SS2 THIRD TERM MARKETING BOLDSTEPS INTERNATIONAL SCHOOL

INTERNATIONAL MARKETING
Marketing is defines as the set of activities undertaken by an individual or a company to provide satisfaction to the
customers through value addition and making good relations with them thereby increasing their brand values
There are three levels of marketing
Domestic marketing: This is the total system of business activities designed to plan, price, promote and distribute goods
and services within a single country.
International marketing: This is the total system of business activities designed to plan, price, promote and distribute
goods and services to potential foreign customers.
Global marketing: Global marketing is defined as “marketing on a worldwide scale reconciling or taking global
operational differences, similarities and opportunities in order to reach global objectives
INTERNATIONAL MARKETING
International marketing is the application of marketing principles to satisfy the varied needs and wants of different people
residing across the national borders. Or marketing activities carried out by company’s individual across the national
borders. It is also called as Global marketing (via the 4p’s product, price, place, promotion).
REASONS FOR INTERNATIONAL MARKETING/TRADING
1. Because the local/domestic market may already be saturated to take advantage of an innovative world product to
enjoy financing benefit from setting up manufacturing and assembling bases in certain overseas countries bringing
about an access to the trading block to which that country belongs to increase the overall total profits
2. To take advantage of favourable government and economic policies of the developed countries
3. Increased chances of product success and efficiency
4. Increase economies of scale
5. High profit opportunities in the international market than the domestic market
6. Huge market share
7. Untapped international market
8. Elongated life of the product
9. Access to wider market to gain larger market and increase their market shares
10. Access to scarce resources that are available in that identified locality and take its advantage
11. Reduce exposure to risk in order to diversify risk and hinder the loss of sales which is distributed between overseas
and domestic market.
12. Build brand image that is build brand acceptance of the company’s product in the eyes of the general public
13. Comparative advantage: firms enters foreign if it possesses unique human resources that give them advantages over
other firms operating in the industry e.g Julius Berger in the construction industry in Nigeria.
14. Technology advantage if endowed with advance technology produce product at a lower cost and sell to developing
countries eg china.
IMPORTANCE OF INTERNATIONAL MARKETING
1. To counter slow growth in some industries
2. To sustain and boost the revenue generation of the company
3. To create a synergy and harmony between domestic and overseas operation
4. to better maximize productive capacity
5. To be ahead of the competitors
6. to provide more employment opportunities
7. Increase in sale
8. c. Increase in profit
9. d. Increase standard of living
10. e. Access to variety of
11. f. Encourages survival for counties with shortage of certain products to have them
12. g. Facilitates economic development and
13. h. Breeds harmonious relationship by bringing about cordial relationships
EFFECTS AND FEATURES OF INTERNATIONAL MARKETING
A firm deciding to enter international market must understand the global marketing environments
which will affect the firm’s decision making such as
1. Political features
2. Economic features it involves in the study of the economy industrial settings GDP etc
3. Cultural features

1
SS2 THIRD TERM MARKETING BOLDSTEPS INTERNATIONAL SCHOOL

4. Social Features
5. Legislative feature study the law guiding business operations
6. Geographical study the location and physical setting of where to operate i.e sitting the business in a good location.
7. Demographic the human population in tern of size, density, age, sex, race, occupation etc
Different legal system: Ever country has a different legal system with regards to different commodities and it may
become a hassle for a company.
Market characteristics: The market characteristics of various countries vary depending on the environmental factors,
demand patterns, government control etc
Monetary system: the monetary system of each country is decided by the government and the exchange value of a
country’s currency is determined by the forces of demand and supply
Procedures and documentation: every country has its own procedure of documentation requirements. Every company
must comply with these rules and regulations for the purpose of imports and exports
PROBLEMS OF INTERNATIONAL MARKETING
1. The company may not understand the foreign customer’s preferences
2. The company may not understand the foreign business cultures
3. The company may underestimate foreign relations there incurring unexpected losses and face law suits
4. Marketing research may be neglected leading to misdirected and misguided marketing
5. The company might find out that it lacks managers with international experience
6. The foreign country may change its commercial laws by way of devaluing its currency
7. The foreign country may undergo a political revolution to the disadvantage of foreign firms.

