1. The International Marketing Imperative

2. What is International Marketing?
“…the process of planning and conducting transactions across national borders to create exchanges that satisfy the objectives of individuals and organizations”
Copyright © 1999 by Harcourt Brace & Company
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3. Key International Marketing Questions
How will my product or service fit into the international market?
What marketing adjustments are or will be necessary?
What global competitive threats should I expect?
How can I work with these threats and turn them into opportunities?
What are my strategic global alternatives?
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4. The Importance of World Trade
World trade has grown from $200 billion to more than $5 trillion in the past three decades.
The Iron Curtain is gone and capitalism has replaced the old economic doctrines.
Firms invest on a global scale.
Increasingly more difficult to define “where” products come from.
New trading blocs are emerging.
Copyright © 1999 by Harcourt Brace & Company
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5. Copyright © 1999 by Harcourt Brace & Company
Global Linkages
Global linkages bind countries, institutions, and individuals more closely than ever.
World trade opens up entirely new business horizons.
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6. Domestic Policy Repercussions - Influences in the U.S.
1 out of every 3 U.S. farm acres is producing for export
1 out of 6 U.S. manufacturing jobs produces for export
$1 out of $7 in U.S. sales goes abroad
1 out of 3 cars, 9 out of 10 TVs, 2 out of 3 suits, and every VCR sold in the U.S. is imported
Travel & Tourism is the #1 source of U.S. foreign exchange.
$1 out of $4 of U.S. bonds & notes is issued to foreigners.
Copyright © 1999 by Harcourt Brace & Company
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7. Opportunities and Challenges of International Marketing
Change and discontinuity requires active responses.
International activity may be crucial to a firm’s survival and growth.
International opportunities require careful exploration.
Firm’s and individuals must be capable of adapting to the environment.
Isolation is impossible today.
The Marketing Process
Analysis
Planning
Implementation
Copyright © 1999 by Harcourt Brace & Company
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8. Geographical Perspectives on International Marketing
Location
Place
Human Features
Population
Built environment
Natural Features
Geologic characteristics
Climate
Interaction
Movement
Region
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9. The International Trade Organization (ITO) - 1948
Transnational Institutions Affecting World Trade
General Agreement on Tariffs and Trade (GATT)
World Trade Organization (WTO)
International Monetary Fund (IMF)
World Bank
Regional Institutions
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10. Making Culture Work For Your Success
Embrace Local Culture
Employ Locals to Gain Cultural Knowledge
Build Relationships
Adapt Products to Local Markets
Culture Defined: … “a template of living”
Acculturation“…adjusting or adapting to a culture other than one’s own . . .and one of THE major keys to success in international operations!”
Cultural Context:High context culture - Low context culture
Change Agent: “An entity that introduces new products or ideas or practices”.
Copyright © 1999 by Harcourt Brace & Company
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11. Copyright © 1999 by Harcourt Brace & Company
Elements of
culture
Language
Nonverbal language
Religion
Values and attitudes
Manners and customs
Material elements
Aesthetics
Education
Social institutions
Training Process
Area studies
Cultural assimilator
Sensitivity training
Field experience
The Self-Reference Criterion is the Basis of Most International Business Problems!
Sources of Cultural Knowledge
Experiential knowledge
Interpretive knowledge
Copyright © 1999 by Harcourt Brace & Company
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