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Unit 11: Basics of International Marketing

understand marketing as the performance of business activities directing the flow of products notes
and services from producer to consumer. A successful performance of the marketing function
by a firm is contingent upon the adoption of the marketing concept, consisting of (a) a customer
orientation, (b) an integrated marketing organisation, and (c) customer satisfaction’s Marketing
management is the execution of a company’s marketing operation. Management responsibilities
consist of planning, organising, and controlling the marketing program of the firm. To accomplish
this job, marketing management is assigned decision-making authority over product strategy,
communication strategy, distribution strategy, and pricing strategy. The combination of these
four aspects of marketing is referred to as the marketing mix.
For international marketing management, the basic aims of marketing and the responsibilities
described above remain unchanged. What is different is the execution of these activities in
more than one country. Consequently, we define international marketing management as the
performance of marketing activities across two or more countries. We are now moving from
single-country decisions to multi-country decisions. In some situations, only one or two countries
are involved; in other situations, dozens of countries are involved simultaneously.
A firm exporting products to Malaysia is engaged in a marketing effort across two countries: the
United States and Mexico. Another US firm operating a subsidiary in Malaysia that manufactures
and markets locally under the direction of the Australian head office is also engaged in international
marketing to the extent that the head office staff directs and supervises this effort. Consequently,
international marketing does not always require the physical movement of products across
national borders. International marketing occurs whenever marketing decisions are made that
encompass two or more countries.

Task Determine and analyze the advantages of customer oriented business.

11.4 relationships with other fields of study

The field of international marketing is related to other fields of study. In its broadest terms,
international marketing is a subset of international business, which is defined as the performance
of all business functions across national boundaries. International business includes all functional
areas such as international production, international financial management, and international
marketing.

International trade theory, which explains why nations trade with each other, is a related
concept. This theory is aimed at understanding product flows between countries, either in the
form of exports or imports. An Australian. corporation exporting machinery to Japan would
find its transactions recorded as an export in Australia whereas the same transaction would be
treated as an import in Japan. In this situation, international marketing and international trade
are concerned with the same phenomenon.
Should the same company produce its machinery in Japan and sell locally, however, there would
be no exchange of goods between the two countries. Consequently, there would be no recognized
international trading activity. However, as we have seen earlier, the company’s decision to
build machinery in Japan and sell it there would still be considered an international marketing
decision. We can therefore conclude that international marketing goes beyond strict definitions
of international trading and includes a wider range of activities.
International marketing should not be confused with foreign marketing which consists of
marketing activities carried out by foreign firms within their own countries. Marketing by
Brazilian firms in Brazil is therefore defined as foreign marketing and is not the principle focus
of this book. However, Brazilian firms engaged in marketing their products in the United States

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