Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

11

Share

Download to read offline

Scopes of international marketing

Download to read offline

The Scope and Challenge of International Marketing

Related Books

Free with a 30 day trial from Scribd

See all

Scopes of international marketing

  1. 1. 1 Chapter 1: The Scope and Challenge of International Marketing
  2. 2. 2 Learning Objectives: 1. The benefits of International markets 2. The changing face of US business 3. The scope of international marketing task 4. The importance of SRC 5. The increasing importance of global awareness 6. The progression of becoming a global marketer Definitions: International marketing, SRC, ethnocentrism, global marketing, skeptics Questions: 1. “The marketer’s task is same whether applied in Dimebox, Texas or Dar-es-Salam, Tanzania.” Discuss. 2. Discuss the phases of international marketing involvement 3. Discuss the conditions that have led to the development of global markets 4. Differentiate between global and multinational company 5. Differentiate among the three international marketing concepts 6. Discuss the factors necessary to achieve global awareness 7. Discuss the idea of global
  3. 3. 3 Global Perspective: Recent Events 2003 SARS outbreak in Asia and Toronto2003 SARS outbreak in Asia and Toronto Wars in Afghanistan and IraqWars in Afghanistan and Iraq Adulterated product scandals in ChinaAdulterated product scandals in China September 11th attacks on the World Trade Center and Pentagon September 11th attacks on the World Trade Center and Pentagon
  4. 4. 4 Global Perspective: Recent Events International disagreements between the United States and its allies International disagreements between the United States and its allies 2008 Global credit crisis and recession2008 Global credit crisis and recession Global terrorism in Indonesia, Pakistan, India, Spain, Morocco and UK Global terrorism in Indonesia, Pakistan, India, Spain, Morocco and UK Despite these events, international commerce continued Despite these events, international commerce continued
  5. 5. 5 Global Business Trends 1. Growth of WTO and regional trade groups 2.. Global acceptance of free market system 3. Impact of the Internet on global communications 4. Threats of terrorism and armed conflict 5. Rise of new producers and consumers 6. Management of global environmental resources
  6. 6. 6 Internationalization of Business Increasing globalization of markets Increasing globalization of markets Firms face competition on all fronts Firms face competition on all fronts Many Canadian companies are foreign controlled: Tim Hortons (US), Labatt (Belgian) Many Canadian companies are foreign controlled: Tim Hortons (US), Labatt (Belgian) Firms seeking foreign markets to increase profits Firms seeking foreign markets to increase profits
  7. 7. 7 Company Industry Ownership Hudson's Bay Company Retail USA Tim Hortons Food service USA Labatts Beer Belgium MacMillan Bloedel Forestry USA Seagram Distillery France Corel Software USA CP Ships Shipping Germany Fairmont Hotels Hospitality USA/Saudi Arabia Dofasco Steel Luxembourg Noranda Mining Switzerland ATI Technologies Computer chips USA Stelco Steel USA Alcan Aluminum Great Britain Foreign Ownership of Canadian Companies
  8. 8. 8 The Globalization Debate  Pro-Globalists  Anti-Globalists  Skeptics  Transformationalists
  9. 9. 9 Skeptics 1. Skepticism is generally any questioning attitude towards knowledge, facts, or opinions/beliefs stated as facts, or doubt regarding claims that are taken for granted elsewhere. 2. Philosophical Skepticism is an overall approach that requires all information to be well supported by evidence. 3. A person who maintains a doubting attitude, as toward values, plans, statements, or the character of others. Transformationalists or Hyperglobalist Perspective The authors describe the hyperglobalist perspective as an approach which sees globalization as a new epoch in human history. This new epoch is characterized by the declining relevance and authority of nation-states, brought about largely through the economic logic of a global market. Economies are becoming “denationalized.”
  10. 10. 10 International Marketing: A Definition The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large in more than one country. The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large in more than one country. Marketing concepts, processes, and principles are universally applicable all over the world. Marketing concepts, processes, and principles are universally applicable all over the world.
