Title: Chapter 1: The Scope and Challenge of International Marketing
1Chapter 1 The Scope and Challenge of
International Marketing
2Global Perspective Recent Events
3Global Perspective Recent Events
4Global Business Trends
1. Growth of WTO and regional trade groups
2.. Global acceptance of free market system
3. Impact of the Internet on global communications
4. Threats of terrorism and armed conflict
5. Rise of new producers and consumers
6. Management of global environmental resources
5Internationalization of Business
Increasing globalization of markets
Firms face competition on all fronts
Many Canadian companies are foreign
controlled Tim Hortons (US), Labatt (Belgian)
Firms seeking foreign markets to increase profits
6Foreign Ownership of Canadian Companies
7Top 10 Global Companies
8The Globalization Debate
- Pro-Globalists
- Anti-Globalists
- Skeptics
- Transformationalists
9International Marketing A Definition
Marketing concepts, processes, and principles are
universally applicable all over the world.
10The International Marketing Task
Foreign Environment (Uncontrollables)
7
1. Competition
7. Structure of Distribution
Domestic environment (Uncontrollables)
Environmental uncontrollables country market A
1. Competition
(Controllables)
2. Technology
Price
Product
Target Market
Environmental uncontrollables country market B
5. Political- Legal
6. Geography and Infrastructure
2 .Technology
Promotion
Place
4. Culture
Environmental uncontrollables country market C
3. Economy
3. Economy
5. Political- Legal
4. Culture
11Environmental Adaptation Needed?
Firms may adapt to uncontrollable environments of
international marketing by adjusting the
marketing mix.
12Major Cultural Obstacles
- Self-Reference Criterion (SRC)
- an unconscious reference to ones own cultural
values, experiences, and knowledge as a basis for
decisions - Ethnocentrism
- the notion that ones own culture or company
knows best how to do things
13Avoiding the Self Reference Criterion
- 1. Define the business problem in home-country
cultural traits, habits, or norms. - 2. Define the business problem in foreign-country
cultural traits, habits, or norms. Make no value
judgments. - 3. Isolate the SRC Influence in the problem and
examine it carefully to see how it complicates
the problem. - 4. Redefine the problem without the SRC influence
and solve for the optimum business goal situation
14Developing a Global Awareness
- 1. Tolerant of Cultural Differences, and
- Knowledgeable of
- (a) Culture,
- (b) History,
- (c) World Market Potential,
- (d) Global Economic, Social and Political Trends
15Stages of International Marketing Involvement
In general, firms go through five different
phases in going international