Page 217 - DMGT545_INTERNATIONAL_BUSINESS

International Business

notes 4. The international marketer has to become a native in the .................. land. He has to
communicate with the people of those lands in their lingo and idiom.
5. International marketing involves all the .................. that form part of domestic marketing.
6. .................. enterprise must function in a world of contrasts.
7. Choosing the .................. route for global marketing is one of the main functions in
International Marketing.

11.2 scope of international marketing

It is generally understood that a company like Boeing, the world’s largest commercial airline
manufacturer, engages in international marketing when it sells its aeroplanes to airlines across
the globe. Likewise, Ford Motor Company, which operates large manufacturing plants in several
countries, engages in international marketing even though a major part of its output is sold in the
country where it is manufactured.
Today, however, the scope of international marketing has broadened and includes many other
business activities. The activities of large department store chains, include a substantial element
of importing. When these stores search for new products abroad, they practice another form of
international marketing.

A whole range of service industries are involved in international marketing; many large
advertising firms, banks, investment bankers, public accounting firms, consulting companies,
hotel chains, and airlines now market their services worldwide.

International marketing encompasses some activities that only indirectly result in international
transactions. A new breed of international marketer is illustrated by Carl Sontheimer, a retired
engineer who in the mid-1970s was looking for a retirement activity. He visited a food fair in
France and came across a food processor not yet found in the United States. He redesigned the
machine, and it became a best seller in the United States under the Cuisinart brand name. By
looking for new ideas outside his home market, Sontheimer was practicing a different type of
international marketing one that has become a growth industry.
When Clark Equipment Company, a United States-based manufacturer of construction machinery,
acquired Euclid, another U.S. firm, the idea was to add Euclid’s heavy construction trucks to
Clark’s front-end loaders to improve Clark’s position with its dealers in the United States. Many
of these dealers had been approached by Komatsu, the leading Japanese construction equipment
company and only second to Caterpillar worldwide. By adding Euclid trucks to its product
line, Clark expected to check Komatsu’s expansion in the United States. Consequently, what
appeared like a domestic market move was actually aimed at a potential foreign competitor.
Such competitive decisions are as much a part of international marketing as any examples cited
earlier.

Example:
In international marketing, you have to customise. In US, Burger King add ham to burgers
whereas in Paris, it add avocados on its burgers.

11.3 Definitions of International Marketing and International
marketing management

Having examined the scope of international marketing, we are now able to define it more
accurately. Any definition has to be built, however, on basic definitions of marketing and
marketing management, with an added explanation of the international dimension. We

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