Chapter 1: The scope and challenges of international marketing Flashcards
What factors led to international trade’s growth?
- Interdependence of world economies
- Globalization of production and consumption
- growth of regional free-trade areas
- More purchasing power throughtout the world
- Evolution of large emerging markets
- Availability of advanced methods communication and transportation.
What is economic change?
Change in economic conditions, such as growth or recession.
What is a definition of international marketing?
Performance of business activities that direct the flow of a company’s goods to consumers in more than one nation for profit.
What are some examples of foreign environment? (uncontrollables)
Political/ legal forces
- cultural forces
- geography and infrastructure
- structure of distribution
- levels of technology
- competitive forces
- economic forces
What are some examples of domestic-environment? (uncontrollables)
- Political/ legal forces
- Economic climate
- competitive structure
What are some examples of controllables?
- Price
- Positioning
- channels of distribution
- product
- Promotion
What must marketers do?
- be aware of the uncontrollable environmental elements in foreign markets.
- Avoid engaging in marketing relativism.
What is marketing relativism?
Basing marketing strategies and judgments on one’s own culture and experience.
To what could lead to considering one’s own conditions, values and norms while evaluating others?
- failure to recognize the need to take action
- Discounting another culture’s differences
- Reacting to a situation in a way that is offensive to one’s hosts.
What are the types of orientations to international marketing management?
- Domestic market extension orientation
- Multi-domestic market orientation
- global marketing orientation
By what does the EPRG schema classify firms?
It classifies them by orientation.
Ethnocentric, polycentric, regiocentric, or geocentric.
What are the characteristics of domestic market extension orientation?
- Domestic business is the priority
- Foreign sales are seen as a profitable extension of a domestic operation.
- Not much effort is expended to adapt the marketing mix to foreign markets
- Markets with demand similar to the home market are pursued.
How does the EPRG schema classify Domestic market extension firms?
As ethnocentric.
Whats the definition of multi-domestic market orientation?
It firmly believes that country markets are vastly different, warranting an independent programme for each country.
What are some characteristics of multi-domestic market-orientated firms?
- Subsidiaries operate independently
- Domestic market and each of the country markets have separate marketing mixes.
- products, advertising campaigns, pricing and distribution decisions are localized.
- Control is decentralised
How are firms with the multi-domestic market orientation are classified by the EPRG schema?
As polycentric
What is the definition of global marketing orientation?
The firm’s marketing activity is global and its market coverage is the world.
What are some characteristics of the Global Marketing Orientation?
- Standardized product is developed to be sold at a similar price to a global market.
- Pricing, advertising, or distribution channels may differ in different markets.
- Market segments with similar demands for the same basic product the world over are targeted.
How are global marketing orientation firms classified by the EPRG schema?
As geocentric or regiocentric.
What does marketing internationally entail?
- Looking for market segments that can be satisfied with the same product.
- Standardising certain components of the marketing mix if possible.
- Adapting the marketing mix to suit the country’s culture in which one is operating
What does developing culture awareness require?
- Objectivity
- Tolerance towards cultural differences
- Knowledge of: cultures, history, world market potential, global economic, social and political trends.
What are some characteristics of members of a global culture?
- educated
- connected
- pragmatic
- Unintimidated by national boundaries and cultures
- flexible and open
- Tolerant and more approving of others
What is the free-trade area?
Where products can move freely, without tariffs and restrictions
What is the ASEAN?
Fourth biggest trade area of the world comprising 10 Southeast Asian countries
What is APEC?
Asia Pacific cooperation among 21 member states that promotes free trade and economic cooperation between members
What is the Self-reference criterion (SRC)?
Considering our own conditions, values, and norms while evaluating others.
