Lecturer: PhD.dotcent Ilhamova Zarnigor
International marketing
Lecture 1
The scope and challenge of international marketing
Learning Objectives
Concept and definition of international marketing
The main direction of international marketing
Principles of International Marketing
Benefits of International Marketing
Stages of International Marketing
International marketing is marketing activity that is carried out in more than one country.
It includes planning, pricing, promotion, and distribution of products, services, and ideas. The main feature of international marketing is that these activities are coordinated across different national markets.
International marketing is not limited to export only.
It also involves identifying market needs, adapting products,
developing pricing strategies, and organizing advertising and
communication in a culturally appropriate way.
Therefore, international marketing should not be seen as just an
extension of domestic marketing, but as an independent and complex
management system.
Domestic, international, and global marketing: key differences
Domestic Marketing
Local bakery advertising bread and pastries only in Tashkent or other Uzbek cities.
Korzinka.uz promoting local discounts and products within Uzbekistan.
International Marketingďż˝
Definition:
Samsung localizes phone models for different countries with local language and technical standards.
Global Marketing
Definition:
Marketing products or services worldwide using a unified strategy.
Maintains a consistent global brand image while considering minor local differences.
Coca-Cola: same logo, core flavor, and global campaigns like “Share a Coke.”
The main direction of international marketing activities include
Analysis and selection of foreign markets
development of market entry strategies
adaptation of products and services
formulation of international pricing policy
selection and management of distribution channels
organization of marketing communications
Analysis and selection of foreign marketsďż˝
Companies study different
countries
to decide which market is
attractive and profitable.
They analyze market size,
consumer income, culture,
laws, and competition.
This stage answers the question:
👉 Which foreign market should the company enter?
Samsung analyzed Asian and European markets and identified India as a high-potential market because:
Large population
High demand for affordable smartphones
Apple products were too expensive for most consumers
Development of market entry strategiesďż˝
After selecting a market,
the company must decide:�👉 How should we enter this market?
Common entry strategies include:
McDonald’s
In the USA: company-owned restaurants
In many countries (including Central Asia): franchising
Why?👉 Local partners understand local consumers, laws, and culture better.
Adaptation of products and services
*If a product does not respect
local culture and preferences,
consumers will reject it.
In international marketing,
adaptation is often necessary.
McDonald’s
India: no beef products
Japan: seafood burgers
Muslim countries: halal menus
Selection and management of distribution channels
What does it mean?
This stage answers the question:�👉 How will the product reach the final customer?
Distribution channels may include:
Coca-Cola
In the USA: supermarkets, fast-food chains, vending machines
In developing markets: small local shops and kiosks
Organization of marketing communications
Advertising and promotion are adapted to local language, culture, and values.
How should the company communicate with customers?
Nike
In Western countries: focus on individual success (“Just Do It”)
In Asian markets: focus on teamwork, discipline, and collective success
Principles of International Marketing
The essence of international marketing can be summarized in three great principles.
The first identifies the purpose and task of marketing;
The second refer to the competitive reality of
marketing
The third the principle means for achieving the first two.
Customer Value and the Value Equation
Competitive or Differential Advantage
Focus
The task of marketing is to create customer value that is greater than the value created by competitors. The value equation is a guide to this task. As suggested in the equation, value for the customer can be increased by expanding or improving product and/or service benefits, by reducing the price, or by a combination of these elements. Companies with a cost advantage can use price as a competitive weapon. Knowledge of the customer combined with innovation and creativity can lead to a total offering that offers superior customer value. If the benefits are strong enough and valued enough by customers, a company does not need to be the low-price competitor to win customers.
Customer Value and the Value Equation
The main task of marketing is:
👉 to give the customer more value than competitors do.
Customers always think:“What am I getting for the money I pay?”
If they get more value, they will choose that product.
How to increase customer value
There are 3 simple ways to increase value for customers:
3. Do both togetherGood product + low price
Competitive or Differential Advantage
The second main principle of international marketing is competitive advantage.
Competitive advantage means a company’s offer is more attractive to customers than competitors’ offers.
