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Introduction to International

Al Marshall
ACU National
The Impact on Business
• Internationalisation impacting on demestic
• Impact is on all sizes of business
• Direct impacts come from imports, exports
• Indirect impacts come from macro
environmental forces
Success in Business Requires
• Forces of internationalisation must be
• Effects of these forces must also be
• Business performance depends on the above
• Solely a domestic/national focus
Threats to the Domestically
• Notion of the protected marketplace
increasingly redundant
• If not in other markets, other market
companies are here
• Intensified competition in domestic market
• One response is to move intto other markets
International Marketing as an
• Core marketing concepts, principles,
functions, processes remain the same
• Differences lie in increased environmental
• Charactorised by complexity/diversity
• Environmental difference the key difficulty
Environmental Differences
• A greater number of factors
• These factors less known than domestic
market factors
• Understanding and adaption required
• Issues arise in both developing
understanding and strategic adaption
Fit With Domestic Marketing
• Question of how will fund international
• Domestic market resources typically used
• Question of what commonalities there are
with domestic market
• Commonalities allow greater
synergies/degree of integration
The Extent of Commonalities
• Markets can be selected for the degree of
• Common markets though may not be the
ones with greatest market potential
• Differences may exist at product, market,
industry, macro enviro levels
• Latter includes pol/legal, economic,
technology, demography, socio-cultural
The Key Role of Cultural
• Developing cultural understanding a key
• The major source of problems in
international marketing
• Culture (both individual and corporate) is
largely invisible
• Self reference criteria and ethnocentrism
stumbling blocks
The Role of Environmental
• Audits have a major role to play on a
continuous basis
• Crucial in choosing non-domestic markets,
but also post-entry
• Market attractiveness and choice premised
on audits
• Strategic market planning requires them
Degree of Commitment and
International Exposure
• Not simply an either/or type option
• Typically commitment/exposure is limited
to start with
• Success (and the experience curve) leads to
a upward cascade
• Varies from indirect international marketing
to full global marketing
Advantages of Going
• Experience curve learning effects can be
applied elsewhere
• Economies of scale and reduced costs
• Opportunity to grow further and increased
• Break out of being attacked in saturated
domestic market
Disadvantages of Going
• Higher risk and prospect of failure
• Higher resource commitment may drain
from elsewhere
• Environmental complexity/ and pychic
• Need for adaption in marketing plans with
possible new strategies