International Environment:
INT’L MKTG OVERVIEW
Int’l marketing is the process of planning,
conducting transactions across national
borders to create exchanges that satisfy the
objectives of individuals and organizations.
International Environment:
The Importance of World International Trade:
-the scope of its expansion
-the opening up of new markets in the restructuring and
emerging economies
-the level of competition
-rational allocation of resources
-increases the cooperation of countries
International Environment:
INT’L MKTG OVERVIEW
Mini case 1.2,Discussion Topic,Cork versus Plastic
Discuss the pros and cons of global competition as related to the
story of the effect of competition between the Seattle based
Supreme Corp Inc and the Portuguese based natural cork
incorporation,Relate your discussions to environmental safety,
the concerns of small traditional exporters and to the global
consumer at large,
The Effect of Global Linkage
A freeze in Brazil and its effects on coffee
production are felt around the world as coffee
becomes scarce and its price rises,
A decline in the value of the Mexican peso
affected financial markets in all emerging
economies and impacted Poland,Hungary,and
the Czech Republic.
The Effect of Global Linkage
-The Political Turmoil in Middle East Affects the
Stock market in New York
-The instability of governments in Latin America
affects the US economy
-The devaluation of the US $ affects the whole
world
-WTO’s position on China impacts the prices of
labor-intensive products globally.
The Link between Domestic and
International Trade Growth
0%
2%
4%
6%
8%
10%
12%
1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Y e a r
Per cen tag e o f
Gr o wth
D om e s ti c G r ow th Tr a d e G r ow th
Structural Changes of Export
0%
50%
100%
150%
200%
250%
300%
350%
400%
%
G
r
ow
th
(1983-
1998)
A u s tr a l i a C a n a d a G e r m a n y Ja p a n U S A
M e r c h a n d i s e Ex p or ts C om m e r c i a l S e r v i c e s Ex p or ts
The Importance of Export for the American
Economy
- 1 out of every 3 U.S,farm acres is producing for
export
1 of every 6 U.S,manufacturing jobs produces for
export
$1 of every $7 of U.S,sales goes abroad
1 of every 3 cars,9 out of 10 TVs,2 out of 3 suits,and
every VCR sold in the U.S,is imported.
Travel and tourism is the #1 source of U.S,foreign
exchange.
Opportunities and Challenges
Change and discontinuity requires active responses.
International activity may be crucial to a firm’s survival and
growth.
International opportunities require
careful exploration.
Firms and individuals must
be capable of adapting
to the environment.
Isolation is impossible
today.
Risk factors
Target
Market
Target Market Selection
Organization
Occupants Occasions
ObjectivesOpposition
Operations Outlets
Objects
Marketing Management
Place
Distribution
Policy
Price
Pricing
Policy
Promotion
Communication
Policy
Product
Product
Policy
Target
Market
The Marketing Process
Stages in the Marketing Process
Analysis:
Collect data on the eight O’s from data sources- primary and secondary,
internal and external,formal and informal,Screen data for opportunities
to employ company resources for competitive advantage.
Planning:
Develop a marketing plan which includes a situation analysis,goals and
objectives,long-term strategies and short-term tactics,cost and profit
estimates,and anticipated changes in organizational structure.
Implementation:
Take actions to put the plan into action,Adjust implementation activities
to account for environmental changes in market conditions.
Control:
Use annual planning (sales to forecast),profitability,and efficiency
controls to monitor the plan’s successes and failures.
Geographical Perspectives
Geographic
Questions
Region
Location Place
InteractionMovement
Climate
The Global Market,A Curse and Blessing
An American market analysis was sent to one of the
African countries to analyze and estimate the market
potential for American made shoes,The expert came
back from his trip and in his debriefing session,he said
that there is no hope for selling shoes as almost all
citizens are walking bare-feet,Another market analyst
went to the same place and came back with a different
tone,The second analyst concludes,“let’s get there as
soon as possible as the market is just an ocean.” Discuss
why the reports from both marketers are misleading,
What kind of products (beyond shoes) can you sell in
developing countries? Refer to the info in 1.4,p 11 text.
The Global Market,A Curse and Blessing
Critical view on market analysis:
a) In Sierra Leone the average life span is 39
b) In Nigeria 9% of the kids will die at birth
c) In Uganda the family annual income is likely to be
about $602
INT’L MKTG OVERVIEW
Int’l marketing is the process of planning,
conducting transactions across national
borders to create exchanges that satisfy the
objectives of individuals and organizations.
