BA 486 International Marketing Dr. Frankenberger

What is International Marketing? Standard U.S. marketing principles applied to different country markets: –Exchanges: across international borders –Satisfaction: of company & customer needs But with a difference in the company’s marketing environments –Internal: management’s approach to international marketing; experience, resources, etc. –External: uncontrollable elements in the external environment

Uncontrollable Elements in the External Environment Standard domestic market variables… Economic Political/legal Level of technology Consumer social- demographics Competitive forces …plus special international factors… Geography & infrastructure Communication & distribution Cultural characteristics

Benefits of International Mktg Product Life Cycle Considerations: opportunity to prolong product lifecycle by entering growth markets. High New Product Development Costs: Firm look beyond home-country market to recover investment costs Cost Reductions: Standardization, Scale Economies, Cheap Labor and/or materials. Transfer of experience to other markets

Different Int’l Marketing Philosophies The Domestic Market Extension view The Multi-domestic (International) Market view The Global Marketing view

The Domestic Market Extension view Some to regular exporting of goods international not considered main focus of business ethnocentric in nature (products not modified for foreign market)

The Multi-domestic (International) Market view Exporting plus foreign production market on a country-by-country basis tailor products to differences among markets polycentric in nature (diff products developed to meet needs of diff countries)

The Global Marketing view The world (or region) is one market isolate commonalties among countries standardized product, marketing mix takes advantage of standardization where possible, but adapts to local needs (localization) where necessary. strive for scale economies regiocentric or geocentric in nature

Whatever the management orientation, there are different methods of entering foreign markets… Methods Exporting (direct & indirect) Internet (actually a form of exporting) Contractual Agreements Direct Foreign Investment Strategic Alliances