What is Marketing? Marketing function charged with defining target markets and determining the BEST way to satisfy their needs and wants competitively and profitably

What is International Marketing? “Performance of business activities designed to plan, price, promote, and direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit”

Domestically Marketing is Perceived As… ACC FIN MHR MKT Easy to Learn Hard to Learn Easy to DoHard to Do

Why is Marketing Difficult To do? No competitive point of difference Unexpected reactions from competitors Poor positioning Product didn't deliver promised benefits Too little marketing support Bad estimates of market potential (or other marketing research mistakes) Improper channels selected Rapid change in the market or economy after launch Consumers are difficult to predict/fickle

Examples of Product Failures Olestra fat alternative –P&G spent $200 mil on R&D & $160 mil on plant Smokeless cigarette –RJR Nabisco spent $325 mil Gerber’s Singles –Small servings of fruits, vegetables and entrees in same jars used for baby food but for adults

Nair for MEN Hair Remover: Currently in test market, this body cream removes hair from back, chest, arms and legs. Research by NPW three years ago indicated a market for smooth skin among active, young men. The big question is how big the opportunity is for Carter-Wallace’s Nair -the leader in hair removal for women.

Would results have been different if product were marketed abroad? Would it have been easier or harder to do?

Key to Successful International Marketing Adaptation to the environmental differences from one country to another

7 The International Marketing Task Political/legal forces Economic forces 1 2 Environmental uncontrollables country market A Environmental uncontrollables country market B Environmental uncontrollables country market C Competitive structure Competitive Forces Level of Technology PriceProduct Promotion Channels of distribution Geography and Infrastructure Foreign environment (uncontrollable) Structure of distribution Economic climate Cultural forces Political/ legal forces Domestic environment (uncontrollable) (controllable) Irwin/McGraw-Hill Copyright©2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1-5

Barriers to Successful International Marketing Self Reference Criterion – Basing decisions on one’s own cultural values, experience & knowledge –… Ethnocentrism – Belief that one’s own culture is best

Self Reference Criterion – Basing decisions on one’s own cultural values, experience & knowledge –Nodding head up & down misinterpreted as agreement India computer technicians –Poland lunch with gentlemen who buttered my bread misinterpreted as chauvinistic, mean to be chivalrous applies to kissing hand –Poland as well as other countries when come visiting fed with everything in the house impolite not to eat –France asking for directions Respondent gestured wildly and talked louder and faster

Approaches to International Markets Domestic Market Extension –Little, if any, adaptation. –Seek markets similar to domestic ones Multidomestic Market –Subsidiaries operate independently –Create unique Marketing programs Global Marketing –Standardize marketing mix where culturally feasible & cost effective

Multidomestic Marketing First launched in France in 1969, Cif's proposition was "powerful cleaning without scratching". It used the well- known 'Skater' campaign to help open up a new category in the market with the claim "powders can scratch like skates on ice". During the 1970s, the brand was rolled out across Europe under different names including Jif, Viss, Vif and Vim for phonetic and trademark reasons. In the 1980s, it was extended into Japan and Australia and then into South Latin America and Central Europe.

Global Market Our biggest brands have international appeal because they meet a need or fulfil a desire that people share, no matter where they live. Two of our biggest brands, Dove and Knorr are good examples: Families around the world need tasty food that's easy and enjoyable to prepare. Knorr has the answer, expertly tailoring recipes and ingredients for local tastes and making products that fit into people’s lives, including meal kits, frozen ready-meals and snacks as well as everyday bouillons and seasonings. From its earliest beginnings as a cleansing bar, Dove responded to consumer needs and extended its portfolio to body care, hair products and deodorants. Dove delivers real benefit and satisfaction for millions of people around the world, both functionally and emotionally.

International Marketing Involvement No Direct Foreign Marketing Infrequent Foreign Marketing –Temporary surpluses Regular Foreign Marketing –Goods produced regularly for foreign markets but focus still domestic

International Marketing Involvement International Marketing –Fully committed to international –Countries require unique marketing strategies Global Marketing –World seen as one market –Strive for Standardization