INTERNATIONAL MARKETING Cansu KÖROĞLU Dokuz Eylul University Industrial Engineering Department 1

Marketing  Marketing, constitutes activities that direct goods from manufacturers to consumer.  Marketing to identify: Must have two or more parties are interested in change. The parties must have goods that can be traded. The parties should have the power of communication and delivery. 2

International Marketing  International marketing occurs when a business directs its products and services toward consumers in more than one country. 3

"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.“ "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." (International Marketing Strategy - Analysis, Development and Implementation) (Publishing Company-International Marketing) 4

Differences between domestic marketing and international marketing For international as well as domestic marketing the basic tools and concepts of marketing are applied in order to satisfy consumer demand, although the problems encountered in international marketing and the techniques used to overcome them can differ considerably. 5

DomesticInternational Research data is available in a single language and is usually easily accessed Research data is generally in foreign languages and may be extremely difficult to obtain and interpret Business is transacted in a single currencyMany currencies are involved, with wide exchange rate fluctuations Promotional messages need to consider just a single national culture Numerous cultural differences must be taken into account Communication and control are immediate and direct International communication and control may be difficult Business laws and regulation are clearly understood Foreign laws and regulations might not be clear Bussiness risk can usually be identified and assessed Enviroments may be so unstable that it is extremely difficult to identify and assess risk Distribution and credit control are straightforward Distribution and credit control may be extremely complex Competitors’ behaviour is easily predictedCompetitors’ behaviour is harder to observe, therefore less predictable New product development can be geared to the needs of the home market New product development must take account of all the markets the product will be sold in 6

Factors affecting international marketing International marketing is dealing with more than one foreign market. So international marketing is affected by many factors. FACTORS CulturalLegalSocial Economic Political 7

4P’s of International Marketing 8

Product  An international company has to decide which strategies should be sold after developing the product.  Products can be sold with 4 different strategies. These strategies are: 9 Single Product-Single Message Same Product-Different Message Different Product-Same Message Different Product-Different Message

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Price  The company can price according to different purposes. Making faster the entering the market, maintain market share, market shares of other firms through price competition to capture some of these purposes. 11

Promotion  After product research, development and creation, promotion (specifically advertising) is generally the largest line item in an international company’s marketing budget. The key is testing advertising ideas using a marketing research system proven to provide results that can be compared across countries. 12

Place  There are some general principles about the distribution channels: Marketing objectives to be determined. Assessment of the situation change at every stage of the distribution. In each country, to determine strategies for distributions channels. Determination of performance standards for all the organizations in the distribution chain. Comparison of actual performance with expected performance. 13

Benefits of International Marketing  International marketing daily affects consumers in many ways, though its importance is neither well understood nor appreciated. → Survival and growth → Sales and profits → Diversification → Inflation and price moderation → Standards of living 14

Survival and growth  For companies to survive, they need to grow. Because most countries are not fortunate of market size, resources and opportunities, they must trade with others to survive.  International expansion was necessary when foreign companies entered a domestic market.  Only companies with previously substantial market share and international experience could expand successfully. 15

Sales and profits  Foreign markets constitute a large share of the total business of many companies that have wisely cultivated markets abroad.  Foreign sales constitute a major share of total revenues of many companies. 16

Diversification  Demand for most products in domestic market is affected by cyclical factors and seasonal factors. These factors are likely to cause a drop in sales often forcing companies to lay off personnel.  Foreign markets iron out fluctuations by providing outlets for excess production capacity. 17

Inflation and price moderation  The benefits of exports are obvious. Even imports can be beneficial to a country. Without imports, there is no force to influence domestic companies to moderate their prices. 18

Standards of living  Trade affords participating nations and their citizens higher standards of living than is otherwise possible. 19  Without trade, product shortages force people to pay more for less, denying them the purchasing power to buy more.

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