International Marketing

benefits

Commerce cause Peace

economic boom in North America in late 1990's bcuz of the end of cold war

global commerce thrive in peacetime

Events & Trends Affecting Global Bus.

manage resources & global environment for the next generations

the effect of mushrooming Impact of the internet, mobiles & global media on the dissolution of national boarders

Acceptance of the free mrkt sys. among developing countries in latin America. Asia.& Eastern Europe

Emerging WTO,NAFTA & EU

changing face of U.S bus.

increasing globalization of market, comp. find themselves trapped with foreign competitors, cust, supp. within boarders

many U.S controlled by foreigners & came to stay in US & compete with US Comp.

necessity of global markets

higher percentage of profit

multinational outperform domestic ones

global value increased through global diversification

intensifying domestic competition

Scope of tasks

Intr. mrkt. is the performance of bus. activities designed to plan, price promote, direct the flow of comp. goods or services to cust. in more than one nation for a profit

difference in the Environment

Competition, legal restraints, government controls,
weather, fickle consumers, economic conditions,
technological constraints, infrastructure concerns,
culture, and political situations.

controllable

1.comp. Characteristics
2. Research
3.Marketing Mix (price - product - promotion - channel of distribution)

uncontrollable ( Domestic / foreign ) Environment

Domestic environment
1. political / legal forces
2.competitve structure
3.Economic climate

Foreign Environment
1.legal / political forces
2.Compititive forces
3. Economic forces
4.cultural forces
5.level of technology
6.structure of distribution
7.geography & infrastructure

Environmental Adaptaion

challenging adaptation in int.Mrkt. in Cultural adjustments

establish a frame of reference :
- Time conscious america vs opposite in latin america
- hand gestures

Cultural conditioning
be aware of home cultural references before making decisions

Obstacles to Adaptation

Adaptation is an effort from the international marketer to anticipate influence on the uncontrollable domestic and foreign factors on a marketing mix and then adjust the marketing mix to minimize the effect.

Obstacle 1
Self - Reference Criterion (SRC)

is an unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decisions.

Risks 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

Obstacle 2
Ethnocentrism

notion that people in one’s 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

a problem when managers from affluent countries
work with managers and markets in less affluent countries.

Importance of global Awareness

to be globally aware

knowledge of cultures, history, world market
poten/al, and global economic, social, and poli/cal
trends

tolerance of cultural differences

Beyond Obstacles
to Adaptation

to control the influence of adaptation obstacles: SRC-Ethnocentrism

recognize the effects on our behavior

recognize that there may be more similarities
than differences between countries

conduct cross-cultural analysis

(definig the problem in HOME )Define business problem or goal in homecountry cultural traits, habits, or norms

(the same as 1 but for foreign country but through consultants there)Define business problem or goal in foreign country cultural traits, habits, or norms
through consultation with natives of target
country

isolate the SRC and examine it to see how it complicates the problem

redefine the problem without the SRC influence & solve for the optimum business goal situation .

the progression of becoming a global marketer

steps toward becoming global marketer

No Direct Foreign Marketing Reactive

Products “indirectly” reach foreign markets ( trading comp. foreign contact/ domestic wholesalers-distributers/ web orders)

foreign order stimulate a compnay's interest in seeking int. sales

Infrequent Foreign Marketing –
Reactive

Caused by temporary surpluses

Firm has little or no intention of maintaining
continuous market representation

Regular Foreign
Marketing – Proactive

dedicate production for foreign markets

strategy use intermediaries -own sales force

Products are adapted for foreign markets while grows in domestic demand

depend on profits from foreign markets

International Marketing –
Proactive

committed in foreign markets

produce on foreign soil MNC title

Global Marketing – Proactive

sees the world as one market

market segments according to income , usage pattern

plus 50% of revenue comes from abroad

global market orientation

Domestic market extention orientation

common borders country EGY - LYB

multi-domestic marketing oreintation

Region like MENA

global marketing orientation

Global likel'oreal

Factors Favoring Faster
Internationalization

higher technology

marketing based resources

smaller home markets and larger production capacity

managers well networked internationally

The Orientation of International
Marketing

Environmental/cultural approach

relate the foreign env. to mrktng. mix

cultural enviroment influence the marketing mix

marketing plans that will be implemented in could change dramatically from country to country