International Marketing
The Scope and
Challenge
of International
Marketing
Session 1
Trends Affecting Global Markets
1. Acceptance of the free market system among developing countries
Is the market really free?
1-2
Is the market really free?
2. Communications technologies dissolve borders
1-3
Proper management of resources (e.g. Food security programs, CO2
omissions reduction etc.)
1-4
Power of Multi-National Corporations (MNCs)
1-5
2006
2020
Power of MultiNationals 2020
Power of Multi-nationals
Revenue $524 Billion in 2020 (GDP of Belgium in 2020 was $495 Billion!)
1-7
The International Marketing Environment
1-8
Approaches to Global Awareness
1. Select managers with global awareness as world is our market
1-9
2. Develop relationship network in foreign countries
1-10
3. Have a culturally diverse senior executive staff
1-11
Five Stages of International Marketing Involvement
1. No direct foreign marketing
2. Infrequent foreign marketing
3. Regular foreign marketing
4. International market presence
5. Global market presence
1-12
1. No Direct Foreign Marketing
Products reach foreign markets indirectly
Examples: Wholesalers, Distributors, Web sites (Internet Marketing)
Distributor for Toyota in GCC
Agent for Honda in Qatar
1-13
Distributor for Caterpillar in GCC
2. Infrequent Foreign Marketing
Firm has little or no intention of maintaining continuous
market representation (Opportunistic Involvement).
Examples: Disaster areas, War areas, Fashion or Fad related market
1-14
3. Infrequent Foreign Marketing
1-15
4. Regular Foreign Marketing
Firm has permanent production capacity devoted to foreign markets.
Examples: Uses its own sales force; Sales subsidiaries in important markets
1-16
5. International market presence
Examples: Ooredoo, QNB
1-17
6. Global market presence
Company treats world as one market
Kuwait Petroleum
International
1-18
Market Expansion Strategies
1. International strategy: opportunistic expansion into foreign
operations that leverages the firm’s core (domestic) competencies
Example:
?
1-19
Stage of International Marketing Involvement?
2. Multidomestic strategy: expansion into foreign operations that grants
decision-making authority to local managers and emphasizes
responsiveness to local conditions
Examples:
1-20
Multi-domestic Strategy - Responsiveness to local GCC Market
1-21
3. Global strategy: expansion into foreign operations that champions
worldwide consistency, standardization, and cost competitiveness
1-22
International Marketing – Globalization??
1-23