International Marketing 01

Summary

This presentation introduces the concept of international marketing, distinguishing it from domestic marketing by highlighting the complexities of operating across national boundaries. It outlines the principles of international marketing, including creating customer value, gaining competitive advantage, and strategic focus. The script also discusses various marketing orientations such as ethnocentric, polycentric, regiocentric, and geocentric, and the benefits of international marketing for both companies and nations, such as economic growth, risk diversification, and employment opportunities.

Takeaways

• 🌐 International marketing involves planning and executing the marketing mix across national borders to satisfy individual and organizational objectives.
• 📈 The scope of international marketing aims to create a borderless world due to increasing globalization, impacting companies like Coca-Cola and McDonald's.
• 🏛️ The environment of international marketing differs from domestic marketing due to factors like political entities, legal structures, and monetary systems.
• 💼 International marketing principles include creating customer value, gaining competitive advantage, and focusing or concentrating attention on these objectives.
• 🏦 Companies approach international marketing with ethnocentric, polycentric, regiocentric, and geocentric orientations, reflecting their world view and business strategies.
• 🌍 Multinational corporations are major players in global business, balancing appreciation for economic growth and criticism for social welfare concerns.
• 📊 The eepg framework describes a company's personnel's world view, influencing how they conduct international marketing operations.
• 📈 International marketing benefits nations by utilizing resources optimally, promoting economic growth, and providing employment opportunities.
• 🔄 It helps companies diversify risks by expanding into global markets, thus stabilizing sales fluctuations and variable demand.
• 💰 International marketing contributes to earning foreign exchange, which can help nations combat inflation and improve living standards.

Q & A

What is the definition of International Marketing according to the American Marketing Association (AMA)?

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. It involves the firm in making one or more marketing mix decisions across national boundaries.

What is the primary goal of international marketing?

The primary goal of international marketing is to create a borderless world due to increasing globalization, which has gained a lot of relevance for companies like Coca-Cola, McDonald's, and Unilever.

How does the environment of international marketing differ from domestic marketing?

International marketing differs from domestic marketing in the environment in which the two take place. Each nation has various restrictions on import and export of goods and services, different legal structures, monetary systems, and exchange rates. Additionally, factors of production are less mobile, and each nation represents a different market with different demand patterns, channels of distribution, and promotional methods.

What are the three fundamental principles of international marketing?

The three fundamental principles of international marketing are: 1) The purpose and task of marketing, which is to create customer value greater than that created by competitors. 2) Gaining a competitive advantage through the company's total offer, pricing, promotion, distribution, packaging, or positioning. 3) Focus or concentration of attention on creating customer value and gaining a competitive advantage.

What is the difference between international marketing and multinational marketing?

International marketing involves conducting marketing operations and business in different countries, while multinational marketing is similar but not exactly the same. Multinational marketing implies that a firm becomes a corporate citizen, extending its products and programs to serve emerging global markets with a combination of extension, adaptation, and creation.

What are the different orientations a company can have in international marketing according to the EEPG framework?

According to the EEPG framework, a company's orientation in international marketing can be ethnocentric, polycentric, regiocentric, or geocentric. Ethnocentric companies focus on home values, polycentric companies adapt to the countries they operate in, regiocentric companies view regions as unique and develop integrated strategies, and geocentric companies are global organizations that create value by extending products and programs.

Why are multinational corporations both appreciated and criticized?

Multinational corporations are appreciated for providing employment to local people and contributing to the economic growth of the country. They are criticized for moving resources in and out of a nation and for being perceived as profit-driven without much regard for the country's social welfare.

What are some of the benefits of international marketing?

Benefits of international marketing include endurance to nations by optimally utilizing resources, growth of underdeveloped markets, promotion of products and services globally, diversification of risks against sales fluctuations, earning foreign exchange to combat inflation, and improving the standard of living by providing access to a wider range of products.

How does international marketing help in risk diversification for companies?

International marketing helps in risk diversification by allowing companies to expand their markets beyond their domestic boundaries, thus spreading their sales across different regions. This reduces the impact of local market fluctuations and variable demand, providing a more stable revenue stream.

What is the role of international marketing in promoting a nation's economic growth?

International marketing plays a role in promoting a nation's economic growth by helping to optimally utilize resources, creating customer value, and competitive advantage. It also aids in the development of underdeveloped markets, contributing to the overall economic welfare of the nation.