Ch. 8 M.K Flashcards
International Marketing
Developing and performing marketing activities across national boundaries
o Provides growth opportunities
o Promotes innovation
o Fosters marketing of better, less expensive products
Environmental Forces in International Markets
- Sociocultural Forces
- Economic Differences Affecting International Marketing
- Political Legal and Regulatory Forces
- Social Responsibility and Ethics Forces
- Competitive Forces
- Technological Forces
Sociocultural Forces
o Beliefs and values about: • Family • Religion • Education • Health • Recreation
Economic Differences Affecting International Marketing
o Standards of living o Credit o Buying power o Income distribution o National resources o Exchange rates
Political Legal and Regulatory Forces
o Tariffs
o Embargo
o Quota
o Exchange Controls
Social Responsibility and Ethics Forces
Social Responsibility and Ethics Forces
Competitive Forces
Competitive Forces
Technological Forces
o Telecommunications (e-mail, cell phones, Internet) o Extent of technological infrastructure
Regional Trade Alliances, Markets, and Agreements
EU MERCOSUR APEC WTO NAFTA
The North American Free Trade Agreement (NAFTA)
An alliance that merges Canada, Mexico, and the United States into a single market
• Eliminates barriers
• Eases investment
• Simplifies trade
The European Union (EU)
An alliance that promotes trade among its member countries in Europe
• Market unification
• Common currency (euro)
• Economic efficiency
The Common Market of the Southern Cone (MERCOSUR)
An alliance that promotes the free circulation of goods, services, and production factors, and has a common external
tariff and commercial policy among member nations in South America
Asia-Pacific Economic Cooperation (APEC)
An alliance that promotes open trade and economic and technical cooperation among member nations throughout the world
World Trade Organization (WTO)
An entity that promotes free trade among member nations
• Provides legal ground rules for international commerce
and trade policy
Levels of Involvement in Global Marketing
Domestic Marketing
Limited Exporting
International Marketing
Globalized Marketing
Domestic Marketing
All marketing strategies focus on the market in the country of origin
Limited Exporting
The firm develops no international marketing strategies, but international distributors or foreign firms purchase some of its products
International Marketing
International markets are a consideration in the marketing strategy
Globalized Marketing
Marketing strategies are developed for major regions or the entire world so firms an compete globally
International Marketing Strategies
- Customization
* Globalization
Customization
Adjusting marketing mixes according to cultural, regional, and national differences
Globalization
The development of marketing strategies that treat the entire world (or its major regions) as a single entity
• Includes standardization of products, promotion campaigns, prices, and distribution channels
• “Think globally, act locally”
