1 the Scope and Challenge of International Marketing

1-0Cateora & Ghauri, International Marketing, European Edition, © 1999 McGraw-Hill

INTERNATIONAL MARKETING

The Scope and Challenge of International Marketing

International marketing

Is it not just marketing? Is marketing the same however you apply it? The answer is YES! When marketing in an international context we

simply have some additional variables and extra complexities to take into consideration

The basic fundamental concepts of modern marketing are the same

We simple have to learn to apply these concepts in an international context.

Main Points about the subject

Marketing environment-the business environment can be divided into the domestic and overseas environments

Each country or region will have its own environmental factors

Some environmental factors will be world factors Culture- one of the main environmental factors Standardisation V’s adaptation

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Political/legalforces

Economicforces

Competitivestructure

CompetitiveForces

Level of Technology

Price Product

PromotionChannels of distribution

Geography and

Infrastructure

Foreign environment(uncontrollable)

Structure ofdistribution

Economic climate

Cultural forces

Political/legal

forces

Domestic environment(uncontrollable)

Marketing(controllable)

The International Marketing Task

Environmentaluncontrollablescountry market A

Environmentaluncontrollablescountry market B

Environmentaluncontrollablescountry market C

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CompetitiveForces

Level of Technology

Price Product


Geography and

Infrastructure



Economic climate

Cultural forces

Political/legal

forces



The international marketer must deal with two levels of uncontrollable uncertainty

E

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Level of Technology

Price Product


Geography and

Infrastructure



Economic climate

Cultural forces

Political/legal

forces



The international marketer must deal with two levels of uncontrollable uncertainty

E

C

Each foreign country in which a company operates adds its own unique set of uncontrollables

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Economicforces





CompetitiveForces

Level of Technology

Price Product


Geography and

Infrastructure



Economic climate

Cultural forces

Political/legal

forces

Domestic environment

Marketing controllables

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Economicforces




Competitive structure

CompetitiveForces

Level of Technology

Price Product


Geography and

Infrastructure



Economic climate

Cultural forces

Political/legal forces


Domestic uncontrollables

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Economicforces




Competitivestructure Competitive

Forces

Level of Technology

Price Product


Geography and

Infrastructure


Economic climate

Cultural forces

Political/legal

forces



Foreign uncontrollables

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Economicforces





CompetitiveForces

Level of Technology

Price Product


Geography and

Infrastructure



Economic climate

Cultural forces

Political/legal

forces



CULTURAL ELEMENTS

THIS IS JUST AN EXAMPLE TO ILLUSTRATE ONE DIMENSION OF CULTURE-SPACE

DIFFERENT CULTURES RELATE TO SPACE DIFFERENTLY

SOME CULTURES BUSINESS NEGOTIATION CARRIED OUT VERY CLOSE

SOMEONE FROM WEST MIGHT FIND THIS HARD TO DEAL WITH

THE SIGNIFICANCE OF SPACE IS A CULTURAL PHENOMENON

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Four Circles of Intimacy

Public distance± 360–750 cmand beyond

Social distanceClose: ± 120–210 cmFar: ± 210–360 cm

Personal distanceClose: ± 45–60 cmFar: ± 60–120 cm

Intimate distanceClose: ± 0–15 cmFar: ± 15–45 cm

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International Marketing Concepts

Domestic market extension

Concept

Multi-domestic market

Global marketing

Ethnocentric

EPRG Schema

Polycentric

Regio/Geocentric

EPRG Scheme

Ethnocentric-treats all markets like your home market, no differentiation or adaptation

Polycentric-treats each overseas market as a separate ‘domestic’ market-a lot of adaptation for each country, no standardisation

Regiocentric-treats different regions as a different market segment and standardises as far as possible for the region-e.g. Europe, Asia

Geocentric-global marketing attempts as much standardisation as possible

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Being Globally Aware

To be globally aware is to be:

Objective

Tolerant of cultural differences

Knowledgeable of:

• Cultures

• History

• World market potentials

• Global economic, social and political trends

Globalisation

Some say the world is becoming more homogeneous

Convergence of cultures Main relating to material culture Not so much with political culture With material culture American materialism

seems to be the dominant thing American material culture spreading all over the

world Seems that at the end of the day we all want more

or less the same thing

Globalisation

Adam Smith ‘free trade’ ‘The wealth of Nations’ David Ricardo Theory of Comparative Advantage Henry Ford specialisation of labour All of the above are part of the rationale for

international trade and global markets Total world GDP increases by trade Total world material wealth increases by trade If you equate material wealth with total human

welfare then total welfare increases.

DISCUSS AT TUTORIAL Globalisation can bring many benefits! -

What are they? Globalisation can bring many problems! -

What are they? Could there ever be a single world

government? Could there ever be a single world

currency? What would be the commercial advantages

of a single world currency?

Documents

1 the Scope and Challenge of International Marketing