Chapter 1: The scope and challenges of international marketing

Question 1

What factors led to international trade’s growth?

Answer 1

1. Interdependence of world economies
2. Globalization of production and consumption
3. growth of regional free-trade areas
4. More purchasing power throughtout the world
5. Evolution of large emerging markets
6. Availability of advanced methods communication and transportation.

Question 2

What is economic change?

Answer 2

Change in economic conditions, such as growth or recession.

Question 3

What is a definition of international marketing?

Answer 3

Performance of business activities that direct the flow of a company’s goods to consumers in more than one nation for profit.

Question 4

What are some examples of foreign environment? (uncontrollables)

Answer 4

Political/ legal forces

2. cultural forces
3. geography and infrastructure
4. structure of distribution
5. levels of technology
6. competitive forces
7. economic forces

Question 5

What are some examples of domestic-environment? (uncontrollables)

Answer 5

1. Political/ legal forces
2. Economic climate
3. competitive structure

Question 6

What are some examples of controllables?

Answer 6

1. Price
2. Positioning
3. channels of distribution
4. product
5. Promotion

Question 7

What must marketers do?

Answer 7

1. be aware of the uncontrollable environmental elements in foreign markets.
2. Avoid engaging in marketing relativism.

Question 8

What is marketing relativism?

Answer 8

Basing marketing strategies and judgments on one’s own culture and experience.

Question 9

To what could lead to considering one’s own conditions, values and norms while evaluating others?

Answer 9

1. failure to recognize the need to take action
2. Discounting another culture’s differences
3. Reacting to a situation in a way that is offensive to one’s hosts.

Question 10

What are the types of orientations to international marketing management?

Answer 10

1. Domestic market extension orientation
2. Multi-domestic market orientation
3. global marketing orientation

Question 11

By what does the EPRG schema classify firms?

Answer 11

It classifies them by orientation.

Ethnocentric, polycentric, regiocentric, or geocentric.

Question 12

What are the characteristics of domestic market extension orientation?

Answer 12

1. Domestic business is the priority
2. Foreign sales are seen as a profitable extension of a domestic operation.
3. Not much effort is expended to adapt the marketing mix to foreign markets
4. Markets with demand similar to the home market are pursued.

Question 13

How does the EPRG schema classify Domestic market extension firms?

Answer 13

As ethnocentric.

Question 14

Whats the definition of multi-domestic market orientation?

Answer 14

It firmly believes that country markets are vastly different, warranting an independent programme for each country.

Question 15

What are some characteristics of multi-domestic market-orientated firms?

Answer 15

1. Subsidiaries operate independently
2. Domestic market and each of the country markets have separate marketing mixes.
3. products, advertising campaigns, pricing and distribution decisions are localized.
4. Control is decentralised

Question 16

How are firms with the multi-domestic market orientation are classified by the EPRG schema?

Answer 16

As polycentric

Question 17

What is the definition of global marketing orientation?

Answer 17

The firm’s marketing activity is global and its market coverage is the world.

Question 18

What are some characteristics of the Global Marketing Orientation?

Answer 18

1. Standardized product is developed to be sold at a similar price to a global market.
2. Pricing, advertising, or distribution channels may differ in different markets.
3. Market segments with similar demands for the same basic product the world over are targeted.

Question 19

How are global marketing orientation firms classified by the EPRG schema?

Answer 19

As geocentric or regiocentric.

Question 20

What does marketing internationally entail?

Answer 20

1. Looking for market segments that can be satisfied with the same product.
2. Standardising certain components of the marketing mix if possible.
3. Adapting the marketing mix to suit the country’s culture in which one is operating

Question 21

What does developing culture awareness require?

Answer 21

1. Objectivity
2. Tolerance towards cultural differences
3. Knowledge of: cultures, history, world market potential, global economic, social and political trends.

Question 22

What are some characteristics of members of a global culture?

Answer 22

1. educated
2. connected
3. pragmatic
4. Unintimidated by national boundaries and cultures
5. flexible and open
6. Tolerant and more approving of others

Question 23

What is the free-trade area?

Answer 23

Where products can move freely, without tariffs and restrictions

Question 24

What is the ASEAN?

Answer 24

Fourth biggest trade area of the world comprising 10 Southeast Asian countries

Question 25

What is APEC?

Answer 25

Asia Pacific cooperation among 21 member states that promotes free trade and economic cooperation between members

Question 26

What is the Self-reference criterion (SRC)?

Answer 26

Considering our own conditions, values, and norms while evaluating others.