MKTG 3780 International Marketing Aug.23

MKTG 3780
International Marketing
Aug.23
Agenda
Course Administration: Syllabus
Introduction to International Marketing

Instructor Information
Dr. Min Ju
Office: ABH 224

Phone: 314-516-4075
Email: [email protected]
What about you?
What is International Marketing?
What is Marketing?
1
What is International Marketing?

International Marketing 1
International marketing is defined as the

performance of business activities designed to
plan, price, promote, and direct the flow
of a companys goods and services to
consumers or users in more than one nations
for a profit.
The difference is the environment
Competition, legal restraints, government controls,
weather, fickle consumers, economic conditions,
technological constraints, infrastructure concerns,
culture, and political situations.
Roy Philip 1-8

1
The International Marketing Task
Exhibit 1.3
1-9
1
What now?
Cross-border flow of products, services, capital,

ideas, and people
Complex environment
Managing cross-cultural differences
Firm strategy; collaborative ventures
Market opportunity analysis
Intl market entry modes
Themes to Address: Globalization
1
Globalization is best characterized as a force that

connects national economies, a macro concept;
industries are also globalizing
Internationalization of the individual firm is a

direct consequence of globalization
Globalization can be studied as a driver, process, or
consequence
Globalization brings about both convergence and
divergence
It has profound implications for international
marketing
IM is Paramount to Firm Competitive Advantage
1
The enterprise has no choice but to consider the

implications of globalization and respond to
opportunities
IM is a two-way street; there are opportunities both in
outbound (exporting and FDI) and inbound (sourcing)
activities
No firm can escape
Accentuates the importance of inter-firm collaboration
and partnering skills
Corporate boundaries are becoming blurrier; networks of
suppliers, producers, and customers emerge
Global Perspective 1
Global Commerce Causes Peace
The role of world trade and international
marketing in producing peace
International marketing promotes peace and

prosperity through the marketing of products
and services that meet the needs and wants of
customers in other lands
Roy Philip 1-13

Events and Trends 1
Affecting Global Business
The rapid growth of the World Trade
Organization (WTO) and NAFTA and EU
The trend toward the acceptance of the free
market system among developing countries in
Latin America, Asia, and Eastern Europe
The burgeoning impact of the Internet, mobile
phones, and other global media on the
dissolution of national borders
The mandate to properly manage the resources
and global environment for the generations to
come
Roy Philip 1-14
Internationalization of 1
U.S. Business (1 of 2)
The world is one market increasing
globalization of markets
Sony, Norelco, Samsung, Honda, Toyota,
Nescafe
Many U.S. companies are foreign controlled
7-Eleven and Firestone Japan
Carnation Switzerland
Wall Street Journal Australia
Smith & Wesson Britain
Zenith (LG Electronics) South Korea
Roy Philip 1-15
Foreign Acquisitions 1
of U.S. Companies
Exhibit 1.1
Roy Philip 1-16

Internationalization of 1
U.S. Business (2 of 2)
Foreign companies are here to stay in the U.S.
and compete with U. S. companies
The great worldwide acquisitions both by U. S.
and foreign companies
Global markets are a necessity
Foreign earnings a higher percentage of profits
Multinationals outperform domestic firms
Global value increased through global
diversification
Intensifying domestic competition
Roy Philip 1-17

Selected U.S. Companies 1
and Their International Sales
Exhibit 1.2
Roy Philip 1-18

1
The International Marketing Task
Marketing Decision Domestic Environment Foreign Environment
Firm Political forces Political forces

Characteristics Legal forces Legal forces
Product Economic forces Economic forces
Price Competition Competition
Place Level of
Promotion technology
Research Geography
Culture
Roy Philip 1-19

Environmental Adaptation 1
The most challenging and important adaptation

international marketers must make is cultural
adjustments.
Must establish a frame of reference
Time-conscious Americans vs. Time-is-not-an-
asset thinking Latin Americans
Hand gestures vary between countries
Cultural Conditioning be aware of home
cultural references before making decisions
Roy Philip 1-20

Obstacles to Adaptation 1
Adaptation is a conscious effort on the part of

the international marketer to anticipate the
influences of both the foreign and domestic
uncontrollable factors on a marketing mix and
then to adjust the marketing mix to minimize
the effects.
Two primary obstacles are:
Self-Reference Criterion (SRC)
Ethnocentrism
Roy Philip 1-21

Self-Reference Criterion 1
(SRC)
Self-Reference Criterion (SRC) is an
unconscious reference to ones own cultural
values, experiences, and knowledge as a basis
for decision.
Risk of SRC:
Prevent you from becoming aware of cultural
differences
Influence the evaluation of the appropriateness
of a domestically designed marketing mix for a
foreign market
Roy Philip 1-22

Ethnocentrism 1
The notion that people in ones own company,

culture, or country know best how to do things.
Risk of Ethnocentrism:
Impedes the ability to assess a foreign market in
its true light
Roy Philip 1-23

