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Lecture PPT Slides Chap 1

The document discusses several trends affecting international marketing, including technological failures, natural disasters, rising oil prices, and the COVID-19 pandemic. It then outlines the key aspects of international marketing, such as adapting marketing strategies to different cultural environments. Some of the main challenges discussed are overcoming self-reference criteria and ethnocentrism to avoid making assumptions based on one's home culture. The document emphasizes developing global awareness through cultural knowledge, tolerance of differences, and a diverse leadership team.

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Magruth Matehegena
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23 views

Lecture PPT Slides Chap 1

The document discusses several trends affecting international marketing, including technological failures, natural disasters, rising oil prices, and the COVID-19 pandemic. It then outlines the key aspects of international marketing, such as adapting marketing strategies to different cultural environments. Some of the main challenges discussed are overcoming self-reference criteria and ethnocentrism to avoid making assumptions based on one's home culture. The document emphasizes developing global awareness through cultural knowledge, tolerance of differences, and a diverse leadership team.

Uploaded by

Magruth Matehegena
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 16

International Marketing

Introduction (1 of 2)
• Events at the turn of the century:
– Technological bubble bust: e-business failures
– Terrorism, wars
– SARS outbreak - Asia,
– Natural disasters: cyclone, tsunami, flooding,
forest fires, earthquakes
– Price of oil at $100 a barrel
– NASA budget cuts threaten new discovery
– COVID 19 outbreak worldwide impact

1-2
Global Perspective
Global Commerce Causes Peace
• The role of world trade, exchange and
international marketing in producing
peace
• International marketing also promotes
peace and prosperity through the
marketing of products and services
that meet the needs and wants of
customers in other lands

1-3
Events and Trends
Affecting Global Business
• The rapid growth of WTO and NAFTA and EU
• Acceptance of the free market system among
certain developing countries in Latin America,
Asia, and Eastern Europe
• The burgeoning impact of the Internet, mobile
phones, and other global media
• The mandate to properly manage the resources
and global environment for the generations to
come

1-4
Internationalization

• Global markets are a necessity: why?


– Foreign earnings lead to higher profits
– Multinationals outperform domestic firms
– Global value increases
– Intensifying domestic competition

1-5
International Marketing

• 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 nations
for a profit.
• The difference is the “environment”

1-6
The International Marketing Task

1-7
Environmental Adaptation
• The most challenging and important adaptation
international marketers must make is cultural
adjustments.
• Must establish a frame of reference
– Time-conscious Americans vs. Time-is-not-an-
asset thinking Latin Americans
– Hand gestures vary between countries
• “Cultural Conditioning” – be aware of home
cultural references before making decisions

1-8
Obstacles to Adaptation
• Adaptation is a conscious effort on the part of
the international marketer to anticipate the
influences of both the foreign and domestic
uncontrollable factors on a marketing mix and
then to adjust the marketing mix to minimize
the effects.
• Two primary obstacles are:
– Self-Reference Criterion (SRC)
– Ethnocentrism

Roy Philip 1-9


Self-Reference Criterion
(SRC)
• Self-Reference Criterion (SRC) is an
unconscious reference to one’s own cultural
values, experiences, and knowledge as a basis
for decision.
• Risk 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

1-10
Ethnocentrism
• The 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

1-11
Beyond Obstacles
to Adaptation
• The most effective way to control the influence
of SRC and Ethnocentrism is:
– To recognize the effects on our behavior
– To recognize that there may be more similarities
than differences between countries
– To conduct cross-cultural analysis

1-12
Cross-Cultural Analysis
1. Define business problem or goal in home-
country cultural traits, habits, or norms
2. Define business problem or goal in foreign-
country cultural traits, habits, or norms through
consultation with natives of target country
3. Isolate the SRC influence and examine it
carefully to see how it complicates the problem
4. Redefine the problem without SRC influence and
solve for the optimum business goal situation

1-13
Developing
Global Awareness
• Tolerance of cultural differences
– You do not have to accept as your own the
cultural ways of another, but you must allow
others to be different and equal
• Knowledge of cultures, history, world market
potential, and global economic, social, and
political trends

1-14
Approaches to
Global Awareness
• Select individual managers that express a global
awareness orientation
• Develop personal relationships in foreign
countries
• Must have the support of a culturally diverse
senior executive staff or board of directors

1-15
International Marketing
Involvement - Stages

No Direct Infrequent Foreign


Foreign Marketing Marketing
Global
Marketing
Regular Foreign International
Marketing Marketing

1-16

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