Introduction to International Marketing : …

1 Moldova State University Introduction to International Marketing : Questions & answers Edited by , A. Gribincea Chisinau - Print-Caro 2016 ISBN Introduction to International Marketing :Questions & answers .- Edited by Y. Kozak , A Gribincea Chisinau : Print-Caro, 2016 - 279p. Authors Y. Kozak (Ukraine ), A Gribincea (Moldova) , S. Smyczek (Poland) , T.

2 Shengelia (Georgia) , T. Sporek (Poland) , (Poland) , A. Momotenko (Ukraine ) ISBN Training manual aims to contribute to better understanding of the International Marketing course. It contains answers to the questions about the basics of International Marketing and its economic, political, legal, social and cultural environment. Particular attention is paid to the issues of methods and tools of International Marketing activities, trade and pricing, tools to promote a product in the foreign market. For students and academics. ISBN ISBN , A Gribincea , 2016 Print-Caro , 2016 CONTENTS PART I. International Marketing IN THE WORLD ECONOMIC SECTION 1. THEORETICAL FOUNDATIONS OF International What is the background of the formation and development of International Marketing ?

3 6 What are the essence, objectives and features of International Marketing ?..7 What are the developmental stages of International Marketing ?..17 Can International Marketing be understood as a business philosophy?..20 Can International Marketing be understood as a form of management activities?..21 SECTION 2. International Marketing What is economic environment of International Marketing ?..25 What are political and legal dimensions of International Marketing ?..40 What are socio-cultural dimensions of International Marketing ?..46 What are the main structural units of information environment in International Marketing ?..76 What impact does scientific and technological environment have on International Marketing ?..89 What is demographic environment of International Marketing ?..90 What is natural and geographical environment of International Marketing ?..91 SECTION 3. RESEARCH OF THE WORLD MARKETS IN International What are the main directions and features, types and stages of International Marketing research?

4 94 What is International Marketing segmentation? What are its approaches, criteria, objectives and conditions?..117 What is the positioning in the International markets?..128 PART II. METHODS AND INSTRUMENTS OF THE International Marketing SECTION 4. Marketing STRATEGIES IN FOREIGN What is the competitiveness of the company and its products in foreign markets?..133 What forms and methods of entering the International market exist?..140 What are International franchising, foreign investment and International factoring in International Marketing ?..148 SECTION 5. COMMODITY POLICY IN International What are International commodity policy and the main product of modern International Marketing strategy?..170 What is the essence of product policy in the global market?..182 How does packaging, service, and quality control of products look like?..193 SECTION 6. PRICING IN International Marketing ?

5 211 What is the role of prices in International Marketing ?..211 What is price system? How does its classification look like?..213 What are Marketing pricing factors?..216 What are global prices?..223 What are pricing strategies in global markets?..225 SECTION 7. WAYS TO PROMOTE PRODUCTS ON THE FOREIGN What are International channels of product distribution?..231 What criteria of selection of product distribution channel can be distinguished?.. 235 What are managing channels of product distribution in foreign markets?..247 How do International Marketing communications look like?..259 5 PREFACE Increasing integration with the world community, an entry of the domestic enterprises into the foreign markets and intensifications of development of new forms of the International business are the main present tendencies of economy reforming for countries with transitive economy.

6 These countries have recently started their integration into system of the world economy, and the way this process will take place, efficiency of further economic and social development of the states, as organic subsystems of world economy depends. Efficiency of occurrence in world economic system is defined by efficiency of foreign economic activity of its business structures. Successful activity of the enterprises in the foreign markets is possible only at skillful use of receptions and methods of the International Marketing activity. Consideration of a complex of questions of functioning and development of modern system of the International Marketing taking into account specifics of the countries with transitive economy, gives structure of the offered manual. It contains answers to the questions about the basics of International Marketing and its economic, political, legal, social and cultural environment.

7 Particular attention is paid to the issues of methods and tools of International Marketing activities, trade and pricing, tools to promote a product in the foreign market. Training manual aims to contribute to better understanding of the International Marketing course, according to existing programs of leading world educational institutions. 6 PART . International Marketing IN THE WORLD ECONOMIC ENVIRONMENT SECTION 1. THEORETICAL FOUNDATIONS OF International Marketing What is the background of the formation and development of International Marketing ? The first mentions of the International Marketing have appeared at the beginning of the 60th of the last century. Expediency of use of such Marketing it has been caused by need of ensuring effective International trade in the goods and the services which volume has reached the considerable sizes.

8 At the beginning of the 60th International trade becomes the main component of the International economic relations that a little positive influence on a condition of world economy as a whole. Further development of International trade has provided deeper division of labor between the separate countries and promoted further integration of national economies into the world. Under such circumstances firms of the different countries began to look for more favorable conditions for the business activity in foreign markets thanks to which development they increased outputs of products and deepened specialization. Thus, positive changes in the International economic relations which caused globalization and integration of the national economies, a new economic order which has developed and constantly develops on the basis of liberalization and cooperation principles, promoted practical use of the International Marketing , its development and became the main precondition of its emergence (fig.)

9 [18, ]. Thus follows has noticed that emergence of requirement for the International Marketing is connected with transition from the incidental trade based on natural interest to the goods and services of separate firms, to International trade which is based on systematic and intensive processing of foreign markets. This importance of the International Marketing has considerably grown presently, having become the most important function of management in the world market. For business of the developed countries the International Marketing is an ordinary sphere of activity, for him characteristic wide presence on foreign markets. Behind F. Kotler's statement, the International Marketing for firms of these countries is the second nature [11, р.61]. Thus the external economic policy of each state is under construction taking into account features of its economic situation and development.

10 7 Fig. Preconditions of emergence of the International Marketing What are the essence, objectives and features of International Marketing ? The International Marketing should be considered as a component of all system of knowledge in Marketing branch. Its genetic basis is factors of a spatial and geographical order which are connected with activity of the enterprises in the markets of other countries. It as if supplements the national and state, "house" Marketing The modern concept of the International Marketing which predetermines: complex research of world market conditions, in particular changes in the sphere of the public requirements caused: development of world trade; Preconditions of emergence of the International Marketing excess of demand over supply, ie saturation of goods and services market development of competitive producers desire of companies and organizations to expand markets and increase profits developed market infrastructure market behavior of consumers in different countries growth in living standards in several countries and, therefore, increase the demand for products and durable goods International legislation availability of national monetary systems independency of states of the International community development of cooperation of production, services 8 scientific and technical progress and the corresponding structural shifts in economy; ratio of forces and positions of subjects of the world market.