  11. 11. 11 The International Marketing Task 7 3.Firm Characteristics 4.Research 3. Economy Environmental uncontrollables country market A Environmental uncontrollables country market B Environmental uncontrollable s country market C 1. Competition 1. Competition 2. Technology1.Price 2.Product 5.Promotion 6.Place 6. Geography and Infrastructure Foreign Environment (Uncontrollables) 7. Structure of Distribution 3. Economy 5. Political- Legal Domestic environment (Uncontrollables) (Controllables) 2 .Technology 4. Culture 5. Political- Legal 4. Culture
  12. 12. 12 Major Cultural Obstacles Self-Reference Criterion (SRC) an unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decisions Risk of SRC: Prevent you from becoming aware of cultural differences Influence the evaluation of the appropriateness of a domestically designed marketing mix for a foreign market Ethnocentrism  the notion that one’s own culture or company knows best how to do things
  13. 13. 13 Cross-Cultural Analysis 1. Define the business problem in home-country cultural traits, habits, or norms. 2. Define the business problem in foreign-country cultural traits, habits, or norms. Make no value judgments. 3. Isolate the SRC Influence in the problem and examine it carefully to see how it complicates the problem. 4. Redefine the problem without the SRC influence and solve for the optimum business goal situation
  14. 14. 14 Developing a Global Awareness To be globally aware is to be:To be globally aware is to be: 1. Tolerant of Cultural Differences, and 2. Knowledgeable of: (a) Culture, (b) History, (c) World Market Potential, (d) Global Economic, Social and Political Trends
  15. 15. 15 Stages of International Marketing Involvement In general, firms go through five different phases in going international: In general, firms go through five different phases in going international: Infrequent Foreign MarketingInfrequent Foreign Marketing No Direct Foreign MarketingNo Direct Foreign Marketing International MarketingInternational Marketing Regular Foreign MarketingRegular Foreign Marketing Global MarketingGlobal Marketing
  16. 16. 16 No Direct Foreign Marketing – Reactive • Products “indirectly” reach foreign markets Trading companies Foreign customers who contact firm Domestic wholesalers/distributors Web orders • Foreign orders stimulate a company’s interest to seek additional international sales
  17. 17. 17 Infrequent Foreign Marketing – Reactive Caused by temporary surpluses Sales to foreign markets are made as goods become available Firm has little or no intention of maintaining continuous market representation Foreign sales activity declines and is withdrawn when domestic demand increases
  18. 18. 18 Regular Foreign Marketing – Proactive Dedicated production capacity for foreign markets Strategy: Firm employs domestic or foreign intermediaries Uses its own sales force or sales subsidiaries Products are adapted for foreign markets as domestic demand grows Firms depend on profits from foreign markets
  19. 19. 19 International Marketing – Proactive Fully committed and involved in foreign markets and international activities Production takes place on foreign soil earning firms the MNC (Multinational Corporation) title
  20. 20. 20 Global Marketing – Proactive The firm sees the world as one market! Market segmentation is now defined by income levels, usage patterns, or other factors that span the globe More than half of its revenues come from abroad The firm has a global perspective
  21. 21. 21 The orientation of International Marketing Three different strategic orientations are found among managers of international marketing operations: Some see international marketing as ancillary to the domestic operations A second kind of company sees international marketing as a crucial aspect of sales revenue generation but treats each market as separate entity Finally a global orientation views the globe as the market-place and market segments are no longer based solely on national borders-common consumer characteristics and behaviors come into play as key segmentation variables applied across countries.
  • GireeshaC

    Jan. 7, 2021
  • PatriciaPelojero1

    Dec. 15, 2019
  • AmanUllah186

    Nov. 12, 2019
  • MdMostakim

    Sep. 15, 2019
  • PhabulousKartuunist

    Feb. 12, 2019
  • AtiaBiva

    Sep. 15, 2017
  • AvishekDas22

    Mar. 17, 2017
  • FEMIDAAMODMIA

    May. 13, 2016
  • jahirulislam32

    Feb. 4, 2016
  • aalok_patwardhan

    Jun. 19, 2015
  • MaaauTrinidad

    Jun. 16, 2015

The Scope and Challenge of International Marketing

Views

Total views

9,015

On Slideshare

0

From embeds

0

Number of embeds

5

Actions

Downloads

148

Shares

0

Comments

0

Likes

11

×