International Marketing

Consists of the activity, institutions and processes across national borders. - Czinkota and Ronkainen

Selling goods or services to other nations and importing from them.

Right to use a technical solution.

Two existing companies merge into a new one.

You own 100% of a company (all the control and all the risks).

On my behalf, do my production and I’ll pay you everything! (no risk taken)

Sign contracts with pros who know what they are doing. You control the hotel strategically, not as a manager.

It influences what we buy so it can change our society.

The decisions are based on international issues.

2015-2019 and then CoVid

Post-COVID-trade recovers but there are dramatic shifts.

Two or more countries who agree on trade policies.

NAFTA, MERCOSUR, ASEAN, (EU)

RCEP with 1/3 of all economic activity

Regional Comprehensive Economic Partnership, it’s made of the Asia-Pacific nations

Foreign Direct Investment

FDI → Global interdependence → Deglobalisation → Protectionism → Every man for himself

Global economic activity: Global Market Forces impose increasing tight limits on national economic regulation.

Currency flows → Exchange rates more or less expensive → Higher or lower levels of trade

Tariffs, quotas, trade barriers, import regulations

🙂 Closer economic relations but ☹ interdependence

More global business activities = More opportunities

Efficiency is about using less resources and time in the production process, while effectiveness is about the quality of the outcome.

Against

World Trade Organisation

It regulates trade restrictions.

(P P U D I I I C): Population, Purchasing Power Parties, Urbanisation, Data on product saturation/diffusion, Inflation, Income, Infrastructure, Consumption patterns

Country that tries to change and improve its economy.

Opportunities and potential problems

Minerals, land, water and energy

They are attractive for PRODUCTION and they determine the ECONOMIC STRUCTURE of a country.

TICU: Topography, Infrastructure, Climate, Urbanisation

Ramole: Religion, Aesthetics, Material culture, Organisation, Language, Education

1) Stability of government policy and 2) Risks of harrassment from political policies

Identifying vulnerability, establishing positive interactions and regulating international transfers of resources.

Indirect export, direct export, foreign production and cooperative export

R&D, production marketing and S&S in home country

S&S are abroad

Licensing, franchising and contract manufacture

Marketing and S&S abroad

Unique products, profit advantage, technological advantages and exclusive information

Not competitive enough home, overproduction and saturated domestic market

New management and significant internal event

Demand, government and proximity to ports

The licensor permits the licensee to use its intellectual property in exchange for compensation designated as a royalty.

Benefits from new development, reduced risk of failures and not many skills required

Limited expertise and the licensor creates its own competitor

The franchiser grants the franchisee the right to do business in a specified manner. = How to do business

Retailer = small quantity / Wholesaler = big quantity

• manufacturer-retailer system

• manufacturer-wholesaler system

• service-firm-retailer system

Investment in which an investor resident in one economy establishes a lasting interest in an enterprise resident in another economy

Focus on the purchase of stocks and bonds internationally

More employment, competitiveness, managerial skills

Dependence and competition for local firms

Arrangement between 2 or more companies with a common business objective

A collaborative partnership between multiple government entities.

Same marketing strategy and mix in all of the company’s international markets

Adjust the strategy to each target market

Straight extension

Product adaptation

Communication adaptation

Dual adaptation

Product invention

Performance, functional features

Brand name, price, staff behaviour

Maintenance before the product breaks

In the circular economy, the after-sales service is more important than the actual product sale

It prevents the message from being heard and that people remember and act

Lack of authenticity in an influencer’s words

SELL: Sociocultural, Economic, Language and Legal differences

The price

To lend money at unreasonably high rates of interest

The environment & the market

Price-level (1st time), price changes, pricing across products and pricing across countries

Fixed in form and require physical distribution

Intangible, personalised and perishable

Salt

Teaching

PQCHTS: Perishable, Quality perception, Custom-made, Heterogen, Transparent and Sensitive culture

People processing, Possession-possessing and Information-based

Education, healthcare, lodging

Car repair, equipment installation, laundry

Telecommunication, banking, internet

Information-based services

People-processing services

International Trade Organisation

An organization that promotes global trade and economic cooperation by setting a series of agreements

1948

General Agreement on Tariffs and Trade

1947

Settlement of disputes

In January 1995

International Monetary Fund

1944

It provides fixed exchange rates between countries to create stability

Round of trade negotiations among the WTO membership

Founded in 1944, it provides economic assistance for the reconstruction of war-torn countries

Regional organization established in 1951 to promote economic cooperation among 6 European countries → Create a common market for coal and steel = essential for post-war reconstruction

Trade agreements between countries that eliminate tariffs on goods traded within the union and establish a common external tariff for goods from outside the union.

Free movement of capital, services and people + development of common international policies