INTL. MARKETING - TOPIC 1 to 3 - PRELIMS

International Marketing

- Refers to the process of planning and executing strategies to promote, distribute, and sell goods and services across national borders.

Exporting/Importing

- Selling goods and services to a company in a foreign country is referred to as ________

- Purchasing goods from a foreign company is known as _______

Contractual Manufacturing

- Producing goods through partners abroad

Licensing

- Allowing others to use your brand/tech for royalties

Franchising

- Granting rights to run your business model

Joint Ventures

- Partnering with a foreign company

Wholly Owned Subsidiary

- Full ownership of a business abroad

For Businesses

- Market Expansion

- Profit Maximization

- Competitive Advantage

- Risk Diversification

For Consumers

- Product Variety

- Better Quality & Innovation

- Lower Prices

For Economies

- Boosts Exports

- Employment Generation

- Global Integration

Challenges in International Marketing

- Cultural barriers

- Legal & political differences

- Technological gaps

- Economic disparities

Macro-Environmental Factors

- Big external forces outside a company's control that affect its success or failure.

PESTEL

- A framework used to organize these factors into six categories.

In Global Markets

- When a business operates beyond its home country and deals with international customers, suppliers, and competitors.

Political

P in (PESTEL) stands for?

Economic

1st E in (PESTEL) stands for?

Social

S in (PESTEL) stands for?

Technological

T in (PESTEL) stands for?

Environmental

2nd E in (PESTEL) stands for?

Legal

L in (PESTEL) stands for?

Political

- These are about government influence and political stability.

Economic

- These deal with money, the economy, and how people spend.

Social

- These are about people's culture, lifestyle, and demographics.

Technological

- These involve innovation, digital transformation, and new tools.

Environmental

- These involve sustainability, climate change, and ecological impact.

Legal

- These are about laws and regulations businesses must follow.

Global Supply Chain

- is the worldwide network that manages how products are planned, sourced, made, moved, stored, and delivered across different countries.

Raw material → production → customer

- The supply chain is the entire system that moves a product from _________________.

Material Flow

- physical goods (raw materials → factory → customer).

Information Flow

- orders, forecasts, tracking data.

Cash Flow

- payments, duties, rebates, credits.

Distribution Channel Decisions

- are the routes a product takes to reach the customer (directly or through intermediaries).

Understand the product

- Perishable?

- Durable?

- Luxury or niche?

Know the target customers

- Who are they?

- Where are they located?

- How do they buy?

Choose channel length

- DIRECT VS. INDIRECT

Direct Channels

- Company sells straight to customers

- More control, better margins.

- Expensive, limited reach.

Indirect Channels

Company uses middlemen (wholesalers, retailers, distributors).

- Wider reach, lower marketing cost.

- Less control, shared profits.

Select channel partners

- Look at partner's reputation, financial strength, reach, and reliability.

Evaluate cost vs. service

- Cheaper distribution often means slower service. Faster service means higher cost.

Use technology

- E-commerce, logistics software, and real-time tracking improve efficiency.

- Omnichannel (mix of online & offline) is now common.

Distribution channel decisions

- are about how to deliver products to customers (Direct vs Indirect) while balancing control, reach, and profitability.

Global Supply Chain Decisions

- are about how to source, make, move, and store products worldwide while balancing cost, speed, and risk.

True

TRUE OR FALSE?

- The wrong channel mix may cause conflict, margin loss, or poor customer service. The right mix improves reach, loyalty, and profitability.

True

TRUE OR FALSE?

- Both must work together—a strong supply chain without the right channels still fails, and good channels without supply reliability frustrate customers.

True

TRUE OR FALSE?

- In global supply chain the wrong choices can mean delays, higher costs, or lost sales.