International marketing

International marketing

1. International Marketing Presented by: Rahul Debasish Rajesh

2. Market Any place where two or more parties can meet to engage in an economic transaction Potential consumers make up a market, which is: People: with the desire and with the ability to buy a specific product.

3. Marketing An organizational function and process of valuation , creation and presentation for achieving a certain profit for the organization to ensure the needs of a target market.

4. Target Market Marketers usually concentrate their efforts on certain needs of a specific group of potential consumers . Target Market - one or more specific groups of potential consumers toward which an organization directs its marketing program. NEEDS DEMANDS WANTS

5. What is International Marketing? Developing and performing marketing activities across national boundaries.

6. International Marketing (Cont.)

7. Why International Marketing? Growth Access to new markets Access to resources Survival Against competitors with lower costs (due to increased access to resources)

8. Driving Forces of IM Technology Economic Agreements Leverage – experience, economies of scale, resource utilization Economic Trends Market Needs & Wants – consumer driven Communications & Transportation Improvements New Product Development Costs Quality – competition fosters quality

9. Restraining Forces of IM Market Differences Culture Infrastructure National Controls / Barriers Costs Management Myopia Missed Opportunities History Brand Strength Not Transferable (Too National/Regional)

10. Types of International Marketing Strategy

11. Types of IM Strategy (Cont.)

12. Factors Effecting International Marketing The Marketing Mix Variables (Controllable):

13. Factors Effecting International Marketing

14. Factors Effecting International Marketing

15. Differences are in the uncontrollable environment of international marketing Firms must adapt to uncontrollable environment of international marketing by adjusting the marketing mix (product, price, promotion, and distribution) Environmental Adaptation Needed Adaptation (of Marketing Mix) Standardization (of Marketing Mix) Continuum INFLUENCED BY 7 ENVIRONMENTAL FACTORS

16. UK US

17. Developing a Global Awareness Tolerant of Cultural Differences Knowledgeable of Culture History World Market Potential, Global Economic Social Trends Political Trends

18. Stages of International Marketing Involvement In general, firms go through five different phases in going international:

19. EPRG Strategy in Marketing Domestic Marketing Extension Multi-Domestic Marketing Global Marketing (Ethnocentric) (Polycentric) (Regio/Geocentric)

20. Generally, four distinctive approaches dominate strategic thinking in International Marketing : Ethnocentric or Domestic Marketing Extension Concept: Home country marketing practices will succeed elsewhere without adaptation; however, international marketing is viewed as secondary to domestic operations Polycentric or Multi-Domestic Marketing Concept: Opposite of ethnocentrism Management of multinational firms place importance on international operations as a source for profits Management believes that each country is unique and allows each to develop own marketing strategies locally

21. Generally, four distinctive approaches dominate strategic thinking in international marketing: Regio centric: Sees the world as one market and develops a standardized marketing strategy for the entire world Geocentric: Regio centric and Geocentric are synonymous with a Global Marketing Orientation where a uniform, standardized marketing strategy is used for several countries, countries in a region, or the entire world

22. The Importance of Global Marketing For US-based companies, 75% of sales potential is outside the US. About 90% of Coca-Cola’s operating income is generated outside the US. For Japanese companies, 85% of potential is outside Japan. For German and EU companies, 94% of potential is outside Germany.

23. Thank You