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International Marketing15th edition

Philip R. Cateora, Mary C. Gilly, and John L. Graham

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Internationalization ofU.. Business

•'oreign *ompanie+ are here to +tay in the )./.and *ompete with ). /. *ompanie+

• The great worldwide a*0-i+ition+ oth y ). /.and foreign *ompanie+

• Gloal market+ are a ne*e++ity 

 – 'oreign earning+ a higher per*entage of profit+

 – M-ltinational+ o-tperform dome+ti* firm+

 – Gloal al-e in*rea+ed thro-gh gloaldier+ifi*ation

 – Inten+ifying dome+ti* *ompetition

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International !ar"eting

• International marketing i+ defined a+ theperforman*e of -+ine++ a*tiitie+ de+igned toplan# price# pro$ote# and direct the flowof a *ompany+ good+ and +eri*e+ to*on+-mer+ or -+er+ in more than one nation+for a profit.

• The differen*e i+ the 2enironment3

 –

Competition, legal re+traint+, goernment *ontrol+, weather, fi*kle *on+-mer+, e*onomi* *ondition+,te*hnologi*al *on+traint+, infra+tr-*t-re *on*ern+,*-lt-re, and politi*al +it-ation+.

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The International !ar"eting Tas" 

 Exhibit 1.3

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elf%Reference &riterion'R&(

• /elf4Referen*e Criterion #/RC$ i+ an-n*on+*io-+ referen*e to one+ own *-lt-ral al-e+, eperien*e+, and knowledge a+ a a+i+for de*i+ion.

• Ri+k of /RC6

 – Preent yo- from e*oming aware of *-lt-raldifferen*e+

 – Infl-en*e the eal-ation of the appropriatene++of a dome+ti*ally de+igned marketing mi for aforeign market

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&ross%&ultural Analysis

1. 7efine -+ine++ prolem or goal in home4*o-ntry *-lt-ral trait+, hait+, or norm+

8. 7efine -+ine++ prolem or goal in foreign4*o-ntry *-lt-ral trait+, hait+, or norm+ thro-gh

*on+-ltation with natie+ of target *o-ntry 9. I+olate the /RC infl-en*e and eamine it

*aref-lly to +ee how it *ompli*ate+ the prolem

:. Redefine the prolem witho-t /RC infl-en*eand +ole for the optim-m -+ine++ goal+it-ation

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International !ar"etingInvolve$ent % tages

No DirectForeign Marketing

No DirectForeign Marketing

Infrequent ForeignMarketing

Infrequent ForeignMarketing

Regular ForeignMarketing

Regular ForeignMarketing

InternationalMarketing

InternationalMarketing

GlobalMarketingGlobal

Marketing

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Infre-uent +oreign!ar"eting , Reactive

• Ca-+ed y temporary +-rpl-+e+ – /ale+ to foreign market+ are made a+ good+

 e*ome aailale

•

'irm ha+ little or no intention of maintaining*ontin-o-+ market repre+entation

• 'oreign +ale+ a*tiity de*line+ and i+ withdrawn when dome+ti* demand in*rea+e+

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Regular +oreign!ar"eting , Proactive

• 7edi*ated prod-*tion *apa*ity for foreignmarket+

• /trategy6

 –

'irm employ+ dome+ti* or foreign intermediarie+ – )+e+ it+ own +ale+ for*e or +ale+ +-+idiarie+

• Prod-*t+ are adapted for foreign market+ a+dome+ti* demand grow+

• 'irm+ depend on profit+ from foreign market+

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International !ar"eting , Proactive

• '-lly *ommitted and inoled in foreign market+and international a*tiitie+

• Prod-*tion take+ pla*e on foreign +oil earning

firm+ the M%C #M-ltinational Corporation$ title• 'edder+ eing 2proa*tie63

 – Looked to &+ia for f-t-re growth after +tymied)./. +ale+

 – 7e+igned new type+ of air *onditioner -nit for theChine+e market

 – Plan to introd-*e new prod-*t in the )./<

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l b l " i

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Global !ar"eting , Proactive

• The firm +ee+ the world a+ one market<

• Market +egmentation i+ now defined y in*omeleel+, -+age pattern+, or other fa*tor+ that +pan

the gloe• More than half of it+ reen-e+ *ome from aroad

• The firm ha+ a gloal per+pe*tie

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Global !ar"et rientation

• Thi+ orientation entail+ operating a+ if all the *o-ntrymarket+ in a *ompany+ +*ope of operation+ #in*l-dingthe dome+ti* market$ were approa*hale a+ a +inglegloal market and +tandardi"ing the marketing mi

 where *-lt-rally fea+ile and *o+t effe*tie.• 7epending on the prod-*t and market, firm+ may

p-r+-e a gloal market +trategy for one prod-*t#gloal market orientation = P>G diaper+$ -t a

m-ltidome+ti* +trategy for another prod-*t#international market orientation ? P>G detergent+$.

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