PRODUCT PRICE PLACE PROMOTION PEOPLE PROCCESS PHYSICAL EVIDENCE (ENVIRONMENT)

ELECTRONICPROCCESSES TECHNOLOGICALPROCESSES DIRECT ACTIVITIES INDIRECT ACTIVITIES

S International Marketing Flashcards by Peter Garcia

is a pioneering global company dedicated to making financial security accessible to individuals and families.

International Marketing Group
(IMG)

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is the application of marketing principles satisfy the varied needs and wants of different peoples residing across the national borders.

INTERNATIONAL
MARKETING

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is the practice of dividing the entire market into groups creating subsets of a market based on demography, needs, priorities, common interests, and other psychographic or behavioral criteria used to better understand the target audience.

MARKET SEGMENTATION

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is a process of selecting the target market after market segmentation has been done.

Target market refers to the segment(s) the company wants to serve and the process of selecting the target market is referred as market targeting.

MARKET TARGETING

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is a strategic tool used to establish
the image of a brand or product
in the minds of the consumer.

MARKET POSITIONING

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7 Ps

PRODUCT
PRICE
PLACE
PROMOTION
PEOPLE
PROCCESS
PHYSICAL EVIDENCE (ENVIRONMENT)

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is the commodity or good produced or manufactured to satisfy the wants and
needs of customers. The product can be tangible (goods) or . intangible (services); the service rendered by a service company is its product.

PRODUCT

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basically the amount that customers pay so they can have it and enjoy it. Economies of scale help to reduce costs and, consequently, the price of the product.

PRICE

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Moving products from the producer to the intended user is called place. It is how the product is brought and where it is bought. The how refers to the distribution channel, a reliable combination of intermediaries such as distributors, wholesalers and retailers. The where is the location where the products should be positioned and distributed that is easily accessible to the targeted customers.

PLACE

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marketing communication process that helps the company to acquaint the
customers with the product and publicize it and its features to the public. It is the most expensive and essential component of the marketing mix.

PROMOTION

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The company’s employees are important in marketing because they are the ones who deliver the service to clients. In human resource management, people are the most important resource of a company as the company’s success depend, to a large extent, on the quality of its people. It is important to select, hire, train, and compensate the right people to deliver superior service to the clients.

PEOPLE

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refers to the flow of activities or mechanism that takes place when there is in an interaction between the customers and the business. The marketing mix process talks
about various kinds of processes that one can use to market products well and, in case of manufacturing companies, the manufacturing process.

PROCESS

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4 Processes

ELECTRONICPROCCESSES
TECHNOLOGICALPROCESSES
DIRECT ACTIVITIES
INDIRECT ACTIVITIES

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involve barcodes, receipts, logos, and product or company information.

ELECTRONIC PROCESSES

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focus on creating tangible products that meet both customer needs and wants.

TECHNOLOGICAL PROCESSES

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include distribution, sales, and customer feedback.

DIRECT ACTIVITIES

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provide ongoing support before, during, or after the service, sometimes lasting a lifetime.

INDIRECT ACTIVITIES

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element of the marketing mix refers to the physical environment experienced by the customer. Another aspect of physical evidence is branding.

PHYSICAL EVIDENCE
(ENVIRONMENT)

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means that when people hear the name of your company or of the products and services that you offer, a logo or image of your brand would easily come to mind.

Branding

REASONSTOGOGLOBAL INCLUDE THE
FOLLOWING:

Increase sales and profitability
Enter new markets
Create jobs
Offset slow growth in your home
market
Outmaneuver competitors
Enlarge the customer base
Create economies of scale in
production
Explore untapped markets with the
power of the internet
Make use of excess capacity off-
season

FACTORS AFFECTING
INTERNATIONAL MARKETING

Economic & Political Integration
Technological Advances
Transportation & Telecommunication
Market Economy Transition
World Economic Growth
Converging Consumer Needs

Trade agreements
eliminate barriers, align fiscal & monetary policies.

Economic & Political Integration

Innovations increase global
awareness and business opportunities.

Technological Advances

Lower costs,
improved efficiency (containerization, JIT, satellite tech).

Transportation & Telecommunication

Growth in emerging markets (China, Brazil, India).

Market Economy Transition

Driven by trade & financial systems.

