INTERNATIONAL MARKETING Introduction.pptx

Introduction to international marketing

1. INTRODUCTION OF INTERNATIONAL MARKETING 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 consumers or users in more than one nation for a profit. Such elements as political and legal forces, economic climate, and competition are the three elements found in the domestic environment (uncontrollable). Geography and infrastructure, the structure of distribution, and cultural forces are part of which of the following international marketing task environment foreign environment (uncontrollable).

2. (*) CHALLEGES OF INTERNATIONAL MARKETING CULTURAL DIFFERENCE Language Barriers: Communication can be a significant obstacle. Marketing messages need to be translated and adapted to maintain their effectiveness across different languages and dialects. Consumer Behavior: Purchasing habits, brand loyalty, and product preferences can vary dramatically between cultures, requiring tailored marketing strategies. Business Practices: Negotiation, decision-making processes, and business etiquette differ from country to country, affecting partnerships and operations

3. CHALLEGES OF INTERNATIONAL MARKETING ECONOMIC CHALLENGES Market Entry Costs: Entering a new market often involves substantial costs, including market research, localization of products and marketing materials, regulatory compliance, and establishing distribution networks. Currency Fluctuations: Exchange rate volatility can impact pricing, profitability, and financial planning. Economic Stability: Economic downturns, inflation rates, and purchasing power parity in target markets can affect demand for products and services.

4. CHALLEGES OF INTERNATIONAL MARKETING LEGAL & REGULATORY Trade Laws and Tariffs: Navigating the complexities of trade laws, tariffs, and quotas is essential for importing and exporting goods. Intellectual Property (IP) Protection: Ensuring IP protection in a foreign market can be challenging but is crucial for safeguarding technology, brand names, and products. Compliance and Standards: Different countries have various standards and regulations for products and services, including health and safety, environmental, and data protection laws.

5. CHALLEGES OF INTERNATIONAL MARKETING POLITICAL & ECONOMIC RISKS Political Stability: Political unrest, coups, and changes in government can pose risks to foreign investments and operations. Economic Policies: Changes in economic policy, such as nationalization, restrictions on foreign ownership, and currency controls, can impact business operations. Corruption: High levels of corruption in certain markets can complicate business dealings and increase operational risks.

6. CHALLEGES OF INTERNATIONAL MARKETING COMPETITION Local Competitors: Local businesses may have a better understanding of the market, established brand recognition, and loyalty among the local population. Global Competitors: Other multinational corporations may have more resources, global experience, and economies of scale.

7. (3) CHALLEGES OF INTERNATIONAL MARKETING TECHNOLOGICAL CHALLENGES Adapting to Local Technologies: Differences in technology adoption and preferences, such as payment systems, social media platforms, and e-commerce habits, require tailored approaches. Cybersecurity and Data Privacy: Navigating different data protection laws and ensuring the security of customer data across borders is increasingly complex and critical.

8. CHALLEGES OF INTERNATIONAL MARKETING SUPPLY CHAIN AND LOGISTICS Complexity of Global Supply Chains: Managing a global supply chain involves dealing with diverse regulatory environments, logistical challenges, and quality control across different countries. Reliability and Efficiency: Ensuring the reliability and efficiency of supply chains, especially in regions with underdeveloped infrastructure, can be challenging

9. (*) NATURE OF INTERNATIONAL MARKETING Globalization : International marketing is driven by the global interconnectedness of economies and markets. It allows companies to expand their reach beyond domestic borders to tap into new markets and sources of revenue. Cultural Sensitivity : Culture plays a significant role in shaping consumer preferences, behaviors, and attitudes towards products and brands. International marketers must be sensitive to cultural differences and adapt their marketing messages, product designs, and promotional strategies accordingly.

10. NATURE OF INTERNATIONAL MARKETING Market Segmentation : International markets are diverse, and marketers must segment them based on factors such as demographics, psychographics, and behavior to identify target audiences and tailor marketing efforts effectively. Localization : Localization involves customizing marketing strategies, product offerings, and communication channels to suit the preferences and needs of specific international markets. This may include translating content, adjusting pricing strategies, or modifying product features.

11. NATURE OF INTERNATIONAL MARKETING Political and Legal Considerations : International marketers must navigate various political and legal frameworks, including trade policies, tariffs, intellectual property laws, and regulatory requirements in each target market. Economic Factors : Economic conditions such as exchange rates, inflation, income levels, and market competitiveness influence consumer purchasing power and demand for products. International marketers need to monitor and adapt to these factors to remain competitive.

