INTERNATIONAL MARKETING www.AssignmentPoint.com
THE SCOPE AND CHALLENGE OF INTERNATIONAL MARKETING www.AssignmentPoint.com
INTERNATIONAL MARKETING 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.” www.AssignmentPoint.com
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. www.AssignmentPoint.com
Foreign environment (Uncontrollable) Domestic environment Political/ legal forces Domestic environment (Uncontrollable) Economic forces (Controllable) Cultural forces Price Promotion Competitive forces Political/ legal forces Competitive structure Channels of distribution Product Level of technology Geography infrastructure Economic climate Structure of distribution www.AssignmentPoint.com
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) www.AssignmentPoint.com
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. www.AssignmentPoint.com
Domestic Environment Factors (Cont.) These factors are: Political/Legal Forces Economic Climate Competitive Structure www.AssignmentPoint.com
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. www.AssignmentPoint.com
Foreign Environment Factors These factors are: Political/Legal Forces Cultural Forces Geography and Infrastructure Structure of Distribution Level of Technology Competitive Forces Economic Forces www.AssignmentPoint.com
MAJOR OBSTACLES Self-reference criterion (SRC) SRC is an unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decisions. 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 www.AssignmentPoint.com
MAJOR OBSTACLES (cont.) Ethnocentrism Ethnocentrism is the notion that one’s own culture or company knows best how to do things. 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. www.AssignmentPoint.com
Steps to avoid errors in business decisions Define the business problem or goal in home-country cultural traits, habits, or norms. Define the business problem or goal in foreign-country cultural traits, habits, or norms through consultation with natives of the target country. Isolate the SRC influence in the problem and examine it carefully to see how it complicates the problem. Redefine the problem without the SRC influence and solve for the optimum business goal situation. www.AssignmentPoint.com
STAGES OF INTERNATIONAL MARKETING INVOLVEMENT No direct foreign marketing A company does not actively cultivate customers outside national boundaries. The product may reach foreign markets by – -- Making sales to trading companies and foreign customers who come directly to the firm. -- Domestic wholesalers/distributors who sell abroad without explicit encouragement or knowledge of the producer. -- Developing websites on the Internet. www.AssignmentPoint.com
Infrequent foreign marketing Sales to foreign markets are made as goods are available (temporary surpluses). There is little or no change in company organization or product lines. The company has little or no intention of maintaining continuous market representation. Foreign sales activity is withdrawn as domestic demand increases. www.AssignmentPoint.com
Regular foreign marketing The firm has permanent productive capacity devoted to the production of goods to be marketed in foreign markets. The firm may employ foreign or domestic overseas middlemen or it may have its own sales force n important foreign markets. As overseas demand grows, products may be adapted to meet the needs of individual foreign markets. www.AssignmentPoint.com
International marketing Companies are fully committed and involved in international marketing activities. Companies seek markets all over the world. The products are a result of planned production for markets in various countries. The firm’s marketing activities as well as the production of goods take place outside the home market. www.AssignmentPoint.com
Global marketing Companies treat the world, including their home-market, as one market, the market coverage is the world. The company develops a standardized marketing mix which is applicable across national boundaries. Market segments are defined by consumer characteristics, usage patterns, legal constraints, or other factors that often span countries and regions. www.AssignmentPoint.com
STRATEGIC ORIENTATION EPRG schema Domestic market extension orientation Ethnocentric orientation Multidomestic market orientation Polycentric orientation Global marketing orientation Regiocentric / Geocentric orientation www.AssignmentPoint.com