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The Scope and Challenge of International Marketing
The Scope and Challenge of International Marketing
International Marketing
Chapter 1
Globalization of Markets
• Global Perspective:
• Boeing Company example
• Peace Works company example
• Recent events that have impacted international
marketing
• High tech and dot.com company bust in early 2000’s
• September 11th terrorist attacks in U.S.
• Wars in Afghanistan and Iraq
Globalization of Markets
• 4 Prevailing trends that have the most impact on
international business in the future:
1. Growth of the World Trade Organization and region
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•
free trade areas (NAFTA, European Union..)
• 2. Trend of developing countries (such as Asia, Latin
America, Eastern Europe) accepting the “free market
system”
• 3. Impact of the internet and other global media
companies (CNN)
• 4. Mandate for companies to properly manage
resources
Globalization of Markets
• Why international marketing is so important:
• Companies can no longer ignore the effects of
internationally marketing
• Competition no longer exists just from domestic companies
(exhibit 1.1 pg. 7)
• In order to sustain profitability and growth margins of the past,
companies have to look for alternative methods of marketing
their products and services
– “In a study conducted on U.S. manufacturing companies of all
sizes, it was found that multinational companies outperformed
their strictly domestic U.S. counterparts by more than twice as
fast in sales and earned much greater returns on equity and
assets..” (exhibit 1.2 pg. 9)
Globalization of Markets
• Definition of International Marketing:
• “The performance of business activities designed to plan, price,
promote and direct the company’s flow of goods and services to
•
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consumers or users in more than one nation for a profit” (4 P’s)
What is the difference between marketing
domestically and internationally
• Marketing concepts are universal (goal is to make a profit)
• Difference is that in international marketing ALL environments
have to be taken into consideration when the marketing plan is
developed and executed
• Must consider the legal environment, governmental controls, climate
& weather, cultural beliefs, buyer behavior… (uncontrollable
elements)
Strategic Approaches to
Marketing Internationally
• 1. Domestic Market Extension Orientation
• International markets are secondary to its domestic
markets
• 2. Multidomestic Market Orientation
• Each country has a specific and separate marketing plan
to adjust to differences
• 3. Global Marketing Orientation
• Marketing activities are global
• Strives for efficiencies of scale through standardization