Course Code: ELEC 3615

Semester 132
Level 3rd

INTERNATIONAL MARKETING

Ms. Adiba Anis,

Lecturer of Marketing,
School of Business,
Bangladesh Open University

CHAPTER 1
INTRODUCTION TO
GLOBAL MARKETING

Learning Objectives
Summarize the evolution of marketing

Identify the three basic principles of marketing

Discuss global marketing practices and strategies
Discuss the growth of global market opportunities
Compare and contrast management orientations
Describe the driving forces behind the increased pace of
global integration
Identify three restraining forces that hinder global
marketing efforts
Ms. Adiba Anis, Lecturer of Marketing, School of Business, BOU

Brain Teasers
Do you think marketing internationally can contribute

to the welfare of the world population?

Why do we require international marketing?
If you have to sell Pran Mr. Mango in Singapore, what
International Marketing Approach will you chose?
Why does a local business worries about the activities
of an international company?

Ms. Adiba Anis, Lecturer of Marketing, School of Business, BOU

Introduction
What is Market?
What is Marketing?
What is International Marketing?
How is it different from regular marketing?

Introduction
Marketing
Process of planning and

executing the conception

pricing, promotion and
distribution of ideas, goods
and services to create
exchanges that satisfy
individual and organization
goals

Global/International
Marketing
Focuses resources on global

market opportunities and

threats; the main difference
is the scope of activities
because global marketing
occurs in markets outside
the organizations home
country

Ms. Adiba Anis, Lecturer of Marketing, School of Business, BOU

Reasons for International Marketing

Growth
Access to new markets
Access to resources

Survival
Against competitors with lower costs (due to increased access

to resources)

Ms. Adiba Anis, Lecturer of Marketing, School of Business, BOU

Overview of Marketing
One of the functional areas of a business that is

distinct from finance and operations

Primary tools in marketing are product, price,
place, and promotion
Marketing is an activity that comprises the firms
value chain
Current trend is to involve marketers in all valuerelated decisions called boundaryless marketing

Ms. Adiba Anis, Lecturer of Marketing, School of Business, BOU

So What is Boundaryless Marketing?

Goal is to eliminate

communication barriers
between marketing and
other business functional
areas
Properly implemented it
ensures that a market
orientation permeates all
value creating activities

Why is it so important?
This shift in marketing has created organizations

that are more customer focused than in past

decades.
This new focus could do away with a conflict that
happens in corporations today.
One department thinks it has a great idea but the
marketing department knows it is a bad idea.
Why?
Because the marketing department was not
involved with the decision the company has
invested a great deal of resources pursuing an idea
that cannot be implemented.
Ms. Adiba Anis, Lecturer of Marketing, School of Business, BOU

Goal of Marketing
The Guide line is the value equation

Value = Benefits/Price (Money, Time, Effort, Etc.)

As a general rule, value, as perceived by the customer, can be
increased in two basic ways.
Markets can offer customers an improved bundle of benefits or lower

prices (or both!).

Marketers may improve the product itself, design new channels of
distribution, create better communications strategies, or a combination of
all three.
Marketers may also seek to increase value by finding ways to cut costs
and prices.
Non-monetary costs are also a factor, and marketers may be able to
decrease the time and effort that customers must expend to learn about
or seek out the product. If a company is able to offer a combination of
superior product, distribution, or promotion benefits and lower prices than
the competition, it enjoys an extremely advantageous position.
Ms. Adiba Anis, Lecturer of Marketing, School of Business, BOU

Using the Marketing Mix (4P)

Companies use the marketing mix to create value

for customers.
Product

Price
Place
Promotion

Ms. Adiba Anis, Lecturer of Marketing, School of Business, BOU

Value Chain and Boundaryless Marketing

Ms. Adiba Anis, Lecturer of Marketing, School of Business, BOU

Competitive Advantage
Success over competition in industry at value

creation
Achieved by integrating and leveraging
operations on a worldwide scale

Ms. Adiba Anis, Lecturer of Marketing, School of Business, BOU

Globalization
Globalization is the inexorable integration of markets,
nation-states, and technologies to a degree never

witnessed before - in a way that is enabling individuals,

corporations, and nation-states to reach around the world
farther, faster, deeper and cheaper than ever before, and in
a way that is enabling the world to reach into individuals,
corporations, and nation-states farther, faster, deeper, and
cheaper than ever before.

