What We Will Discuss F Terminology of International Marketing F Why International Marketing? F Analyzing International Markets F The Process of International Marketing

Domestic-Orientation F Domestic Marketing –aimed at home market –firm faces 1 set of economics, politics & markets F Export Marketing –manufactures products in the domestic market –sells products outside of the domestic market

International Marketing F Direct Involvement Overseas F Adaptation F Businesses Understand Environments in Which They Operate

Global Marketing F A Cross-National Strategy F Economies of Scale F Elements of Standardization F Businesses seek to Change the Environments in Which They Operate

Major Decisions in International Marketing Look at Global Environment Decide to go International or Not Decide Which Markets to Enter First Decide How to Enter the Market Decide on Global Marketing Program Decide on Global Marketing Organization

Looking at the Global Environment 1 F Trade Barriers –tariffs –quotas –intangible trade barriers F GATT –reduced average tariffs from 45% to 5% F Regional Free Trade Zones

Looking at the Global Environment 2 F Economic Enviroment F Political-Legal Environment F Cultural Environment

What is Culture?

Culture F Formal Rules –taught directly as right and wrong –awareness of rule –punishment or emotional trauma from breaking rule

Culture 2 F Technical Rules –taught in a logical manner –can be verbalized and reasoned –few emotions attached to breaking rule –easily changed F Informal Rules –picked up by imitation –no awareness of rule –anxiety/exclusion for breaking rule

Deciding to Go International F Diversity of Tastes in the United States –increased immigration –fragmentation of the middle class F Increasing Opportunities Overseas – trade over $1 trillion in U.S. in 1992 F A Domestic Market? –ideology of free trade F Globalization of Brand Names

Deciding Which Markets to Enter F Demographic Factors F Geographic Factors F Economic Factors F Technological Factors F Sociocultural Factors F National Goals and Plans

How to Enter the Market F Exporting F Licensing F Contract Manufacturing F Joint Venture Manufacturing F Direct Investment risk & profit potential

The Global Marketing Program F Standardization vs. Localization –extension –adaptation: McDonalds - beer or tropical milk shakes? –invention F The Marketing Mix –price –product –promotion –distribution

Global Organization F by product F by geography F international subsidiaries: sales and profits

What We Have Discussed F Terminology of International Marketing F Why International Marketing? F Analyzing International Markets F The Process of International Marketing