Chapter 1 – An Introduction to International Marketing Doole, Lowe and Kenyon International Marketing Strategy

Learning Objectives Explain and use the SLEPTS factors to assess international markets Discuss the differences between export marketing, international and global marketing Understand the criteria required to evaluate a company’s international marketing strategy Appreciate the key steps in the international marketing planning process

The international marketing environment International marketing involves: Focusing on the needs and wants of customers Identifying the best method of satisfying those needs and wants Orienting the company towards the process of providing that satisfaction Meeting organisational objectives

International marketing defined International marketing is a process of applying marketing principles across a number of foreign country markets Domestic marketing International marketing Global marketing

The international marketing environment Different levels of international marketing Domestic marketing International marketing Global marketing

The international marketing environment (cont.)

The international marketing environment (cont.) Social factors Now there are 22 mega cities with at least 10 million people living in each one In 2028 India will surpass China’s population By 2030, Tokyo will have over 37 million people living in the city Asia accounts for 60% of the world’s population By 2025, 85% population will live in emerging markets

The international marketing environment (cont.)

The international marketing environment (cont.) Legal factors 3 dimensions in the legal environment: local domestic law: different in every country international law: issues include piracy, treaties, patents etc domestic laws in the home country: export controls, plus duty to abide by national laws in all activities

The international marketing environment (cont.)

The international marketing environment (cont.) Developed Triad Economies (= US, China and India) account for 52% of world trade Emerging Economies huge and growing consumer demand government directed economic reforms dual economy the ‘have’ and ‘have nots’ Less Developed Countries (LDCs) low GDP limited manufacturing base, poor infrastructure reliance on exporting raw materials (1) GDP Ranking and (2) GDP Per Capita

The international marketing environment (cont.) Political factors ‘A risk due to a sudden or gradual change in a local political environment that is disadvantageous or counter productive to foreign firms and markets’ Government actions which may constitute potential risk for the firm: Operational restrictions e.g. exchange controls or employment policies Discriminatory restrictions e.g. special taxes and tariffs Physical actions e.g nationalization, riots and war

The Internet and the world wide web (www) Technological environment Impact of technological advances: Ability to gather data on markets Management control capabilities Operational practicalities of electronic communication

The Internet and the world wide web (www) Global communications Global access to the World Wide Web Est. 3 billion users 42% of global population Importance of English language for web users Globally e-business; US $6.7 trillion (B2B transactions in next 5 years)

The international market planning process (Cont.)

Major components: Strategies for success A clear international competitive focus and a strategic perspective which was truly international. An effective relationship strategy achieved through strong customer relations and a dedication to customer service throughout international markets Well-managed organizations with a culture of learning