Professional Documents
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Chap1-Cateora International Marketing
Chap1-Cateora International Marketing
Chap1-Cateora International Marketing
1.
1. The
The changing
changing face
face of
of U.S.
U.S. business
business
2.
2. The
The scope
scope of
of the
the international
international marketing
marketing task
task
3.
3. The
The increasing
increasing importance
importance of
of global
global awareness
awareness
4.
4. The
The progression
progression of
of becoming
becoming aa global
global marketer
marketer
5.
5. The
The importance
importance of
of the
the self-reference
self-reference criterion
criterion (SRC)
(SRC) in
in
international
international marketing
marketing
Preface
“Never
“Never before
before in
in American
American history
history have
have U.S.
U.S. businesses,
businesses, large
large
and
and small,
small, been
been so
so deeply
deeply involved
involved inin and
and affected
affected by
by
international
international business.
business. AA global
global economic
economic boom,
boom, unprecedented
unprecedented
in
in modern
modern economic
economic history,
history, has
has been
been under
under way
way as
as the
the drive
drive for
for
efficiency,
efficiency, productivity,
productivity, and
and open,
open, unregulated
unregulated markets
markets sweeps
sweeps
the
the world.
world. Powerful
Powerful economic,
economic, technological,
technological, industrial,
industrial, political,
political,
and
and demographic
demographic forces
forces are
are converging
converging to to build
build the
the foundation
foundation of of
aa new
new global
global economic
economic order
order on
on which
which the
the structure
structure of
of aa
one-world
one-world economic
economic andand market
market system
system will
will be
be built”
built”
(Cateora
(Cateora and
and Graham)
Graham)
Global Perspective: Recent Events
Information
Information technology
technology boom
boom of
of the
the late
late 1990s
1990s
The
The high-tech
high-tech bust
bust of
of 2001
2001
Enron
Enron and
and WorldCom
WorldCom scandals
scandals
September
September 11th
11th attacks
attacks on
on the
the World
World Trade
Trade Center
Center
and
and Pentagon
Pentagon
Wars
Wars in
in Afghanistan
Afghanistan and
and Iraq
Iraq
Global Perspective: Recent Events
International
International conflict
conflict among
among China,
China,
Taiwan,
Taiwan, and
and the
the United
United States
States
2003
2003 SARS
SARS outbreak
outbreak in
in Asia
Asia
Global
Global terrorism,
terrorism, e.g.,
e.g., Indonesia,
Indonesia, Israel,
Israel,
India,
India, and
and Morocco
Morocco
Transcending
Transcending these
these events,
events, international
international
commerce
commerce continued
continued
Global Business Trends
1.
1. The
The rapid
rapid growth
growth ofof the
the 2.
2. General
General acceptance
acceptance ofof the
the
World
World Trade
Trade Organization
Organization free
free market
market system
system among
among
and
and regional
regional free
free trade
trade developing
developing countries
countries in
in Latin
Latin
areas,
areas, e.g.,
e.g., NAFTA
NAFTA and and the
the America,
America, Asia,
Asia, and
and Eastern
Eastern
European
European Union
Union Europe
Europe
3.
3. Impact
Impact of
of the
the Internet
Internet and
and
other
other global
global media
media onon the
the 4.
4. Managing
Managing global
global
dissolution
dissolution of
of national
national environmental
environmental resources
resources
borders,
borders, and
and
Internationalization of U.S. Business
Increasing
Increasing globalization
globalization of
of Firms
Firms face
face competition
competition on
on
markets
markets all
all fronts
fronts
Many
Many U.S.
U.S. companies
companies are
are U.S.
U.S. firms
firms seeking
seeking foreign
foreign
now
now foreign
foreign controlled:
controlled:
Carnation
Carnation (Swiss),
(Swiss),
markets
markets to
to increase
increase profits
profits
Daimler-Chrysler
Daimler-Chrysler(German)
(German)
International Marketing: A Definition
International
International marketing
marketing is is defined
defined as
as the
the
performance
performance of of business
business activities
activities designed
designed to to plan,
plan,
price,
price, promote,
promote, and
and direct
direct the
the flow
flow of
of aa company’s
company’s
goods
goods and
and services
services toto consumers
consumers or or users
users in
in more
more
than
than one
one nation
nation for
for aa profit
profit
Marketing
Marketing concepts,
concepts, processes,
processes, and
and principles
principles are
are universally
universally
applicable
applicable all
all over
over the
the world
world
The International Marketing Task
Foreign Environment
(Uncontrollables)
7. Structure of 1. Competition
Distribution Domestic environment Environmental
(Uncontrollables) uncontrollables
country market A
(Controllables) 1. Competition
Price Product 2. Technology
5. Political- Target Environmental
Market 7
6. Geography and Legal uncontrollables
Infrastructure Promotion Place or 2 .Technology country
Distribution market B
4.
Culture Environmental
3. Economy
uncontrollable
5. Political- 3. Economy s
Legal country
4. market C
Culture
Environmental Adaptation Needed
Differences
Differences are
are in
in the
the uncontrollable
uncontrollable environment
environment of
of international
international
marketing
marketing
Firms
Firms must
must adapt
adapt to
to uncontrollable
uncontrollable environment
environment of
of international
international
marketing
marketing by
by adjusting
adjusting the
the marketing
marketing mix
mix (product,
(product, price,
price,
promotion,
promotion, and
and distribution)
distribution)
Continuum
Adaptation Standardization
(of Marketing Mix) (of Marketing Mix)
INFLUENCED BY 7 ENVIRONMENTAL FACTORS
Self-Reference Criterion (SRC)
and Ethnocentrism:Major Obstacles
2. Knowledgeable of:
(a) Culture, (b) History, (c) World Market Potential,
(d) Global Economic, Social and Political Trends
Stages of International Marketing
Involvement
In
In general,
general, firms
firms go
go through
through five
five different
different phases
phases in
in going
going
international:
international:
No
No Direct
Direct Foreign
Foreign Marketing
Marketing
Infrequent
Infrequent Foreign
Foreign Marketing
Marketing
Regular
Regular Foreign
Foreign Marketing
Marketing
International
International Marketing
Marketing
Global
Global Marketing
Marketing
Strategic Orientation: EPRG Schema
Orientation EPRG Schema
Multi-Domestic (Polycentric)
Marketing
4. Geocentric:
Regiocentric and Geocentric are synonymous with a Global
Marketing Orientation where a uniform, standardized
marketing strategy is used for several countries, countries in
a region, or the entire world