001 Intro To International Marketing

Introduction to International Marketing Al Marshall ACU National

The Impact on Business • Internationalisation impacting on demestic economies • Impact is on all sizes of business • Direct impacts come from imports, exports • Indirect impacts come from macro environmental forces

Success in Business Requires Understanding • Forces of internationalisation must be understood • Effects of these forces must also be understood • Business performance depends on the above • Solely a domestic/national focus insufficient

Threats to the Domestically Focused • Notion of the protected marketplace increasingly redundant • If not in other markets, other market companies are here • Intensified competition in domestic market • One response is to move intto other markets

International Marketing as an Option • Core marketing concepts, principles, functions, processes remain the same • Differences lie in increased environmental difference • Charactorised by complexity/diversity • Environmental difference the key difficulty

Environmental Differences • A greater number of factors • These factors less known than domestic market factors • Understanding and adaption required • Issues arise in both developing understanding and strategic adaption

Fit With Domestic Marketing • Question of how will fund international marketing • Domestic market resources typically used • Question of what commonalities there are with domestic market • Commonalities allow greater synergies/degree of integration

The Extent of Commonalities • Markets can be selected for the degree of commonality • Common markets though may not be the ones with greatest market potential • Differences may exist at product, market, industry, macro enviro levels • Latter includes pol/legal, economic, technology, demography, socio-cultural

The Key Role of Cultural Differences • Developing cultural understanding a key issue • The major source of problems in international marketing • Culture (both individual and corporate) is largely invisible • Self reference criteria and ethnocentrism stumbling blocks

The Role of Environmental Audits • Audits have a major role to play on a continuous basis • Crucial in choosing non-domestic markets, but also post-entry • Market attractiveness and choice premised on audits • Strategic market planning requires them

Degree of Commitment and International Exposure • Not simply an either/or type option • Typically commitment/exposure is limited to start with • Success (and the experience curve) leads to a upward cascade • Varies from indirect international marketing to full global marketing

Advantages of Going International • Experience curve learning effects can be applied elsewhere • Economies of scale and reduced costs • Opportunity to grow further and increased profit • Break out of being attacked in saturated domestic market

Disadvantages of Going International • Higher risk and prospect of failure • Higher resource commitment may drain from elsewhere • Environmental complexity/ and pychic distance • Need for adaption in marketing plans with possible new strategies