Chapter 1 – An Introduction to

International Marketing
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 Learning Objectives

• Explain and use the SLEPTS factors to assess

international markets
• Discuss the differences between export
marketing, international and global marketing
• Understand the criteria required to evaluate a
company’s international marketing strategy
• Appreciate the key steps in the international
marketing planning process

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 The international marketing
environment

• Marketing involves:

– Focusing on the needs and wants of customers

– Identifying the best method of satisfying those needs
and wants
– Orienting the company towards the process of
providing that satisfaction
– Meeting organisational objectives

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 The international marketing
environment (cont.)

• Different levels of international

marketing

– Domestic marketing
– International marketing
– Global marketing

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Theories of internationalization

• Definition of internationalization
“The method of adopting an organisation’s operations to
foreign environments” p. 7

– Economic model
– Behavioural model
– Network or relationship model
– Born global model

For use with Doole, Lowe and Kenyon International Marketing Strategy, 8th edition
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Factors influencing international
markets

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 Cultural Factors
• Coca-Cola:
– 2 litre bottles too big for Spanish fridges
– Pronunciation in China – Kooke Koula
• ‘A thirsty mouthful of candle wax’

• Pepsi Cola:
– ‘Come Alive With Pepsi’ in German translated to:
• ‘Come Alive Out of the Grave …’

• McDonald’s:
– The white face of ‘Ronald McDonald’
• A white face is seen as a death mask in Japan

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 Cultural factors (cont.)
• The global village now means there is ‘...a nationless
state marked by the convergence of consumer needs
that transcends political and cultural boundaries’
Omahe (2005)

– 60% of the world’s population live in Asia (4.5 billion of the

world’s population of 7.6 billion)
– 36 per cent of the world’s population live in China and India
– In Africa 60 per cent of the population is under the age of 24
years old
– In Europe 27 per cent of the population is under the age of
24 years old

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 Social factors

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 Legal factors
• 3 dimensions in the legal environment:

– local domestic law:

• different in every country

– international law:
• issues include piracy, treaties, patents etc

– domestic laws in the home country:

• export controls, plus duty to abide by national laws in all
activities

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 Legal factors
Illustration 1.2
Product Placement laws

• Popular culture drives

consumer behaviour
• Branded products are placed For Ofcom's’ broadcasting
in films code detailing product
• Smoking behaviour and placement rules click here:
smoking products in films https://www.ofcom.org.uk/tv-
banned radio-and-on-
demand/broadcast-
• In some countries but not all
codes/broadcast-code
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 Economic factors
• Developed Triad Economies
– account for 80% of world trade

• Emerging Economies
– huge and growing consumer demand
– government directed economic reforms
– ‘dual economy’

• Less Developed Countries (LDCs)

– low GDP, limited manufacturing base
– infrastructure weaknesses
– heavy reliance on one product/one trading partner

For use with Doole, Lowe and Kenyon International Marketing Strategy, 8th edition
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 Economic factors

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 Political factors

Political factors may Government actions

cause risks due to “a may constitute potential
sudden or gradual risk for the firm:
change in a local – Operational restrictions
eg. exchange controls
political environment or employment policies
that is – Discriminatory
disadvantageous or restrictions e.g. special
counter productive to taxes and tariffs
foreign firms and – Physical actions e.g
nationalization, riots
markets’ and war

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 Sustainability factors

Environmental
Influences on
International
Marketing

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 The Internet and the
world wide web (www)
Technological environment

• Impact of technological advances:

– Ability to gather data on markets
– Management control capabilities
– Operational practicalities of electronic communication

• Global access to the World Wide Web

– 7 day a week
– 24 hours a day
– Importance of English language for web users

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Differences between international
and domestic marketing
• Culture
– Often diverse and multicultural

• Markets
– Widespread and sometimes fragmented

• Data
– Difficult to obtain and sometimes expensive

• Politics
– Regimes vary in stability, political risk becomes an
important variable
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Differences between international
and domestic marketing (2)

• Governments
– Can be a strong influence in regulating
importers and foreign business ventures

• Economies
– Varying levels of development

• Finance
– Many differing finance systems and
regulatory bodies

For use with Doole, Lowe and Kenyon International Marketing Strategy, 8th edition
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Differences between international
and domestic marketing (3)

• Stakeholders
– Commercial, home country and host
country

• Business
– Diverse rules, culturally influenced

• Control
– Difficult to control and coordinate across
markets
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 International Traditions
Illustration 1.4
Four Seasons Hotel
Amman embracing the
traditions of Jordan
Four Seasons Researched
Jordanian society

Include: For more information about

the traditional approach of the
• Jordanian culture in
Four seasons click here:
artwork
https://www.fourseasons.com/
• Traditional Middle amman/my_four_seasons/a_t
Eastern food radition_of_hospitality/
For use with Doole, Lowe and Kenyon International Marketing Strategy, 8th edition
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The international market planning
process

For use with Doole, Lowe and Kenyon International Marketing Strategy, 8th edition
9781473758742 © Cengage Learning, 2019 Ch1
The international market planning
process

For use with Doole, Lowe and Kenyon International Marketing Strategy, 8th edition
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 Differences between international
and domestic marketing
The international competitive landscape
• Failure arises from:
– inability to find right market niches
– unwilling to adapt and update products to local needs
– products not perceived as sufficiently unique
– vacillating commitment
– assigning the wrong people
– picking the wrong partners
– inability to manage local stakeholders
– mutual distrust/lack of respect between HQ &
management
– inability to leverage ideas to all countries
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 When going international firms
must

• Have a clear international competitive focus

• Develop effective relationship strategies
• Be committed to providing quality products
and services worldwide
• Have a well-managed organisation with a
culture for learning

For use with Doole, Lowe and Kenyon International Marketing Strategy, 8th edition
9781473758742 © Cengage Learning, 2019 Ch1