The Scope And Challenge Of International Marketing-PPT

Document Sample
The Scope And Challenge Of International Marketing-PPT Powered By Docstoc
					Chapter 1
1-0

The Scope and Challenge of International Marketing

© John Hadjimarcou, 2002

What Is International Marketing?
1-1

International Marketing is the performance of business activities designed to plan, price, promote, and direct the flow of a company’s goods and services to consumers or Users in more than one nation for profit.

© John Hadjimarcou, 2002

Foreign Acquisitions of U.S. Companies
1-2

U.S. Company
Bestfoods (foods) Ben & Jerry’s (ice cream)
Alpo (pet food) Pillsbury (foods)

Foreign Owner
UK UK
Swiss UK

Burger King (fast food) Random House (publishing) Chrysler (autos)
TV Guide (magazine) NY Post (newspaper)

UK Germany Germany
Australia Australia

LA Dodgers (sports) Arco (gasoline) CompUSA (retailing)
Seagram (alcoholic beverages)

Australia UK Mexico
France
© John Hadjimarcou, 2002

Invented Here, Made Elsewhere
1-3

U.S. Invented Technology
Phonographs
Color TVs Audiotape Recorders
0% 1 0%

1%
1 0% 4 0%

9 0% 9 0%

1970 NOW
9 9%

Videotape Recorders
Machine Tools

1% 3 5% 9 9% 2 5%
8 9% 6 4%

Telephones Semiconductors
Computers
0 20

9 8% 7 4%

40

60

80

100

© John Hadjimarcou, 2002

Top 10 U.S. Global Players
1-4

Company

Foreign Revenues ($billion) 115.5 50.4 50.1 46.5 35.4 32.7

Foreign Foreign Revenues (% Profits (% of of total) total) 71.8 57.5 30.8 26.3 31.7 77.1 62.7 49.6 NA 55.3 22.8 54.1

Foreign Assets (% of total) 63.9 43.7 44.2 38 47.4 45.2

Exxon Mobil IBM Ford Motor GM GE Texaco

Citigroup HP Wal-Mart Compaq

28.7 23.4 22.7 21.2

35.1 55.2 13.8 55

NA 58 8.2 101.4

41 51.5 36 28.2
© John Hadjimarcou, 2002

The International Marketing Task
1-5

Foreign environment (uncontrollable)

Political/legal forces

1
Domestic environment (uncontrollable) (controllable)

Economic forces

7
Cultural forces

Political/ legal forces

Competitive structure Competitive Forces

2

Price

Product
Channels of distribution

7

3

Environmental uncontrollables country market A Environmental uncontrollables country market B
Environmental uncontrollables country market C

Promotion

6
Geography and Infrastructure

Economic climate

Level of Technology

5

4
Structure of distribution

© John Hadjimarcou, 2002

Environmental Adaptation and the SelfReference Criterion
1-6

Key to successful marketing: adapting to the environmental differences from one market to another  Obstacle to adaptation: SRC


– SRC an unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decisions. – Ethnocentrism  the notion that one’s own culture or company knows best how to do things.


SRC and ethnocentrism influence decisions on the marketing mix.

© John Hadjimarcou, 2002

Cross Cultural Analysis to Isolate the SRC Influences
1-7

Step 1: Define the business problem or goal in homecountry cultural traits, habits, or norms. Step 2: Define the business problem or goal in foreign-country cultural traits, habits, or norms. Make no value judgements. Step 3: Isolate the SRC Influence in the problem and examine it carefully to see how it complicates the problem.
Step 4: Redefine the problem without the SRC influence and solve for the optimum business goal situation.*
*James A. Lee, “Cultural Analysis in Overseas Operations, “Harvard Business Review, March-April 1996, p.106-11.

© John Hadjimarcou, 2002

Being Globally Aware
1-8



To be Globally Aware is to be:
– Objective – Tolerant of Cultural Differences



Knowledgeable of:
– – – – Cultures History World Market Potentials Global Economic, Social and Political Trends

© John Hadjimarcou, 2002

Stages of International Marketing Involvement
1-9

 







No Direct Foreign Marketing: the company does not actively seek foreign customers. Infrequent Foreign Marketing: when surpluses are available, the company attempts to dispose them off in overseas markets. Regular Foreign Marketing: the company produces products for foreign markets on a permanent basis, but its priorities remain in the domestic market. International Marketing: the company is fully committed and involved in international marketing activities (production and marketing in foreign markets). Global Marketing: the company treats the world as one large market (incl. its own market).
© John Hadjimarcou, 2002

International Marketing Concepts
1-10

Concept
Domestic Market Extension Multi-Domestic Market

EPRG Schema (Ethnocentric)
(Polycentric)

Global Marketing

(Regio/Geocentric)

© John Hadjimarcou, 2002

Global Realities
1-11

 Political

independence  Economic interdependence

© John Hadjimarcou, 2002


				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:17362
posted:1/31/2008
language:English
pages:12