Beyond Obstacles 1
to Adaptation
The most effective way to control the influence
of SRC and Ethnocentrism is:
To recognize the effects on our behavior
To recognize that there may be more similarities
than differences between countries
To conduct cross-cultural analysis
Roy Philip 1-24

Cross-Cultural Analysis 1
1. Define business problem or goal in home-

country cultural traits, habits, or norms
2. Define business problem or goal in foreign-
country cultural traits, habits, or norms
through consultation with natives of target
country
3. Isolate the SRC influence and examine it
carefully to see how it complicates the problem
4. Redefine the problem without SRC influence
and solve for the optimum business goal
situation
Roy Philip 1-25
Developing 1
Global Awareness
Tolerance of cultural differences
You do not have to accept as your own the
cultural ways of another, but you must allow
others to be different and equal
Knowledge of cultures, history, world market
potential, and global economic, social, and
political trends
Roy Philip 1-26

Involvement - Stages
No Direct Infrequent Foreign

Foreign Marketing Marketing
Global
Marketing
Regular Foreign International
Marketing Marketing
Roy Philip 1-27

No Direct Foreign 1
Marketing Reactive
Products indirectly reach foreign markets
Trading companies
Foreign customers who contact firm
Domestic wholesalers/distributors
Web orders
Foreign orders stimulate a companys interest
to seek additional international sales
Roy Philip 1-28

Infrequent Foreign 1
Marketing Reactive
Caused by temporary surpluses
Sales to foreign markets are made as goods
become available
Firm has little or no intention of maintaining
continuous market representation
Foreign sales activity declines and is
withdrawn when domestic demand increases
Roy Philip 1-29

Regular Foreign 1
Marketing Proactive
Dedicated production capacity for foreign
markets
Strategy:
Firm employs domestic or foreign intermediaries
Uses its own sales force or sales subsidiaries
Products are adapted for foreign markets as
domestic demand grows
Firms depend on profits from foreign markets
Roy Philip 1-30

Proactive
Fully committed and involved in foreign markets
and international activities
Production takes place on foreign soil earning
firms the MNC (Multinational Corporation) title
Fedders being proactive:
Looked to Asia for future growth after stymied
U.S. sales
Designed new types of air conditioner unit for the
Chinese market
Plan to introduce new product in the U.S!
Roy Philip 1-31
Global Marketing 1
Proactive
The firm sees the world as one market!
Market segmentation is now defined by income
levels, usage patterns, or other factors that span
the globe
More than half of its revenues come from abroad
The firm has a global perspective
Roy Philip 1-32

Global Market Orientation 1
This orientation entails operating as if all the

country markets in a companys scope of operations
(including the domestic market) were approachable
as a single global market and standardizing the
marketing mix where culturally feasible and cost
effective.
Depending on the product and market, firms may
pursue a global market strategy for one product
(global market orientation P&G diapers) but a
multidomestic strategy for another product
(international market orientation = P&G
detergents).
Roy Philip 1-33
Summary (1 of 2) 1
It is imperative for firms to pay attention to the

global environment in the wake of intense
globalization of markets and competition.
The difference between domestic marketing and
international marketing is the environment that
consist of laws, customs, and cultural
differences.
Key obstacles to successful international
marketing are self-reference criterion (SRC) and
Ethnocentrism
Roy Philip 1-34

Summary (2 of 2) 1
Global awareness and sensitivity are solutions to

the obstacles of SRC and ethnocentrism
Five different international marketing
involvement strategies were discussed: No direct
foreign marketing, infrequent foreign marketing,
regular foreign marketing, international
marketing, and global marketing
Firms must have global orientation the world
is seen as one market
Roy Philip 1-35

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MKTG 3780

Course Administration: Syllabus

Introduction to International Marketing

Office: ABH 224

What is International Marketing?

International marketing is defined as the

Roy Philip 1-8

Cross-border flow of products, services, capital,

Globalization is best characterized as a force that

Internationalization of the individual firm is a

The enterprise has no choice but to consider the

International marketing promotes peace and

Roy Philip 1-13

Roy Philip 1-16

Roy Philip 1-17

Roy Philip 1-18

Marketing Decision Domestic Environment Foreign Environment

Firm Political forces Political forces

Roy Philip 1-19

The most challenging and important adaptation

Roy Philip 1-20

Adaptation is a conscious effort on the part of

Roy Philip 1-21

Roy Philip 1-22

The notion that people in ones own company,

Roy Philip 1-23

Roy Philip 1-24

1. Define business problem or goal in home-

Roy Philip 1-26

No Direct Infrequent Foreign

Roy Philip 1-27

Roy Philip 1-28

Roy Philip 1-29

Roy Philip 1-30

Roy Philip 1-32

This orientation entails operating as if all the

It is imperative for firms to pay attention to the

Roy Philip 1-34

Global awareness and sensitivity are solutions to

Roy Philip 1-35

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