12. NATURE OF INTERNATIONAL MARKETING Distribution Channels : Establishing efficient distribution channels is crucial in international marketing to ensure that products reach customers effectively and cost-efficiently. This may involve partnerships with local distributors, retailers, or e-commerce platforms. Technological Advancements : Technology has transformed international marketing by enabling companies to reach global audiences through digital channels such as social media, e-commerce platforms, and mobile apps. Leveraging technology effectively can enhance market reach and engagement.

13. (*) SCOPE OF INTERNATIONAL MARKETING The scope of international marketing extends far beyond merely selling a product or service globally. It encompasses a wide range of activities and strategic considerations that collectively enable businesses to effectively engage and succeed in the global marketplace

14. SCOPE OF INTERNATIONAL MARKETING Market Research and Analysis Global Market Research : Identifying and analyzing markets across the world to determine opportunities and threats. Consumer Behavior Analysis : Understanding the cultural, social, economic, and psychological factors that influence consumer behaviors in different countries. Entry Strategies Market Entry Modes : Deciding on how to enter a new market, e.g., exporting, licensing, franchising, joint ventures, or wholly-owned subsidiaries. Market Selection : Choosing which markets to enter based on market size, growth potential, risk, and strategic fit.

15. (6) SCOPE OF INTERNATIONAL MARKETING Product and Service Management Product Adaptation and Customization : Modifying products to meet local tastes, preferences, regulatory requirements, and environmental conditions. New Product Development : Designing new products specifically for international markets. Pricing Strategies Cost-Based Pricing : Considering costs and adding a markup. Value-Based Pricing : Setting prices based on the perceived value in the target market. Competitive Pricing : in line with or below competitors to gain market share. Dynamic Pricing : Adjusting prices in real-time based on demand, competition, and other factors.

16. SCOPE OF INTERNATIONAL MARKETING Promotion and Communication Advertising and Public Relations : Crafting messages that resonate with local audiences while maintaining a consistent global brand image. Digital Marketing : Leveraging online platforms to reach international audiences efficiently. Sales Promotions and Personal Selling : Adapting sales strategies to fit the local market norms and expectations. Distribution and Supply Chain Management Channel Selection : Choosing the most effective distribution channels, whether direct or indirect, to reach the end consumer. Logistics and Supply Chain Optimization : Managing logistics for timely delivery of goods across borders, considering costs, regulatory compliance, and local market conditions.

17. SCOPE OF INTERNATIONAL MARKET Regulatory Compliance and Legal Considerations Understanding and adhering to local laws and regulations : This includes import/export regulations, intellectual property rights, labor laws, and environmental regulations. Cultural Sensitivity and Ethical Considerations Cultural Adaptation : Adapting marketing strategies to align with local cultural norms and values. Ethical Marketing : Ensuring marketing practices are ethical and socially responsible, respecting local traditions and practices.

18. (*) DOMESTIC VS INTERNATIONAL MARKETING RISK MANAGMENT DOMESTIC Domestic Marketing : Primarily concerned with market and operational risks within a single country. INTERNATIONAL International Marketing : Faces additional risks, including currency fluctuations, political instability, and cross-border regulatory changes.

19. Market Environment Domestic Marketing Focuses on a single country, dealing with a relatively homogeneous market environment in terms of customer behavior, legal regulations, and economic conditions. International Marketing Involves multiple countries, each with its own diverse set of market environments, including varying laws, cultures, economic conditions, and consumer behaviors.

20. Market Research and Analysis Domestic Marketing Market research is generally less complex, focusing on a single cultural and regulatory environment International Marketing : Requires more extensive and multifaceted market research to understand various cultural nuances, legal requirements, and market needs across different countries.

21. Cultural Sensitivity Domestic Marketing Less emphasis on cultural sensitivity, given the shared cultural context within the country. International Marketing High degree of cultural sensitivity is needed to effectively communicate and engage with diverse markets without causing offense or misunderstanding.

22. Market Entry Strategies Domestic Marketing : Not applicable, as the business operates within its home market . International Marketing Involves choosing between various entry strategies like exporting, franchising, joint ventures, or direct investment, each with its own set of challenges and commitments.

