Stages of International Marketing Involvement

 

Chapter 1

The Scope and Challenge of International Marketing

McGraw-Hill/Irwin

© 2005 The McGraw-Hill Companies, Inc. All rights resere!.

 

Chapter Learning Objectives 1. The changing face of U.S. business 1. The changing face of U.S. business 2. 2. The The scope scope of of the the international international marketing marketing task  task  3. 3. The The increasing increasing importance importance of of global global awareness awareness 4. 4. The The progression progression of of becoming becoming aa global global marketer  marketer  5. 5. The The importance importance of of the the self-reference self-reference criterion criterion (S!" (S!" in in international international marketing marketing

 

Preface

#$e%erbefore beforein in&merican &mericanhistor' histor'ha%e ha%eU.S. U.S. businesses businesses large large #$e%er an) an) small small been been so so )eepl' )eepl' in%ol%e) in%ol%e) in in an) an) affecte) affecte) b' b' international internationalbusiness. business.& &global globaleconomic economicboom boom unprece)ente) unprece)ente) in in mo)ern mo)ern economic economic histor' histor'has hasbeen beenun)er un)er wa' wa' as asthe the)ri%e )ri%e for  for  efficienc' efficienc' pro)ucti%it' pro)ucti%it' an) an) open open unregulate) unregulate) markets markets sweeps sweeps the theworl). worl). *owerful *owerful economic economic technological technological in)ustrial in)ustrial political political an) an) )emographic )emographic forces forces are are con%erging con%erging to to buil) buil) the the foun)ation foun)ation of  of  aa new new global global economic economic or)er or)er on on which which the the structure structure of of aa one-worl) one-worl) economic economic an) an) market market s'stem s'stem will will be be built+ built+ (!ateora (!ateoraan) an),raham" ,raham"

 

Global Perspective: ecent !vents Information technology Information technology boom technology boom technology boom  boom of of the the late late 1990s 1990s

The bust The high-tech high-tech bust of bust of bust of  of 2001 2001

Enron Enron and  and WorldCom scandals  scandals Enron and Enron  and WorldCom WorldCom scandals WorldCom  scandals

September Center September 11th 11th attacks attacks on on the the World World Trade Trade Center  Center   Center  and and Pentagon Pentagon Wars Wars in  in Wars in Wars  in Afghanistan Afghanistan and and Iraq Iraq

 

Global Perspective: ecent !vents International conflict International conflict among conflict among conflict among  among $hina $hina Tai%an Tai%an and and the the &nited &nited States States

2003 SARS SARS outbreak  outbreak in Asia 2003 SARS SARS outbreak  outbreak in Asia Global terrorism Global terrorism terrorism e!g! terrorism e!g! Indonesia Indonesia Israel Israel India India and and "orocco "orocco

Transcending Transcending Tr anscending these these e#ents e#ents international international commerce continued commerce  continued commerce continued commerce  continued

 

Global "#siness Trends 1. aappii)) g gr rroow oof hhee 1. TThhee rra rra g gr wtthh of off tth tth

2. 2. ,eneral ,eneral acceptance acceptance of of the the

 orl) orl) Tra)e Tra)e rgani/ati rgani/ation rgani/ati rgani/ation on on an) an) regional regional free free tra)e tra)e areas areas e.g. e.g. $&0T& $&0T& an) an) the the uropean uropean Union Union

free free market market s'stem s'stem among among )e%eloping )e%eloping countries countries in in atin atin &merica & &merica &sia &sia &sia sia an) an) astern astern urope urope

3. 3. mpact mpact of of the the nternet nternet an) an) other other global global me)ia me)ia on on the the )issolution )issolution of of national national  bor)ers  bor)ers an) an)

4. 4. anaging anaging global global en%ironmental en%ironmental resources resources

 

Internationali$ation of %&S& "#siness

ncreasing globali/ation globali/ation of  of  ncreasing markets markets

an' an' U.S. U.S. companies companies are are now now foreign foreign controlle) controlle) !arnation !arnation(Swiss" (Swiss" 6aimler-!hr'sler 6aimler-!hr'sler 6aimler-!hr 'sler(,erman" (,erman"

0irms 0irms face face competition competition on on all fronts all fronts

U.S. U.S. firms firms seeking seeking foreign foreign markets markets to to increase increase profits profits

 

International Marketing: ' (efinition

nternational nternational marketing marketing is is )efine) )efine) as as the the  performance of business acti%ities )esigne)  performance of business acti%ities )esigne) to to plan plan  price  price promote promote an) an) )irect )irect the the flow flow of of aa compan'7s compan'7s goo)s goo)s an) an) ser%ices ser%ices to to consumers consumers or or users users in in more more than than one one nation nation for for aa profit profit arketing arketing concepts concepts processes processes an) an) principles principles are are uni%ersall' uni%ersall' applicable applicable all all o%er o%er the the worl) worl)

 

The International Marketing Task  %oreign Environment &'ncontrollables( ). *tructure o$ istribution

1. Competition omestic environment &'ncontrollables(

Environmental uncontrollables country market A

&Controllables( 1. Competition Price Product 2. Technology Target +. Political, Environmental 8 Market -egal uncontrollables !. "eography and country Promotion Place or 2 .Technology #n$rastructure . Culture

istribution

market B

3. Economy

+. Political, -egal

3. Economy . Culture

Environmental uncontrollable s country market C

 

!nviron)ental 'daptation *eeded 6ifferences 6ifferences are are in in the the uncontrollable uncontrollable en%ironment en%ironment of of international international marketing marketing 0irms 0irms must must a)apt a)apt to to uncontrollable uncontrollable en%ironment en%ironment of of international international marketing marketing b' b' a)9usting a)9usting the the marketing marketing mi: mi: (pro)uct (pro)uct price price  promotion  promotion an) an) )istribution" )istribution"

Continuum  A!aptation "o# Mar$eting Mi%&

'tan!ar!i(ation "o# Mar$eting Mi%&

I)*+)C  1 )I34)M)TA+ *ACT43'

 

Self+eference nce Criterion ,SCSelf+efere and !thnocentris):Major Obstacles  '3C is an 6nconscio6s re#erence to one7s own c6lt6ral al6es, e%periences, an! $nowle!ge as a 8asis #or !ecisions  thnocentrism re#ers to the notion that one7s own c6lt6re or compan9 $nows 8est how to !o things  oth the '3C an! ethnocentrism impe!e the a8ilit9 to assess a #oreign mar$et in its tr6e light  3eactions to meanings, al6es, s9m8ols, an! 8ehaior releant to o6r own c6lt6re are !i##erent #rom those o# #oreign  3el9ing on one7s '3C co6l! pro!6ce an 6ns6ccess#6l mar$eting program

 

'voiding the Self eference Criterion To suggeste) te) Toa%oi) a%oi) the the S! S! the the following following steps steps are are sugges suggeste)

:; e#ine the 86siness pro8lem or goal in home-co6ntr9 c6lt6ral traits, ha8its, or norms 2; e#ine the 86siness pro8lem or goal in #oreign-co6ntr9 #oreign-co6ntr9 c6lt6ral traits, ha8its, or norms. Ma$e no al6e