Topic 1 The International Marketing Concept

Topic 1 The International Marketing Concept

Imanuel Hutagalung -- Semester 2 --2008-2009

GLOBALIZATION

Marketing Management and the Marketing Mix 1.

Marketing management and the marketing mix – Marketing management consists of planning, organization, implementation and control of marketing activities. – The marketing activities (marketing mix) are “controllable”.

 The

planning and development of products or services that customers require – PROD UCT  The distribution of products through appropriate channels – PLACE  The establishments of prices that offer value to customers and to the supplier – PRICE  Promotion of the products or services -- PR OMO TIO N

Global Perspective Foreign Environment (Uncontrollables) 7. Structure of Distribution

1. Competition Domestic environment (Uncontrollables) (Controllables)

1. Competition

2. Technology Price Product Target 5. Political7 Market 6. Geography and Legal Promotion Place or 2 .Technology Infrastructure Distribution 4. Culture 3. Economy 5. PoliticalLegal

3. Economy 4. Culture

STEEPL E A NAL YSIS

The Marketing Environment 

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Marketer must take into account environmental factors: STEEPLE – S: Social/cultural – T: Technological – E: Economic and market competition – E: Education, training and employment – P: Political – L: Legal – E: Environmental Protection The challenge for marketing management is: to devise marketing mix that will enable the organization to adapt to its environment in such a way that profit and other objectives are achieved

The International Marketing Environment

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– The “uncontrollable” environment factors: STEEPLE + Competitors Task: to tailor the marketing mix into the environment (within any nation and between nations) STEEPLE provides the base framework just as at does at home market. Aspects require in international marketing are for examples: licensing, joint ventures, agents, counter trade.

The D efi nitio n o f I ntern atio nal Mar keti ng 1. The marketing of goods, services or ideas across national boundaries 2. The marketing operations of an organizations that sells or produces within a given country when: That organization is part of, associated with, an enterprise which also operates in other countries There is some degree of control of, or influence on, that organization’s marketing activities from outside the country in which it sells and or produces.

Multinational Company (MNC) 

A company which has a direct investment base in several countries; which generally derives from 20% to 50 % or more of its net profits from foreign operations; and whose management makes policy decisions based on the alternatives available anywhere in the world.

INT’L MKT DEC. MARKET SELECTION DEC.

PRODUCT

MARKET ENTRY DEC.

MKT MIX DEC.

INFORMATION BASE MARKET RESEARCH

PLACE PRICE PROMOTION

MKT ORGANIZATION DEC.