Chapter 1

The International Marketing

Imperative

Developed by Cool Pictures & MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.
 What is International Marketing?

• The process of planning and conducting transactions

across national borders to create exchanges that
satisfy the objectives of individuals and organizations.

Developed by Cool Pictures & MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.
 International Marketing
Questions

 Should I obtain my supplies domestically or from abroad?

 What marketing adjustments are or will be necessary?
 What threats from global competition should I expect?
 How can I work with these threats to turn them into
opportunities?
 What are my strategic global alternatives?

Developed by Cool Pictures & MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.
 World Trade Importance

• World trade has grown from $200 billion to more than

$7 trillion in the past three decades.
• The Iron Curtain is gone and capitalism has replaced
the old economic doctrines.
• Firms invest on a global scale.
• Increasingly more difficult to define “where” products
come from.
• New trading blocs are emerging.

Developed by Cool Pictures & MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.
 Global Linkages

• Global linkages bind countries, institutions, and

individuals more closely than ever.
• World trade opens up entirely new business horizons.

Developed by Cool Pictures & MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.
 Trade and Domestic Growth Rates

Percentage of
Growth
12%

10%
Trade
Growth
8%

6%

4%

Domestic Growth
2%

0%

Year
87

88

89

90

91

92

93

94

95

96

97

98

99

00

01
19

19

19

19

19

19

19

19

19

19

19

19

19

20

20
SOURCE: International Financial Statistics Yearbook IMF 2000.

Developed by Cool Pictures & MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.
 Domestic Policy Repercussions
Considerations

• Lowering of interest rates, happy U.S. customers but

what about impact of countries offering higher
interest rate?
• Agricultural and farm polices.
• Currency flows.
• Exchange rates.

Developed by Cool Pictures & MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.
 Meeting International
Challenges

• Be prepared and develop active

responses.
• Develop new strategies.
• New plans are needed.
• Adaptation to the new environment
and markets.

Developed by Cool Pictures & MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.
 Strategic Marketing

Marketing Manager’s Task

• To plan and execute programs that will ensure a
long-term competitive advantage for the company.

Developed by Cool Pictures & MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.
 Marketing Manager’s
Supporting Tasks

• Determine the specific target markets.

• Manage the marketing mix in order to best satisfy the
needs of individual target markets.

Developed by Cool Pictures & MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.
 Target Market Selection

Occupants Objects Occasions

Opposition Target
Objectives
Market

Operations Organization Outlets

Developed by Cool Pictures & MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.
 Marketing Management

Product
Product
Policy

Promotion Target Price

Communication Pricing
Policy Market Policy

Place
Distribution
Policy

Developed by Cool Pictures & MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.
 The Process

Stages in the Marketing Process

Analysis:
• Collect data on the eight O’s from data sources- primary and secondary,
internal and external, formal and informal. Screen data for opportunities
to employ company resources for competitive advantage.

Planning:
• Develop a marketing plan which includes a situation analysis, goals and
objectives, long-term strategies and short-term tactics, cost and profit
estimates, and anticipated changes in organizational structure.

Implementation:
• Take actions to put the plan into action. Adjust implementation activities
to account for environmental changes in market conditions.

Control:
• Use annual planning (sales to forecast), profitability, and efficiency
controls to monitor the plan’s successes and failures.

Developed by Cool Pictures & MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.