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Chapter 1

The Concept of

International Marketing

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Globalization

Globalization of production

Globalization of markets

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Globalization index

economic integration: trade, portfolio, foreign directinvestment, 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

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Globalization index (contd)

Rank Country

1 Ireland2 Singapore3 Switzerland4 Netherlands

5 Finland6 Canada7 United States8 New Zealand9 Austria

10 Denmark61 India

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Competition

Consumer

MarketingChallenges

in country Z

Marketing

Challenges

in country Y

MarketingChallenges

in country XPlace

Promotion

Price

(Controllables)

Product

Legal

Socio

Cultural

Competition

Political

Economic

Infrastructure

Domestic Environmental

Challenges

(Uncontrollables)

Political

Overseas Environmental

Challenges (Uncontrollables)

Legal

LogisticsGeography

Political

Economic

Domestic marketing and international marketing decisions

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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

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Evolutionary process of global marketing

Domestic marketing:Marketing Focus domestic

Orientation ethnocentric

Marketing Mix Decisions focussed on domestic

customers

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Evolutionary process (contd)

Export marketing:

Marketing Focus overseas (targeting and entering

foreign markets)

Orientation ethnocentric

Marketing Mix Decisions focussed mainly on domestic

customers

overseas marketing-generally an

extension of domestic marketing

decisions made at headquarters

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Evolutionary process (contd)

Multinational marketing:

Marketing Focus consolidation of operations on

regional basis

gains from economies of scale

Orientation regiocentric

Marketing Mix Decisions product standardization withinregions but not across the region

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Adaptation

Strategy to isolate self-reference criteria

Step 1: define the business problem or goal in terms ofthe home-country traits, habits or norms

Step 2: define the business problem or goal in terms ofthe foreign country cultural traits, habits, or

normsStep 3: isolate the SRC influence in the problem and

examine it carefully to see how it complicates theproblem

Step 4: redefine the problem without the SRC influenceand solve for the optimum business goal situation

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EPRG concept

ethnocentric orientation polycentric orientation

regiocentric orientation

geocentric orientation

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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