Transcript international markets slideshow

International Markets
The world is shrinking because of:
•
faster communication
• more information technology
available
• faster and more efficient
transportation
• more immigration to various
countries
Global Marketing Environment
The World Trade Organization:
An international agency which encourages trade between
member nations, administers global trade agreements and
resolves disputes when they arise. This organization helps
trade and reduces tariffs and other international trade
barriers.
Regional Free Trade Zones:
Groups of nations that are organized to work towards
common goals in the regulation of international trade.
Multi-national Corporations:
Corporations that do business all over the world.
Understanding the Global
Environment
Political – Legal Environment:
• attitudes toward international buying
• government bureaucracy
• political stability or instability
• monetary regulations
• kickbacks & bribes
Cultural Environment
Sellers must examine the ways consumers in
different countries think about and use
products and tailor their marketing activities
toward that country’s consumer preferences.
Business norms vary from country to country.
Companies that understand cultural
differences can position their products for an
international market
Reasons for Going Global
• some foreign markets have higher profit
opportunities
• common currencies make trade easier
• company needs a larger customer base
• company needs to reduce dependency on a
single market
• growth of information technology makes
communicating much easier
How to Decide to Go International
• what volume of foreign sales is desired?
• what countries to market in?
• what types of countries to enter?
• does company have a competitive or
comparative advantage over foreign
competitors?
Which International Marketing Strategy?
Centralized Marketing Strategy
•production and sale of goods from a central location
•rather than utilizing specific marketing offices in each national
market, centralized marketers prepare strategies that cover
large geographic areas and still take cultural differences into
account.
•cost benefits (economies of scale) - often less expensive with
much less duplication.
Decentralized Marketing Strategy
•uses local production facilities, advertising & market research
companies, sales reps, etc. to target international markets.
•provides company with close proximity to markets, flexibility to
spot and respond to trends and the ability to be sensitive to
different cultural customs.
Push vs. Pull Marketing Strategy
A push strategy is where businesses sell their products
to retailers, importers or wholesalers but not directly to
end-use consumers.
•advertising and promotional efforts are towards dealers,
to convince them to carry the product because they
believe the product will sell itself if the consumer can
access it on local store shelves.
•marketers will utilize trade shows, sales agents and
dealer advertising/promotions to establish the movement
of products through the channels of distribution.
A pull strategy targets the consumer directly.
•advertising and promotional efforts try to convince
consumers that they need a product and therefore “pull”
these consumers into stores to look for the brand.
•typically the pull strategy is more challenging for
international businesses, but can be coupled with a
decentralized marketing strategy.
Why Global Marketing is Important
• internet and electronic commerce are changing
the way companies operate worldwide.
• more major consumer and industrial markets
today (China, Pacific Rim, European Union).
• meets needs of markets in other countries
which can then create jobs and provide
consumers with more diverse products and
services.