International Marketing Notes

Nature and Scope of International Marketing

Introduction

  • The International Marketing Group (IMG) facilitates financial security and caters to individual and family financial needs, aiming for financial independence.
  • IMG collaborates with top-tier financial services firms, using licensed financial educators and diverse products to transform individuals.
  • Mission: Wealth creation for families, ensuring no family is left behind. Cultivating positive financial mindsets and promoting financial literacy, shifting individuals from spenders to savers.
  • Vision: Building a new financial industry where everyone can earn like the wealthy by disseminating their secrets to all. IMG aims to lead in driving business concepts, services, and products to both affluent and middle-income individuals.

IMG's Global Presence

  • Founded in 1960, IMG is a global leader in sports, events, media, and fashion, operating in over 30 countries.
  • It manages sports figures and fashion icons, stages live events, and is a major producer and distributor of sports media.
  • IMG specializes in sports training, league development, and marketing/licensing for brands and sports organizations.
  • Acquired by WME in 2014 to form Endeavor Global, Inc.
  • Endeavor supports 2,155 entrepreneurs across nearly 40 markets.
  • The Endeavor Entrepreneur Summit hosted over 450 participants focusing on innovation without borders.

Lesson 6.1: International Marketing

  • Lesson Objectives:

    1. Explain the meaning of International marketing.
    2. Discuss the extended marketing mix (7Ps).
    3. Elaborate on the different reasons for going global.

  • International Marketing: Applying marketing principles to satisfy diverse needs across national borders.

  • It involves customizing the marketing mix (4Ps: Product, Price, Place, Promotion) and extending it to the 7Ps (adding People, Process, and Physical Evidence).

  • The goal is to achieve a competitive advantage globally by adapting to different national preferences.

  • The concept focuses on directing the flow of goods/services to global consumers profitably.

  • A company’s marketing department manages international marketing strategies and plans.

Market Segmentation, Targeting, and Positioning

  • Market Segmentation: Dividing the entire market into groups based on demography, needs, priorities, and common interests to understand the target audience better.
  • Target Market: The specific segments a company aims to serve.
  • Market Targeting: Selecting the target market after segmentation.
  • Market Positioning: Establishing a brand or product image in the consumer's mind.

The Extended Marketing Mix (7Ps)

The 7Ps are:

  1. Product
  2. Price
  3. Place
  4. Promotion
  5. People
  6. Process
  7. Physical Evidence (Environment)

Detailed Breakdown of the 7Ps

  1. Product

    • A commodity or good produced to satisfy customer needs and wants
    • Can be tangible (goods) or intangible (services).
    • Product differentiation helps build brand image and value.

  2. Price

    • The amount customers pay for a product.
    • Economies of scale reduce costs and product prices.

  3. Place

    • Moving products from producers to users.
    • Involves distribution channels (distributors, wholesalers, retailers).
    • Location: Positioning products for easy customer access.

  4. Promotion

    • Marketing communication to acquaint customers with the product and its features.
    • Essential and often expensive.

  5. People

    • The most important resource; company success depends on their quality.

  6. Process

    • Flow of activities during customer-business interactions.
    • Includes manufacturing processes for manufacturing companies.
    • Electronic Processes: Use of barcodes, receipts, and logos.
    • Technological Processes: Creating tangible products that meet customer needs and wants.
    • Direct Activities: Distribution and sales to customers and their reactions.
    • Indirect Activities: Support before, during, or after service delivery.

  7. Physical Evidence

    • Customer's experience of the physical environment.
    • Branding: Creating memorable brand names, logos, and images.
    • Includes signage, websites, employee uniforms, and packaging.

Reasons to Go Global

  • Increase sales and profitability.
  • Enter new markets.
  • Create jobs.
  • Offset slow growth in the home market.
  • Outmaneuver competitors.
  • Enlarge the customer base.
  • Create economies of scale in production.
  • Explore untapped markets using the internet.
  • Make use of excess capacity off-season.
  • Travel to new countries.
  • Share costs and risks between markets.
  • Extend a product life cycle.
  • Take advantage of a less competitive market.
  • Utilize excess capacity.
  • Take advantage of geographical diversification.
  • Take advantage of the demands abroad.

Detailed Explanation of Reasons to Go Global

  1. Increase Sales and Profitability

    • New revenue sources, better ROI, and long-term success.
    • The internet facilitates global outreach.

  2. Enter New Markets

    • Find new opportunities when the domestic market is saturated.
    • Study the company’s product market demand.