001 Introduction To International Marketing PDF

International Marketing
Week 1
Introduction to International Marketing
Objectives:
1. To be able to define the international marketing
2. To be able to describe how international marketing differs from domestic
marketing
3. To be able to identify the different challenges faces by the international
company
Introduction
Marketing which is frequently referred to as distribution by

business includes all those that help facilitate the flow of goods
from producer to consumer. The Marketing also defined as an
organizational function and a set of processes for creating,
communicating and giving value to customers and give benefits
to the organization.
Beckman and Davidson in their own book, define marketing as

the process in a society by which the demand structure for
economic goods and services is anticipated and enlarged and
satisfied through the conception, promotion, exchange and
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physical distribution of goods and services. Philip Kotler added
that marketing as the analyzing, organizing, planning and
controlling of the firm’s customer-impinging resources on
policies and activities with a view to satisfying the needs and
wants of chosen consumer groups at a profit.
In today’s world, more and more businesses are importing,

exporting and marketing their goods with other countries. As
competition continues to increases, the number of companies
doing business overseas.
There are many companies that sell a large portion of their goods
overseas and depend on those profits to survive. The companies
do not look only in their home country as opportunity for
business but look at the whole world as a possible place for their
business activities.
International Marketing defined
The term International Marketing refers to exchanges across

national boundaries for the satisfaction of human needs and
wants. It involves marketing in more than one country. The
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marketing processes and concepts are universally accepted
when marketing in a domestic or foreign country.
The definition of international marketing is different in Domestic

Marketing which involves marketing activities within a single
country and typically the first area where companies seek to
market their products and services.
We are more concerned here with international marketing,

which means marketing activity carried on across national
boundaries. Thus, international marketing includes activities
that direct the flow of goods from one country to the users of
another country.
A company’s overseas involvement may fall into one of several

categories:
1.Domestic: The company operate exclusively within a single

country
2.Regional Exporter: Operate within a geographically defined

region that crosses national boundaries.
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3.Exporter: Run operations from a central office in the home
country, exporting finished goods to a variety of countries;
marketing, sales and distribution outside the home country.
4.International: Manufacturing and assembly, marketing and

sales are decentralized beyond the home country. Products are
exported outside the country.
5.International to global: Run independent and mainly self-

sufficient subsidiaries in a range of countries.
6. Global: High decentralized organization operating across a

broad range of countries.
Typically, the journey begins at home. Companies operating

exclusively within a single country reach the limits to growth in
their home market and face the need to expand to achieve
further growth. The time that it takes to reach this outer growth
limit depends almost entirely on the size of the home market.
Thus, North American companies will take longer to reach the
outer limit than will companies in Singapore, South Korea,
Taiwan and Japan, whose home markets are substantially
smaller and provide less room to grow. Once the domestic
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barrier is reached, companies evolved into an export modality,
either on a limited, regional basis where markets are still
economically, and culturally homogeneous, or on a broader basis
where finished goods where finished goods are exported to a
variety of countries. Regional exporters and export companies
continue to run operations from a central office in the home
market, though some marketing, sales and distribution functions
begin to crop up elsewhere.
To successfully compete globally, rather than simply operate

domestically companies should emphasize:
1.Global Configuration of marketing activities in where activities

such as new product development, advertising, sales promotion,
channel selection, marketing research and other functions
should be performed.
2.Global Coordination of marketing activities in where it answers

the question how global marketing activities performed in
different countries and
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3. Linkage of marketing activities which answers the question
how marketing activities should be linked with other activities of
the firm.
Finally, a global view of International marketing permits linking

market to upstream and support activities of the firm, which
could lead to advantages in various ways. For example,
marketing can unlock economies of scale and learning in
production and R&D by (1) supporting the development of
universal products by providing the information necessary to
develop a physical product design that can be sold worldwide;
(2) creating demand for more universal products even if
historical demand has been for more varied products in different
countries; (3) identifying and penetrating segments in many
countries to allow the sale of universal products; and (4)
providing services and local accessories that effectively tailor the
standard physical product to the local needs.
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Challenges company face in international marketing
Political and Legal Environment
The company or firm doing business with different countries

