International Marketing Strategy

• The course focuses on marketing strategy and management in global and international markets

• Cultural differences are evaluated

• The course aims to enhance skills in developing and implementing marketing strategies and decision-making in an international context

• Students study international business environments and improve their capacity to assess and solve international business problems

• Students develop the ability to prepare marketing programs that reduce risk and take advantage of opportunities in marketplaces through discussion research and practical activity

• The course is worth 3 units

• Prerequisites include principles of marketing

• The course Duration is 1 semester

• Course outcomes are to understand the global marketing environment, synthesize and apply universal marketing concepts through case analysis and strategic business plan composition and to develop and design global participation and marketing strategies

• The Professor is Shianny Jen C. Gayanilo, MBA

• Email is [email protected]

• Messages uses FB class group chat and the LMS class account

• LMS is Google Classroom

• The Other portal used is Zoom

Globalization and International Business Overview

• Module 1 will cover the introduction and overview of global marketing
• It will explore the importance of global marketing and why international and global marketing activities need to be studied
• Over the last two centuries, trade has transformed the global economy
• Approximately one-fourth of total global production is exported
• Understanding the transformative process of trade is important due to the gains and distributional consequences it generates
• Over the past two decades witnessing the globalization of markets and production
• The globalization of markets merges national markets into one huge marketplace
• It may be inaccurate to take for granted such markets are merging into single entities
• The globalization of production involves firms basing individual productive activities at optimal global locations
• It is increasingly irrelevant to specify products country of origin as they are replaced by global products
• Assignments will specify how to apply learned lessons in a global marketing, especially in the current global scenario
• Consultation hours are available via Phone or Messenger: 1:30 – 2:30 PM Monday to Friday or Virtual time: 4-6 pm Wednesday or 4:30 – 6:00 PM via gmeet or zoom

Module 1 Learning objectives

• Define globalization and international business and show impacts on each other
• Understand why companies engage in international business and why international business growth has accelerated
• Discuss globalization’s future and the major criticisms of globalization
• Become familiar with different ways to accomplish global objectives
• Apply social science disciplines to understand the differences between international and domestic business

Module 1 Content and Timings

• Introduction: Introduce and Familiarize, Discuss house rules and set expectation, 30 minutes
• Lecture discussion: Define globalization and international business, 15 minutes
• Lecture Discussion: Why companies engage in international business and why international business has accelerated, 30 minutes
• Review: Quick review, 10 minutes
• Lecture discussion: Discuss Globalization’s future and the major criticisms of globalization, 30 minutes
• Activity: include instructional, 15 minutes
• Lecture discussion: Discuss social science disciplines to understanding the differences between international and domestic business, 30 minutes
• Quiz: Asummative quiz for module 1 will assess knowledge of the whole topic, 20 minutes

Globalization and International Business

• Globalization deepens and broadens the relationships and interdependence among countries
• International Business brings about globalization
• International business trades goods, services, technology, capital, and knowledge across national borders at a global or transnational scale
• Cross-border transactions of goods and services occur between two or more countries
• International business is also known as globalization
• International Marketing plans, prices, promotes and directs a company's goods and services to consumers in more than one nation for a profit

Global & International Marketing Differences

• International marketing adopts marketing tactics in different countries for specific markets
• Global marketing involves overall marketing efforts put in for the unique worldwide market
• "International" has a smaller scope that encompasses only two or more countries
• "Global" includes the whole world and is 'all-encompassing and worldwide'
• "International" means "foreign or multinational."

Importance of Global Markets

• Global markets are expanding rapidly, with Merchandise exports exceeding $15 trillion annually
• Exports of commercial services exceed $3 trillion
• International trade has grown faster than domestic economies, contributing to globalization
• International business covers all commercial transactions, such as sales, investments, and transportation, between two or more countries
• Foreign countries act as a source of production and sales for domestic companies

Importance of International Marketing

• Expanding target market beyond domestic boundaries
• Boosting the brand's reputation as selling worldwide is perceived as better than selling local
• Connecting business with the world by connecting with new customers and potential business partners
• Opening doors for future business opportunities such as connecting with new vendors, a larger workforce, new technologies, and ways of doing business

Companies in International Business

• To Expand Sales: increase potential market and profits through international sales
• To Acquire Resources: lower costs, new or better products, and additional operating knowledge may be gained
• To Diversify or Reduce Risks: international operations may reduce operating risk via smoothing sales and profits and preventing competitors from gaining an advantage

Factors attributing To Rise Of International Business

• Increased technology and expansion
• Liberalization of cross-border trade and resource movements
• Development of support services
• Increasing pressure from consumers
• Increased global competition

Methods of Operation

• Merchandise exports and imports
• Service exports and imports: tourism, transportation, service performance, asset use
• Investments: Foreign Direct Investment (FDI), and Portfolio Investment

Multinational Enterprises

• Multinational Enterprises (MNEs) take a global approach to markets and production and are called multinational corporations or companies (MNCs) or transnational companies (TNCs)
• Global Marketing has been in use since the 1980s
• Before that decade, international marketing described marketing activities outside one’s domestic market
• Global Marketing is a new name for an old phenomenon, providing a new vision
• Domestic marketing targets a firm's domestic market
• Export marketing occurs when a firm sells products abroad and ships them to other countries
• International marketing involves a company becoming significantly involved in the local marketing environment in foreign countries
• Multi-domestic marketing is a company that operates in other countries as a local company with extensive assets abroad
• Pan-regional marketing encompasses strategies focused on regional markets such as Pan-European and NAFTA (North American Free Trade Agreement)
• Global marketing means devising one global strategy for a company that allows for flexibility for local adaptation

Criticisms of Globalization

• The potential for income inequality with inflation and falling living standards create people who lose more than gain
• It leads to worsening income gaps and transfer of wealth from bottom to top
• Contributing to social tensions because the uneducated resent the success of those benefiting from globalization
• Ongoing global economic crisis resulted in lower class mobility
• People born into a certain class remain in that class and lack opportunity for progress
• Elites must address these problems, and all should benefit

Future of the sector

• Further globalization is inevitable
• International business will grow primarily along regional rather than global lines
• Forces working against further globalization and international business will slow down both trends

International VS Domestic

• Adjust usual methods when operating abroad
• Foreign conditions often dictate a more suitable method

Social and Physical Factors Affecting International Business Operations

• Political, social, economic, and cultural relationships within the international system
• Foreign policy, diplomacy, and other modes of interaction between countries
• The significance of foreign societies, cultures, and systems of government
• The international movement of people including immigrants, refugees, workers, students, tourists, and investors
• The role of international organizations
• The globalization of the world economy
• Foreign languages
• History

Activity Response - Global Marketing

• Parallels the “Why Study Global Marketing” and “A Need for Global Mindsets" sections
• A desire to work in international marketing
• Working in domestic marketing but dealing with foreign competitors
• Entering other professions but with an international orientation

Activity Response - Essential Skills

• Knowledge of and sensitivity to other cultures
• Foreign language knowledge
• Understanding the global economy as well as national politics and laws
• Good knowledge of one's domestic business
• Ability to identify market opportunities internationally
• Understanding of how to manage within a multinational firm

Activity Response - Effective Global Mindset

• A global mindset involves the ability to predict what foreign competitors will do next
• Understand their background and culture
• Speak their language
• Knowing how to integrate actions among national markets
• Synthesize experiences across national markets