Introduction to International Marketing
Ing. Michal Stoklasa, Ph.D.
International Marketing/subject code

    Introduction to International Marketing
OUTLINE OF THE LECTURE
1.Basic information – course structure, literature, evaluation.
2.
2.International Marketing – definitions, types.
3.
3.The most important motives to enter foreign markets.

 Introduction to International Marketing
TEACHER INTRODUCTION
•11th year lecturing at this faculty – teaching marketing courses, such as International Marketing,
Marketing Research, Marketing Communication.
•
•Worked as consultant in several small and medium companies, did communication campaigns for
municipalities, festival.
•
•Many EU projects, teaching at universities in Glasgow, Nicosia, Joenssu.

 Introduction to International Marketing
COURSE REQUIREMENTS
•Attendance in seminars 50 %.
•
•Seminar paper + presentation in seminars – maximum 15 points.
•
•Final written exam – May - August, maximum is 40 points.

 Introduction to International Marketing
SEMINAR PAPER 1
•Describe the international marketing of a chosen company.
•The aim of the seminar paper is to describe the differences in the functioning of the selected
company in different markets!
•Each chapter should contain your own ideas written in your own words. The length of the paper is
very low, so try to capture the essentials. Seminar paper should not contain theory. Seminar paper
should prove that you understand the theories being discussed and can apply them in practice.
•The presentation should take about 10-15 minutes. The aim is not to present theory. You do not
need to present all parts of the paper, choose important and interesting stuff, justify the deleted
portions. Presentations should be focused on practical demonstration of international marketing
applications in the chosen company.

 Introduction to International Marketing
SEMINAR PAPER 2
•1. A brief general description of the selected entity - mission, vision, objectives. (1 page)
•2. International marketing environment - describe the macro environment, which environmental
elements affect the company and how, try to capture the differences in the various markets, no
theory and generalization, everything must be practical. (2 pages)
•3. International strategies and entry forms - describe strategies for different markets,
segmentation, targeting, positioning, entry forms in different markets. (2 pages)
•4. Marketing mix - characterize the marketing mix and its differences for different markets,
specifically how product / price / distribution / communication differ on specific markets. (2
pages)
•5. News - relating to the subject in an international environment, again, not general news, but
the news with links to international marketing. (1 page)

 Introduction to International Marketing
COURSE OBJECTIVES
•The aim of this course is to provide students with the necessary knowledge in a comprehensive way
to enable their better orientation in a relatively complex area of international business and
enable them to apply their knowledge of international markets and international marketing methods
in practice. International marketer needs to know, analyze and respond to changes in the
international environment and also needs to be able to successfully apply knowledge of specific
marketing strategies that determine the success of international business.

 Introduction to International Marketing
COURSE LITERATURE
•Presentations are in the Moodle! Use them.
•
•Books are in the library.
–CATEORA, P. R., GILLY, M. C. and J. L. GRAHAM, 2013. International Marketing.
–MACHKOVÁ, H., KRÁL, P. and M. LHOTÁKOVÁ, 2010. International marketing: theory, practices and new
trends.
•
•The final test is only from the things covered in presentations, HOWEVER, if you do not understand
them properly, read the books! Ask, discuss, consult etc.
•
•I do not need you to memorize definitions, I want you to understand the things we go through and
be able to use them in practical examples.
•

 Introduction to International Marketing
STRUCTURE OF LECTURES
1.Introduction to International Marketing.
2.International marketing environment.
3.PEST - Culture.
4.Market Entry Strategies.
5.International Product Policy.
6.International Distribution Policy.
7.International Communication Policy.
8.International Price Policy.
9.International Market Research.
10.STP and International Strategic Marketing.
11.CRM and Services in International Marketing.

 Introduction to International Marketing
BE ACTIVE, READ ON THE INTERNET
•I can not stress out enough that you should be reading about the Things you study on the internet!
•
•Our own content is unfortunately for you in Czech, but there are plenty of English websites that
you can check out and learn about real life examples from this course.
•
•I recommend.
–https://www.ama.org/Pages/default.aspx
–http://www.forbes.com/home_europe/
–http://mashable.com/
–https://www.engadget.com/

 Introduction to International Marketing
MOTIVATION – WHY THIS SUBJECT?
•This subject is one of the subjects that you will have at your degree examinations! There are 5
questions covering the whole subject in the pool of examination questions.
•
•This subject is a practical implication of everything you have learned so far. And I really mean
EVERYTHING!
•
•And I am sure we will have a lot of fun together J

 Introduction to International Marketing
1. INTERNATIONAL MARKETING
•International marketing is a business philosophy focused on meeting the needs and wishes of
customers in international markets. The aim of the international marketing strategy is to create
maximum value for business partners by optimizing resources and search for business opportunities
in international markets. (Machková, 2006)
•Domestic marketing is oriented on the domestic market. In a domestic environment, the company is
facing relatively well known and identifiable factors (competition, economic and social
environment, legislation, etc.). Also, it is much easier to understand the behavior and preferences
of customers, more so when the company deals with many segments.

