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.