23. Product and Service Adaptation Domestic Marketing P roducts and services are standardized for the entire market . International Marketing A daptation or localization of products and services to meet the specific preferences, standards, and regulations of different international markets.

24. Pricing Strategies Domestic Marketing : Pricing strategies are often simpler, focusing on a single currency and considering local competition and costs International Marketing : V arious factors like exchange rates, international shipping costs, tariffs, and the competitive landscape in each market, which can complicate pricing strategies.

25. (*) I nternational marketing management process The international marketing management process comprises several interconnected steps aimed at effectively promoting and selling products or services in global markets. Here's a breakdown of the key components:

26. Market Analysis and Selection Market Research : Conduct comprehensive research to identify potential international markets. Analyze factors such as market size, growth trends, competition, cultural nuances, legal regulations, and consumer behavior. Market Segmentation : Divide the global market into distinct segments based on demographics, psychographics, geographic location, and behavior to target specific customer groups effectively. Market Selection : Evaluate and prioritize target markets based on factors such as market attractiveness, accessibility, competitive landscape, and strategic fit with the company's capabilities and objectives.

27. Market Entry Strategy Mode of Entry : Determine the most suitable entry mode for each target market, such as exporting, licensing, franchising, joint ventures, strategic alliances, or wholly-owned subsidiaries. Adaptation of Strategy : Customize the market entry strategy to align with the characteristics and requirements of each chosen market, considering factors like cultural differences, legal regulations, and competitive dynamics

28. Product Adaptation and Development Product Localization : Modify products or services to meet the specific preferences, needs, and regulatory standards of international markets. This may involve adjustments to product features, packaging, branding, and labeling. New Product Development : Develop new products tailored to the demands and preferences of global consumers, leveraging insights from market research and customer feedback.

29. Promotion and Communication Integrated Marketing Communication (IMC) : Develop an integrated marketing communication strategy that encompasses advertising, public relations, sales promotion, direct marketing, and digital marketing channels. Cultural Sensitivity : Tailor promotional messages and communication strategies to resonate with the cultural values, beliefs, and preferences of target audiences in each international market. Language and Localization : Translate marketing materials into local languages and adapt promotional content to suit cultural norms, humor, symbolism, and communication styles.

30. (*) I nfluence of physical, economic, socio-cultural, political and legal environments on International marketing informatio n Physical Environment Geography and Climate : Geographic location and climate affect product demand (e.g., clothing, food preferences) and logistics (e.g., transportation challenges in rugged terrains). Marketers need to adapt their strategies based on these physical attributes. Infrastructure : The quality of infrastructure (transportation, communication networks, and utilities) influences market entry decisions and distribution strategies. Companies must assess infrastructure to ensure efficient operations and effective reach to target markets.

31. Economic Environment Market Size and Growth : Economic data on market size, growth rates, and income levels guide market selection and entry timing. Higher growth rates in emerging economies can be attractive for international expansion. Exchange Rates and Stability : Fluctuating exchange rates impact pricing strategies, profit margins, and investment decisions. Marketers need to monitor and manage foreign exchange risks. Purchasing Power : Understanding the purchasing power of consumers in different countries helps in pricing decisions and product positioning. It influences product adaptation to match local affordability levels.

32. Socio-Cultural Environment Cultural Differences : Cultural norms, values, beliefs, and consumer behaviors significantly impact marketing strategies. Cultural sensitivity in advertising, product design, and communication is essential to resonate with local audiences. Language and Communication : Language barriers can affect brand messaging and communication effectiveness. Translations and adaptations in marketing materials must consider linguistic nuances to avoid misinterpretations. Social Norms and Values : Products and marketing campaigns must align with local social norms and values. Understanding these aspects is crucial for product acceptance and brand image

33. Political Environment Government Stability : Political stability in a country affects its attractiveness for foreign investment. Businesses must assess the risk of political upheaval, which can disrupt operations and markets. Trade Policies and Regulations : Trade agreements, tariffs, and quotas influence market entry strategies and operational costs. Companies need to stay informed about trade policies to navigate import-export regulations effectively. Government Involvement : The degree of government involvement in business operations varies by country. This includes considerations like government incentives for foreign businesses, restrictions on foreign ownership, and regulatory approvals.

34. Legal Environment Intellectual Property Protection : The strength of intellectual property laws affects decisions regarding product launches, technology transfer, and brand protection strategies. Consumer Protection Laws : Differences in consumer rights and product safety standards require adaptations in product specifications, warranties, and return policies. Employment and Labor Laws : Understanding local labor laws is important for managing workforce policies, labor costs, and workplace conditions in international operations.

