Chapter 1

The Concept of

International Marketing

International Marketing Oxford University Press, 2005

All rights reserved

Globalization
Globalization of production

Globalization of markets

International Marketing Oxford University Press, 2005

All rights reserved

Globalization index
economic integration: trade, portfolio, foreign direct investment, and investment income personal integration: telephone, travel, remittances, and personal transfers technology integration: internet users, internet hosts, and secure internet services political integration: international organization, UN peacekeeping, treaties, and government transfers

International Marketing Oxford University Press, 2005

All rights reserved

Globalization index
Rank
1 2 3 4 5 6 7 8 9 10 61

(contd)

Country
Ireland Singapore Switzerland Netherlands Finland Canada United States New Zealand Austria Denmark India

International Marketing Oxford University Press, 2005

All rights reserved

Domestic marketing and international marketing decisions

Overseas Environmental Challenges (Uncontrollables) Domestic Environmental Challenges (Uncontrollables) Economic Economic (Controllables) Product Political

Marketing Challenges in country Y

Legal

Competition

Marketing Challenges in country X Place Political Marketing Challenges in country Z Political Competition

Consumer

Price Socio Cultural

Promotion Infrastructure Logistics

Legal

Geography

International Marketing Oxford University Press, 2005

All rights reserved

Reasons for entering international markets

growth profitability achieving economies of scale risk spread access to imported inputs uniqueness of product or servies marketing opportunities due to life cycle

spreading R&D cost

International Marketing Oxford University Press, 2005

All rights reserved

Evolutionary process of global marketing

Domestic marketing :
Marketing Focus Orientation domestic ethnocentric

Marketing Mix Decisions

focussed on domestic
customers

International Marketing Oxford University Press, 2005

All rights reserved

Evolutionary process (contd)

Export marketing:
Marketing Focus overseas (targeting and entering foreign markets) Orientation Marketing Mix Decisions ethnocentric focussed mainly on domestic customers overseas marketing-generally an extension of domestic marketing decisions made at headquarters
International Marketing Oxford University Press, 2005

All rights reserved

Evolutionary process (contd)

Multinational marketing:
Marketing Focus consolidation of operations on regional basis gains from economies of scale Orientation Marketing Mix Decisions regiocentric product standardization within

regions but not across the region

International Marketing Oxford University Press, 2005

All rights reserved

Adaptation
Step 1: Step 2:

Step 3:

Step 4:

Strategy to isolate self-reference criteria define the business problem or goal in terms of the home-country traits, habits or norms define the business problem or goal in terms of the foreign country cultural traits, habits, or norms isolate the SRC influence in the problem and examine it carefully to see how it complicates the problem redefine the problem without the SRC influence and solve for the optimum business goal situation

International Marketing Oxford University Press, 2005

All rights reserved

EPRG concept
ethnocentric orientation polycentric orientation regiocentric orientation geocentric orientation

International Marketing Oxford University Press, 2005

All rights reserved

Theories of international trade

theory of mercantilism

theory of absolute advantage

theory of comparative advantage factor endowment theory theory of international product life cycle theory of competitive advantage

International Marketing Oxford University Press, 2005

All rights reserved