ABM 170

Introduction
To
International Marketing
Prepared By:
Keno Jay M. Balogbog
Instructor III
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COURSE DESCRIPTION
This course will present an overview of the unique aspects
of marketing in the inter- national business environment and
provide the framework upon which multinational marketing
management can be based. Emphasis will be placed on the
role of the international marketing manager in the
development of marketing strategies for a variety of markets
in diverse cultural, political and economic situations.
Focus will be on the decision making process in the areas of
foreign market analysis, target identification, product
planning, promotion and channels of distribution.

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Course Objectives
Upon successful completion of this course,
students will:
1. Understand how the basic principles of
marketing are applied in a variety of diverse
cultural, political, legal and economic
environments
2. Be able to analyze foreign markets to
determine their overall export potential
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3. Understand the benefits that nations derive

from unrestrained free trade.
4. Be able to design strategies for global
competition .
5. Be able to explain the various methods of
entering foreign markets, the degree of
commitment required and the associated
levels of risk .

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6. Have a basic understanding of the types of

documentation required for transaction
between firms in different nations.
7. Know how international marketers develop
pricing strategies for goods sold abroad.
8. Understand the basic principles, objectives,
and problems in developing international
channels of distribution .

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9. Understand the concepts of product life cycle

and classification of goods and their importance
for foreign market acceptance, product
adaptation and overall marketing strategy
decision making.
10. Be able to identify sources of foreign market
information including secondary data from both
governments and private industry.
11. Be aware of the various techniques used by
modern marketers for segmenting foreign
markets in both the consumer and industrial
sectors.
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Course Requirements
1.
2.
3.
4.
5.

2 Major Exams
Cases
Group project foreign market analysis
Quizzes
Alternative Debate Topic: Pros & Cons
(Self point of view)

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Chapter 1
Introduction to
Global Marketing

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Case No. 1
StarbucksGoing Global Fast
Deadline: Nov. 21, 2014 9:00am

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Introduction
What is Global
Marketing?
How is it different
from regular
marketing?

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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 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
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Reasons for Global Marketing

Growth
Access to new markets
Access to resources

Survival
Against competitors with lower costs (due to
increased access to resources)

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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
value-related decisions called
boundaryless marketing
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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
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Goal of Marketing
Surpass the competition at the task of
creating perceived value for customers
The Guide line is the value equation
Value = Benefits/Price (Money, Time, Effort, Etc.)

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Value Chain and Boundaryless

Marketing

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Competitive Advantage
Success over competition in industry at
value creation
Achieved by integrating and leveraging
operations on a worldwide scale

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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 nationstates 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.
Thomas Friedman

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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

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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 CocaCola or we leave it alone. This is focus.
Helmut Maucher

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Global Marketing: What it is and

What it isnt
Strategy development comes down to two
main issues similar to single country
marketing
Target market
Marketing Mix

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Global Marketing: What it is and

What it isnt

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Global Marketing: What it is and

What it isnt
Global marketing does not mean doing
business in all of the 200-plus country
markets
Global marketing does mean widening
business horizons to encompass the world
in scanning for opportunity and threat

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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

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Standardization versus Adaptation

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The Importance of Global 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.
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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

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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

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Forces Affecting Global Integration

and Global Marketing

Global
Integration
and
Global
Marketing

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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
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Looking Ahead to Chapter 2

The Global Economic Environment

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