DIFFERENCES BETWEEN INTERNATIONAL AND DOMESTIC MARKETING

INTERNATIONAL MARKETING DOMESTICS MARKETING
1. Marketing outside the boarder of a country marketing within the boarder of a country

2. Use of different currencies Use of the same currencies

3. Differences in language and culture one language and culture

4. Plan product in accordance to foreign needs product according to domestic needs

5. Restrictions on trade using quota, tariff etc. No restriction on trade

6. Differences in rules and regulation (legal app) Same legal approach

7. Differences in weight and measure operates same weight and measurement

8. Market is divers different and fragmented in nature Homogenous and different segment

ORGANIZING FOR INTERNATIONAL MARKETING

APPROACHES TO INTERNATIONAL MARKETING
There are three (3) key appoaches to be considered by companies in order to enter an International market. These
approaches include: Exporting, Joint venturing and Direct investment.
EXPORTING: This is a method of entering a foreign market by selling goods to other countries with little or no
modification.
TYPES OF EXPORTING
There are two types of exporting namely direct and indirect exporting.
Direct Exporting: This involves where a company handles its own exports activities.
WAYS OF CONDUCTING DIRECT EXPORTING:
Direct exporting may be conducted by a company in the following ways:
1. Opening a domestic export department
2. Set up an overseas sales branch.
3. Sending home- based sales people abroad to find business.
4. Selling to foreign- based agents or distributors who buy and own the goods.
5. Use of foreign-based agents who sell the goods on behalf of the company.

2
SS2 THIRD TERM MARKETING BOLDSTEPS INTERNATIONAL SCHOOL

ADVANTAGES OF DIRECT EXPORTING

1. Direct exporting result to a higher returns on investment.
2. It leads to good information feedback from the target market.
3. It brings about direct control over selection of foreign markets.
4. Better protection on identity.
DISADVANTAGES OF DIRECT EXPORTING.
1. The cost of setting up the business is very high.
2. It requires a detailed information for its operations.
3. It takes a longer time to sell the products as opposed to indirect exporting.
Indirect Exporting: This involves the use of independent international marketing intermediaries to market the company's
products abroad.
ADVANTAGES OF INDIRECT EXPORTING
1. Indirect exporting requires less investment.
2. Risks involved are minimal as the intermediaries are experts in the business.
3. It makes the management team of the company to be well focused.
4. There's little or no financial commitment.
DISADVANTAGES OF INDIRECT EXPORTING
1. It leads to loss of control over the company's products.
2. Denial of overseas marketing.
3. It leads to inadequate marketing feedback.
4. Low sales of the company's products.
JOINT VENTURES
This is a method of entering a foreign market by joining with foreign companies to produce or market a product or
service. Joint venture can be define as an approach where a company can enter into partnership with
a foreign company or individuals to manufacture and market the company's products.
ADVANTAGES OF JOINT VENTURES
1. Joint venturing gives opportunity to venturers to share profits and loss together.
2. It increases production capacity.
3. It helps to increase profit base of the business.
4. Access to new markets.
5. There's sufficient resources.
6. It also encourages quick expansion of the business.
7. Access to new technologies.
DISADVANTAGES OF JOINT VENTURES
1. Time consuming in forming the right relationships.
2. Inadequate communication between the venturers.
3. Disagreement between the venturers.
TYPES OF JOINT VENTURES
There are four (4) types of joint ventures: Licensing, contract manufacturing, management and joint ownership.
Licensing: This involves where a company enters into agreement with a licensee in the foreign market to buy the right to
use the company's manufacturing processes or other identities for a fee known as Royalty. It can also be seen as where the
company gives the right to produce its products abroad to individuals or companies. Contracting manufacturing: This is a
method in which a company contracts with manufacturers in the foreign market to produce its products and services.
Management Contracting: This is a method in which a domestic company provides management services to a foreign
company that supplies the capital.
Joint Ownership: This is a method in which a company joins forces with foreign investors to create a local business in
which they share ownership and control.
DIRECT INVESTMENT
Direct investment means when a firm sited it's business in the foreign market. Direct investment is a method of entering a
foreign market by building a foreign based assembly or manufacturing facilities.
ADVANTAGES OF DIRECT INVESTMENT
1. Low labour cost
2. Access to raw materials
3. It allows firms to benefit from foreign government investment incentives.

