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MKTG 3361 - CH. 1: Scope & Challenge
Transcript of MKTG 3361 - CH. 1: Scope & Challenge
The Scope and Challenge of International Marketing
International Marketing Environment
Obstacles to adaptation
Self-Reference Criterion (SRC)
Unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decision
The notion that people in one’s own company, culture, or country know best how to do things.
International Marketing Involvement
Products “indirectly” reach foreign markets
Foreign customers who contact firm
Foreign orders stimulate a company’s interest to seek additional international sales
No Direct Foreign 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Firm has little or no intention of maintaining continuous market representation (Foreign sales activity declines and is withdrawn when domestic demand increases)
Infrequent Foreign Marketing – Reactive
Dedicated production capacity for foreign markets
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
Regular Foreign Marketing – Proactive
Fully committed and involved in foreign markets and international activities
Production takes place on foreign soil earning firms the MNC (Multinational Corporation) title
International Marketing – Proactive
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!
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
Global Marketing – Proactive
differences in infrastructure
Global village or local marketplaces ?
Standardization or Adaptation?
[1983: Dr. Levitt's "The Globalization of Markets" HBR article]
Think globally, act locally!
[Plan it globally and adapt locally accordingly]
Think locally, act globally!
[Plan it at a local level and then expand/apply it globally]
[A conscious marketer's effort to anticipate the influence of both, foreign and domestic, uncontrollable factors and adjust the marketing mix accordingly]
India: McAloo Tikka (potato burger)
Use of slang nicknames: Macky D's (UK), Macca's (Australia), Mäkkäri (Finland), MakDo/McDo (Philippines/France)
Slogan: "I'm lovin' it"
France: "Venez comme vous êtes" ("Come as you are")
Creative strategy: sexual freedom and rebellion
Free-standing restaurants in high-traffic areas
Switzerland: themed dining cars on the national rail system. India: Home delivery
Big Mac Average Price is $3.54 (USA)
Norway: $5.79. China: $1.83.
Why companies seek foreign markets
to orders from abroad
To increase sales and profits, when their
: Crisis, Trade agreement
customers who move
of a domestic product (TV series)