Int.mktg-Scope and Challenges

download Int.mktg-Scope and Challenges

of 11

Transcript of Int.mktg-Scope and Challenges

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

    1/11

    INTERNATIONAL MARKETING

    Prof. Kiran Sharma

    K.J.Somaiya Institute of Management Studies and

    Research

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

    2/11

    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

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

    3/11

    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

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

    4/11

    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

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

    5/11

    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

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

    6/11

    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

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

    7/11

    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

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

    8/11

    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

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

    9/11

    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

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

    10/11

    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.

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

    11/11

    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.