8/3/2019 International Marketing Chap01
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M.N. Elahee
Chapter Learning Objectives
1. The Distinction between Domestic and Global
Marketing
1. The Distinction between Domestic and GlobalMarketing
2. The scope of the Global marketing task
2. The scope of the Global marketing task
3. US and the World - The increasing importance of
global awareness
3. US and the World - The increasing importance of
global awareness
4. The progression of becoming a global marketer
4. The progression of becoming a global marketer
5. Major Concerns of International Marketers
5. Major Concerns of International Marketers
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Preface
“Never before in American history have U.S. businesses, largeand small, been so deeply involved in and affected by
international business. A global economic boom, unprecedented
in modern economic history, has been under way as the drive for
efficiency, productivity, and open, unregulated markets sweeps
the world. Powerful economic, technological, industrial, political,
and demographic forces are converging to build the foundation of
a new global economic order on which the structure of a
one-world economic and market system will be built”
(Cateora and Graham)
“Never before in American history have U.S. businesses, large
and small, been so deeply involved in and affected by
international business. A global economic boom, unprecedented
in modern economic history, has been under way as the drive for
efficiency, productivity, and open, unregulated markets sweeps
the world. Powerful economic, technological, industrial, political,
and demographic forces are converging to build the foundation of a new global economic order on which the structure of a
one-world economic and market system will be built”
(Cateora and Graham)
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Global Perspective: Recent Events
Growing uncertainties and potential foreconomic growth
Growing uncertainties and potential foreconomic growth
Wars in Afghanistan and Iraq and growing anti-Americanism
Wars in Afghanistan and Iraq and growing anti-Americanism
September 11th attacks on the World Trade Center and Pentagon
September 11th attacks on the World Trade Center and Pentagon
Stalled Talks at the Doha Round of WTO
Stalled Talks at the Doha Round of WTO
The housing meltdown in the US and itsimpact on other countries
The housing meltdown in the US and itsimpact on other countries
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M.N. Elahee
Global Business Trends
1. The rapid growth of the
World Trade Organizationand regional free trade
areas, e.g., NAFTA and the
European Union
1. The rapid growth of the
World Trade Organization
and regional free trade
areas, e.g., NAFTA and the
European Union
2. General acceptance of the
free market system amongdeveloping countries in Latin
America, Asia, and Eastern
Europe
2. General acceptance of the
free market system among
developing countries in Latin
America, Asia, and Eastern
Europe
3. Impact of the Internet andother global media on the
dissolution of national
borders, and
3. Impact of the Internet and
other global media on the
dissolution of national
borders, and
4. Managing global
environmental resources
4. Managing global
environmental resources
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M.N. Elahee
Internationalization of U.S. Business
Increasing globalization of
markets
Increasing globalization of
markets
Firms face competition on
all fronts
Firms face competition on
all fronts
Many U.S. companies arenow foreign controlled:Carnation (Swiss)
Amoco (UK)
Seven-Eleven (Japan)
Many U.S. companies arenow foreign controlled:Carnation (Swiss)
Amoco (UK)
Seven-Eleven (Japan)
U.S. firms seeking foreign
markets to increase profits
U.S. firms seeking foreign
markets to increase profits
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M.N. Elahee
8/3/2019 International Marketing Chap01
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M.N. Elahee
Top US Players in Int’l. Arena
ExxonMobil IBM General Electric
Boeing Dell Microsoft
Citigroup Goldman & Sachs
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International Marketing: A Definition
International marketing is defined as 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 a profit
International marketing is defined as 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 a profit
Marketing concepts, processes, and principles are universallyapplicable all over the world
Marketing concepts, processes, and principles are universallyapplicable all over the world
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The International Marketing Task
7
3. Economy
Environmentaluncontrollablescountry market A
Environmentaluncontrollablescountrymarket BEnvironmentaluncontrollablescountry
market C
1. Competition
1. Competition
2. TechnologyPrice Product
PromotionPlace orDistribution
6. Geography andInfrastructure
Foreign Environment(Uncontrollables)
7. Structure of Distribution
3. Economy
5. Political-Legal
Domestic environment(Uncontrollables)
(Controllables)
2.Technolo
gy4.Culture
5. Political-Legal
4.
Culture
Target
Market
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Developing a Global Awareness
To be globally aware is to have:To be globally aware is to have:
1. Tolerant of Cultural Differences, and
2. Knowledgeable of:(a) Culture, (b) History, (c) World Market Potential,
(d) Global Economic, Social and Political Trends
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Stages of International Marketing
Involvement
In general, firms go through five different phases in going
international:
In general, firms go through five different phases in going
international:
Infrequent Foreign MarketingInfrequent Foreign Marketing
No Direct Foreign MarketingNo Direct Foreign Marketing
International MarketingInternational Marketing
Regular Foreign MarketingRegular Foreign Marketing
Global MarketingGlobal Marketing
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Strategic Orientation: EPRG Schema
Orientation EPRG Schema
Domestic Marketing
Extension
Multi-DomesticMarketing
Global Marketing
(Ethnocentric)
(Polycentric)
(Regio/Geocentric)
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Generally, four distinctive approaches dominate strategic thinking ininternational marketing:
Strategic Orientation: EPRG Schema
1. Ethnocentric or Domestic Marketing Extension Concept:
2. Polycentric or Multi-Domestic Marketing Concept:
Opposite of ethnocentrism
Management of these multinational firms place importance
on international operations as a source for profitsManagement believes that each country is unique and
allows each to develop own marketing strategies locally
Home country marketing practices will succeed elsewhere
without adaptation; however, international marketing is
viewed as secondary to domestic operations
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Generally, four distinctive approaches dominate strategic thinking ininternational marketing:
Strategic Orientation: EPRG Schema
3. Regiocentric & Geocentric:
4. Geocentric:
Regiocentric and Geocentric are synonymous with a Global
Marketing Orientation where a uniform, standardized
marketing strategy is used for several countries, countries ina region, or the entire world
Under regiocentric view, business people assess markets in
terms of regions while under geocentrism, marketers see
the world as one market and develops a standardized
marketing strategy for the entire world
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Major Exports
% of total
Capital goods 45.8
Industrial supplies 30.5
Consumer goods 14.3
Automotive Vehicles
And Parts & Supplies 11.8
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Major Imports
% of total
Industrial supplies 36.5
Consumer goods 26.1
Capital Goods 25
Automotive Vehicles
and Parts & Supplies 15.4
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US Trade Balance
The US trade balance has been worseningover the years. In 2006, the merchandisetrade deficit for the US was over $829 billion
dollars.
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Major Markets for the US
Canada
Mexico
Japan
China
UK
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