 Introduction to International Marketing
SIGNIFICANT DIFFERENCES BETWEEN DOMESTIC AND INTERNATIONAL MARKETING
•Social and cultural differences and their influence on consumer behavior and decision making.
•Differences in business negotiations.
•Language barriers.
•Legislation.
•Potential reach of about 200 countries.
•The predominant effort to prefer domestic products, especially in developed countries
(protectionism policy, ethnocentrism).
•Only relative explanatory power of marketing research abroad in both primary and secondary sources
of information.
•The actual business activity in an „alien“ environment.
•The influence of professional lobby.
•Higher costs of circulation / transportation.
•Controlling actions remotely.

 Introduction to International Marketing
EVOLUTION OF INTERNATIONAL MARKETING 1
•After the Second World War, the internationalization of economic activities in the world
increased. In international trade, which is seen mainly as an international movement of goods and
historically preceded the international marketing, companies were beginning to involve strategy and
marketing tools. This was a time of international marketing’s origin.
•At the time, global processes of internationalization and globalization were starting to heavily
influence everything and became important factors in international business. Internationalisation
brings businesses new opportunities, but on the other hand, leads to a much broader and more
focused competitors. A knowledge and application of specific strategies of international marketing
allows businesses to increase competitiveness and achieve their economic goals. (Vaštíková, 2007,
p. 16)

Source: STOKLASA, M. and J. URBÁNEK, 2014. Intercultural Marketing. OPF SLU. This is our own book,
you can find it in Moodle.

 Introduction to International Marketing
EVOLUTION OF INTERNATIONAL MARKETING 2
•An important phenomenon of the 70s and 80s of the 20th century was the emphasis on cost reduction
and quality improvement. It referred to the concept of TQM (Total Quality Management), pressured to
reduce costs for suppliers and thus to reduce prices for end customers to maximize their number.
(Vaštíková, 2007, p. 16)
•
•At this time, there were significant barriers that prevented global internationalization. For
example, a block of socialist states, where there was no opportunity to invest and where
international trade enterprises were only organized centrally, or inconvertibility of most
currencies. (Vaštíková, 2007, p. 16)

Source: STOKLASA, M. and J. URBÁNEK, 2014. Intercultural Marketing. OPF SLU. This is our own book,
you can find it in Moodle.

 Introduction to International Marketing
EVOLUTION OF INTERNATIONAL MARKETING 3
•In the early 90s of the 20th century, a number of major changes has occurred in the world economy.
The political changes in Central and Eastern Europe with the opening of these markets and also the
improved situation in access to Asian markets. Significant changes have occurred in the development
of communication technology and transport and logistics systems. International business is very
intensively developed not only in goods but also services market. With the development of
information technology, especially the Internet, the world, including trade, has become much more
transparent. This resulted in changing customer behaviour. Customers now operate in a much stronger
negotiating position than they had in the past, as well as their requirements being increasingly
influenced by global trends. (Vaštíková, 2007, p. 16)

Source: STOKLASA, M. and J. URBÁNEK, 2014. Intercultural Marketing. OPF SLU. This is our own book,
you can find it in Moodle.

 Introduction to International Marketing
EVOLUTION OF INTERNATIONAL MARKETING 4
•Late 90s and early 21st century saw rise of a new marketing approach, referred to as relationship
marketing, which is part of the business concept of CRM (Customer Relationship Management). CRM is
a business strategy based on an understanding of customers, from which companies can anticipate the
needs of current and future customers. The objective is to maximize customer loyalty and
consequently the profitability for the enterprise. Because it is less expensive for the company to
retain existing customers, analyse them and respect their individual needs, making them more loyal
to the company, buying its products regularly, than to spend considerable resources to acquire new
customers all the time. (Vaštíková, 2007, p. 16)

Source: STOKLASA, M. and J. URBÁNEK, 2014. Intercultural Marketing. OPF SLU. This is our own book,
you can find it in Moodle.

 Introduction to International Marketing
Case study „Mark Ritson on the effectiveness of Tourism Australia's award-winning 'Dundee‘ ad“
•Watch this video.

Source: STOKLASA, M. and J. URBÁNEK, 2014. Intercultural Marketing. OPF SLU. This is our own book,
you can find it in Moodle.

