Chapter01-1 of me

8/17/2019 Chapter01-1 of me

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International Marketing15th edition

Philip R. Cateora, Mary C. Gilly, and John L. GrahamCopyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin


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International Marketing

• International marketing is defined as theperformance of !siness acti"ities designed toplan, price, promote, and direct the flo#of a company$s goods and ser"ices tocons!mers or !sers in more than one nationsfor a profit.

• %he difference is the &en"ironment'

–Competition, legal restraints, go"ernment controls, #eather, fickle cons!mers, economic conditions,technological constraints, infrastr!ct!re concerns,c!lt!re, and political sit!ations.

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The International Marketing Task

Exhibit 1.3

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The International Marketing Task

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Marketing DecisionMarketing Decision

Marketing DecisionMarketing Decision Domestic EnvironmentDomestic Environment

Domestic EnvironmentDomestic Environment Foreign EnvironmentForeign Environment

Foreign EnvironmentForeign Environment

( )irm)irm

CharacteristicsCharacteristics( Prod!ctProd!ct

( PricePrice

( PlacePlace

( PromotionPromotion

( ResearchResearch

( Political forcesPolitical forces

( Legal forcesLegal forces( *conomic forces*conomic forces

( CompetitionCompetition

( Political forcesPolitical forces

( Legal forcesLegal forces( *conomic forces*conomic forces

( CompetitionCompetition

( Le"el ofLe"el of

technology technology

( Geography Geography

( C!lt!reC!lt!re


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Environmental Adaptation

• %he most challenging and important adaptationinternational marketers m!st make is c!lt!ralad+!stments.

•

M!st estalish a frame of reference – %imeconscio!s -mericans "s. %imeisnotan

asset thinking Latin -mericans

– and gest!res "ary et#een co!ntries

• &C!lt!ral Conditioning' / e a#are of homec!lt!ral references efore making decisions

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Obstacles to Adaptation

• -daptation is a conscio!s effort on the part ofthe international marketer to anticipate theinfl!ences of oth the foreign and domestic!ncontrollale factors on a marketing mi0 andthen to ad+!st the marketing mi0 to minimiethe effects.

• %#o primary ostacles are2

–3elfReference Criterion 43RC

– *thnocentrism

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el!"Re!erence #riterion$R#%

• 3elfReference Criterion 43RC is an!nconscio!s reference to one$s o#n c!lt!ral "al!es, e0periences, and kno#ledge as a asisfor decision.

• Risk of 3RC2

– Pre"ent yo! from ecoming a#are of c!lt!raldifferences

– Infl!ence the e"al!ation of the appropriatenessof a domestically designed marketing mi0 for aforeign market

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Ethnocentrism

• %he notion that people in one$s o#n company,c!lt!re, or co!ntry kno# est ho# to do things.

• Risk of *thnocentrism2

–

Impedes the aility to assess a foreign market inits tr!e light

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&eyond Obstaclesto Adaptation

• %he most effecti"e #ay to control the infl!enceof 3RC and *thnocentrism is2

– %o recognie the effects on o!r eha"ior

–

%o recognie that there may e more similaritiesthan differences et#een co!ntries

– %o cond!ct crossc!lt!ral analysis

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#ross"#'lt'ral Analysis

1. 6efine !siness prolem or goal in homeco!ntry c!lt!ral traits, haits, or norms

7. 6efine !siness prolem or goal in foreignco!ntry c!lt!ral traits, haits, or norms thro!gh

cons!ltation #ith nati"es of target co!ntry 8. Isolate the 3RC infl!ence and e0amine it

caref!lly to see ho# it complicates the prolem

9. Redefine the prolem #itho!t 3RC infl!enceand sol"e for the optim!m !siness goalsit!ation

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Developing(lobal A)areness

• %olerance of c!lt!ral differences – :o! do not ha"e to accept as yo!r o#n the

c!lt!ral #ays of another, !t yo! m!st allo#others to e different and e;!al

•


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Approaches to(lobal A)areness

• 3elect indi"id!al managers that e0press a gloala#areness orientation

• 6e"elop personal relationships in foreign

co!ntries• M!st ha"e the s!pport of a c!lt!rally di"erse

senior e0ec!ti"e staff or oard of directors

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International MarketingInvolvement " tages

No DirectForeign Marketing

No DirectForeign Marketing

Infrequent ForeignMarketing

Infrequent ForeignMarketing

Regular ForeignMarketing

Regular ForeignMarketing

InternationalMarketing

InternationalMarketing

GlobalMarketingGlobal

Marketing

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*o Direct ForeignMarketing + Reactive

• Prod!cts &indirectly' reach foreign markets• %rading companies

• )oreign c!stomers #ho contact firm

•

6omestic #holesalers=distri!tors• >e orders

• )oreign orders stim!late a company$s interestto seek additional international sales

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In!re'ent ForeignMarketing + Reactive

• Ca!sed y temporary s!rpl!ses – 3ales to foreign markets are made as goods

ecome a"ailale

•

)irm has little or no intention of maintainingcontin!o!s market representation

• )oreign sales acti"ity declines and is #ithdra#n #hen domestic demand increases

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Reg'lar ForeignMarketing + Proactive

• 6edicated prod!ction capacity for foreignmarkets

• 3trategy2

–

)irm employs domestic or foreign intermediaries – ?ses its o#n sales force or sales s!sidiaries

• Prod!cts are adapted for foreign markets asdomestic demand gro#s

• )irms depend on profits from foreign markets

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International Marketing + Proactive

• )!lly committed and in"ol"ed in foreign marketsand international acti"ities

• Prod!ction takes place on foreign soil earning

firms the M@C 4M!ltinational Corporation title• )edders eing &proacti"e2'

– Looked to -sia for f!t!re gro#th after stymied?.3. sales

– 6esigned ne# types of air conditioner !nit for theChinese market

– Plan to introd!ce ne# prod!ct in the ?.3A

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(l b l M k i


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(lobal Marketing + Proactive

• %he firm sees the #orld as one marketA

• Market segmentation is no# defined y incomele"els, !sage patterns, or other factors that span

the gloe• More than half of its re"en!es come from aroad

• %he firm has a gloal perspecti"e

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(lobal Market Orientation

• %his orientation entails operating as if all the co!ntrymarkets in a company$s scope of operations 4incl!dingthe domestic market #ere approachale as a singlegloal market and standardiing the marketing mi0

#here c!lt!rally feasile and cost effecti"e.• 6epending on the prod!ct and market, firms may

p!rs!e a gloal market strategy for one prod!ct4gloal market orientation / PBG diapers !t a

m!ltidomestic strategy for another prod!ct4international market orientation PBG detergents.

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