International Marketing 1 9 14 Major Points to Cover Revenue Market share Profitability Return on stakeholder equity 5 P s o Fifth one is people Is the US there is 58 63 markets to track o We have to change the 5Ps depending on the individual marketing requirements Defining a Market Socio demographics age gender ethnicity etc Values cultures Those two above help make a Target Market Profile o Who are we developing this product for o Investing and understanding the need for research Price category o Super premium o Premium o Popular o Economy Packaging Benefit o Use Add NAFTA and EU to 58 63 mkts and it expands even more S R C o Self Reference Criteria Concept of Global Marketing Important for 3 reasons o 1 Foreign markets constitute an increasing portion of the total world mkt leading to sizeable international sales and profits for many companies o 2 Foreign competitors are increasing their market share in one another s markets o 3 Foreign markets can be essential sources of low cost products technology and finance and human capital as major economies are increasingly interdependent Global and Domestic Marketing Marketing is defined as the collection of activities undertaken by a firm in order to assess and satisfy customer needs wants and desires Marketing mgmt is the planning and coordinating of these activities to achieve a successfully integrated market program Global marketing is the act of marketing across national boundaries o global marketing includes the task of marketing between countries as well as within each country o the global marketer moves products across national boundaries in addition to moving products within each market the company serves Five International Marketing Essentials 1 Identifying And Understanding Global Consumer Needs o Research helps a firm understand consumer needs in diff markets and determine whether those needs are different from those of the customers it currently serves o Companies also need to analyze market segments across countries to be able to position their products appropriately for entry into international markets 2 Satisfying Customer Needs o If needs differ across countries and regions a company must consider how to adapt its products and the various elements of the marketing mix to best satisfy customers o Well developed distribution is needed to make sufficient quantities of goods and services available at the point of sale POS 3 Being Better Than the Competition o Firms must contend with competitors in their home markets and competitors in the foreign markets in which they operate o Multinational companies have a more extensive set of experiences to draw upon and generally have access to additional resources 4 Coordinating marketing activities o International marketing creates a new level of complexity because firms must coordinate their marketing activities across countries 5 Recognizing the constraints of the global environment o Complexity increases as the number of markets served increases o Differences exist in culture and economic conditions marketing infrastructure gov t policy and financial issues International Marketing Management Global competition o Competitors come from all over the world o Competitors have different strengths and weaknesses The global environment o Controllable elements include the 4P s of marketing Some elements are not totally under the marketer s influence o Uncontrollable elements include things such as the legal environment Marketers can exert pressure on and effect change in these uncontrollable elements The international marketing manager has a dual responsibility o Foreign marketing marketing within foreign countries o Global Marketing coordination marketing in multiple markets 1 14 2014 The Global Marketplace Where the Buyers Are o Sometimes foreign markets may be the only markets in which a company s products can be sold Where the Ideas Are o Sometimes the best ideas and innovations occur in foreign markets as opposed to only the domestic market o Success may stem from combining an overseas market with local technology to develop an entirely new line of products Risks and Differences of Foreign Markets o Ben Jerry s and Mary Kay examples show challenges with logistics partner selection consumer preferences and pricing when doing business in Russia o You give up price control when you use distribution systems because by law when you pass the products on you pass on the right to say what it will be priced Learning from Examples The textbook provides a number of examples of companies that have expanded internationally Firms have a variety of motives to expand internationally o Taking advantage of the potential world markets o Diversifying geographically o Using experience curve economies and economies of scale o Extending the life cycle of a product o Overseas markets are a source of new products and ideas o Foreign companies may provide capital and or market access o He mentioned how former Soviet countries like Poland have a very high literacy rate which makes them a good market Expanding internationally may involve innovative entry modes as well as expected and unexpected risks Developing universal products can be very difficult Trends in International Marketing The role of emerging and emerged economies as both consumer and competitor has increased o Providing enormous opportunities to companies seeking to expand o Also generates new global competitors Continued growth and strength of the service sector o The service sector is the fastest growing segment of internationalization representing about 20 of the world trade Franchising offers growth opportunities o Many markets such as Brazil are opening up their markets to foreign franchises and evidences suggests that foreign franchises have tremendous growth opportunities Ongoing change and increasing risk are the new normal o The global business environment continues to change o This changing environment puts even greater pressure on the international marketing manager to understand these changes Increasing economic integration and cooperation between countries mean opportunity and risk o It means lower trade barriers and low costs of doing business o It can also mean new competitors The global financial crisis of 2008 2009 has undermined any growing support for globalization o Renewed concerns about globalization o People attached globalization to the rich get richer and poor get poorer notion Small can be big o Relatively small