International Marketing: Chapter 3 Key Concepts

Self-reference criterion

Major global population trends

Importance of history to international marketing

Importance of geography to international marketing

Impact of climate and topography

Global Demand

Determine today’s demand for goods– Rural/urban population shifts– Rates of growth– Age levels

Will profoundly affect future demand

Major Global Population Trends

Rural to urban migration– Education– Health care– Jobs

Population decline and aging– Developed countries– U.S., Germany, Japan, France

Worker shortage and immigration– Developed countries– U.S., Germany, Japan, France

Tomorrow’s Global Consumers:Urban Dwellers in Developing Countries

BY THE YEAR 2025:

70% of world’s population will live in urban areas

85% of the world’s population will be in developing countries – Africa– Asia– Latin America

History Provides Perspective

History helps define a nation’s mission

– How it perceives its neighbors– How it perceives itself– How it perceives its place in the world

Historical insights help us to understand contemporary attitudes

Important to study culture as it is now and as it was before

History is Very Subjective

History is viewed from one’s own self-reference criterion (SRC)

Different countries, different perceptions

Manifest Destiny and the Monroe Doctrine

Basis for U.S. foreign policy– 19th & 20th centuries

Manifest Destiny

Monroe Doctrine

Roosevelt Corollary

Geography and Global Markets

Geography

– an element of the uncontrollable environment

– affects a society’s culture and economy

– affects a nation’s ability to supply products

Climate and Topography

Climate and topography

– an element of the uncontrollable environment

– altitude, humidity, temperature extremes

History and Geography

The foundations of cultural understanding

History defines the “mission” of a country

Geography defines how a society’s culture and economy are affected by its physical makeup