International Marketing: Understanding the Scope, Challenges, and Trends - Prof. Shuoyang , Study notes of International Management

Download International Marketing: Understanding the Scope, Challenges, and Trends - Prof. Shuoyang and more Study notes International Management in PDF only on Docsity! Chapter 1 The Scope and Challenge of International Marketing M401 International Marketing 1-2 What Should You Learn? The changing face of U.S. business The scope of the international marketing task The importance of the self-reference criterion (SRC) in international marketing The progression of becoming a global marketer Foreign Investment in the U.S. Increasing number of U.S. companies are foreign controlled $9.6 trillion in foreign investment in the U.S. $2.6 trillion more than American overseas investment Foreign direct investment (FDI) is defined as a long-term investment by a foreign direct investor in an enterprise resident in an economy other than that in which the foreign direct investor is based. Ls Foreign Acquisitions of U.S. Companies (Exhibit 1.1) U.S. Companies Firestone (tires) Ben & Jerry's (ice cream) Alpo (pet food) Burger King (fast food) Random House (publishing) TV Guide (magazine) The Wall Street Journal (newspaper) Oroweat (breads) Smith & Wesson (guns) RCA (televisions) Chef America ("Hot Pockets”and other foods) [IBM] ThinkPad (personal computers) Huffy Corp. (bicycles) Swift & Company (meatpacking) Barneys New York (retailer) Columbia Pictures (movies) Foreign Owner Japan U.K. Switzerland U.K. Germany Australia Australia Mexico U.K. France/China Switzerland China China Brazil Dubai Japan Exhibit 1.2 Percent Revenues from Company Outside the U.S. Wal-Mart 22.3% Ford Motor 46.1 General Electric 47.7 CitiGroup 42.6 Hewlett-Packard 65.0 Boeing 37.4 Intel >78.0 Coca-Cola >71.0 Apple ~40.0 Starbucks 17.0 Foreign Uncontrollable Political/legal forces Economic forces Cultural forces Competitive forces Geography/infrastructure Level of technology Structure of distribution Adaptation and Obstacles The most challenging and important adaptation international marketers must make is cultural adjustments. Two primary obstacles are: Self-Reference Criterion (SRC) Ethnocentrism The Self-Reference Criterion (SRC) and Ethnocentrism The key to successful international marketing is adaptation to the environmental differences from one market to another. Primary obstacles to success in international marketing: Self-Reference Criterion (SRC) is an unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decisions. Ethnocentrism is the notion that one’s own culture or company knows best how to do things. Approaches to Global Awareness Select individual managers that express a global awareness orientation Develop personal relationships in foreign countries Must have the support of a culturally diverse senior executive staff or board of directors 15 Stages of International Marketing No direct foreign marketing Infrequent foreign marketing Regular foreign marketing International marketing Global marketing No Direct Foreign Marketing Products reach foreign markets indirectly Trading companies Foreign customers who contact firm Wholesalers Distributors Web sites Foreign orders pique a company’s interest to seek additional international sales International Marketing Fully committed and involved in foreign markets and international activities Production takes place on foreign soil earning firms the MNC (Multinational Corporation) title Fedders being “proactive:” Looked to Asia for future growth after stymied U.S. sales Designed new types of air conditioner unit for the Chinese market 20 Global Marketing Company treats world, including home market as one market Market segmentation decisions no longer focused on national borders Defined by income levels, usage patterns, or other factors More than half of revenues come from abroad Organization takes on global perspective Next Class Chapter 2: The Dynamic Envornment of International Trade Disucssions on WSJ Thursday and Monday issues Country Presentation