1. MKTG 769 INTRODUCTION Lars Perner, Instructor 1 Welcome to MKT 769 Seminar in International Marketing!  Introduction to the course –Overview of course issues –Approach –Project

2. MKTG 769 INTRODUCTION Lars Perner, Instructor 2 Stages in Globalization  Across country economies  For the individual firm –Customers –Competition –Suppliers

3. MKTG 769 INTRODUCTION Lars Perner, Instructor 3 Internationalization of Marketing  Global products  Global brands  Leading markets  The Product Life Cycle

4. MKTG 769 INTRODUCTION Lars Perner, Instructor 4 Reasons for Entering Global Markets  Profitability  Growth  Economies of scale  Risk spread  Access to import inputs  Uniqueness of product or service  Marketing opportunities associated with the life cycle  Spreading R&D costs

5. MKTG 769 INTRODUCTION Lars Perner, Instructor 5 Some Drivers of International Trade  Technology –Increasing speed of Product Life Cycles –Internet –Lower costs of entry into some markets –Improved transportation and communication  Governmental –Trade agreements  WTO  NAFTA  Regional agreements

6. MKTG 769 INTRODUCTION Lars Perner, Instructor 6 Trade Theories  Many traditional theories are based on labor productivity –Absolute advantage –Relative advantage  Factor input makes more sense –Cost of labor –Availability of infrastructure –Regulatory environment

7. MKTG 769 INTRODUCTION Lars Perner, Instructor 7 Essential Global Marketing Assets  Products –Existing –New  Models of existing product lines  Extensions  Advertising/Promotion  Distribution

8. MKTG 769 INTRODUCTION Lars Perner, Instructor 8 Perspectives on International Trade  Traditional economic perspective—based mostly on labor costs –Absolute advantage –Relative advantage  Country Specific Advantages –Labor costs –Labor skill –Infrastructure –Legal and political stability –Government policy and regulations –Natural resources

9. MKTG 769 INTRODUCTION Lars Perner, Instructor 9 The International Product Life Cycle  Product categories will tend to spread first in developed countries  Resale of capital products  Country of origin effects over time

10. MKTG 769 INTRODUCTION Lars Perner, Instructor 10 Firm Specific Advantages (FSAs)  Knowledge-Based  Marketing –Brand image –Distribution –Knowledge of markets  Transferability of FSAs  The value chain