3
SS2 THIRD TERM MARKETING BOLDSTEPS INTERNATIONAL SCHOOL

4. Builds images for firm in the host country.

5. It creates a close relationships with stakeholders.
6. Total or full control over investment.
DISADVANTAGES OF DIRECT INVESTMENT
1. High cost of set up of the business.
2. Risk of unstable political and legal system.
3. Wide cultural differences between the countries
4. It creates competition and shake up the local businesses.
5. High travels and communication expenses.

GUIDING RULES AND REGULATIONS FOR ENGAGING IN INTERNATIONAL MARKETING;

1 The company to pay all taxes required by the foreign country.
2 The company should not export any product that is contraband into any country.
3 The company should obey all laws associated with the establishment of business in foreign country.
4 The company should be politically neutral in the foreign country.
5 All business transactions within the foreign country should be based on the country’s local currency.
6 In case of joint venture the citizens or government of the foreign country must be a party to the business.
7 The company should not be involved in fraudulent activity which would lead to being banned by the foreign
country.
REASONS FOR TARIFFS
Tariff is a form of tax added to the cost of imported goods. It is one of the trade policies a country can enact
Here are some reasons for the enactment of tariffs
1. To protect domestic employment
2. To protect the consumers
3. To protect infant industries
4. To protect industries that are strategically important
SOME MAJOR TRADE ORGANIZATIONS
(i) AFTA – (Asian Free Trade Association)
(ii) ASEAN – (Association of Southeast Asian Nations)
(iii) APEC – (Asia-Pacific Economic Co-Operation)
(iv) EU – (European Union)
(v) NAFTA – (North American Free Trade Agreement)
(vi) OPEC – (Organisation of Petroleum Exporting Countries)
(vii) SAARC – (South Asian Association for Regional Cooperation)
WTO (world trade organization) and International Interventions:
WTO is one of the most influential international bodies that affect international marketing mix. World Trade Organisation
and its enforcement arm, the world court has been established to rule on International trade dispute. The companies or
those countries involved in unfair trading practices can be brought before the court and the decision of the court is ruled
strictly.
It is pertinent to mention here that every country cannot be a member of world trade organizations. There are certain
guidelines and conditions which must be satisfied prior to the membership. The main objective of the organization is the
eventual removal of all export/import tariffs among member countries. The members and their companies must comply
with Generally Accepted Accountancy Principles as laid down by the world trade organization.
APPLICATION OF ICT IN MARKETING
ICT otherwise known as Internet marketing could be defined as the use of the Internet for marketing of products, services,
sold either on the Internet or through traditional channels. The use of ICT in marketing can be considered as key factors
for innovation and entrepreneurship.The information and communication technology is a very powerful tool that help
prospective business owners to make their business known to the world.
ADVANTAGES OF ICT IN INTERNATIONAL MARKETING;
1. far cheaper and much more flexible than print advertising: The Internet is extremely different from print
advertising in that space is cheapcall ma you advertisement is accessible for a longer period of time, the content can
be changed without having to ask someone to do it for you and you can potentially reach a wider audience.
2. market expansion; The internet has allowed business to breakthrough the geographical barrier and become
accessible virtually for many country in the world by a potential customers that has Internet access

