Prof. Dr. Ing. Elena Horská Slovak University of Agriculture in Nitra The Scope and Challenges of International Marketing

Under influence of globalization the separate parts of marketing management activities are actual: 1. In the relations with customers there is emergent real time management, online communication, internet based organization, faster product diffusion 2. Transferable market is based on global customer needs, with strong power of distribution channels, economic power of a few lead countries and globalized competition. 3. Paradox of high level of product standardization and product adaptation, with short innovation cycles, high costs of product development, fast changing technology and powerful brand policy. 1. New forms of marketing, innovative marketing, enjoyment marketing, event marketing, e-marketing, relationship marketing (Calvin Klein, Madona video + Where the hell is Matt)

International marketing is a hard work.... „Making sales calls is no vacation even in Paris when you´are been there ten times before. But international marketing is important work. It can enrich you, your family, your company, and your country. And, when international marketing is done well, by large companies or small, the needs and wants of customers in other lands are well understood, and prosperity and peace are promoted along the way.“

n International marketing is defined as the performance of business activities designed to plan, price, promote, and direct the flow of a company´s goods and services to consumer or users in more than one nation for a profit. n Marketing principles, processes and concepts are universally applicable all over the world.

Video: Go internationally – why and how?

Global marketing opportunities and threats: n Opportunities: –Increase in market potential –Trade and investment potential –Resources accessibility n Threats: –Increasing number of competitors –Increase in intensity of competition coupled with higher market uncertainty

Reasons for marketing abroad n Economies of scale and scope. n Lucrative markets which do not exist at home, but which do exist abroad. n Saturated markets at home. n Response to incoming competitive activity.

Foreign demand drivers n Non-availability of appropriate products from domestic producers. n Price differences between imported goods and local goods. n Exotic image attaching to foreign products. n Local problems that prevent domestic firms from supplying goods.

Exporting vs. international marketing n Exporting means making it here, selling it there. n International marketing also might include: –1. Marketing products manufactured in the target country, or in a third country. –2. Establishing a permanent presence in the target country. –3. Licensing or franchising the firm’s systems to foreign businesses. –4. Sourcing components from foreign countries.

Forces for market responsiveness n Cultural differences n Regionalism/protectionism n Deglobalization trend

Corporate social responsibility Specific issue connecting both forces for market responsiveness and forces for global coordination Videocase: Commercial versus social? Global versus local?

Models of internationalization n Uppsala model: firms begin by exporting, then establish a marketing presence, then a manufacturing presence, then become fully multinational. n Dunning’s model: firms may enter the market in any of the above ways, as appropriate to the firm (ownership, locational and internalization advantages) n Network approach n Born global

Crossing borders: questions and discussion Analysis of strengths and weaknesses of SME in processes of internationalization.... Which strenghts and weaknesses do you consider as the most important? 1. What are the opportunities for SME companies in terms to use international marketing approach...? How to use the theory of international marketing? Why to go globally? How to be successful?