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International Marketing

Overview-Importance

Growth

Basics

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Why market internationally?

Pull factors (attractiveness, approach) Trans-national segments

Growth of middle classes

Economies of scale or scope (for your firm)

Learning curves (for your firm) Market attractiveness

Management desire

Regional trade areas

Emerging markets Luck

?

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Why market internationally?

Push factors (avoidance, coercion) Market saturation

Inward globalization

Shorter product life cycles

Economies of scale or scope (for competitors)

Learning curves (for competitors)

?

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American Firms?

U.S. Companies Foreign Owner

Bestfoods (foods) U.K.

Ben & Jerrys (ice cream) U.K.

Alpo (pet food) Swiss

Pillsbury (food) U.K.

Burger King (fast food) U.K.

Random House (publishing) Germany

Chrysler (autos) Germany

TV Guide (magazine) Australia

New York Post (newspaper) Australia

LA Dodgers (sports) Australia

Arco (gasoline) U.K.

CompUSA (retailing) Mexico

Seagram (alcoholic beverages) France

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Uncertainty

Controllable elements - (always?)

Uncontrollable elements - (pp. 9-10)

Home country

Host country (alien status)

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PP

P P

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Economy

Technology

Social/

Culture

Political/

Legal

Competition

PP

P P

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Economy

Technology

Social/

Culture

Political/Legal

Competition

PP

P P

Customer

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Economy

Technology

Social/

Culture

Competition

PP

PP

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7

Political/legalforces

Economicforces

1

2

Environmentaluncontrollablescountry market A

Competitivestructure Competitive

Forces

Level ofTechnology

Price Product

PromotionChannels of

distribution

Geographyand

Infrastructure

Foreign environment(uncontrollable)

Structure ofdistribution

Economic climate

Cultural

forces

3

45

6

7Political/

legalforces

Domestic environment(uncontrollable)

(controllable)

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Adjusting to Foreign Markets

Enculturation/Acculturation Self-Reference Criterion (SRC)

Cross-cultural analysis

Global Awareness

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Choices/Stages of Intnl Mktg

(Mode of Entry)

Indirect Export Licensing

Direct Export

Cooperative (piggyback) exporting

Contract Manufacturing

Joint Venture

Wholly-owned subsidiary

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Levels of Involvement

No direct foreign marketing Infrequent

Regular

International

Global Marketing

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Orientations

Domestic Extension Multidomestic

Global Marketing

(definition on p.21)

EPRG

ethnocentric

polycentric

regiocentric

Geocentric

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Domestic Market

Extension (Ethnocentric)

Multi-Domestic Market (Polycentric)

Global Marketing (Regio/Geocentric)

Concept EPRG Schema