INTERNATIONAL MARKETING
&
EXPORT MARKETING
May 18, 2005
MARKET – The set of all actual and potential buyers of a product
or service.
MARKETING --Total system of business activities designed to
plan, price, promote and distribute want-
satisfying products and services to target markets
to achieve organizational objective.
DOMESTIC MARKETS – buyers in a country, including consumers,
producers, resellers and government agencies.
INTERNATIONAL MARKETS -- Buyers found abroad, including
foreign consumers, producers, resellers and
governments.
INTERNATIONAL MARKETING – The activities or an organization
to market its products in two or more countries.
Performance of business activities designed to
plan, price, promote and direct the flow of a
company’s goods and services to consumers or
users in more than one nation for a profit.
GLOBAL MARKETING – Companies treat the world, including
their home market as one market.
Market segmentation is not on national borders
but on demographics like age, income level etc.
Companies involve in global marketing generate
more than half of its revenue from foreign markets.
DOMESTIC MARKETING
Performance of business activities designed to
plan, price, promote and direct the flow of a
company’s goods and services to consumers or
users in a country for a profit.
INTERNATIONAL MARKETING
Performance of business activities designed to
plan, price, promote and direct the flow of a
company’s goods and services to consumers
or users in more than one nation for
a profit.
The key phrase is “in more than one nation”
INTERNATIONAL MARKETING
The difference is the environments in which the marketing
plans are implemented.
Controllable elements : product, price, promotion and distribution
Uncontrollable elements : Competition, legal restraints,
government controls, weather etc.
In international marketing adapting or adjusting to uncontrollable
elements is the name of the game.
You can get the standards set by governments, amended; if you
have sound reason and salesmanship – exceptional cases.
Experience in Iran and Poland.
INTERNATIONAL MARKETER has to work on
a: Controllable elements - 4 Ps
b: Uncontrollable elements of home country
C: Uncontrollable elements of each foreign country
Each foreign country has different sets of uncontrollable
elements. Solution to a problem in one country may not
be applicable to similar problem in another country.
Successful marketers design a marketing program for
optimal adjustment to the uncertainty of the business
climate.
MARKETING DECISION FACTORS
a: Controllable factors - 4 Ps
Marketer can adjust the controllable factors to achieve
its objectives – long term or short term…
b: Uncontrollable DOMESTIC environments
Government policies towards other countries
Ban on trade with Israel.
Favorable conditions for Sri Lanka
SAARC, EU, RCD
Economic conditions in the base country – encourage
Investment home and abroad…….
Competition in domestic or home market.
c: Aspects of uncontrollable FOREIGN environments
Conditions in UAE , emirates and free trade zones
You need local partner in emirates but not in free zone
Business with “legal person” thru “legal representatives” of
legal Chinese.
Technology level in the country - can they maintain the
equipment or need a “lower generation” equipment.
Political and legal issues - “alien status” of ex-pats.
“alien culture” of the host country.
Legal procedures and parallel systems – grey areas, double
accounts, under the table etc.
ADAPTATION of environment - a MUST
Uncontrollable elements constitute a business culture.
Culture has a very strong impact on business environments.
Easier to adjust in domestic market, because we are a part
of the culture.
For foreign markets, marketers must develop frame of reference
based on domestic culture - white color, punctuality, personal
talk etc. etc.