BSB119 Lecture Notes - Lecture 8: Marketing Mix, Predatory Pricing, Price Discrimination
Week 9/ Lecture 8 Global Business Lecture Notes
Global Marketing
International Marketing Defined
• Maketig eas diffeet thigs to diffeet people, ad the te has ofte ee
used to describe: selling and advertising, dealing with customers, promotional
activities, distribution strategies, achieving profits, etc
• But stitl speakig, aketig is aout a ehage elatioship that
encompasses all the above
• Importance of international marketing:
o Many firms today operate within international environments of opportunities
and threats
o Firms need to consider issues like:
▪ Domestic and international differences
▪ How to segment international markets
▪ How to configure the international marketing mix
▪ Whether to develop new products or adapt existing products for the
new market(s)
• the pefoae of usiess atiities desiged to pla, pie, poote ad diet
the flow of a company's goods and services to consumers or users in more than one
atio fo a pofit
• ..the poess of plaing and conducting transactions across national borders to
eate ehages that satisf the ojeties of idiiduals ad ogaisatios
• What is international marketing?
o Process by which the firm:
▪ Identifies needs and wants of customers in different international
markets
▪ Provides products, services and ideas competitively to satisfy needs
and wants of different customer groups
▪ Communicates information about the products and services,
delivering them internationally using one or a combination of foreign
market entry modes
• The international marketer needs to adjust and/or adapt to uncontrollable elements
such as:
o political/legal forces
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o economic forces
o competitive forces
o level of technology
o structure of distribution
o geography and infrastructure
o cultural forces
Globalisation of Markets and Brands: The Debate
• Theodoe Leitt faousl agued aout the gloalisatio of old akets
• According to Levitt (1983), world markets are becoming increasingly similar, making
it unnecessary to localise the marketing mix
• Leitts poposal has eoe a foal poit i the deate aout gloalisatio
• Some arguments you might have been aware of:
o I todas gloal eoo, e see the oegee of tastes ad
pefeees… the old is eoig a odeless gloal illage ad ultural
differences are no longer as important.
o Modern communications technology and rising income levels are promoting
a common culture worldwide... everywhere in the world, our behaviour and
practices are becoming more and more similar.
• The current consensus is that although the world is moving towards global markets,
the continuing persistence of cultural and economic differences among nations
would act as a major hindrance on any trend towards global consumer tastes and
preferences
• In addition, trade barriers and differences in product and technical standards also
constrain a firm's ability to sell a standardised product to a global market
Global Market Segmentation
• Market segmentation:
o Identifying distinct groups of consumers whose purchasing behavior differs
from that of others in important ways
o Markets are segmented according to differences in demography, geography,
sociocultural factors, etc.
• Important considerations for international firms
o Are there differences between countries in the structure of market
segments?
▪ May need to develop a unique marketing mix to appeal to the
purchasing behavior of a segment in a country
o Existence of segments that transcend national borders?
▪ Possibility of a standardisation strategy
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