1. International Business
Marketing

2. Learning Objectives 1. Define global marketing.
2. Discuss why businesses expand into foreign markets.
3. Identify advertising (integrated marketing) media and pricing used in foreign markets including social, print, and digital media.
4. Describe how language, culture, media availability, and regulations affect global marketing strategies.
5. List factors that affect competition in the global market

3. Marketing Overview
Marketing is the process of planning, pricing, promoting, selling, and distributing products to satisfy customers’ needs and wants.
Marketing mix consists of the four P’s :: Product, Price, Place, Promotion

4. Marketing Overview
A market is a set of people who chare similar wants and needs or who are capable of buying specific products
Market Segmentation is the process of analyzing and classifying customers in a market to create smaller more precise markets to communicate with.
Markets are segmented Demographically, Geographically, and Psychographically

5. Concentration Versus Diversification Major alternatives for choosing an expansion policy:
Concentration on a small number of markets.
Diversification is growth in a relatively large number of markets in early stages.

6. Marketing Overview
The Promotional Mix is only one portion of marketing and includes a tool box of different promotional approaches that appeal to different market segments
The promotional mix consists of:
Advertising, personal selling, sales promotions, public relations, and publicity

7. International Marketing
International Considerations with:
Product
Price
Place
Promotions

8. International Marketing Plan
Step 1
Set company goals for sales, market share, and production levels
Step 2
Define the target market and customers. USe demographics, geographics, and psychographics. Identify any B2B customers
Step 3
Make a list of competitors and potential competitors.
Step 4
Identify and social, legal, economic, or technological challenges in the foreign country
Step 5
Prepare finaincial information, such as how to fund the expansion and when to expect a profit
Step 6
Identify how nationality will apply to prospective staff (expatriates, local nationals, third country cnationals
Step 7
Decide on appropriate promotions mix.
Step 8
Set a time line and create aplan of implementation.
Step 9
Follow up to see if the goals have been met and make adjustments

9. Identification and Screening
Preliminary Screening
Estimating Market Potentials by Product Type
Estimating Sales Potential for Company’s Product
Identifying Segments in Target Market

10. International Marketing
International Considerations with Promotions Mix:
Advertising
Personal selling
Sales promotions
Public relations
Publicity

11. Advertising and Advertising Appeal
Fear
Humor
Romance
Music
Rational Thinking
Emotions
Scarcity

12. Learning Objectives
1. Discuss products and product modifications to meet international needs
2. Discuss pricing strategies in global markets
3. Discuss distribution strategies and issues with distribution in other countries.

13. Marketing Management Products, Pricing, and Distribution
Standardization
The extent to which elements of the marketing mix should be standardized.
Adaptation
Marketers may consider every situation independently, or rely on decision-support systems to aid in program adaptation.

14. Product Policy The Core of the Firm’s Operations
Goods
Services
Consumer goods
Industrial Goods
Consumer – credit, insurance, banking
General – cleaning, lawn care, dry cleaning

15. Factors in Product Adaptation
Regional, Country, or Local Characteristics.
Governments hold stringent requirements.
Consider nontariff barriers.
Competitive offerings may provide a baseline for resource measurement.
Economic development must be accounted for.
Customer preferences must be considered.
Consider economic status of users.
Consideration of geography.
Purchase patterns must be considered.

16. Product Characteristics
Product characteristics are the inherent features of the product offering.

17. Company Considerations
Is It Worth It?
Resources
Cost of adapting
Organization
Market Opportunity
Profitability

18. Pricing Policy
The only element in the marketing mix that is revenue generating.
Export Pricing
Foreign Market Pricing
Price Coordination
Intracompany Pricing

19. Export Pricing Strategies
Standard worldwide pricing is based on average unit costs of fixed, variable, and export-related costs.
Dual pricing differentiates between domestic and export prices.
Market-differentiated pricing is based on demand-oriented strategy making it more consistent with the marketing concept.

20. Foreign Market Pricing
Determined By
Corporate Objectives.
Costs.
Consumer Behavior and Market Conditions.
Market Structure.
Environmental Constraints.

21. Price Coordination
Standard worldwide pricing may be mostly theoretical.
Significant price gaps lead to the emergence of gray markets.

22. Intracompany Pricing
The pricing of sales to members of the corporate family.

23. Factors in Price Adaptation
Regional, Country, or Local Characteristics.
Exchange Rates
Economic situation
Per capita income
Values
Access to resurces

24. Distribution Policy
Channels of distribution provide the essential links that connect producers and customers.
Direct – direct from producer to customer
Indirect – utilizes an intermediary - producer to retailer to customer

25. Channel Design Determined by the 11 C-Factors
Cost
Coverage
Control
Continuity
Communication
Customers
Culture
Competition
Company
Character
Capital

26. Factors in Distribution Adaptation
Regional, Country, or Local Characteristics.
Infrastructure
Retail outlets
Warehousing/storage
Geographic landforms

27. E-Commerce
Is forecast to grow at a compound annual rate of 50+ percent within 5 years.
Western Europe has most growth.
Governments work to come to terms with security, privacy, and access to the Internet.