Int.mktg-Scope and Challenges
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Transcript of Int.mktg-Scope and Challenges
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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.