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- International Marketi
ng 14th Edition
P h i l i p R. C a t e o r a
M a r y C. G i l l y
John L. Graham
The Scope and
Challenge
of International
Marketing
Chapter 1
McGrawHill/Irwin
International Marketing 14/e Copyright © 2009 by The McGrawHill Companies, Inc. All rights reserved.
- Chapter 1: What Should You Learn?
• 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
• The increasing importance of global awareness
• States of international marketing involvement
• Strategic orientation of international marketing
Copyright © 2009 by The McGrawHill Companies, Inc. All rights reserved. 1-2
Adapted by Hoa Pham
- Discussion
• What is Marketing? What is International Marketing?
• What are the most important and fundamental thing in
Marketing?
• Why doing business outside the firm’s country?
• What are the major advantages and disadvantages of
international marketing?
• Multinational Company vs. Global Company?
• Self-Reference Criterion vs. Ethnocentrism?
• Global Awareness
1-3
- 1.What is Marketing?
– The American Marketing Association: “Marketing is
an organizational function and a set of processes for
creating, communicating, and delivering value to
customers and for managing customer relationships
in ways that benefit the organization and its
stakeholders”.
– Essentially:
► Marketing deals with identifying and meeting human and social needs. It is
essentially about “meeting needs profitably.”
4
- Marketing – basic model
Target Need
Customers Physical
Emotional
Capability
Product
Price Value Competition
Place Quality
Promotion Price
Company Competitors
5
- What is Marketing Management?
Marketing management is the
art and science
of choosing target markets
and getting, keeping, and growing
customers through
creating, delivering, and communicating
superior customer value.
1- 6
- Marketing Management Tasks
• Develop market strategies and plans
• Capture marketing insights
• Connect with customers
• Build strong brands
• Shape market offerings
• Deliver value
• Communicate value
• Create long-term growth
7
- 2.International Marketing
• 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
1-8
- The International Marketing Task
Exhibit 1.3
1-9
- The International Marketing Task
Controllable factors
o Corporate resources, structures, and core
competencies that can limit or promote
strategic choices
o 4Ps, channels-of-distribution, research
activities to capitalize on anticipated demand
1-10
- The International Marketing Task
Aspect of foreign environment (uncontrollable)
o Economic forces
o Political and legal forces
o Cultural forces
o Competitive forces
o Level of technology
o Structure of distribution
o Geography and infrastructure
So how these factors impact on MNCs’
marketing strategy?
1-11
- The International Marketing Task
12
- The International Marketing Task
13
- The International Marketing Task
14
- Case 1-1 Starbucks – Going Global Fast
1. Identify the controllable and uncontrollable
elements that Starbucks has encountered in
entering global markets
2. What are the major sources of risk facing the
company and discuss potential solutions
3. Critique Starbucks’ overall corporate strategy
4. How might Starbucks improve profitability in
Japan?
1-15
- 3.SRC and Ethnocentrism
• SRC is an unconscious reference to
– One’s own cultural values, experiences, and
knowledge as a basis for decisions
• Dangers of the SRC
– Failing to recognize the need to take action
– Discounting the cultural differences that exist among
countries
– Reacting to a situation in an offensive to your hosts
• Ethnocentrism
– Notion that one’s own culture or company knows best
1-16
- SRC and Ethnocentrism
• Ethnocentrism and the SRC can influence an
evaluation of the appropriateness of a
domestically designed marketing mix for a
foreign market
• The most effective way to control the influence
of ethnocentrism and the SRC is to recognize
their effects on our behavior
1-17
- Environmental Adaptation
• Ability to effectively
interpret the influence and
impact of the culture in
which you hope to do
business
– Cultural adjustments
• Avoid measuring and
assessing markets against
the fixed values and
assumptions of your own
culture
1-18
- The Self-Reference Criterion
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
– SRC
– Associated ethnocentrism
– E.g., Pepsi Cola changed in name to Lehar Pepsi to
gain as much political and cultural support as possible
1-19
- STANDARDIZATION vs.
ADAPTATION
The Faces of CocaCola
Around the World
Arabic
Read right to left
Chinese
“delicious/happiness”
nguon tai.lieu . vn
