International Marketing1/9/14Major Points to Cover- Revenue- Market share- Profitability- Return on stakeholder equity- 5 P’so Fifth one is people- Is the US there is 58-63 markets to tracko We have to change the 5Ps depending on the individual marketing requirementsDefining a Market:- Socio-demographics (age, gender, ethnicity, etc.)- Values-cultures- Those two above help make a Target Market Profileo Who are we developing this product for?o Investing and understanding the need for research- Price categoryo Super premiumo Premiumo Popularo Economy- Packaging- Benefito Use- Add NAFTA and EU to 58-63 mkts. and it expands even more- S.R.Co Self Reference CriteriaConcept 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 companieso 2.) Foreign competitors are increasing their market share in one another’s marketso 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 boundarieso global marketing includes the task of marketing between countries as well as within each countryo the global marketer moves products across national boundaries in addition to moving products within each market the company servesFive International Marketing Essentials- 1.) Identifying And Understanding Global Consumer Needso 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 Needso 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 Competitiono 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 activitieso International marketing creates a new level of complexity because firms must coordinatetheir marketing activities across countries.- 5.) Recognizing the constraints of the global environmento 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 worldo 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 influenceo 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 countrieso Global Marketing: coordination marketing in multiple markets1/14/2014The Global Marketplace- Where the Buyers Areo Sometimes foreign markets may be the only markets in which a company’s products canbe sold.- Where the Ideas Areo 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 Marketso 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 marketso Diversifying geographicallyo Using experience-curve economies and economies of scaleo Extending the life cycle of a producto Overseas markets are a source of new products and ideaso Foreign companies may provide capital and/or market accesso *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 increasedo Providing enormous opportunities to companies seeking to expando Also generates new global competitors- Continued growth and strength of the service sectoro The service sector is the fastest-growing segment of internationalization, representing about 20% of the world trade- Franchising offers growth opportunitieso 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 normalo The global business environment continues to changeo 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 risko It means lower trade barriers and low costs of doing businesso It can also mean new competitors- The global financial crisis of 2008-2009 has undermined any growing support for globalizationo Renewed concerns about globalizationo People attached globalization to the