35. (*) Scanning and monitoring the global marketing environment and consumer behaviour Scanning and monitoring the global marketing environment and consumer behavior are critical activities for businesses aiming to succeed in international markets. These processes help companies identify trends, opportunities, threats, and shifts in consumer preferences, allowing them to adapt their strategies proactively. Here’s an overview of how businesses can effectively scan and monitor the global marketing environment and consumer behavior:

36. Scanning and monitoring the Global Marketing Environment Economic Factors : Keep an eye on global economic trends, including economic growth rates, inflation rates, currency fluctuations, and purchasing power parity across different markets. Economic indicators can significantly impact consumer spending patterns and demand for products and services Socio-Cultural Factors : Understand cultural nuances, social norms, and consumer lifestyles in different regions. This involves analyzing cultural trends, attitudes towards foreign products, and shifts in consumer values and behaviors

37. Scanning and monitoring the Global Marketing Environment Political and Legal Factors : Monitor political developments, changes in trade policies, regulatory updates, and legal frameworks in target markets. Political stability, trade agreements, and regulatory compliance are crucial for strategic planning and risk management. Technological Factors : Stay updated on technological advancements and digital trends worldwide. This includes innovations in product development, manufacturing, distribution, and marketing technologies that can offer competitive advantages

38. Scanning and Monitoring Consumer Behavior Market Research and Analytics : Conduct regular market research using surveys, focus groups, and data analytics to gather insights into consumer preferences, needs, and purchasing behaviors in different markets. Social Media and Online Monitoring : Use social media listening tools and online analytics to track consumer sentiments, discussions, and trends on social media platforms and online forums. This can provide real-time insights into consumer attitudes and emerging trends.

39. S canning and Monitoring Consumer Behaviour Competitor Analysis : Keep an eye on competitors’ marketing strategies, product launches, and customer engagement tactics. Analyzing competitors can help identify market gaps, consumer needs that are not being met, and opportunities for differentiation. Customer Feedback and Engagement : Encourage and analyze customer feedback through reviews, customer service interactions, and direct customer engagements. Feedback mechanisms can provide valuable insights into consumer satisfaction, preferences, and areas for improvement.

40. EPRG FRAME WORK The EPRG framework is a model designed to help multinational companies strategize their approach to international marketing. It was developed by Howard V. Perlmutter in the 1960s. EPRG stands for Ethnocentric, Polycentric, Regiocentric , and Geocentric, representing four types of attitudes or orientations a company might adopt towards international operations. Each orientation affects how companies manage and plan for international markets. Let's break down the four components:

41. ETHNOCENTRIC Orientation : Home country oriented. Characteristics : Companies with an ethnocentric orientation view their home market as superior. They believe that products and practices that succeed in the home market will naturally succeed in foreign markets without adaptation. Marketing strategies are developed for the home market and then applied to other markets with minimal adjustments. Implications : This approach can lead to a lack of responsiveness to the unique needs and preferences of foreign markets. It often reflects a narrow viewpoint that can hinder a company's success in international markets.

42. POLYCENTRIC Orientation : Host country oriented. Characteristics : In contrast to the ethnocentric approach, companies with a polycentric orientation recognize and respect the differences of each foreign market. They believe that each country in which they operate has its own unique business and cultural practices, and thus, strategies should be tailored to fit these distinct environments. Implications : This approach allows for greater flexibility and responsiveness to local preferences and conditions. However, it

43. REGIOCENTRIC (R) Orientation : Regional Characteristics : The regiocentric approach involves grouping countries into regions with similar characteristics and developing strategies on a regional basis rather than on a strict country-by-country basis. This orientation recognizes both similarities and differences among the countries within a region and aims to leverage regional strengths. Implications : It offers a balance between global integration and local responsiveness. However, it may overlook country-specific opportunities or challenges within the same region.

44. GEOCENTRIC Orientation : World-oriented. Characteristics : Companies with a geocentric orientation adopt a global perspective, viewing the world as a potential market and striving to develop integrated global strategies. They seek to combine the best approaches and practices from both the home and host countries. Implications : This approach aims to achieve global efficiency, flexibility, and competitive advantage by leveraging global synergies. However, it requires a highly sophisticated management approach and may involve significant organizational complexity and resource commitment.