International Marketing Management

Topics: International trade, Marketing, International economics Pages: 8 (939 words) Published: April 29, 2013
Chap- 9
International Marketing Management
Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. International Marketing is the extension of these activities across national boundaries. Firms expanding into new markets in foreign countries must deal with differing political, cultural, and legal systems, as well as unfamiliar economic conditions, advertising media, and distribution channel. International Marketing Management

International marketing management encompasses a firm’s efforts to ensure that its international activities comply with the firm’s corporate strategy, business strategy, and other functional strategies. A primary task facing international marketing managers is to operationalize the firm’s international strategy by selecting appropriate markets to enter and then developing an appropriate approach for competing in those markets.

International Marketing and Business Strategies
Business strategy can take one of three forms:
1. Differentiation
2. Cost Leadership
3. Focus
The Marketing Mix

International marketing manager must address four issues:
1. How to develop the firm’s product(s)
2. How to price those products
3. How to sell those products
4. How to distribute those products to the firm’s customers These elements are collectively known as the marketing mix and colloquially referred to as the four P’s of marketing: product, pricing, promotion, and place. Key decisions Making Factors:

* Standardization versus customization
* Legal forces
* Economic factors/ income levels
* Changing exchange rates
* Target customers: industrial or consumer
* Cultural influences
* Competition

Standardization versus Customization
Marketers should decide about appropriate approach to adopt: a. The ethnocentric approach
b. The polycentric approach
c. The geocentric approach

* Advantages and Disadvantages of Standardized and Customized International marketing Product Policy
* Standardized products or customized products?
Product categories:
a. Industrial Products b. Consumer Products
* Legal Forces
* Cultural Influence
* Economic Factors
* Brand Names

Pricing Issues and Decisions

Pricing Policies:
1. Standard price policy
2. Two-tiered pricing
3. Market pricing
Promotional Issues and Decisions
The Promotion Mix:
a. Advertising
Factors to be considered:
1. Message
2. Medium
3. Global versus Local Advertising
b. Personal Selling
a. Sales Promotion
b. Public Relation
Distribution Issues and Decisions

* International Distribution
* Channel of distribution
Distribution Channel Options

International Trade and Investment Theory

Trade is the voluntary exchange goods, service, asset, or money between one person or organization and another. International trade is trade between residents of two countries. Classical Country Based Theories:

* Mercantilism Theory

* Absolute Advantage Theory

Out put Per Labor Hour
France Japan

Wine 2 1
Clock Radios 3 5
* Comparative Advantage Theory

Out put Per Labor Hour
France Japan

Wine 4 1
Clock Radios 6 5
* Relative Factor Endowments theory
This theory is...
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