 Introduction to International Marketing
2. THE THREE INTERNATIONAL MARKETING CONCEPTIONS
•The Czech dictionary of synonyms states that "international = global = world = foreign."
•
•BUT! In marketing, there are several conceptions that developed from international marketing:
–Export marketing (A).
–Global marketing (B).
–Intercultural Marketing (Euromarketing, cross-cultural, ethnomarketing) (C).

 Introduction to International Marketing
A. EXPORT MARKETING
•It is the basic (simplest) form of international marketing, where goods are sold across national
borders. The main activity is getting the product abroad with only limited investments into
adaptation (or no adaptation at all).
•
•The main differences from the national marketing are that with export marketing we see the need
for the selection of markets, choice of distribution and possible modification of the product
according to customer requirements.
•
•Marketing strategies are focused primarily on sales and distribution.

 Introduction to International Marketing
THE PROCESS OF EXPORT MARKETING
•Enterprise performs market research at the pre-selected countries.
•
•Selects one country or group of countries that best fit its possibilities.
•
•Selects business method to export goods.
•
•Decides to prepare a business strategy and marketing mix.
•
•Draws up a concrete offer for the chosen market.

 Introduction to International Marketing
B. GLOBAL MARKETING
•Marketing activities of companies are global and cover the whole world. It seeks to achieve
economies of scale through product development, which will be sold at a reasonable price throughout
the global market.
•Its based on the fact that global markets are gradually converging towards common characteristics
and the same basic ways to meet the needs (supply homogenization).
•Thus creating significant market segments with similar demand for certain basic products worldwide
(demand homogenization).
•Some decisions are applicable throughout the world, other require an assessment of local
influences. The company produces global marketing strategy. Nevertheless, prices, distribution
channels and advertising can vary in different markets.

 Introduction to International Marketing
PREREQUISITES OF GLOBAL MARKETING
•Homogenization of consumer needs and behavior - this phenomenon is driven largely by modern means
of communication (satellite TV, internet) and tourism development.
•Consumers prefer standard quality products at an affordable price.
•Mass production enables cost reduction and the resultant effect is called economies of scale.
•Weaknesses of the concept: it does not take into account the different socio-cultural habits of
consumers, does not allow quick response to market changes and competition. It is also somewhat
demotivating for employees of foreign subsidiaries of these multinationals, because they severely
limit their decisions.

 Introduction to International Marketing
C. INTERCULTURAL MARKETING
•The company must examine and adapt to different international marketing environment (cultural,
social, economic, political, legislative and demographic and geographic), and creates a specific
marketing mix according to the environment differences.
•
•Consumer behavior is influenced by social and cultural factors and shows that the more mature and
richer society is, the more different needs and desires individuals have.
•
•Alternate approach: Euromarketing, Ethnomarketing, Cross-cultural marketing.

 Introduction to International Marketing
EXAMPLES OF CONCEPT DIFFERENCES 1
Factor
Intercultural
Global
Product lifecycle
Every market has products in different stages of their lifecycle
Global lifecycle – all products are in the same stage at all markets
Product design
Various adaptations of the product for different markets
Products are developed for global taste.
Market segmentation
Different segments with different characteristics – products are adapted to them.
Segments have similarities, company recognizes only very few and pushes global ones onto every
consumer.
Competition
Competition is different in each country.
Competition is the same everywhere.

 Introduction to International Marketing
EXAMPLES OF CONCEPT DIFFERENCES 2
Factor
Intercultural
Global
Production
Standardization is limited due to the need to adapt according to demand in each market.
Globally standardized production.
Consumer
Preferences are what distinguishes different markets.
Global approximation of needs and wishes.
Product
Different based on its characteristics.
The same, but may be sold differently.
Price
Higher.
Same everywhere.

 Introduction to International Marketing
3. THE MOST IMPORTANT MOTIVES TO ENTER FOREIGN MARKETS
•Active: favorable economic conditions abroad, unique products, expanding market share, improve
trade and political climate, currency devaluation, a new demand for goods, economies of scale,
creating the image of international company.
•
•Passive: competitive pressures (competition entering domestic market), utilization of production
capacity, declining home sales and profits (restrictive measures, worsening business and political
climate), reducing the risk of overproduction, proximity to customers, saturated domestic markets.

    Introduction to International Marketing
REASONS AND FACTORS FOR INTERNATIONAL MARKET ENTRY
•Reasons for companies entering international markets can also be generalized into the following
categories:
•
1.increasing the sales and everything connected with it,
2.getting resources,
3.diversification of suppliers and customers,
4.minimize the competitors risks.

 Introduction to International Marketing
THE END
Thank you for your attention.
J