1. INTERNATIONAL MARKETING

2. THE SCOPE AND CHALLENGE OF INTERNATIONAL MARKETING

3. 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.”

4. 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.

5. 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

6. 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)

7. 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.

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

9. 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.

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

11. 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

12. 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.

13. 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.

14. 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.

15. 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.

16. 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.

17. 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.

18. 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.

19. STRATEGIC ORIENTATION EPRG schema
Domestic market extension orientation
Ethnocentric orientation
Multidomestic market orientation
Polycentric orientation
Global marketing orientation
Regiocentric / Geocentric orientation