Matakuliah : J0474 International Marketing
Tahun
: 2009
The Scope and Challenge of
International Marketing
Chapter 1
Learning Outline
• International Marketing Defined
• The International Marketing Task
• Environmental Adaptation Needed
• The Self-Reference Criterion and Ethnocentrism
• Developing a Global Awareness
• Stages of International Marketing Involvement
• Strategic Orientation
• The Orientation of International Marketing
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International Marketing
Today, most business activities are global in scope.
Technology, research, capital investment, production,
marketing and communications networks all
have global dimensions.
The challenge of international marketing is
to develop strategic plans that are competitive
in the intensifying global markets.
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International Marketing
is the performance of business activities designed
to plan, price, promote and direct the flow of a company’s goods
and services to consumers or users in more
that one nation for a profit
What is difference
between the domestic
marketing and
international marketing?
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The International Marketing Task
Marketing Decision Factors
Aspects of the Domestic Environment
Aspects of the Foreign Environment
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The International Marketing Task
Political
Legal
forces
Cultural
forces Political
Legal
forces
Geography
And
infrastructure
Foreign environment
( Uncontrollable)
Domestic environment
(Uncontrollable)
( Controllable)
Firm Characteristics:
Product
Price
Promotion
Channel of distribution
Research
Economic climate
Economic
forces
Competitive
structure Competitive
forces
Level of
technology
Environmental
( uncontrollable elements)
Country market A
Environmental
( uncontrollable
elements)
Country market B
Environmental
( uncontrollable
elements)
Country market C
Structure of
distribution
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Environmental Adaptation Needed
The marketers must be able to interpret effectively the influence
and impact of each of the uncontrollable environmental elements
on the marketing plan for each foreign market
in which they hope to do business.
White is a symbol of mourning in
part of Asia, which is quite
different from Western culture’s
use of white for bridal gowns
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The Self-Reference Criterion (SRC)
and Ethnocentrism : Major Obstacles
A cross-cultural analysis
1. Define the business problem or goal in home-country cultural traits,
habits, or norms
2. Define the business problem or goal in foreign-country cultural traits,
habits or norms through consultation with natives of the target country.
Make no value judgments.
3. Isolate the SRC influence in the problem and examine it carefully
to see how it complicates the problem
4. Redefine the problem without the SRC influence and solve
for the optimum business goal situation.
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Developing a Global Awareness
To be globally aware is to have :
1. Tolerance of cultural differences
2. Knowledge of cultures, history, world market potential and
global economic, social and political trends.
Global awareness can built in organizations using
several approaches :
1. To select individual managers specifically for
their demonstrated global awareness.
2. Can also be obtained thought personal
relationships in other countries.
3. To have a culturally diverse senior executive
staff or board of directors.
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Stages of International Marketing Involvement
No Direct Foreign Marketing
Infrequent Foreign Marketing
Regular Foreign Marketing
International Marketing
Global Marketing
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Strategic Orientation
1. Domestic Market Extension Orientation
2. Multi domestic Market Orientation
3. Global Marketing Orientation
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The Orientation of International Marketing
A global orientation
views the globe as the
marketplace and market
segments are no longer based
solely on national borderscommon consumer
characteristics and
behaviors come into play as
key segmentation variables
applied across countries
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Summary
• The globalization of markets and competition necessitates all
managers to pay attention to the global environment
• The international marketing task is made more daunting because
environmental factors such as laws, customs and cultures vary
from country to country.
• Key obstacles facing international marketers are no limited to
environmental issues. Just as important are difficulties
associated with the marketer’s own self-reference criteria and
ethnocentrism.
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