part one essentials of international marketing chapter one introduction …€¦ · introduction to...
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International
Marketing
© Daniel W. Baack, Barbara
Czarnecka & Donald Baack
Part One
Essentials of international
marketing
Chapter 1
Introduction to international
marketing
Learning outcomes
1. What are the meanings of the terms “multinational
corporation,” “born-global,” “home country,” and “host
country”?
2. What are the essential ingredients in the marketing mix as
they relate to international markets, needs, and wants?
3. How have the drivers of globalization influenced
international marketing?
4. How are the factors that create international marketing
complexity linked to creating a global mind-set for
marketing activities?
4
Learning outcomes
5. Why are the concepts of sustainability and bottom-of-the-
pyramid consumers linked to today’s international
marketplace?
5
Learning outcome
1. What are the meanings of the terms “multinational
corporation,” “born-global,” “home country,” and “host
country”?
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International marketing
• The utilization and adaptation of the best marketing
practices for the purposes of conducting commerce in other
countries.
• It includes conducting commerce with customers, clients,
partners, society at large, and the overall global community.
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Who does international marketing?
• Multinational Corporations (MNCs)
– Businesses that conduct activities in at least one other
country that differs from the home country in which the
organization is headquartered.
• Born-global firms
– Businesses that operate in two or more different countries
from inception are born-global firms.
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Home vs. Host Country
• The home country is the nation in which the business is
located or the country that houses the company’s main
headquarters.
• A host country is a nation being targeted for expansion.
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How do we organize?
• Ethnocentric management
– Use home country nationals as employees in home and host countries
• Polycentric management
– Use local nationals as employees in home and host countries
• Regiocentric management
– Use employees from the region within that region
• Geocentric management
– Use the best employees globally without a focus on country location
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Learning objective #2
2. What are the essential ingredients in the marketing mix as
they relate to international markets, needs, and wants?
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Marketing defined
• Marketing may be defined as “discovering consumer needs
and wants, creating the goods and services products that
meet those needs, and then pricing, promoting, and
delivering those goods and services.”
• The marketing mix consists of the major activities used to
develop and sell goods and services.
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Markets, wants, and needs
• A market consists of people with wants and needs, money
to spend, plus the willingness and ability to spend money on
those wants and needs.
• Needs are the necessities of life that all humans require for
their survival and well-being.
• Wants are specific expressions of needs through the desire
for specific objects.
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The STP process
• Market Segmentation
– Grouping consumers based on their needs, attitudes, and
interests.
• Target market
– Specific, identifiable market segment that a company
seeks to reach.
• Positioning
– Creating a perception in a consumer’s mind about the
nature of a company and its products relative to
competitors’.
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Learning objective #3
3. How have the drivers of globalization influenced
international marketing?
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Globalization
• The increased interconnectedness of consumers and
businesses.
• Four Drivers:
– Channels of Communication
– Lower Transportation Costs
– Immigration and Emigration Patterns
– Governmental Actions
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Learning objective #4
4. How are the factors that create international marketing
complexity linked to creating a global mind-set for
marketing activities?
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International marketing complexity
• Culture
• Language
• Political and legal systems
• Economic systems
• Infrastructure
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Culture and this course
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Language and this course
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Political and legal systems and this course
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Economic systems and this course
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Infrastructure and this course
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The framework for this course
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Other course themes – Sustainability
• Sustainability or sustainable development refers to meeting
the needs of the current generation in a way that leaves
future generations with the ability to also meet their needs.
• “Enough – for all – forever.”
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A sustainability framework
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Other course themes – Bottom-of-the-pyramid
• Approximately 4 billion people globally live on less than $2
per day. This group of consumers is referred to as the
bottom-of-the-pyramid.
• At 4 billion consumers, even a small level of profit per sale
can lead to large profit across the entire segment.
• Targeting this group can lead to more-efficient processing
and innovations that can then be applied to more affluent
consumers.
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