Int.mktg-Scope and Challenges

8/8/2019 Int.mktg-Scope and Challenges

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INTERNATIONAL MARKETING

Prof. Kiran Sharma

K.J.Somaiya Institute of Management Studies and

Research


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Global Perspective: Recent Events

Information technology boom of the late 1990s

Wars in Afghanistan and Iraq

September 11th attacks on the World TradeCenter and Pentagon

Enron scandal

The high-tech bust of 2001


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Global Perspective: Recent Events

2003 SARS outbreak in Asia

Global terrorism, e.g., Indonesia, London,India,and Pakistan

Transcending these events, internationalcommerce continued

International conflict among China,Taiwan, and the United States


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Global Business Trends

1. The rapid growth of the

World Trade Organizationand regional free trade

areas, e.g., NAFTA and the

European Union

2. General acceptance of the

free market system amongdeveloping countries in Latin

America, Asia, and Eastern

Europe

3. Impact of the Internet and

other global media on the

dissolution of national

borders

4. Managing global

environmental resources


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International Marketing: A Definition

International marketing is defined as the

performance of business activities designed to plan,

price, promote, and direct the flow of a companys

goods and services to consumers or users in more

than one nation for a profit

Marketing concepts, processes, and principles are universallyapplicable all over the world


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The International Marketing Task

7

3. Economy

1. Competition

1. Competition

2. TechnologyPrice Product

Promotion Place or

Distribution

6. Geography andInfrastructure

Foreign Environment

(Uncontrollables

)7. Structure ofDistribution

2. Economy

3. Political-Legal

Domestic environment(Uncontrollables)

(Controllables)

5. Political-Legal

4. Culture

Target

Market


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Environmental Adaptation Needed

Differences are in the uncontrollable environment of international

marketing

Firms must adapt to uncontrollable environment of international

marketing by adjusting the marketing mix (product, price,

promotion, and distribution)

Adaptation(of Marketing Mix)

Standardization(of Marketing Mix)

Continuum

INFLUENCED BY 7 ENVIRONMENTAL FACTORS


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Developing a Global Awareness

To be globally aware is to have:

1. Tolerance of Cultural Differences, and

2. Knowledgeable of:(a) Culture, (b) History, (c) World Market Potential,

(d) Global Economic, Social and Political Trends


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Stages ofInternational Marketing

Involvement

In general, firms go through five different phases in goinginternational:

Infrequent Foreign Marketing

No Direct Foreign Marketing

International Marketing

Regular Foreign Marketing

Global Marketing


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Generally, four distinctive approaches dominate strategic thinking ininternational marketing:

Strategic Orientation: EPRG Schema

1. Ethnocentric or Domestic Marketing Extension Concept:

2. Polycentric or Multi-Domestic Marketing Concept:

Opposite of ethnocentrism

Management believes that each country is unique and

allows each to develop own marketing strategies locally.

Leads to adaptation approach where products must beadopted in response to different market conditions.

Home country is superior to rest of the world.

Assumes that products and practices will succeed anywherein the world as they have been in home country.


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Generally, four distinctive approaches dominate strategic thinking ininternational marketing:

Strategic Orientation: EPRG Schema

3. Regiocentric:

4. Geocentric:

Company views the entire world as a potential market andstrives to develop integrated world market wherein a

uniform, standardized marketing strategy is used forseveral countries, countries in a region, or the entireworld.

A region becomes the relevant geographic unit.

Managements role is to develop an integrated regionalstrategy.

Int.mktg-Scope and Challenges

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