Competitive advantage can be in any part of a company’s offer:
Product – quality, new features
Price – cheaper or better value
Advertising & promotion – attracting customer attention
Distribution – faster or more convenient delivery
Focus
The third international marketing principle is focus, or the concentration of attention. Focus is required to succeed in the task of creating customer value at a competitive advantage.
All great enterprises whether large or small, are successful because they have understood and applied
this great principle.
Pampers in Japan
Pampers, a global brand owned by Procter & Gamble, attempted to transfer its successful Western brand imagery directly into the Japanese market. One of the key elements of this imagery was the stork symbol, commonly used in Western cultures to represent the idea that storks bring babies to families.
In the United States and many European countries, this symbol is:
emotionally meaningful
widely understood
strongly associated with childbirth and family happiness.
In Japan, the folklore that “storks bring babies” is not a widely shared cultural narrative. As a result:Japanese consumers did not understand the connection between the stork and babies;many parents were confused about why a bird appeared on diaper packaging.Instead of creating emotional attachment, the packaging caused cognitive confusion.
Benefits of International Marketing
Diversification
International markets serve as a tool for companies to diversify risk. For example, cold weather may reduce beverage consumption in some countries, while at the same time the season may be warm in other countries. Anticipating stagnation in the U.S. home appliance market, Whirlpool projected a 17 percent increase in demand in foreign markets and reorganized its production on a global scale.
Sales and Profits
For example, the Coca-Cola Company clearly demonstrates how important international markets are. More than 80 percent of the company’s operating profits come from foreign markets. In Japan, Coca-Cola earns a profit of 37 cents per gallon of beverage, whereas in the United States it earns only 7 cents. The Japanese market generates approximately 350 million dollars in operating income for Coca-Cola and is the company’s most profitable market. While the U.S. market is saturated, consumption levels outside the United States are significantly lower, creating substantial growth opportunities for the future.
Survival and Growth
Every country is not that fortunate as USA in terms of infrastructure, size,resources and opportunities. Hence, they must trade with other countries to survive. Without foreign market, European firms would not have sufficient economies of scale to allow them to be competitive with US firms.
Benefits of International Marketing
Standards of Living
Trade provides countries and their citizens with a standard of living that would not be possible without it. In an economy without trade, product shortages lead to higher prices, and everyday consumer goods may become scarce. International trade ensures the availability of strategic metals, food, and technological products, significantly improving the quality of life.
Employment
Tariff barriers and trade restrictions in certain countries contributed significantly to the great depression of 1930 and have the potential to cause widespread unemployment again. Unrestricted trade on the other hand, improves the world’s GNP and enhances employment generally for all nations
Inflation and Price Moderation
Foreign exchange earnings through exports are an effective tool for controlling inflation. Imports, on the other hand, serve as a reserve capacity for the domestic economy. If imports are restricted, local producers have little incentive to lower prices, which leads to higher prices for consumers and contributes to inflation.
Masai tribesmen in Tanzania with their cell phones. Both Celtel and Vodacom provide paint for local stores and houses. Here you see the bright Celtel yellow and red, which goes nicely with the colorful garb of local customers. Vodacom blue is at a disadvantage there. We imagine the ear lobe “carrying case” makes it easy to hear the ring but hard to dial!
Stages of International Marketing Involvement
No Direct Foreign Marketing
Infrequent or Passive Foreign Marketing
Regular Foreign Marketing
International Marketing
Global Marketing
01
No Direct Foreign Marketing
The firm does not actively target foreign markets, but its products may reach other countries through unsolicited orders, intermediaries, or the Internet.
02
Infrequent Foreign Marketing
The firm sells abroad occasionally to dispose of temporary surpluses, without long-term commitment or continuous market presence.
03
Regular Foreign Marketing
The firm has permanent capacity devoted to foreign markets, exports regularly, and adapts products or marketing activities while focusing mainly on the domestic market.
04
International (Multidomestic) Marketing
The firm is fully involved in international markets, produces and markets goods for different countries, and adapts strategies to local market conditions.
05
Global Marketing
The firm treats the world as a single market, segments customers beyond national borders, and standardizes the marketing mix where feasible.
Best Global Brands 2025
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