leverage scale economies, access new technologies, and arbitrage factor cost differentials across multiple locations.

The negative effects later emerge because of higher costs associated with coordination and control, administrative systems to manage culturally distinct markets, and diverse human resources.

Characteristics of MNCs

• Definition by Size

- market value

- sales

- profits

- assets

- number of employees



• Definition by Structure

- number of countries in which the firm does business

- citizenship of corporate owners and top managers



• Definition by Performance

- commitment of corporate resources to foreign operations

- amount of rewards from that commitment



• Definition by Behavior


GeocentricityEthnocentricity Polycentricity

Behavior/ Attitude

• Ethnocentricity

- orientation toward home country

- centralization of decision making

- efficient but not effective


Behavior/ Attitude

• Polycentricity

- strong orientation to host country

- decentralization of decision making

- effective but not efficient


Behavior/ Attitude

• Geocentricity

- world orientation

- combination of centralization and

decentralization aspects

- efficient and effective


Internationalization Process

• Stages of Internationalization

- Domestic business

- Sporadic exporting

- Frequent exporting

- Overseas manufacturing

• Born Global

- Mission of being global from birth

- Resources committed to international activities


Benefits of International Marketing

• Survival and Growth

• Sales and Profits

• Diversification

• Inflation and Price Moderation

• Employment

• Standards of Living

• Understanding of Marketing Process


QUESTIONS

• What are the strengths and limitations of the AMA’s definition of marketing as adapted for the purpose of defining international marketing?

• Distinguish among: (a) domestic marketing, (b) foreign marketing, (c) comparative marketing, (d) international marketing, (e) multinational marketing, (f) global marketing, and (g) world marketing.

• Are domestic marketing and international marketing different only in scope but not in nature?

• Explain the following criteria used to identify MNCs: (a) size, (b) structure, (c) performance, and (d) behavior.

• Distinguish among: (a) ethnocentricity, (b) polycentricity, and (c) geocentricity.

• What are the benefits of international marketing?


DISCUSSION ASSIGNMENTS

• Do you feel that marketing is relevant to and should be used locally as well as

internationally by:

(a) international agencies (e.g., the United Nations);

(b) national, state, and/or city governments;

(c) socialist/communist countries;

(d) LDCs; and

(e) priests, monks, churches, and/or evangelists?


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