CMARKETING

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Reaching
Global MarketsC M A R K E T I N G
M . A l d a n a | F a c u l t y - S H T M

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International
Marketing

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International Marketing
• Technological advances and rapidly
changing political and economic
conditions are making it easier than
ever for companies to market their
products overseas as well as at
home.

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International Marketing
• International Marketing involves
developing and performing marketing
activities across national boundaries.
• Firms are finding that international
markets provide tremendous
opportunities for growth.

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Environmental
Forces in Global
Markets

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Sociocultural Forces
• Cultural and social differences among nations can
have significant effects on marketing activities.
• Marketing activities are primary social in purpose,
they are influenced by beliefs and values
regarding family, religion, education, health and
recreation.
• World population over the 7 billion mark, with half
residing in countries where fertility is at below 2.1,
because of these lower fertility rates, the next
wave of major population growth will likely take
longer and be driven by developing countries.

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Sociocultural Forces
• Local preferences, tastes and idioms can all
prove complicated for international marketers.
• Marketing communications often must be
translated into other languages, sometimes, the
true meaning of translated messages can be
misinterpreted or lost.
• It can be difficult to transfer marketing symbols,
trademarks, logos, and even products to
international markets, especially if these are
associated with objects that have profound
religious or cultural significance in a particular
culture.

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Economic Forces
• Global marketers need to understand the
international trade system, particularly the
economic stability of individual nations, as well
as trade barriers that may stifle marketing
efforts.
• Economic differences among nations –
differences in standard of living, credit, buying
power, income distribution, national resources,
exchange rates, and the like – dictate many of
the adjustments firms must make in marketing
internationally.
• Gross domestic product (GDP) is an overall
measure of a nation’s economic standing; it is
the market value of a nation’s total output of
goods and services for a given period.

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Political, Legal, and Regulatory Forces
• Typically, legislation is enacted, legal decisions are interpreted, and regulatory agencies are
operated by elected or appointed officials.
• A country’s legal and regulatory infrastructure is a direct reflection of the political climate in
the country.
• Import tariff – a duty levied by a nation on goods bought outside its barriers and brought into
the country.
• Quota – is a limit on the amount of goods an importing country will accept for certain product
categories in a specific period of time.
• Embargo – is a government’s suspension of trade in a particular product or with a given
country.
• Exchange controls – government restrictions on the amount of a particular currency that can
be bought or sold, may also limit international trade.
• Balance of trade – the difference in value between a nation’s exports and its imports.

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Assignment
• NAFTA (North American Free Trade Agreement)
• EU (European Union)
• MERCOSUR (Southern Common Market)
• APEC (Asia Pacific Economic Cooperation)
• ASEAN (Association of Southeast Asian Nations)
• WTO (World Trade Organization)
• Explain the mandate of the above organizations, who are its members, and when were they
established?
• To be submitted next meeting.

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Ethical and Social Responsibility Forces
• Bribery/gift-giving
• Multinational firms to update their code of ethics
• Differences in ethical standards can also affect marketing efforts.

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Competitive Forces
• Competition is often viewed as a staple of the global marketplace.
• Customers thrive on the choices offered by competition, and firms constantly seek
opportunities to outmaneuver their competition to gain customer’s loyalty.

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Technological Forces
• Advances in technology have made international marketing much easier.

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Regional Trade Alliances, Markets, and Agreements
• North American Free Trade Agreement (NAFTA)
• 1994
• Merged Canada, Mexico, and the United States into one market
• NAFTA eliminated tariffs on goods produced and traded among Canada, Mexico and the US.

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Regional Trade Alliances, Markets, and Agreements
• European Union (EU)
• Also known as European Community or Common Market
• 1958
• Initially included Belgium, France, Italy, West Germany, Luxembourg, and the Netherlands
• In 1991, East and West Germany United, and by 2013, included United Kingdom, Spain,
Denmark, Greece, Portugal, Ireland, Austria, Finland, Sweden, Cyprus, Poland, Hungary, the
Czech Republic, Slovenia, Estonia, Latvia, Lithuania, Slovakia, Malta, Romania, Bulgaria,
and Croatia.
• Euro - currency
• Brexit – UK is scheduled to exit EU which is scheduled on March 29, 2019

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Regional Trade Alliances, Markets, and Agreements
• The Southern Common Market (MERCOSUR)
• 1991
• United Argentina, Brazil, Paraguay, and Uruguay
• Bolivia, Chile, Colombia, Ecuador, and Peru are associate members
• Free circulation of goods, services, and production factors among the countries

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Regional Trade Alliances, Markets, and Agreements
• The Asia-Pacific Economic Cooperation (APEC)
• 1989
• Promotes open trade and economic and technical cooperation among members
• Australia, Brunei, Darussalam, Canada, Indonesia, Japan, Korea, Malaysia, New Zealand,
the Philippines, Singapore, Thailand, and the United States.
• China, Hong Kong, Taiwan, Mexico, Papua New Guinea, Chile, Peru, Russia, and Vietnam
were later included

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Regional Trade Alliances, Markets, and Agreements
• Association of Southeast Asian Nations (ASEAN)
• 1967
• Promotes trade and economic integration among member nations in Southeast Asia
• Malaysia, Philippines, Indonesia, Singapore, Thailand, Brunei Darussalam, Vietnam, Laos,
Myanmar, and Cambodia.

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Regional Trade Alliances, Markets, and Agreements
• World Trade Organization (WTO)
• is the global association that promotes free trade among 159 member nations
• The WTO is the successor to the General Agreement on Tariffs and Trade (GATT), which was
originally signed by 23 nations in 1947