What is International Marketing?

Because we are almost in the last week of classes I felt a review slide was necessary. Here is a webpage that I found that pretty much sums up the whole class in a few helpful and meaningful quotes.

The following are just introductions to a more detailed section of the webpage, the list of links can be found by clicking on the title if you want to read more about a certain subject, the website is very helpful.

What is International Marketing?

At its simplest level, international marketing involves the firm in making one or more marketing mix decisions across national boundaries. At its most complex level, it involves the firm in establishing manufacturing facilities overseas and coordinating marketing strategies across the globe.

Doole and Lowe (2001).

Note: Doole and Lowe differentiate between international marketing (simple mix changes) and global marketing (more complex and extensive).

International Marketing is the performance of business activities that direct the flow of a company's goods and services to consumers or users in more than one nation for a profit.

Cateora and Ghauri (1999)

Note: Cateora and Ghauri consider international marketing in the absence of global marketing.

International marketing is the application of marketing orientation and marketing capabilities to international business.

Muhlbacher, Helmuth, and Dahringer (2006)

Note: Muhlbacher et al consider international marketing in relation to marketing orientation and competences (see also Global Marketing).

The international market goes beyond the export marketer and becomes more involved in the marketing environment in the countries in which it is doing business.

Keegan (2002)

Note: Keegan's definition is typical of those that see international marketing a one stage of an internationalisation process.
What is Global Marketing?

Global marketing refers to marketing activities coordinated and integrated across multiple country markets.

Johansson (2000)

Note: Jonny K. Johansson defines global marketing as a bigger brother to international marketing i.e. more of an extension.

. . . The result is a global approach to international marketing. Rather than focusing on country markets, that is, the differences due to the physical location of customers groups, managers concentrate on product markets, that is, groups of customers seeking shared benefits or to be served with the same technology, emphasizing their similarities regardless of geographic areas in which they are located.

Muhlbacher, Helmuth, and Dahringer (2006)

Note: Muhlbacher et al delineate international marketing (adapted) and global marketing (standardised).

Global/transnational marketing focuses upon leveraging a company's assets, experience and products globally and upon adapting to what is truly unique and different in each country.

Keegan (2002)

Note: Keegan takes a strategic, corporate overview to define the transnational nature of global marketing.

So, as with many other elements of marketing, there is no single definition of international marketing, and there could be some confusion about where international marketing begins and global marketing ends. These lessons will assume that both terms are interchangeable, and will define international marketing as follows:

International marketing is simply the application of marketing principles to more than one country.


Environment analysis for international marketing.

One of the fundamental steps that needs to be taken prior to beginning international marketing is the environmental analysis. Of course there are many tools on Marketing Teacher that would prove useful at this stage such as lessons on the marketing environment, PEST Analysis, SWOT Analysis, POWER SWOT and Five Forces Analysis. However, the very specific and unique nature of each individual nation needs to be looked into. Below we consider the nature of an international PEST Analysis, and the influence of tariff and non-tariff barriers.


An International PEST Analysis.

PEST is a well-known and widely applied tool when considering the external nature of the domestic market. However, it is equally as useful when applied to the nature of the international marketing environment.

International PEST Analysis would consider:

* How easy will it be to move from purely domestic to international marketing?
* Would your business benefit from inward foreign investment?
* What is the nature of competition within each individual market, and how will
companies from other nations compete when you meet with them head-to-head in
unfamiliar countries?
* Many other factors that are specific to your organization or industry.


What is the influence of culture on international marketing?

Culture is the way that we do things around here. Culture could relate to a country (national culture), a distinct section of the community (sub-culture), or an organization (corporate culture). It is widely accepted that you are not born with a culture, and that it is learned. So, culture includes all that we have learned in relation to values and norms, customs and traditions, beliefs and religions, rituals and artefacts (i.e. tangible symbols of a culture, such as the Sydney Opera House or the Great Wall of China).


How to Enter a Foreign Market.

This lesson gives an outline of the way in which an organization should select which foreign to enter. The International Marketing Entry Evaluation Process is a five stage process, and its purpose is to gauge which international market or markets offer the best opportunities for our products or services to succeed. The five steps are Country Identification, Preliminary Screening, In-Depth Screening, Final Selection and Direct Experience. Let's take a look at each step in turn.


How does an organization enter an overseas market?
Background

A mode of entry into an international market is the channel which your organization employs to gain entry to a new international market. This lesson considers a number of key alternatives, but recognizes that alteratives are many and diverse. Here you will be consider modes of entry into international markets such as the Internet, Exporting, Licensing, International Agents, International Distributors, Strategic Alliances, Joint Ventures, Overseas Manufacture and International Sales Subsidiaries. Finally we consider the Stages of Internationalization.

It is worth noting that not all authorities on international marketing agree as to which mode of entry sits where. For example, some see franchising as a stand alone mode, whilst others see franchising as part of licensing. In reality, the most important point is that you consider all useful modes of entry into international markets - over and above which pigeon-hole it fits into. If in doubt, always clarify your tutor's preferred view.


Media Choices for International Marketing

Marketing communications in international markets needs to be conducted with care. This lesson will consider some of the key issues that you need to take into account when promoting products or services in overseas markets. There will be influences upon your media choice, cultural issues to be considered, as well as the media choices themselves - personal selling, advertising, and others.
Influences upon International Media Choice.

There are a number of factors that will impact upon choice and availability of media such as:

* The nature and level of competition for marcoms channels in your target market.
* Whether or not there is a rich variety of media in your target market.
* The level of economic development in your target market (for example, in remote
regions of Africa there would be no mains electricity on which to run TVs or
radios).
* The availability of other local resources to assist you with your campaign will
also need to be investigated (for example, sales people or local advertising
expertise).
* Local laws may not allow specific content or references to be made in adverts
(for example, it is not acceptable to show naked legs in adverts displayed in
Muslim countries).
* And of course a lot depends upon the purpose of the international campaign in
the first place. What are your international marketing communications objectives?


How should we set prices for international markets?

This lesson considers the basics of pricing for international marketing. As with all of the international marketing lessons, every country and culture within it will influence price. So here we are going to look at some of the common influences upon pricing decision-making, the impact of grey markets, international approaches to pricing, and more mainstream marketing approaches to pricing that can be applied to an international context.


Standardization versus Adaptation.

As you will see from this website, product is a focal element of the marketing mix. When considering the nature of products and services in international marketing, the same models apply such as:

* Product Life Cycle (PLC) - products could be at different points in the PLC in
various nations, possibly creating new opportunities.
* Ansoff's Matrix - market development could mean that an existing product is
marketed in a new international market.
* Three Levels of a Product - marketers would consider the local market's need for
core, actual and augmented products.
* Internet Marketing and Product - how do eMarketers make product decisions?

However, international product decision-making often centres around the standardization versus adaptation debate. Essentially, do we market the same, standard product in an international market or segment, or do we localize it, and adapted it so that it pleases local tastes? Here are some of the advantages and disadvantage of standardization.