International Environment:
The Importance of World International Trade:
-the scope of its expansion
-the opening up of new markets in the restructuring and
emerging economies
-the level of competition
-rational allocation of resources
-increases the cooperation of countries
International Environment:
INT’L MKTG OVERVIEW
Mini case 1.2,Discussion Topic,Cork versus Plastic
Discuss the pros and cons of global competition as related to the
story of the effect of competition between the Seattle based
Supreme Corp Inc and the Portuguese based natural cork
incorporation,Relate your discussions to environmental safety,
the concerns of small traditional exporters and to the global
consumer at large,
The Effect of Global Linkage
A freeze in Brazil and its effects on coffee
production are felt around the world as coffee
becomes scarce and its price rises,
A decline in the value of the Mexican peso
affected financial markets in all emerging
economies and impacted Poland,Hungary,and
the Czech Republic.
The Effect of Global Linkage
-The Political Turmoil in Middle East Affects the
Stock market in New York
-The instability of governments in Latin America
affects the US economy
-The devaluation of the US $ affects the whole
world
-WTO’s position on China impacts the prices of
labor-intensive products globally.
The Link between Domestic and
International Trade Growth
0%
2%
4%
6%
8%
10%
12%
1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Y e a r
Per cen tag e o f
Gr o wth
D om e s ti c G r ow th Tr a d e G r ow th
Structural Changes of Export
0%
50%
100%
150%
200%
250%
300%
350%
400%
%
G
r
ow
th
(1983-
1998)
A u s tr a l i a C a n a d a G e r m a n y Ja p a n U S A
M e r c h a n d i s e Ex p or ts C om m e r c i a l S e r v i c e s Ex p or ts
The Importance of Export for the American
Economy
- 1 out of every 3 U.S,farm acres is producing for
export
1 of every 6 U.S,manufacturing jobs produces for
export
$1 of every $7 of U.S,sales goes abroad
1 of every 3 cars,9 out of 10 TVs,2 out of 3 suits,and
every VCR sold in the U.S,is imported.
Travel and tourism is the #1 source of U.S,foreign
exchange.
Opportunities and Challenges
Change and discontinuity requires active responses.
International activity may be crucial to a firm’s survival and
growth.
International opportunities require
careful exploration.
Firms and individuals must
be capable of adapting
to the environment.
Isolation is impossible
today.
Risk factors
Target
Market
Target Market Selection
Organization
Occupants Occasions
ObjectivesOpposition
Operations Outlets
Objects
Marketing Management
Place
Distribution
Policy
Price
Pricing
Policy
Promotion
Communication
Policy
Product
Product
Policy
Target
Market
The Marketing Process
Stages in the Marketing Process
Analysis:
Collect data on the eight O’s from data sources- primary and secondary,
internal and external,formal and informal,Screen data for opportunities
to employ company resources for competitive advantage.
Planning:
Develop a marketing plan which includes a situation analysis,goals and
objectives,long-term strategies and short-term tactics,cost and profit
estimates,and anticipated changes in organizational structure.
Implementation:
Take actions to put the plan into action,Adjust implementation activities
to account for environmental changes in market conditions.
Control:
Use annual planning (sales to forecast),profitability,and efficiency
controls to monitor the plan’s successes and failures.
Geographical Perspectives
Geographic
Questions
Region
Location Place
InteractionMovement
Climate
The Global Market,A Curse and Blessing
An American market analysis was sent to one of the
African countries to analyze and estimate the market
potential for American made shoes,The expert came
back from his trip and in his debriefing session,he said
that there is no hope for selling shoes as almost all
citizens are walking bare-feet,Another market analyst
went to the same place and came back with a different
tone,The second analyst concludes,“let’s get there as
soon as possible as the market is just an ocean.” Discuss
why the reports from both marketers are misleading,
What kind of products (beyond shoes) can you sell in
developing countries? Refer to the info in 1.4,p 11 text.
The Global Market,A Curse and Blessing
Critical view on market analysis:
a) In Sierra Leone the average life span is 39
b) In Nigeria 9% of the kids will die at birth
c) In Uganda the family annual income is likely to be
about $602
