International Marketing: Chapter 1 Key Concepts International marketing (definition) The international marketing task Marketing controllables Marketing uncontrollables Stages of international marketing involvement Environmental adaptation Self-reference criterion Ethnocentrism

Recent Economic, Political, and Social Changes: How Do They Impact the Landscape of Global Business? Global recession Global terrorism Armed conflicts Emerging markets Reunification of Hong Kong, Macau, and China European Monetary Union Traditional distribution structures Middle income households Regional market groups Industry restructuring and reorganization Internet and smart phone integration

International Marketing: A New Paradigm OLD PARADIGM NEW PARADIGM

The Internationalization of U.S. Business National independence Global interdependence

International Marketing The performance of marketing activities To consumers in more than one country For a profit

The International Marketing Task

International Marketing Task Marketing controllables Marketing uncontrollables Domestic (home) market Foreign (host) market

Stages of International Marketing Involvement No direct foreign marketing Infrequent foreign marketing Regular foreign marketing International marketing Global marketing

Environmental Adaptation Interpret culture & make adjustments Establish a frame of reference Avoid cultural bias

Developing a Global Awareness Tolerance of cultural differences Understanding yourself Understanding cultural differences Accepting and working with others Knowledge cultures history world market potential global economic, social, and political trends

Self-Reference Criterion (SRC) An unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decisions

Ethnocentrism The notion that one’s own culture is superior to all others and therefore always knows best