International Marketing

International Marketing

• Known as Global Marketing
• It is the multinational process of:

1. –Planning
   
2. –Pricing
3. –Promotion
4. –Distribution of ideas, goods, and services

• It also the application of marketing principles to more than one country.

• It identify customer want and need, provide firm product and services to communicate, distributed and exchange it to foreign market.

• International marketing or global marketing are interchangeable. 

• Businesses choose to explore foreign markets for some reason:

1. Establish a business that will absorb overhead costs at home
2. Seek new markets when the domestic market is saturated
3. To make quick profit

• Companies choosing to market internationally do not share an overall profile, they seem to have two specific characteristics in common:

1. First, the products that they market abroad must have high earnings potential in foreign markets.
2. Second, the management of companies marketing internationally must be ready to make a commitment to these markets.

• Finally, they must be willing to educate themselves thoroughly on the particular countries they choose to enter and must understand the potential benefits and risks of a decision to market abroad

Improving International Marketing Performance

Increases sale

1. Penetrate existing international markets
2. Develop new international markets
3. Develop new products
4. Integrate global markets

Increases profits

1. Reduce production costs
2. Increase sales yield
3. Integrate global suppliers
4. Reduce investment intensity
5. Focus on selective markets

Benefits of International Marketing

1. It enhances the domestic competitiveness

• The enhances the domestic competitiveness takes advantage of international trade technology, increase sales and profits, extend sales, maintain cost competitiveness, enhance potential in business, gains a global market share, reduce dependence on existing markets, and stabilize seasonal market fluctuations.

2. Rapid industrialization

• Countries are economically dependent on one another. 
• Every country has to import goods or services and to export as well as import. Some of the countries are dependent on the western countries for superior technology to achieve faster economic growth. International marketing has become prominent because of international interdependence and growing industrialization.

3. Cultural exchanges

• Peaceful co-existence to a very great extent depends on economic, social and cultural exchanges. International relations can improve when people move to different countries on goodwill visits. Cultural differences separate the countries from one another. This gap can be well connected through international trade and exchange of culture.

4. Maintaining international prices

• It is not possible that varying prices will prevail in international marketing for long. Various countries market their goods at competitive rates. The comparative cost benefits enjoyed by one country in a particular item can be shared by other countries.

5. Helps both developed and developing countries

• International marketing is also required to narrow the gap between advanced countries and less developed or developing countries. 
• In turn, advances countries must provide concessional terms so that developing countries have no option but to import superior technical know how from developed countries to provide assistance to developing countries in their struggle towards economic growth. 

The limitation of International Marketing

1. Trade pattern variations

•  the company has to deal with the existing trade pattern among the various countries of the world when enter into international market.

2. National development policy

• Every country seeks to achieve self-sufficiency by exploiting its raw materials and other resources to the optimum but to achieve self sufficiency in industrial development has resulted into the creation of many trade barriers on the free flow of international trade.

3. Procedural complexities

• There is no common procedure relating to import and export, and every country has its own procedures, documents and practices relating to international trade. 
• These are complex and difficult essentially of international marketing these days, which pose, problems before the international marketing.

Example:

Malaysia Airlines

• The flag carrier of Malaysia
•  Start operated in early 1937 and  headquarters was located at Sultan Abdul Aziz Shah Airport in Subang.
• Airlines has grown into an award-winning airline with a fleet of more than 100 aircraft, servicing more than 110 destinations across six continents.
• Malaysian Airlines System Berhad is a corporation with a vision of global expansion.
• The organizational visions are “To be the largest, most successful and most respected airline in the world.”
• The airline's network will grow extensively in response to consumer demand for worldwide coverage, they set new world standards by:

1. enhanced in-flight services
2. reliable ground support
3. excellent infrastructure

• MAS intend to re-evaluate the effectiveness of its route network in both international and domestic.
• It involves reviewing the viability of the existing fare structure and routes, and the realigning and re-deploying of its aircraft capacity to markets that offer the greatest opportunities.
• MAS become ‘Transformation Programmed’, that encourages the whole company to work together in building long relationships with customers.

Mission:

This is the MH way to get you to your loved ones and to your home countries.

Company slogan

MH: Malaysia hospitality

Malaysia Airlines objective

To create greater awareness of Malaysia and went in line with the government's efforts to make Malaysia an internationally acclaimed travel destination and trading nation.

Malaysia Airlines Strategy

• MAS intend to re-evaluate the effectiveness of its route network in both international and domestic.
• It involves reviewing the viability of the existing fare structure and routes, and the realigning and re-deploying of its aircraft capacity to markets that offer the greatest opportunities.
• MAS become ‘Transformation Programmed’, that encourages the whole company to work together in building long relationships with customers.

Benefit of Malaysia Airlines

1. Online booking

• With International airline reservation is a user friendly and it becoming online booking service. Ticket can book from home with credit card, or go through a booking agent.
• Ticket rates changes according to the season and the days. 
• With advanced booking techniques available, you can just within tour budget for travel, and your destination, you can gain list of flights that suit in your budget. 

2. Revenue/Yield improvements

• For the passenger business, Malaysia Airlines improve revenue/yield namely the Route Profitability Project (RPP) and Revenue Enhancement Project (REP) 1.
• They set out to significantly close the yield gap against our key competitors and success do it. 
• As a result of this work, they improved their own yield or Revenue per Revenue Passenger Kilometer at lower value to higher value. 

Three types of tickets (class) are available

1. Benefits of Malaysian Air First Class:

• A limit of 40 KG checked-in baggage permitted for each first class passenger
• Luxury waiting area while you are waiting
• Get connected; Internet connection during your flight
• Chairs that tilt back seventy five degrees

2. On Business class passengers:

• 30 KG baggage for each passenger may be checked in without charge
• Relax in a special waiting room before leaving
• Big legroom

3. If a passenger flies Malaysian Airlines Economy:

• A 20 KG checked in baggage limit
• Quality service at a good price
• Reserve your seat on the web
• Personal entertainment system for every passenger

Problems that Malaysia Airlines facing

1. First unprofitably

• The airline suffered losses in million after earning a record-breaking  profit in the financial year 1996/1997.
• With this losses, the airline cut many unprofitably routes, such as Brussels, Darwin, Honolulu, Madrid, Munich and Vancouver. 
• The airline recovered from its losses in the year 2002/2003. 
• It achieved its then-highest profit in the year 2003/2004, totaling RM461 million. 

2. High cost of tickets 

• Due to the expensive tickets fare, many people choose to fly with Air Asia because of the cheap ticket. Thus, the demand of the Malaysia Airlines has been decreases compete to Air Asia.

3. Possibility of slower global macroeconomic growth

• The changes of economy’s growth due to a weakening housing sector may spill over and impact Asia’s economic growth.
• This could amplify the negative impact on developments in the aviation industry over the next couple of years. 

4. Low-cost competition is on the rise 

• The low-cost competitors dumping large numbers of very low priced seats in core markets in the hope of stimulating demand.

Conclusion

• International marketing is the complex, difficult due to the interaction among domestic, foreign, and international politics.
• When the domestic company enter foreign country, they be sensitive to that country’s political concerns. 
• As what Malaysian Airlines combine with international airlines, they are well organized and manage their services and their marketing achieved the success.
• Even thought we pay for the expensive fares in  Malaysia Airlines, but it worth and satisfied because they provide good service to all the passengers.