Ms. Adiba Anis, Lecturer of Marketing, School of Business, BOU

Global Industries
An industry is global to the extent that a companys industry position

in one country is interdependent with its industry position in another

country
Indicators of globalization:
Ratio of cross-border trade to total worldwide production
Ratio of cross-border investment to total capital investment
Proportion of industry revenue generated by companies that
compete in key world regions

Ms. Adiba Anis, Lecturer of Marketing, School of Business, BOU

Competitive Advantage, Globalization and Global

Industries
Focus
Concentration and attention on core business and

competence
Nestle is focused: We are food and beverages. We are not
running bicycle shops. Even in food we are not in all fields.
There are certain areas we do not touch..We have no soft
drinks because I have said we will either buy Coca-Cola or we
leave it alone. This is focus.
Helmut Maucher

Ms. Adiba Anis, Lecturer of Marketing, School of Business, BOU

International Marketing: What it is and What it isnt

The discipline of marketing is universal.

However marketing practices will vary from country to country
Why?
Simply because the countries and peoples of the world are different.
These differences mean that a marketing approach that has proven
successful in one country will not necessarily succeed in another country.
Customer preferences, competitors, channels of distribution, and
communication media may differ.
An important task in international marketing is learning to recognize the
extent to which marketing plans and programs can be extended worldwide,
as well as the extent to which they must be adapted.
Strategy development comes down to two main issues similar to single
country marketing
Target market
Marketing Mix
Ms. Adiba Anis, Lecturer of Marketing, School of Business, BOU

International Marketing: What it is and What it isnt

Ms. Adiba Anis, Lecturer of Marketing, School of Business, BOU

 Global market participation is the extent to which a company has

operations in major world markets.

Standardization versus adaptation is the extent to which each marketing

mix element can be standardized (i.e., executed the same way) or

adapted (i.e., executed in different ways) in various country markets.
GMS has three additional dimensions that pertain to marketing

management.
First, concentration of marketing activities is the extent to which activities

related to the marketing mix (e.g., promotional campaigns or pricing decisions)

are performed in one or a few country locations.
Coordination of marketing activities refers to the extent to which marketing
activities related to the marketing mix are planned and executed
interdependently around the globe.
Finally, integration of competitive moves is the extent to which a firms
competitive marketing tactics in different parts of the world are interdependent.
The GMS should be designed to enhance the firms performance on a worldwide
basis.

Ms. Adiba Anis, Lecturer of Marketing, School of Business, BOU

International Marketing: What it is and What it isnt

International marketing does not mean doing business

in all of the 200-plus country markets

International marketing does mean widening business
horizons to encompass the world in scanning for
opportunity and threat

Ms. Adiba Anis, Lecturer of Marketing, School of Business, BOU

Standardization versus Adaptation

Globalization (Standardization)
Developing standardized products marketed worldwide with a

standardized marketing mix

Essence of mass marketing

Global localization (Adaptation)

Mixing standardization and customization in a way that minimizes

costs while maximizing satisfaction

Essence of segmentation
Think globally, act locally

Ms. Adiba Anis, Lecturer of Marketing, School of Business, BOU

Standardization versus Adaptation

Ms. Adiba Anis, Lecturer of Marketing, School of Business, BOU

The Importance of International Marketing

For US-based companies, 75% of sales potential is

outside the US.

About 90% of Coca-Colas operating income is generated

outside the US.

For Japanese companies, 85% of potential is outside

Japan.
For German and EU companies, 94% of potential is
outside Germany.

Ms. Adiba Anis, Lecturer of Marketing, School of Business, BOU

Management Orientations

Ethnocentric:
Home country is
Superior, sees
Similarities in foreign
Countries
Regiocentric:
Sees similarities and
differences in a world
Region; is ethnocentric or
polycentric in its view of
the rest of the world

Polycentric:
Each host country Is
Unique, sees differences
In foreign countries

Geocentric:
World view, sees
Similarities and
Differences in home
And host countries

Ms. Adiba Anis, Lecturer of Marketing, School of Business, BOU

Forces Affecting Global Integration and Global

Marketing
Driving Forces
Regional economic

agreements
Market needs and wants
Technology
Transportation and
communication improvements
Product development costs
Quality
World economic trends
Leverage

Restraining Forces
Management myopia
Organizational culture
National controls

Ms. Adiba Anis, Lecturer of Marketing, School of Business, BOU

Driving Forces and Restraining Forces

Ms. Adiba Anis, Lecturer of Marketing, School of Business, BOU

Forces Affecting Global Integration and Global

Marketing

Global
Integration
and
Global
Marketing

Ms. Adiba Anis, Lecturer of Marketing, School of Business, BOU

Overview of Book
Part I: Overview of Global Marketing
Part II: Environments of Global Marketing
Part III: Global Strategy
Part IV: Global Considerations of the Marketing Mix

Part V: Integrating the Dimensions of Global Marketing

Ms. Adiba Anis, Lecturer of Marketing, School of Business, BOU