International Marketing

15th edition

Philip R. Cateora, Mary C. Gilly, and John L. Graham

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Market:

An actual or nominal place where forces of

demand and supply operate, and where buyers
and sellers interact (directly or through
intermediaries) to trade goods, services, or
contracts or instruments, for money or barter.

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Customer need:

Problems that customers intend to solve with the

purchase of a good or service.

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Marketing:
The management process through which goods and
services move from concept to the customer. It includes the
coordination of four elements called the 4 P's of marketing:

(1) identification, selection and development of a product,

(2) determination of its price,
(3) selection of a distribution channel to reach the
customer's place, and
(4) development and implementation of a promotional
strategy.

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 Events and Trends
Affecting Global Business
The rapid growth of the World Trade
Organization (WTO) and NAFTA and EU
The trend toward the acceptance of the free
market system among developing countries in
Latin America, Asia, and Eastern Europe
The burgeoning impact of the Internet, mobile
phones, and other global media on the
dissolution of national borders
The mandate to properly manage the resources
and global environment for the generations to
come
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 Internationalization of
Vietnam Business
Foreign companies are here to stay in the
Vietnam and compete with Vietnam companies
The great acquisitions in Vietnam
Global markets are a necessity
Foreign earnings a higher percentage of profits
Multinationals outperform domestic firms
Global value increased through global
diversification
Intensifying domestic competition

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 International Marketing
International marketing is defined as the
performance of business activities designed to
plan, price, promote, and direct the flow
of a companys goods and services to
consumers or users in more than one nations
for a profit.
The difference is the environment
Competition, legal restraints, government controls,
weather, fickle consumers, economic conditions,
technological constraints, infrastructure concerns,
culture, and political situations.

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 Vietnam Business
Environment
How do Foreign firms meet
Vietnamese Customers need?
Love foreign brand (products)
Historical of economics
Product quality
Price war
Decrease selling price
Government control
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Certification

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 Vietnam Business
Environment
Promotion
Master of Marketing
Research and discover insight
of Customer
Distribution
Easy to buy product

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The International Marketing Task
Foreign environment
(uncontrollable)
Exhibit 1.3 Political/legal 1 Economic
forces forces
Domestic environment
(uncontrollable)
2
7 Competitive
Political/
legal (controllable) structure Competitive
Cultural Forces
forces
forces Environmental
Price Product
uncontrollables
7 3 country market A
Channels of
Promotion Environmental
distribution
6 uncontrollables
country
market B
Geography Level of
Economic climate Technology
and Environmental
Infrastructure 4 uncontrollables
5 country
Structure of market C
distribution
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 The International
Marketing Task
Controllable Factors
Product
Price
Place
Promotion
Research
Domestic Uncontrollables
Political/Legal
Economic
Competition

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 The International
Marketing Task
Foreign Environment Uncontrollables
Political/Legal
Economic
Competitive
Level of technology
Structure of distribution
Geography and infrastructure
Cultural forces

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 Understanding
International Marketing
Market, Marketing, International marketing
Domestic vs. International Marketing
Strategic Orientation: domestic,
multidomestic, and global
Marketing mix: 4 Ps
Environmental forces: controllables vs.
uncontrollables
Environment and the marketing mix

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 International Marketing
Issues
Self-Reference Criterion
and Ethnocentrism

Cross-cultural Analysis

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 Self-Reference Criterion
(SRC)
Self-Reference Criterion (SRC) is an
unconscious reference to ones own cultural
values, experiences, and knowledge as a basis
for decision.
Risk of SRC:
Prevent you from becoming aware of cultural
differences
Influence the evaluation of the appropriateness
of a domestically designed marketing mix for a
foreign market

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 Cross-Cultural Analysis
1. Define business problem or goal in home-
country cultural traits, habits, or norms
2. Define business problem or goal in foreign-
country cultural traits, habits, or norms through
consultation with natives of target country
3. Isolate the SRC influence and examine it
carefully to see how it complicates the problem
4. Redefine the problem without SRC influence
and solve for the optimum business goal
situation

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 International Marketing
Involvement - Stages

No
No Direct
Direct Infrequent
Infrequent Foreign
Foreign
Foreign
Foreign Marketing
Marketing Marketing
Marketing
Global
Global
Marketing
Marketing
Regular
Regular Foreign
Foreign International
International
Marketing
Marketing Marketing
Marketing

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 No Direct Foreign
Marketing Reactive
Products indirectly reach foreign markets
Trading companies
Foreign customers who contact firm
Domestic wholesalers/distributors
Web orders
Foreign orders stimulate a companys interest
to seek additional international sales

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 Infrequent Foreign
Marketing Reactive
Caused by temporary surpluses
Sales to foreign markets are made as goods
become available
Firm has little or no intention of maintaining
continuous market representation
Foreign sales activity declines and is
withdrawn when domestic demand increases

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 Regular Foreign
Marketing Proactive
Dedicated production capacity for foreign
markets
Strategy:
Firm employs domestic or foreign intermediaries
Uses its own sales force or sales subsidiaries
Products are adapted for foreign markets as
domestic demand grows
Firms depend on profits from foreign markets

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 International Marketing
Proactive
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
Plan to introduce new product in the U.S!
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 Global Marketing
Proactive
The firm sees the world as one market!
Market segmentation is now defined by income
levels, usage patterns, or other factors that span
the globe
More than half of its revenues come from abroad
The firm has a global perspective

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Global Market Orientation
This orientation entails operating as if all the country
markets in a companys scope of operations (including
the domestic market) were approachable as a single
global market and standardizing the marketing mix
where culturally feasible and cost effective.
Depending on the product and market, firms may
pursue a global market strategy for one product
(global market orientation = P&G diapers) but a
multidomestic strategy for another product
(international market orientation = P&G detergents).

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 Write a mind map
A Firm/ a company
International Marketing Task
Domestic Marketing
Foreign Marketing
International Marketing Involvement
Stages

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