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15/09/2015The Scope and Challenge ofInternational MarketingChapter 1McGraw-Hill/IrwinCopyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved.Learning ObjectivesLO1 The benefits of international marketsLO2 The changing face of U.S. businessLO3 The scope of the international marketing taskLO4 The importance of the self-reference criterion(SRC) in international marketingLO5 The increasing importance of global awarenessLO6 The progression of becoming a global marketer1-2Global Commerce Causes Peace Global commerce thrives during peacetime Economic boom in North America in the late 1990slargely due to the end of the cold war1-31

15/09/2015The Internationalization of U.S. BusinessesExhibit 1.1 Foreign Acquisitions of U.S. Companies, Sources: Compiled from annualreports of listed forms, 2012.1-41-5The International Marketing TaskFourOneThreeTwo1-62

15/09/2015Exhibit 1.2 Selected U.S. Companies andTheir International SalesSource: Compied from annual reports of listed firms, 20121-71-8Self-Reference Criterion & Ethnocentrism Self-Reference Criterion (SRC) is an unconsciousreference to one’s own cultural values, experiences,and knowledge as a basis for decisions. Ethnocentrism is the notion that people in one’s owncompany, culture, or country know best how to dothings. Both the SRC and ethnocentrism impede the abilityto assess a foreign market in its true light.1-93

15/09/2015Developing Global AwarenessTo be globally aware is to have: tolerance of cultural differences and knowledge of cultures, history, world marketpotential, and global economic, social, and politicaltrends1-10Stages of International MarketingInvolvement No Direct Foreign MarketingInfrequent Foreign MarketingRegular Foreign MarketingInternational MarketingGlobal Marketing1-11Factors Favoring FasterInternationalization Companies with either high technology and/ormarketing-based resources are better equipped tointernationalize than more traditional manufacturingcompanies (Tseng et. al., 2007) Smaller home markets and larger productioncapacities favor internationalization (Fan & Phan,2007) and Firms with key managers well networkedinternationally are able to accelerate theinternationalization process (Freeman and Cavusgil,2007)1-124

15/09/2015The Orientation of InternationalMarketing Environmental/cultural approach Relate the foreign environment to the marketingprocess Illustrate how culture influences the marketing task The cultural environment within which the marketermust implement marketing plans can changedramatically from country to country1-135

Infrequent Foreign Marketing Regular Foreign Marketing International Marketing Global Marketing 1-12 Factors Favoring Faster Internationalization Companies with either high technology and/or marketing-based resources are better equipped to internationalize than more traditional manufacturing companies (Tseng et. al., 2007)