Chapter 1 Nature of International Marketing. Challenges and Opportunities Process of International Marketing International Dimensions of Marketing Domestic.

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Presentation transcript:

Chapter 1 Nature of International Marketing

Challenges and Opportunities Process of International Marketing International Dimensions of Marketing Domestic Marketing vs. International Marketing Multinational Corporations (MNCs) - Pros and Cons - Multinationality and Market Performance - Characteristics of MNCs The Process of Internationalization Benefits of International Marketing

Definition of International Marketing Multinational process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services and to create exchanges that satisfy individual and organizational objectives

Dimensions of Marketing Consumer Marketing vs. Business-to-Business Marketing Domestic Marketing vs. Foreign Marketing Comparative Marketing International Marketing vs. Global/Multinational Marketing Domestic Marketing vs. International Marketing -similar in nature but not in scope (scale)? -different in degree but not in kind?

MNCs (MULTINATIONAL CORPORATIONS) Cons - Exploitation - Erosion of a Nation's Sovereignty Pros -Power and Prestige -Social Responsibility -Market Performance

Characteristics of MNCs Definition by Size - market value - sales - profits - assets - number of employees

Characteristics of MNCs Definition by Structure - number of countries in which the firm does business - citizenship of corporate owners and top managers

Characteristics of MNCs Definition by Performance - commitment of corporate resources to foreign operations - amount of rewards from that commitment

Characteristics of MNCs Definition by Behavior - ethnocentricity -polycentricity -geocentricity

Behavior/ Attitude Ethnocentricity - orientation toward home country - centralization of decision making - efficient but not effective

Behavior/ Attitude Polycentricity - strong orientation to host country - decentralization of decision making - effective but not efficient

Behavior/ Attitude Geocentricity - world orientation - centralization + decentralization + coordination - efficient and effective

Benefits of International Marketing Survival and Growth Sales and Profits Diversification Inflation and Price Moderation Employment Standards of Living Understanding of Marketing Process

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