4
SS2 THIRD TERM MARKETING BOLDSTEPS INTERNATIONAL SCHOOL

3. growth opportunity; A website serve as a great place to refer potential investors to, to show them what your
company is all about,what it has achieved and what it can achieve.
4. two way communication; customers can quickly and easily give feedback on your products and or marketing
approach
5. affordable market research; You can use features on your website statistics to find out what your customers like
more and how they feel about certain aspects of your product and the way you do business.
INTERNET BROWSING
Internet browsing could be described as the process of surfing the web, that is searching, gathering and collecting relevant
and reliable information through an electronic devices which have been connected to the globe. Basically the use of
computer to gather data and information. Internet browsing helps information seekers to obtain information on availability
of new products, job employments ,filling of questionnaires.
The Internet enables new pricing mechanism, a potential tool for customer relation at a relatively low cost. The internet
browsing enables marketers to record, analyze and have proper understanding of consumers or customers individually and
interactively, developing relations and facilitating targeted marketing which in turn makes customers be able to play
significant and proactive role in business relationship.
THREATS OR DISADVANTAGES OF INTERNET
1 it's weakens the strength of brand as emphasis is on the product.
2 it's support’s highly rational shopping.
3 it encourages dispassionate comparison of price and features .
4 it promotes gorilla marketing that is the use of underhand tactics such as dropping brand names in chat rooms.
ELECTRONIC MARKETING (E-MARKETING)
Electronic marketing is a form of product promotion and customer relations conducted with the use of electronic media. It
also refers to any transfer of goods or services from seller to buyer that involves one or more electronic methods or media.
Advantages of Electronic Marketing
1. It reduces the cost of advertisement.
2. Electronic marketing is relatively cheaper compared to traditional marketing strategies.
3. It gives the organisation the ability to track the rate of return on investment.
4. Electronic marketing facilitates immediate responses or communication between the customer and the
organisation.
5. It can easily and effectively be integrated with the traditional marketing strategies.
Disadvantages of Electronic Marketing
1. Electronic marketing is limited by the ability of the consumer to access and use internet services.
2. It has intensified competition which is a major barrier to new entrants in the global market.
3. There is no replacement for good the old-fashioned customer service.

INTERNATIONAL TRADE SYSTEM.

International trade system is the exchange of goods, services, and capital between countries around the world. It involves
the buying and selling of goods and services across borders as well as the movement of capital and labor between
countries.
The international trade system is governed by set of rules and agreements, such as the World Trade Organization (WTO)
and various bilateral and multilateral trade agreement.
ADVANTAGES OF INTERNATIONAL TRADE SYSTEM
1. It helps to increase efficiency and productivity and allows countries to benefit from the resources and expertise of
other nations.
2. It also helps to promote economic growth, create jobs, and raise living standards by increasing market access and
fostering competition.

DISADVANTAGES OF INTERNATIONAL TRADE SYSTEM

1. Trade imbalances.
2. Unfair competition.
3. Environmental degradation.

Countries must work together to address these issues and ensure that the international trade system is fair, transparent and
sustainable.

5
SS2 THIRD TERM MARKETING BOLDSTEPS INTERNATIONAL SCHOOL

MARKET DECISION IN INTERNATIONAL TRADE SYSTEM

There are few possible market decisions that could be made regarding the international trade system.
1. Free trade agreements and open market.
2. Trade tariff and barriers to protect domestic industries and jobs

DIFFERENCES BETWEEN DOMESTIC TRADE AND FOREIGN TRADE.

DOMESTIC TRADE- refers to trade (buying and selling) that takes place within a countries border, between businesses
and consumers located in the same country.
Domestic trade is regulated by the laws and policies of the country in which it takes place.
FOREIGN TRADE – refers to trade that takes place between two or more countries. This involves the import and export
of goods and services between countries.
Foreign trade is subject to international laws and regulations, as well as tariffs and trade agreements between countries.
DIFFERENCES BETWEEN DOMESTIC TRADE AND FOREIGN TRADE
S/N ENTRY DOMESTIC TRADE FOREIGN TRADE
1 LOCATION Partners are located within Partners are from different
same country. countries.
2 CURRENCY Same currency. Different currency.
3 REGULATIONS Subject to laws and Must adhere to National
regulation within the and international trade
country. laws, tariffs, quotas, and
customs regulation.
4 CULTURAL Involves same languages, Involve differences in
DIFFERENCE customs, and business languages, customs, and
practices. business practices.
5 RISKS Low risk. High risk.

These differences are essential for businesses and Governments to effectively engage in both domestic trade and foreign
trade activities. It allows businesses to expand their customer base and reach new market for economic growth and
business development.