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International Marketing chapter 3

International Marketing by cateora

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International Marketing chapter 3

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  1. International Marketing 15th edition Chapter 3 History and Geography: The Foundations of Culture Philip R. Cateora, Mary C. Gilly, and John L. Graham

  2. Introduction • To understand a society’s actions and its points of view, you need to appreciate: • The influence of historical events • The geographical uniqueness to which a culture has had to adapt • Culture can be defined as society's accepted basis for responding to external and internal events • To interpret a culture’s behavior and attitudes, a marketer must have some idea of a country’s history and geography Roy Philip

  3. History Perspective in Global Business • History helps define a nation’s mission • How it perceives its neighbors • How it perceives itself • Its place in the world • Insights into history are important for understanding current attitudes • It is necessary to study culture as it is now as well as to understand culture as it was • A country’s history Roy Philip

  4. Geography and Global Markets • Geography – an element of the uncontrollable environment that confronts every marketer • Affects a society’s culture and economy • Physical makeup limits a nation’s ability to supply its people’s needs Roy Philip

  5. Climate and Topography • Altitude, humidity, and temperature extremes • South America • British resistance of the English Channel • Trade through the Alps Roy Philip

  6. Geography, Nature and Economic Growth • As countries prosper, natural barriers are overcome • Environmental issues • Disruption of ecosystems • Relocation of people • Inadequate hazardous waste management • Industrial pollution Roy Philip

  7. Social Responsibility and Environmental Management • Environmental protection is not an optional extra • Pollution is on the verge of getting completely out of control • China has 16 of the world’s 20 most polluted cities • Critical issue: the disposal of hazardous waste • Sustainable development • http://www.time.com/time/specials/2007/0,28757,1661031,00.html • http://www.forbes.com/2006/03/21/americas-most-polluted-cities-cx_rm_0321pollute.html Roy Philip

  8. Resources (1 of 2) • The availability of minerals and the ability to generate energy are the foundations of modern technology • The principal supplements to human energy • Animals • Wood • Fossil fuel • Nuclear power • Ocean tides • Geothermal power • The sun Roy Philip

  9. Resources (2 of 2) • United States in perspective • 1942 – nearly self-sufficient • 1950 – major importer • 1973-2000 – increased dependency from 36% to 66% • Mid-2000’s – predicted to be importing more than 70% of needs • The location, quality, and availability of resources will affect the pattern of world economic development and trade well into the 21st century Roy Philip

  10. Dynamics of GlobalPopulation Trends • Global population trends determine today’s demand for goods • Rural/urban population shifts • Rates of growth • Age levels • Population control • Changes in population will profoundly affect future demand • The most important deterrent to population control is cultural attitudes about the importance of large families Roy Philip

  11. Controlling Population Growth • Procreation is one of the most culturally sensitive uncontrollable factors • Perhaps the most important deterrent to population control is cultural attitudes about the importance of large families • Family planning and all that it entails is by far the most universal means governments use to control birthrates, but some economists believe that a decline in the fertility rate is a function of economic prosperity and will come only with economic development Roy Philip

  12. Rural/Urban Migration • Result of a desire for greater access to: • Sources of education • Health care • Improved job opportunities Roy Philip

  13. Population Decline and Aging • Population growth in many countries has dropped below the rate necessary to maintain present levels • A nation needs a fertility rate of about 2.1 children per woman • Not one major country has sufficient internal population growth to maintain itself Roy Philip

  14. Summary • A prospective international marketer should be reasonably familiar with the world, its climate, and topographic differences • Geographic hurdles must be recognized as having a direct effect on marketing and the related activities of communications and distribution Roy Philip

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