International marketing
chapter 11
By: Yazan AL Dawoud
Mgt178- group 3
International marketing
• the process of planning and conducting
transactions across national borders to
create exchanges that satisfy the
objectives of individuals and
organizations.
• Is the Export, Franchising, Licensing or
Full direct entry of an organization
into another country or countries.
International marketing
•https://www.youtube.com/watch?v=vRTuaTg0V5c
•Internationalisation - Global Marketing
Market factor
a market for a factor of production.
example: The market for construction workers brings
together the buyers and sellers of construction
workers’ services.
Derived Demand
The demand for an input is derived from
the demand for the output that the
input helps produce.
Price-Taking in the Factor Market
Just as a firm in a perfectly competitive product market
takes the price of the product as given, a firm in a
perfectly competitive factor market takes the price of the
factor as given.
The firm can hire as much of the input as it wants at the
going input price.
So, the supply curve of the input to the firm is a
horizontal line at the input price.
The Supply Curve of Labor to a Firm that is a
Perfect Competitor in the Labor Market
price of labor
PL
SL
labor
Goals of
Market Participants 3-8
• Consumers — maximize happiness or
satisfaction from goods and services.
• Businesses — maximize profits.
• Government — maximize general welfare of
society.
• Foreigners—pursue same goals as consumers,
producers, and government agencies.
LO-1
3-3
Constraints
3-9
• Limited resources:
• Consumers need to make choices from available products.
• Producers must choose how to best use their limited
resources.
LO-1
3-4
Market and Interactions
3-10
• A market is any place where goods are bought and
sold and includes the interaction of all buyers and
sellers.
• Four groups of Market Participants:
• Consumers
• Business firms
• Governments
• Foreigners
LO-1
3-6
The Two Markets
3-11
• Factor Market:
• Any place where factors of production (land, labor,
capital, and entrepreneurship) are bought and sold.
• Product Market:
• Any place where finished goods and services (products)
are bought and sold.
LO-1
3-7
Figure 3.1 3-12
Product Market
3-13
• Consumers buy and producers sell in the product
market.
• Imports and exports are also a part of the product
market.
• Governments supply goods and services in product
markets.
LO-1
3-8
Locating Markets
3-14
• A market is anywhere an economic exchange
occurs.
• A market exists wherever and whenever an
exchange takes place.
LO-1
3-9
Dollars and Exchange
3-15
• Some market transactions involve barter.
• Barter is the direct exchange of one good for another,
without the use of money.
• Bartering has limits as it requires a seller who wants
whatever good is up for exchange.
LO-1
3-10
Supply and Demand
3-16
• Market transactions require two sides:
-Supply
-Demand
Every market transaction involves an exchange and
thus some element of both supply and demand.
LO-2
3-12
Supply and Demand
3-17
• Supply – The ability and willingness to sell
(produce) specific quantities of a good at
alternative prices in a given time period, ceteris
paribus (other things being equal).
LO-2
3-13
Supply and Demand
3-18
• Demand – The ability and willingness to buy specific
quantities of a good at alternative prices in a given
time period, ceteris paribus (other things being
equal).
LO-2
3-14
Market Shortage
3-19
• The amount by which the quantity demanded
exceeds the quantity supplied at a given price.
• Occurs when the selling price is lower than the
equilibrium price.
• Sellers supply less than buyers demand at the
current price.
LO-3
3-39
The Economic Environment
• Market Characteristics
• Emerging Markets
• Developing Markets
• Economic Integration and the International Marketer
Market Characteristics
• Population - The number of people in a market provides one of the
most basic indicators of market size and is in itself indicative of
the potential demand for a product.
• Income - Markets not only require people but also puchaseing
power, which is a function of income, prices, savings, and credit
availability
• Consumption Patterns - The share of income spent on necessities
will provide an indication of the market's development level as well
as an approximation of how much money the consumer has left for
other purchases
Emerging Markets
• An emerging market is defined as a country making an effort to
change and improve its economy with the goal of raising its
performance to that of the world's more advanced nations.
• Strategic Choices for Emerging Markets
Adjust Entry Strategy
Manage Availability
Invest in Distribution
Build String Bonds
Developing Markets
• Marketers are finding that they can make a profit while having
positive effects on the livelihood of people not normally
considered as potential customers
• 5 elements of success required to thrive in developing markets
• Research
• Create Buying Power
• Tailor local solutions
• Improve Access
• Shape Aspirations
Economic Integration and the International
Marketer
• Regional economic integration may have an impact on a company's
entry mode by favoring direct investments because one of the
basic rationales of integration is to generate favorable conditions
for local production and intraregional sales
• Decisions Regarding integrating markets must be assessed from
four different perspectives
• https://www.youtube.com/watch?v=aNczga-dw0I
UNITED ARAB • UAE culture quick Explained
EMIRATES - • https://www.youtube.com/watch?v=0pSS7J8QUgU
ASIA • Understanding Emirati Culture: Women’s Clothing
JAPAN ASIA
• https://www.youtube.com/watch?v=bF5phi-pWhE
• JAPAN - Where tradition meets the future / Top 10 - Interesting
Facts about Japan
• https://www.youtube.com/watch?v=fw-S89PZV2g
• 10 Facts About JAPAN You NEVER KNEW
KOREA _ASIA
• https://www.youtube.com/watch?v=bwYuv_kzvCU
• 12 Wacky Things Korean Culture, what makes korea unique.
• https://www.youtube.com/watch?v=FXdDkmN2niI
• Comparison Traditions of korea and Filipino culture.
