1. The Scope and Challenge of International Marketing
Cateora and Graham
Chapter 1

2. Agenda Discussion of International Business
Defining International Marketing
Examining the International Marketing Task
Self-Reference Criterion and Ethnocentrism
Developing a Global Awareness
Stages of Involvement

3. Greatest Lesson in Marketing
THE CONSUMER IS KING!!!!!!

4. The Globalization of Business
Why has the globalization of business occurred?
What are the components needed to make a global market?
Why is it necessary for many firms to look to the world for its business?
What challenges occur with the globalization of business?

5. International Marketing Defined
Cateora and Graham define international marketing as “the performance of business activities designed to plan, price, promote, and direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit.”

6. The International Marketing Task
The company that wishes to do international marketing must operate on three different planes simultaneously.
Some of these planes are directly under the control of the marketer, while other planes may only partially controllable.
These planes are related to the company environment, the domestic environment, and the foreign environment.

7. Marketing Decision Factors
These factors are found within the company environment where the marketer has control over them.
These factors are:
Price
Promotion
Product
Place (Channels of Distribution)

8. Domestic Environment Factors
These factors are related to how the domestic environment affects your marketing decisions.
These tend to be more uncertain to the marketer, but on some level may still be controllable.

9. Domestic Environment Factors Cont.
These factors are:
Political/Legal Forces
Economic Climate
Competitive Structure

10. Foreign Environment Factors
These factors are related to how the foreign environment affects your marketing decisions.
These tend to be the most uncertain to the marketer, and is very difficult to be controlled.

11. Foreign Environment Factors
These factors are:
Political/Legal Forces
Cultural Forces
Geography and Infrastructure
Structure of Distribution
Level of Technology
Competitive Forces
Economic Forces

12. Self-Reference Criterion
The Self-Reference Criterion (SRC) is when you as the marketer unconsciously expect that everyone is like you.
You expect that they have:
The same cultural values
Experiences
Knowledge

13. Ethnocentrism
This is the idea that things done in your culture is the correct or best way of doing things.
You tend not to look through the eyes of the foreign consumer.

14. The Problem with SRC and Ethnocentrism
Letting these two issues cloud your judgment can cause you to not understand the other culture.
This in turn will make it so you cannot provide the product that the consumer wants.

15. Developing a Global Awareness
When doing international marketing, you need to do the following:
Maintain objectivity
Be tolerant of other people’s culture
Understand and absorb knowledge of cultures, geography, social trends, political trends, and economic trends

16. International Marketing Stages
No Direct Foreign Marketing
Products may reach foreign markets indirectly.
Infrequent Foreign Marketing
Usually a company markets in foreign countries when supply is greater than domestic demand.

17. International Marketing Stages Cont.
Regular Foreign Marketing
Some production in the company is targeted to foreign markets.
International Marketing
These companies tend to have production both domestic and abroad.

18. International Marketing Stages Cont.
Global Marketing
This is when companies treat foreign and domestic markets roughly the same.
Usually the headquarters of the company can be located anywhere in the world.

19. Strategic Orientation
Domestic Market Extension Orientation
The view of the company is that foreign markets are secondary to the domestic market.
Multidomestic Market Orientation
Companies with this strategy have a country-by-country marketing plan, with separate strategies for each country.

20. Strategic Orientation Cont.
Global Marketing Orientation
These companies tend to develop global marketing strategies which emphasize economies of scales.