have to follow rules, regulations, trade laws, taxation laws and
local contractual obligations.
In one situation, US-based Google had to deal with Chinese

government’s restrictions on the freedom of speech in order to
do business in China. China’s different set of political and legal
guidelines made Google choose to discontinue its mainland
Chinese version of its site and direct mainland Chinese users to a
Hong Kong version.
Cultural Environment
The cultural environment poses yet another challenge to

marketers at the international level. Differences in the customs
and traditions followed by different communities around the
world can lead to situations where communication with the
consumers, users and customers can be misinterpreted. The
variation in semiotics, values, ideas, attitudes, beliefs,
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assumptions and traditions pose a challenge to the international
marketing manager.
Culture can influence the business in different ways. Language

problems, pricing difficulties and culture-collisions are not
uncommon especially in the beginning.
An example is in China there are between 6 and 12 main regional

variations of Chinese languages. Using one of these many
wouldn’t convey the same message to all. Many ads or
commercials in the U.S use humor in order to sell. If the language
isn’t changed to very language where these ads or commercials
are being displayed then they go either unrecognized, or they
become unacceptable.
Competitive Environment
Competition is inevitable. At the same time, however it can be

dispiriting if the opponents indulge in tactics, for instance they
may employ strategies to block channels of distribution, devise
prohibitive trading contracts, resort to negative advertising
policies and either suddenly raise prices or lower them. Such
tactics can either force them to retreat or to become aggressive
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in their approach. Pepsi and Coke have often indulged in similar
fierce competitive fights, not only between themselves.
An example of this is the South Korean automaker Kia

announced plans for a major expansion of its American
production facility. Kia rose from humble beginnings as a maker
of bicycle parts in 1944 to become global player in automobile
industry. As Kia enter the international market, it faces a lot of
competition.
Reference:
Website:
Angelica and Mrithula (2019). Global Marketing Insights.
Retrieved from: www.globalmarketingprofessor.com. Retrieved
on March 30, 2020.
Books:
Kotler,Philip , Swee Hoon Ang, Siew Meng Leong and Chin Tiong
Tan (2009) Marketing Management an Asian Perspective Second
Edition. Prentice-Hall:Singapore.
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Jain, Subhash C. (2006) International Marketing Management.
South-Western College Publishing:Ohio.
Meloan, Taylor W. and John L. Graham (2005) International and
Global Marketing Concepts and Cases. R.R Donnelley & Sons
Company:USA.
Miranda, Gregorio S. (1997) Basic Marketing. L&G Business
House Publisher:Laguna.
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International Marketing

Marketing which is frequently referred to as distribution by

Beckman and Davidson in their own book, define marketing as

In today’s world, more and more businesses are importing,

International Marketing defined

The term International Marketing refers to exchanges across

The definition of international marketing is different in Domestic

We are more concerned here with international marketing,

A company’s overseas involvement may fall into one of several

1.Domestic: The company operate exclusively within a single

2.Regional Exporter: Operate within a geographically defined

4.International: Manufacturing and assembly, marketing and

5.International to global: Run independent and mainly self-

6. Global: High decentralized organization operating across a

Typically, the journey begins at home. Companies operating

To successfully compete globally, rather than simply operate

1.Global Configuration of marketing activities in where activities

2.Global Coordination of marketing activities in where it answers

Finally, a global view of International marketing permits linking

Political and Legal Environment

The company or firm doing business with different countries

In one situation, US-based Google had to deal with Chinese

The cultural environment poses yet another challenge to

Culture can influence the business in different ways. Language

An example is in China there are between 6 and 12 main regional

Competition is inevitable. At the same time, however it can be

An example of this is the South Korean automaker Kia

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