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The Scope and Challenge of International Marketing. Cateora and Graham Chapter 1. Agenda. Discussion of International Business Defining International Marketing Examining the International Marketing Task Self-Reference Criterion and Ethnocentrism Developing a Global Awareness
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The Scope and Challenge of International Marketing Cateora and Graham Chapter 1
Agenda • Discussion of International Business • Defining International Marketing • Examining the International Marketing Task • Self-Reference Criterion and Ethnocentrism • Developing a Global Awareness • Stages of Involvement
Greatest Lesson in Marketing THE CONSUMER IS KING!!!!!!
The Globalization of Business • Why has the globalization of business occurred? • What are the components needed to make a global market? • Why is it necessary for many firms to look to the world for its business? • What challenges occur with the globalization of business?
International Marketing Defined • 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.”
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.
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)
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.
Domestic Environment Factors Cont. • These factors are: • Political/Legal Forces • Economic Climate • Competitive Structure
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.
Foreign Environment Factors • These factors are: • Political/Legal Forces • Cultural Forces • Geography and Infrastructure • Structure of Distribution • Level of Technology • Competitive Forces • Economic Forces
Self-Reference Criterion • 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
Ethnocentrism • 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.
The Problem with SRC and Ethnocentrism • Letting these two issues cloud your judgment can cause you to not understand the other culture. • This in turn will make it so you cannot provide the product that the consumer wants.
Developing a Global Awareness • When doing international marketing, you need to do the following: • Maintain objectivity • Be tolerant of other people’s culture • Understand and absorb knowledge of cultures, geography, social trends, political trends, and economic trends
International Marketing Stages • No Direct Foreign Marketing • Products may reach foreign markets indirectly. • Infrequent Foreign Marketing • Usually a company markets in foreign countries when supply is greater than domestic demand.
International Marketing Stages Cont. • Regular Foreign Marketing • Some production in the company is targeted to foreign markets. • International Marketing • These companies tend to have production both domestic and abroad.
International Marketing Stages Cont. • Global Marketing • This is when companies treat foreign and domestic markets roughly the same. • Usually the headquarters of the company can be located anywhere in the world.
Strategic Orientation • Domestic Market Extension Orientation • The view of the company is that foreign markets are secondary to the domestic market. • Multidomestic Market Orientation • Companies with this strategy have a country-by-country marketing plan, with separate strategies for each country.
Strategic Orientation Cont. • Global Marketing Orientation • These companies tend to develop global marketing strategies which emphasize economies of scales.