1. The Scope and Challenge of International Marketing
Chapter 1

2. What are the trends? Late 1990’s Early 2000’s Since then
1990’s- Economic boom, technology at offices lowering prices, lower trade barriers, internet, end of Cold War
2000’s- 9/11, terrorism, SARS, tech bust, Enron scandals,
Despite all of this, there is still a great deal of international marketing

3. Internationalization of America
Foreign Ownership of Businesses
Chrysler
Foreign Investment: $25.2 trillion (2013)
Exportation of Products
Why go international?
Why?- More profits, grow twice as fast, high ROA and ROE.

4. International v. Domestic Marketing
What is MKT?
International focuses on working in more than one country. It is more complex. More uncontrollable factors
Domestic- Slightly more control;
Go over Figure 1-3

5. The International Marketing Task
Controllable Factors
Product
Price
Place
Promotion
Domestic Uncontrollables
Political/Legal
Economic
Competition
Political/Legal- Bans, sanctions,
Economics- Can you make money in order to invest?
Competition- How much in home country? If increases, then must refocus its efforts on its own turf instead of foreign markets, BUT, may increase innovation (according to Porter).

6. The International Marketing Task
Foreign Environment Uncontrollables
Political/Legal
Economic
Competitive
Level of technology
Structure of distribution
Geography and infrastructure
Cultural forces
Political- China’ laws on who can set up a business. What if the government decides to take back the plant?
Alien status- Alien b/c foreigners own it and culture is alien to it
Legal- Is there corruption?
Tech- Is machinery available?, Technical expertise, train others to work with them
Culture- Cultural adjustment. Language, gestures, symbols.

7. International Marketing Issues
Self-Reference Criterion
Ethnocentrism
Examples
Cross-cultural Analysis
SRC- Unconscious reference to one’s own cultural values, experiences and knowledge
Ethno- Believing your culture’s way is the best way to do things
Standing to close, Nova= “no go” in Spanish
CCA- How are things done here? Why? Do those underlying principles apply to the values and culture of the other country?

8. Global Awareness Tolerance for other cultures
Knowledge of other cultures

9. International Marketing Involvement
No Direct Foreign Marketing
Infrequent Foreign Marketing
Regular Foreign Marketing
International Marketing
Global Marketing
NDFM- Does not pursue international markets, but still sells overseas. Like a website
IFM- Used if there is a surplus. Maybe in the second quarter 2005 we will have 5 tons extra, so we will try to sell overseas. No long-tern relationship
RFM- Still a major focus domestically; however, does have middlemen or salesforce devoted to sales overseas.
IM- Fully committed to overseas markets;
GM- Companies treat the entire world as one market. More than half of sales are from overseas, usually same product throughout the world.

10. Strategic Orientation
Domestic Market Extension Orientation
Primarily domestic
Multidomestic Market Orientation
Fine-tune product/strategy to market
Global Market Orientation
Look at entire world as market
Use the same product, different forms of advertising
DME- Primarily domestic, but no effort to fine-tune products to specific markets
MM- Company recognizes that each country is different; there is little interaction between country “departments”, there is a separate marketing mix for each country
GM- Entire world is its market; Ford, Coke; still fine-tune, but consider income age, etc, as segments. Same product, different advertising; standardize mix where cost effective.