The International Marketing Imperative What is International Marketing

The International Marketing Imperative

What is International Marketing? w “…the process of planning and conducting transactions across national borders to create exchanges that satisfy the objectives of individuals and organizations”

Key International Marketing Questions w w w How will my product or service fit into the international market? What marketing adjustments are or will be necessary? What global competitive threats should I expect? How can I work with these threats and turn them into opportunities? What are my strategic global alternatives?

The Importance of World Trade w w w World trade has grown from $200 billion to more than $5 trillion in the past three decades. The Iron Curtain is gone and capitalism has replaced the old economic doctrines. Firms invest on a global scale. Increasingly more difficult to define “where” products come from. New trading blocs are emerging.

Global Linkages Global linkages bind countries, institutions, and individuals more closely than ever. World trade opens up entirely new business horizons.

Domestic Policy Repercussions Influences in the U. S. w w w 1 out of every 3 U. S. farm acres is producing for export 1 out of 6 U. S. manufacturing jobs produces for export $1 out of $7 in U. S. sales goes abroad 1 out of 3 cars, 9 out of 10 TVs, 2 out of 3 suits, and every VCR sold in the U. S. is imported Travel & Tourism is the #1 source of U. S. foreign exchange. $1 out of $4 of U. S. bonds & notes is issued to foreigners.

Opportunities and Challenges of International Marketing w Change and discontinuity requires active responses. International activity may be crucial to a firm’s survival and growth. International opportunities require careful exploration. Firm’s and individuals must be capable of adapting to the environment. Isolation is impossible today. w The Marketing Process w w • Analysis • Planning • Implementation

Geographical Perspectives on International Marketing w w w Location Place • Human Features • Population • Built environment • Natural Features • Geologic characteristics • Climate Interaction Movement Region

The International Trade Organization (ITO) - 1948 Transnational Institutions Affecting World Trade General Agreement on Tariffs and Trade (GATT) World Trade Organization (WTO) International Monetary Fund (IMF) World Bank Regional Institutions

Making Culture Work For Your Success w w w w Embrace Local Culture Employ Locals to Gain Cultural Knowledge Build Relationships Adapt Products to Local Markets Culture Defined: … “a template of living” Acculturation“…adjusting or adapting to a culture other than one’s own. . . and one of THE major keys to success in international operations!” Cultural Context: High context culture - Low context culture Change Agent: “An entity that introduces new products or ideas or practices”.

Elements of w culture w • • • w Language Nonverbal language Religion Values and attitudes Manners and customs Material elements Aesthetics Education Social institutions Sources of Cultural Knowledge • Experiential knowledge • Interpretive knowledge Training Process Area studies Cultural assimilator Sensitivity training Field experience The Self-Reference Criterion is the Basis of Most International Business Problems!