International Marketing: Chapter 1

What are three steps to overcome ethnocentrism?

1. Acknowledge distinctions 2. Avoid assumptions 3. Avoid judgments

What does a firm employ in "regular foreign marketing"?

1. Domestic intermediaries 2. Foreign intermediaries

What are three dangers of SRC?

1. Failing to recognize the need to take action 2. Discounting the cultural differences that exist among countries 3. Reacting to a situation in an offensive way to your hosts

What are the five stages of international marketing involvement?

1. No direct foreign marketing 2. Infrequent foreign marketing 3. Regular foreign marketing 4. International marketing 5. Global marketing

What three things must a marketer be in order to achieve global awareness?

1. Objective 2. Tolerant 3. Knowledgeable

What are the two primary obstacles to success in international marketing?

1. SRC: self-reference criterion 2. Ethnocentrism

What are five ways products reach foreign markets in the "no direct foreign marketing" stage?

1. Trading companies 2. Foreign customers who contact the firm 3. Wholesalers 4. Distributors 5. Websites

How does a firm employ domestic and foreign intermediaries?

1. Uses its own sales force 2. Sales subsidiaries in important markets

What is environmental adaptation?

Ability to effectively interpret the influence and impact of the culture in which you hope to do business

What is the key to successful international marketing?

Adaptation to the environmental differences from one market to another

What is SRC?

An unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions

How are sales to foreign markets made in "infrequent foreign marketing"?

As goods are available, with little or no intention of maintaining continuous market representation

How does the company treat the world in "global marketing"?

As one market (including its home market)

Why must markets be aware of the frames of reference they are using in making their decisions or evaluating the potential of a market?

Because judgments are derived from experience that is the result of acculturation in the home country

What are some examples of companies who use global marketing?

Coca-Cola, L'Oreal, McDonald's, Apple, Starbucks

What is the most challenging and important task confronting international marketers?

Cultural adjustment

What should a marketer be knowledgeable of in order to be globally aware?

Cultures, history, world market potential, and global, social, and political trends

Why do few companies today fit the "infrequent foreign marketing" model?

Customers around the world increasingly seek long-term commercial relationships

What is a company in the "no direct foreign marketing" stage like?

Does not actively cultivate customers outside national boundaries

How is foreign sales activity reduced or even withdrawn in "infrequent foreign marketing"?

Domestic demand increases and absorbs surpluses

What are companies in the "international marketing" stage like?

Fully committed to, and involved in, international marketing activities

In what areas should a marketer be objective to reach global awareness?

In assessing opportunities, evaluating potential, and responding to problems

What are market segmentation decisions focused on in "global marketing"?

Income levels, usage patterns, or other factors besides national borders

What should we avoid when it comes to cultural adjustments?

Measuring and assessing markets against the fixed values and assumptions of your own culture

What does the planning of production in "international marketing" entail?

Not only the marketing but also the production of goods outside the home market

Where do revenues come from in "global marketing"?

Over half come from abroad

What happens when demand grows in "regular foreign marketing"?

Products are adapted to foreign markets

What types of products do companies in the "international marketing" stage sell?

Products that are a result of planned production for markets in various countries

What do firms depend on in "regular foreign marketing"?

Profits from foreign markets

What results in "infrequent marketing overseas"?

Temporary surpluses caused by variation in production levels or demand

When does a firm use "regular foreign marketing"?

The firm has production capacity devoted to foreign markets

What is ethnocentrism?

The notion that one's own culture of company knows best how to do things

What is the most profound change at the "global marketing" level?

The orientation of the company towards markets and associated planning activities

What does it mean for a marketer to be globally aware?

To seek an understanding of the culture of the foreign market as well as one's own cultures

What does it mean for a marketer to be tolerant?

Understands cultural differences and accepts and works with others whose behavior may be different from the marketer's

What has helped companies in the "no direct foreign marketing" stage acquire more international orders?

Websites