International

Marketing
  Finding out what customers
across national boundaries
What is
want and then satisfying these
International
wants better than competitors.
Marketing?
🌏  Same concept applied to
domestic marketing
 International Foreign Multinational

Undertaken Involves Involves

Emphasizes the
using any of marketing across marketing
coordination
and integration
the Three national borders within foreign
of the firm’s
countries
Dimensions: marketing in
many diverse
foreign
environment.
Reasons Why Firms
Engage In
International
Marketing
MEETING
COMPETITORS
Place your screenshot here
Using various
competitive tools such
as price
FINDING MARKET
OPPORTUNITIES
Goods are made
available to users
throughout the world
where they are
needed.
Ways of
Entering
Foreign
Markets
1. Exporting
2. Joint Venturing
3. Direct Investment Abroad
 Exporting

 Involves a firm shipping

goods directly to a
foreign market.

 May be in a form of
direct or indirect
exporting process.
Joint Venturing
- Partnership between a domestic firm
and foreign firm and/or government.

Various forms of the Joint Ventures:

1. Licensing
2. Contract Manufacturing
3. Management Contracting
4. Joint Ownership
 Contract Management Joint
Licensing Manufacturing Contracting Ownership

Where the
licensee Where the Where the
Where the
receives local firm foreign firm
foreign
managemen manufacture provides
company
t techniques s products of consulting
produces
or technical a foreign firm services to
and markets
assistance in which the local firm
its products
from the firm retains the which
jointly with
owning marketing of produces the
local firm.
certain such goods or
trademarks. products. services.
Direct Investment Abroad

 Directly investing in facilities and

manpower, maintaining a factory and a
sales force.

“A company would directly construct a

fixed /non-current asset within a foreign
country, with the aim of manufacturing a
product within the overseas markets.”
 Identifying
Opportunities in
International
Markets
1. Evaluate the firm in terms of its current
products and the needs it knows how to
satisfy
2. Find new markets with the similar
unsatisfied needs
3. Adapt the promotion that will fit the need
4. Adapt the product that will satisfy the
identified need
5. Develop new products, new promotion
policies and price adjustments
 Factors to
consider
I n e n t e r I n
g
F o r e I g n m a
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 Nations vary in terms of
political and legal environment.
Political – Differences may arise in terms
Legal of the following:
Stability of government
Variables 1.
2. Policies concerning
operations of foreign
businesses
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 Nations also vary in terms of
purchasing power. Some
Economic countries have much
Variables population but with very low
purchasing power.

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 The culture of the people in a
foreign country is one
Cultural important variable that may
Variables spell the difference between
success and failure in
international marketing.

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 DefInIng the
Attractive
Foreign Markets

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When a certain overseas
market seems attractive, it
should be defined further by
using a two-step process: (1)
the evaluation of the risk-
adjusted market potential;
and (2) the evaluation of firm
market synergy.

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Evaluation
The risk – adjusted
of Risk -
market potential is
Adjusted
determined by analyzing
Market
demand and risk.
Potential

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 The attractiveness of a foreign
market may be determined by the
Evaluation following:
The extent to which the entry
of Firm 

requirements of the market are

Market consistent with the firm’s capabilities
Synergy  The extent to which domestic and
international operations complement
one another

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 Steps in
Analyzing
International
Markets
 Environmental Analysis

It is where the marketer examines the

political, economic, and social
conditions of the foreign countries
being considered

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Market Potential Analysis
It is where the information on the following is
examined:
a) Size of the market
b) Number of users
c) Frequency of purchase
d) Rate of market growth
e) Structure of distribution
f) Pricing practices
g) Nature of competition

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Future Company Sales Analysis

The marketer assesses the share of the

market the firm can gain initially and
in the future.

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Prospective Profitability Analysis

The marketer weighs the costs of

entering the market against the
returns that may be realized.

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Benefit Versus Risks Analysis

An assessment of benefit versus the

possible outcome of the venture is
made.