Dr . Amr Kheir eldin

1. Aspects of International Marketing
Chapter 1
International Marketing
Dr. Amr Kheir-El-Din

2. International Marketing
International Marketing
is :
Satisfying customer
needs across national
borders

3. Why Go International?
1. Market Saturation
Ex: cigarettes, entertainment, fast
food, consumer electronics.
2. Foreign Competition
Ex: cars, copying machines,
photographic, construction
3. ُEmergence of new markets
Ex: China, India, Eastern Europe,
NICs

4. Why Go International?
4. Globalization of Markets
5. Opportunities via Foreign Aid programs
6. Other reasons
a. Economies of scale
b. Labor cost
c. Tax incentives
d. The desire to test products overseas
e. The desire to have access to
technological advances

5. Stages of International Marketing Expansion
1.
2.
3.
4.
5.
6.
Domestic
Regional Exporter
Exporter
International
International to Global
Global

6. Framework of International Marketing
Political/Legal
Economic
Environment
Product
Price
International
Customers
Promotion
Socio Cultural
Environment
Place
Technological
Environment

7. MNE
Definition
An MNE is a firm that owns,
manages, and controls income
generating assets in more than
one country.
Number of nations
In more than 6 countries.

8. Ratio of Foreign (F) to total (T) operations
At least 25% of its
sales, assets, and
profits are generated
outside the home base.

9. Management Attitude
Ethnocentric = Are home country oriented
Polycentric = Are host country oriented
Geocentric = Are world-wide oriented

10. MNE: Characteristics
Economic Power.
Oligopolistic Market structure.
Large percentage of sales, assets,
and profits are generated outside
the home base.
The product of developed nations.