1. concept international marketing
TRANSCRIPT
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International Marketing Oxford University Press, 2005 All rights reserved
Chapter 1
The Concept of
International Marketing
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International Marketing Oxford University Press, 2005 All rights reserved
Globalization
Globalization of production
Globalization of markets
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International Marketing Oxford University Press, 2005 All rights reserved
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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International Marketing Oxford University Press, 2005 All rights reserved
Evolutionary process of global marketing
Domestic marketing:Marketing Focus domestic
Orientation ethnocentric
Marketing Mix Decisions focussed on domestic
customers
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International Marketing Oxford University Press, 2005 All rights reserved
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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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 regiocentric
Marketing Mix Decisions product standardization withinregions but not across the region
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International Marketing Oxford University Press, 2005 All rights reserved
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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International Marketing Oxford University Press, 2005 All rights reserved
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