INTERNATIONAL
MARKETING
Hamed jamshidi
2007503074
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international marketing is the multinational process of planning
and executing the conception, pricing, promotion and distribution of
ideas, goods, and services to create exchanges that satisfy individual
and organizational objectives.

International marketing involves recognising that people all over
the world have different needs.
Companies like Gillette,
Coca-Cola, BIC, and
Cadbury Schweppes have
brands that are recognised
across the globe.
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THE WORLD’S FIVE EXPORTING COUNTRIES:
1-THE UNITED STATES ($700 BILLION)
2-GERMANY ($560 BILLION)
3-JAPAN ($390 BILLION)
4-FRANCE ($320 BILLION)
5-BRITAIN ($260 BILLION)
Collectively accounting for 42 percent of global trade.
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MANY U.S. COMPANIES HAVE MADE THE
WORLD THEIR MARKET
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THE COMPLETE PROCESS
Market
Segmentation
Identify and describe
market segments
Market
Targeting
Evaluate segments
and decide which
to go after
Market
Positioning
Design a product or
service to meet a
segment’s needs and
develop a
marketing mix that
will create a competitive
advantage in the minds
of the selected target
market
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MARKET SEGMENTATION

Identifying distinct groups of consumers whose
purchasing behavior differs from other in important
ways.

Marketing mix adjusted to reflect differing
purchasing patterns in segments.




Geography
Demographics
Socio-cultural factors
Psychological factors
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MARKET SEGMENTATION
Two
main issues in the differences
between countries
 The
structure of market segments
 The existence of segments that
transcend national borders
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MARKETING MIX (4 PS)




Product
Promotion
Pricing
Place (Distribution) –
the most important
for international
business entry
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Marketing Mix:
Product
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PRODUCT ATTRIBUTES

A product is a bundle of attributes. If consumer
needs were the same all over, a firm could simply
sell the same product worldwide. Unfortunately,
differences in the three following areas often
necessitate adaptations



Cultural differences
Economic differences
Product and technical standards
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CULTURAL DIFFERENCES
 Range
of dimensions:
Social structure
 Language
 Religion
 Education

 Most
important - the impact of
tradition
 Some tastes and preferences becoming
cosmopolitan
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ECONOMIC DIFFERENCES

Consumer behavior is influenced by economic
development
Consumers in highly developed countries tend to
have extra performance attributes in their products
 Consumers in less developed countries tend not to
demand these extra performance attributes

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PRODUCT AND TECHNICAL STANDARDS
Government standards can prevent the introduction of
global products
Different technical standards impede global markets, as
well
Come from idiosyncratic decisions
made long ago
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In India, McDonald’s serves chicken, fish, and vegetable burgers,
and the Maharaja Mac—two all-mutton patties, special sauce,
lettuce, cheese, pickles, onions, on a sesame-seed bun.
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MARKETING MIX:
PLACE
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DISTRIBUTION STRATEGY

Three different distribution systems:

Retail concentration: number of retailers


Cost/benefit of each alternative vary from country to
country
Channel length: levels of channel members
Longer the channel in a country, the higher the price
 Shorter channel in a country, lower price


Channel exclusivity: access

Match to positioning of product in country
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A TYPICAL DISTRIBUTION SYSTEM
Manufacturer
Inside the
Country
Manufacturer
Outside the
Country
Import
Agent
Wholesale
Distributor
Retail
Distributor
Final
Customer
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Marketing Mix:
Price
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International Pricing
Twelve European Union countries have adopted the euro as a
common currency, creating “pricing transparency” and forcing
companies to harmonize their prices throughout Europe
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PRICING STRATEGY
Price discrimination
 Strategic pricing
 Regulatory factors

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PRICING STRATEGY
 Price
discrimination: Different prices,
different countries, same product


Charging what the market will bear
Two factors:
Must keep national markets separate
 Different price elasticities

 Arbitrage:Charging
different prices in different
countries for same product



Doesn’t always work
Sometimes it does

Elasticity (price) tends to be greater in countries with
low income levels
Elasticity (demand) tends to be greater in countries
where there are many competitors
Income level and competitive conditions
determine elasticity

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STRATEGIC PRICING
 Predatory

pricing:
Using price as a competitive weapon
 Multipoint


When two or more international firms compete
against each other in two or more national
markets
A firm’s pricing strategy in one market may
impact a rival in another market
 Experience

pricing strategy:
curve pricing:
Firms price low worldwide to build market
share. Incurred losses are made up as
company moves down experience curve
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Marketing Mix:
Promotion
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Communications Strategy

Effectiveness of international
communications can be impacted by:

Cultural barriers.


Source and country of origin effects


Emphasize/de-emphasize foreign origin
Noise levels




Receiver of the message evaluates it based upon the status of
the sender
Country of origin effects:


Need to develop cross-cultural literacy
Tends to reduce the effectiveness of a message
Developed countries - high
Less developed countries - low
Push versus Pull:


Push emphasizes personal selling
Pull depends on mass media advertising
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DECIDING ON THE GLOBAL MARKETING
ORGANIZATION
Organize an export
department
 Create international divisions

Geographical organizations
 World product groups
 International subsidiaries


Become a global organization
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Thank you for your listening
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