Winners or losers?

International Marketing  A series of activities that creates an exchange and satisfies the individual customer across national borders ◦ Identify customer needs ◦ Planning to meet those customer needs ◦ More complicated than domestic marketing:  Cultural differences  Political/legal differences  Geographic differences  Competitive differences

Strategies for international marketing ◦ Import/export  Simplest and least risky strategy ◦ Contracting  Contractual agreement to work with a foreign business partner ◦ Licensing agreements  An agreement giving foreign companies the right to sell a company’s product for a fee ◦ Joint ventures  Two or more businesses combine to create a new business ◦ Direct investment  Purchasing business assets to run a business in a foreign country

Drivers of international marketing  Advanced technology  Improved transportation  New market opportunities

Drivers of international marketing  Advanced technology ◦ Internet connects customers and businesses world- wide ◦ Same movies, television shows, and Internet content are seen everywhere ◦ Companies can use the same media to send messages around the globe

Drivers of international marketing  Improved transportation systems ◦ Faster and cheaper than in the past ◦ Sealed containers available for ocean shipping ◦ Satellite technology to avoid bad weather ◦ Numerous world-wide shipping companies (for example, UPS, FedEx)

Drivers of international marketing  New market opportunities ◦ Fall of iron curtain in 1989 opened eastern Europe ◦ Opening of trade in China—largest market on earth ◦ Economic development in South America, Africa, Southeast Asia ◦ Increased personal income world-side

Planning for international marketing  Increased risk increases the need for an international marketing plan  Must create and deliver value to differing customers  Manage customer relationships  Create a profit  Understand how marketing activities differ in different cultural and political/legal environments

International professional development  Careers are diverse--some require a college degree, some only high school  Ability to communicate in a foreign language is helpful  Should develop a cultural understanding of the country where you will work  Global businesses require more technology skills  Experiences traveling, studying, or living abroad are helpful

Marketing core standards  Involved in every transfer of goods and services to the consumer DistributionMarketing-information management PricingProduct-service management PromotionSelling Financing

Marketing core standards  Distribution ◦ Determining the best ways to allow customers to locate and obtain the products & services of a business ◦ Involves shipping, handling, and storing of products

Marketing core standards  Marketing-information management  Obtaining, managing, and using marketing information to improve business decision-making  Marketing research  Developing databases of product, customer, and competitive information

Marketing core standards  Pricing ◦ Establishing a price for goods and services ◦ Should set prices low enough to encourage customer purchase, and high enough to make a profit ◦ Manage international currency exchange rates

Marketing core standards  Product/service management ◦ Designing, developing, maintaining, improving, and acquiring products to meet consumer needs and wants ◦ Producers and manufacturers develop products

Marketing core standards  Promotion ◦ Communicating to potential customers about products and services ◦ Advertising ◦ Publicity/public relations ◦ Sales promotion ◦ Personal selling

Marketing core standards  Selling ◦ Communicating directly with prospective customers to assess and satisfy needs ◦ Two-way interaction with customer ◦ May be face-to-face, via telephone, or Internet tools

Marketing core standards  Financing ◦ Budgeting for marketing activities ◦ Obtaining funds for business operations ◦ Developing payment and credit systems to help customers purchase goods and services