chapter 1- the scope & challenge of international marketing

international marketing
performance of business activities designed to plan, price, place, promote, and direct the flow of a company’s goods & services to consumers in more than one nation for a profit
why study international marketing?
-95% of population is outside U.S
-markets are saturated
-international/ social media
-formerly closed markets are opening
-business have to do it for survival
why businesses don’t go overseas?
1. Don’t know how to export (77%)
2. Dont understand business customer (57%)
3. Dont understand target markets (56%)
internationalization of U.S Business-
trading partners
1. Canada
2. China
3. Mexico
international marketing task
-monitor uncontrollables & balance controllables
1. Economic (currency values)
2. Political-legal
3. Competition
4. Socio-culture
5. Infrastructure & geography
6. Structure of distribution
7. Technology
why trade deficit?
1. cheaper labor overseas
2. higher consumption culture
3. more relaxed country laws
4. more disposable income

-foreign countries often view Americans as hostile aliens seeking to exploit a culture they don’t understand

self-reference criterion (SRC)
unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decisions
ethnocentrism
belief that ones own culture is superior to that of others
orientations to international marketing
1. Domestic market extension
2. Multi domestic market concept
3. Global marketing concept

Transactional- hybrid multi domestic & global
(think global act local)

Domestic market extension
-international operations are secondary
-usually used to sell market’s surplus
Multi domestic market concept
markets in a country- by- country basis with a separate marketing strategy for each country
(separate 4 p’s)
Global marketing
-operates as if the world were one market
-looks for similarities in markets
3 things to become globally aware
1. knowledge of global economics ; social & political trends (objective)
2. tolerance of other cultures
3. open to new knowledge (culture & history)
according to the KOF Globalization Index- economic globalization measures
mean (average) tariff rates
foreign environment uncontrollable variable
-economic forces
-cultural forces
-political/legal forces
global marketing concept
treats the world as one market, looks for groups with similar needs and develops a marketing plan for standardization wherever it is cost & culturally effective
controllable elements
-product
-promotion
-price