What is International Marketing?
• The process of planning and conducting transactions across national borders to create exchanges that satisfy the objectives of individuals and organizations.
Simple Definition of International Marketing
• International Marketing is the performance of business activities that direct the flow of goods and services or ideas to customers or users in more than one country for a profit.
How international marketing is different form domestic marketing?
• Countries are different and international markets are the set of macro-environmental factors (different laws, cultures, demographics, religion, beliefs and values).
• The range of problems confronted by a manager in an international market is wider and more complex.
• International marketing must find ways to work within the limits imposed by government intervention in the international trade and investment system
• Also, international transactions involve converting money into different currencies.
International Marketing Questions
ð How will my idea, good, or service fit into the international market?
ð How can marketing contribute to economic development and improvement of society?
ð Should I obtain my supplies domestically or from abroad?
ð What marketing adjustments are or will be necessary?
ð What threats from global competition should I expect?
ð How can I work with these threats to turn them into opportunities?
ð How can we get the price mechanism to work?
ð What are my strategic global alternatives?
World Trade Importance
• World trade has grown from $200 billion to more than $7 trillion in the past three decades.
• The Iron Curtain is gone and capitalism has replaced the old economic doctrines.
• Free flow of goods, services and information
• Firms invest on a global scale.
• Cross-sourcing has made production much more efficient.
• Sharing of new technologies have changed the way we do business
• Increasingly more difficult to define “where” products come from.
• New trading blocs are emerging.
• Global linkages bind countries, institutions, and individuals more closely than ever.
• World trade opens up entirely new business horizons.
Meeting International Challenges
• New strategies need to be envisioned
• New plans need to be made
• The way of doing businesses needs to be changed
• Governments, firms, and individuals need to respond aggressively with innovation, process improvements, and creativity
To become successful an international marketer needs:
• An awareness of global developments
• An understanding of their meaning
• An adaptation to the environment
Marketing Manager’s Supporting Tasks
• Determine the specific target markets.
• Manage the marketing mix in order to best satisfy the needs of individual target markets.