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27 Cards in this Set
- Front
- Back
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Environmental Adaption |
Foreign marketers must constantly guard against measuring and assessing foreign markets against the fixed values and assumptions of their own cultures (their frame of reference). |
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Environmental Adaptation |
-the key to successful international marketing -a conscious effort on the part of the international marketer to anticipate the influences of both the foreign and domestic uncontrollable factors on a marketing mix and then to adjust the market mix to minimize the effects |
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Events and Trends affecting global business |
-natural disasters -wars and national conflict -advancement in info technology |
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current interest international marketing can be explained by |
-changing competitive structures -shifts in demand characteristics in markets throughout the world |
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International Marketing |
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 than one nation for a profit |
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International companies deal with |
-unfamiliar problems -different levels of uncertainty -molding the controllable elements of the marketplace within the framework of the uncontrollable elements in such a way that marketing objectives are achieved |
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Domestic VS. International Marketing |
-concepts, process, and principles are the same -Difference = environment within which marketing plans must be implemented |
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Domestic Environment Elements |
include home-country elements that can have a direct effect on the success of a foreign venture: political/legal forces, economic climate, and competition |
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Domestic Economic Forces |
-capacity to invest in plants and facilities in foreign markets -international economic conditions decrease, restrictions against foreign investment may imposed to strengthen the domestic economy |
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Domestic Competitive forces |
competition within home country affects domestic and international plans |
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Domestic Political and Legal Forces |
Direct effect on a firms international marketing success |
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Foreign Environment Elements |
Each foreign market in which the company does business presents separate problems involving some or all of the uncontrollable elements |
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Foreign Political and Legal Forces |
The Alien Status of a foreign business had 2 dimensions -it is alien in that foreigners control the business -the culture of the host country in alien to management |
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Alien Status |
when viewed as an outsider, a company can be seen as a exploiter and receive prejudiced or unfair treatment at the hands of politicians, legal authorities, or both |
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Cultural Adjustment |
most challenging and most important -adjust marketing efforts to cultures to which they are not attuned -be aware of frames of reference they are using in making decisions or evaluating the potential of the market |
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Self-Reference Criterion (SRC) |
is an unconscious reference to one's own cultural values, experiences, and knowledge is a basis for decisions |
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ethnocetrism |
is the belief that people in one's own company, culture, or country know best how to do things. |
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Self-Reference Criterion and Ethnocentrism |
impede the ability to assess a foreign market in its true light |
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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 3) Isolate the SRC influence in the problem and examine it carefully to see how ti complicates the problem 4) Redefine the problem without the SRC influence and solve for the optimum business goal situation |
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Global Awareness |
-Tolerance of cultural differences -knowledge of cultures, history, world market potential, and global economic, social, and political trends |
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Tolerance |
understanding cultural differences and accepting and working with others whose behaviors may be different from yours |
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Global Awareness |
involves knowledge of world market potentials and global economic, social, and political trends |
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No Direct Foreign Marketing |
-A company in this stage does not actively cultivate customers outside national boundaries; however, this company's products may reach foreign markets. -via domestic wholesalers/distributors who sell abroad without the knowledge of the producer -sales done by trading companies/foreign customers who directly contact the firm -products gain popularity to foreign buyers through websites |
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Infrequent Foreign Marketing |
-a company with temporary surpluses caused by variations in production levels or demand may send their products for marketing overseas -sales to foreign markets are made as goods become available -as domestic demand increases and absorbs surpluses, foreign sales are withdrawn |
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Regular Foreign Marketing |
-at this level, the firm has permanent productive capacity devoted to the production of goods and services to be marketed in foreign markets -the primary focus of operations and production is to service domestic market needs -as overseas demand grows, production is allocated for foreign markets |
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International Marketing |
-companies in this stage are fully committed to and involved in international marketing activities -seek markets all over the world and sell products that are a result of planned production for markets in various countries -planning generally entails not only the marketing but also the production of goods outside the home market |
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Global Marketing |
-at this level companies treat the world, including their home market, as one market -market segmentation decisions are no longer focused on national borders. Instead, market segments are defined by factors that frequently span countries and regions (by income levels, usage patterns). -more than half of sales revenues come from abroad |
