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International Marketing

OverviewImportance Growth Basics

Why market internationally?


Pull factors (attractiveness, approach)
Trans-national segments Growth of middle classes Economies of scale or scope (for your firm) Learning curves (for your firm) Market attractiveness Management desire Regional trade areas Emerging markets Luck ?

Why market internationally?


Push factors (avoidance, coercion)
Market saturation Inward globalization Shorter product life cycles Economies of scale or scope (for competitors) Learning curves (for competitors) ?

American Firms?
U.S. Companies
Bestfoods (foods) Ben & Jerrys (ice cream) Alpo (pet food) Pillsbury (food) Burger King (fast food) Random House (publishing) Chrysler (autos) TV Guide (magazine) New York Post (newspaper) LA Dodgers (sports) Arco (gasoline) CompUSA (retailing) Seagram (alcoholic beverages)

Foreign Owner
U.K. U.K. Swiss U.K. U.K. Germany Germany Australia Australia Australia U.K. Mexico France

Uncertainty
Controllable elements - (always?)

Uncontrollable elements - (pp. 9-10)


Home country Host country (alien status)

P P

P P

Economy

Competition

Technology Social/ Culture

Political/ Legal

P P

P P

Economy

Competition

Technology Social/ Culture

Political/ Legal

P P

P P Customer

Competition Economy

PP
Technology Social/ Culture

PP

Foreign environment (uncontrollable) 1 Economic Political/legal forces forces Domestic environment (uncontrollable) Political/ legal Cultural forces forces

Competitive (controllable) structure Competitive Forces

Price

Product

Promotion Channels of
distribution

Environmental uncontrollables country market A

6
Geography and Infrastructure Level of Technology

Economic climate

5
Structure of distribution

Adjusting to Foreign Markets


Enculturation/Acculturation Self-Reference Criterion (SRC) Cross-cultural analysis Global Awareness

Choices/Stages of Intnl Mktg (Mode of Entry)


Indirect Export Licensing Direct Export
Cooperative (piggyback) exporting

Contract Manufacturing Joint Venture Wholly-owned subsidiary

Levels of Involvement
No direct foreign marketing Infrequent Regular International Global Marketing

Orientations
Domestic Extension Multidomestic Global Marketing
(definition on p.21)

EPRG
ethnocentric polycentric regiocentric Geocentric

Concept

EPRG Schema (Ethnocentric) (Polycentric) (Regio/Geocentric)

Domestic Market Extension


Multi-Domestic Market Global Marketing