Introduction

• A type of company that has a customer bas

e in a variety of different nations and provi
des a variety of commodities, goods, produ
cts or services that are needed to a variety
of nations, international customer base an
d international population.
 What is a
International Company?
• It is a business that operates all over the
world and;
• Treats the world as one country.
• Locates in low wage countries.
• Purchases raw materials from cheapest
country.
• Borrows from cheapest country.
• Moves managers around.
 Examples
• Coca-Cola
• Toyota
• McDonalds
• Nike………………
 Reasons for the
development of
International company
Increase Sales: Higher profits.
(home market saturated)
Mass Production:Enables Economies of
Scale (more produced = lower cost per
unit).
Developments in ICT: Communication is
faster & easier.
Deregulation: World Trade Organisation
making trade easier.
 International Marketing
• Selling the same product in the same
way all over the world using the
global marketing mix (4 P’s).
• Concentrates on similarities across
world markets.
• Uses a
Standardised Marketing Mix
wherever possible.
• However the standardised marketing
mix may have to be adjusted to meet
local tastes, cultures & legislation.
• Eg. RHD cars in Ireland & UK………
LHD rest of world.
 International Product
• Try to use same brand name world wide
• However this may not always be possible.

• Eg. Jif to Cif, Marathon to Snicker.

• Barbie doll modified for Japan!!!
• McDonalds don’t sell beef in India!!
 International Price
• The price may vary around the world
due to:
• Higher standard of living = higher price.
• Higher transport costs = higher price.
• Taxes & tariffs = higher price.
• More competition = lower price.
 International Promotion
• Special Events = economies of scale:
• Olympic Games
• World Cup
• Not always possible to use identical promotion
due to legislation, language & culture:
• Proctor & Gamble had to withdraw bathroom tv
add in Japan.
• In Germany “come to life with coke” = “come out
of the grave with coke”!!!!!!
 International Place
• Channels of distribution is longer.
• Manufacturer-exporter-importer-
agents and distributors ……….
• More time consuming and expensive.
 .......................
• Many global businesses rely on local
agents and distributors to deliver.
• Coca–Cola allows local businesses to
produce & sell its product under
licence.
• Less expensive but involves loss of
control over quality.
 Why is international
Marketing important?
• Economies of Scale:
The more products that are
made/advertised the cheaper per unit to
make/promote.

• Home market may be saturated:

There is no more potential to increase
sales at home.
•
 Continued….
• Standard Marketing Mix may not
always work.
• Cultural differences must be
recognised.
• Adapted Marketing Mix takes these
differences into consideration.
Unilever
•Thank You