World Economic Growth

Informed consumers demand better products/services.

Converging Consumer Needs

refers to all the physical systems and facilities needed for the smooth flow of a country's day-to-day activities enhancing the people 's standard of living, including basic facilities like roads, water supply, power and energy, transportation, telecommunication, health infrastructure, educational infrastructure, recreational infrastructure, and political infrastructure.

INFRASTRUCTURE

TYPES OF INFRASTRUCTURE

* Soft Infrastructure * Hard Infrastructure * Critical Infrastructure

# TYPES OF INFRASTRUCTURE Education, healthcare, finance, law, government.

Soft Infrastructure

# TYPES OF INFRASTRUCTURE Transportation, telecommunication, power.

Hard Infrastructure

# TYPES OF INFRASTRUCTURE Public health, water, energy, agriculture.

Critical Infrastructure

a useful scanning tool, identifies the relevant political, economic, sociocultural, technological, legal, and environmental factors from the external environment that are to be dealt with by international marketers.

PESTEL ANALYSIS

PORTER’S FIVE COMPETITIVE FORCES

* **New Entrants** – Barriers determine industry attractiveness. * **Substitutes** – Alternative products compete on price & value. * **Bargaining Power of Customers** – Higher when demand is low. * **Bargaining Power of Suppliers** – Strong in monopolies or limited supply. * **Industry Rivalry **– Competition shapes market dynamics.

LEVELS/STAGES OF INTERNATIONAL MARKETING

1.International marketing 2. Multinational marketing 3. Transnational marketing 4. Global marketing

International/export marketing is the first level of marketing involvement based in a single home country. There is no foreign direct investment in other countries. The domestic company either exports to foreign firms or buys (imports) from foreign firms.

1.International marketing

* the second level of marketing involvement. * Multinational companies (MNCs) operate in more than one country at the same time, having foreign direct investment in all of them. * MNCs have a centralized home office, where the main decisions will always be taken by the national headquarters in the home country.

2Multinational marketing

is the third level of marketing involvement. Transnational corporations (TNCs) are a type of multinational corporation operating in multiple countries, just like multinationals, but larger than most multinationals. However, unlike multinationals, they are decentralized. They make decisions suitable to the operating context in the country they are located. They are able to glocalize.

3. Transnational marketing

The highest level of international business activity. A global business has operations worldwide, and it does not identify with any home country. Some MNCs and TNCs started out as a domestic marketer, eventually exported its products to a few regional markets becoming an international marketer, grew to become a multinational marketer, and today is a true global marketer.

4. Global marketing

The following are the reasons to export products:

**a.** Products in the maturity stage of their domestic life cycle may find new growth opportunities overseas. **b.** Some firms find it less risky and more profitable to expand by exporting current products instead of developing new products. **c.** Firms who face seasonal domestic demand may choose to sell their products to foreign markets, when those products are "in season" in those foreign markets. **d.** Some firms may elect to export products because there is less competition overseas.

THREE WAYS OF EXPORTING

* INDIRECT EXPORTING * SEMI-DIRECT EXPORTING * DIRECT EXPORTING

is a common practice by going through international marketing intermediaries, companies (could be domestic or foreign) who will help the domestic company exporter find buyers in the foreign markets.

INDIRECT EXPORTING

* Semi-direct exporting involves exporters initiating contact through domestic agents, middlemen, or manufacturers. * **Domestic agent intermediaries** act as exporting departments for noncompeting firms. * **Manufacturer's export** agents cater to manufacturing firms. *** Export associations** handle member products. * **Piggyback exporting** involves a manufacturer handling complementary products from another firm.

SEMI-DIRECT EXPORTING

Direct exporting where the company generally establishes an export department to sell directly to a foreign market. The company conducts market research, establishes physical distribution, and obtains all necessary export documentation.

DIRECT EXPORTING

PARTICIPANTS IN INTERNATIONAL MARKETING

* **INDIVIDUALS** - Households, workers/employees, manager, entrepreneurs * **BUSINESSES** - SMLEs or Companies (one-third is estimated to be intra-company) * **GOVERNMENT** - Part only if they buy products, machineries, and equipment or services or borrw money. * **NON-PROFITORGANIZATIONS** - includes non-profit voluntary citizens groups local, national or international ## Footnote Most trading companies are merchant exporters