Chapter 1 The Scope and Challenge of International Marketing
International Marketing is the activity, set of institutions and processes for
creating, communicating, delivering, and exchanging offerings that have value
for customers, clients, partners, and society at large.
Differences of Intl Marketing from National marketing: the difficulties
created by different environments and the need to coordinate international
expansions across cultures to achieve efficiency and effectiveness to achieve
Globalization: the increased mobility of goods, services, labor, technology,
capital throughout the world.
HOW does globalization affect Canadian marketers?
marketers how now much more access to more information about their
markets and consumers (domestically and internationally)
much easier communication with suppliers and consumers today
because of free trade agreements, easier to penetrate/venture into other
opportunities to lowering production and marketing costs due to the ability
to standardize products and processes
and ultimately benefit from having to deal with fewer national currencies
(e.g transactions could be in US Dollar, or Euros because EU nations use
that), which reduces risks and costs.
small Canadian companies and marketers find it difficult to compete on an
even playing field with larger transnational companies.
Globalization is forcing firms to identy core competencies and develop
sustainable advantages that will insulate them from competition.
Uncontrollable elements: competitive structure, economic climate,
political/legal forces, competition, legal restraints, government controls,
weather, fickle consumers. Marketers can’t control these factors but must adjust
or adapt to them in a manner consistent with a successful outcome.
Controllable elements: firm characteristics, research, price, place, promotion,
product. Should be impemented in such a way to ensure marketing objectives
are achieved. These elements can be adjusted to changing market conditions,
consumer tastes, corporate objectives.
In international marketing, the environment from country to country/region to
region can change dramatically; therefore it is every marketer’s primary
concern to coordinate international operations across cultures/countries to
achieve efficiency and effectiveness in business operations.
Marketing Decision Factors
Aspects of the domestic Environement uncontrollables: political decision involving
domestic foreign policy (tariffs, export quotas, embargoes, free trade agreements,
bilateral/multilateral etc) Aspects of the foreign Environment uncontrollables
The difficulty lies in adjust their marketing efforts to unfamiliar cultures and
recognizing its unique characteristics and impact. They need to use the right
frames of references when evaluating and making marketing decisions.
Self-Reference Criterion: an unconscious reference to one’s own cultural values,
experiences, and knowledge as a basis for decisions, which most of the times is
fuelled by ethnocentrism. Your own SRC can prevent you from being aware of
recognizing the importance in cultural differences, or even prevent you from
realizing that cultural differences exist.
It’s best to isolate the SRC influences and use following steps as a framework:
1) Define the business problem/goal in home country (cultural traits, habits,
2) Define the business problem/goal in host country (same factors) but
consultation with natives of host country.
3) Isolate the SRC influence in the problem & examine carefully to see how it
complicates the situation
4) Redefine the problem without the SRC influence, and olve for the optimum
business goal objective and situations.
Global awareness/global mindset: requires one to be locally responsive and
have a global perspective at the same time
5 degrees of international market involvement Degrees of marketing
involvement and commitment it’s prepared to make.
4 approaches that dominate strategic thinking:
domestic market extension orientation: The firm’s orientation remains
domestic. It seeks a sales extension of a domestic products into foreign
markets, viewing that international operations as secondary to domestic
operations. Foreign sales are seen as a profitable extension of domestic
multidomestic market orientation: firms with this orientation market on a
country-by-country basis, with separate marketing strategies for each
country. It aims for adaptation to local country markets. They are
polycentric and are in stage 2 and 3 of internationalization. Subsidiaries
tend to operate independently of one another, advertising campaigns are
often localized so is pricing and distribution decisions.
regional market orientation and global market orientation: has a
standardized product but country-specific advertising depending on the
product and market! Chapter 2
Staples Trap and its effect on Canadian businesses
national character, what is to be Canadian?
Canadian International Trade and Investment
canada’s trade problematique, because of high concentration of canda’s
export to the US (77% of the total exports go to the US) this proportion only
leaves behind for about 12.5 to do trade with the rest of the world
(excluding EU countries, and Japan). Other countries are more open and less
dependent to the US, even the US has 53.% of its exports to the rest of the
world, leaving only 20% for Canada. A heavy concentration in one market
(the US) and just a couple of sectors, means that there are comparatively too
few products left for too many other markets.
This fact answers why there is relative decline in the “presence” of Canadian
goods that researchers are reporting. Because Canadian tends to prefer
trading with US….Japan, US and EU enjoy a “critical mass” advantage abroad
which Canadian exporters do not have. That’s why Molson is less popular
abroad compared to Corona’s beer from Mexico.
TODAY’S COMPETITIVE ADVANTAGE:
1) resource based advantage shouldn’t be the only source of strength of a
country in the international marketplace, “competitive advantage can be
2) Even when the natural resource endowment is rich, advanced marketing is
necessary to capitalize on it! For ex: Columbian coffee, and florida orange
juice….no one would know these products until marketers effectively market
these internationally…popularity due in large part of the growers’ success at
generating loyal consumers internationally through well designed
international marketing mixes.
Chapter 4 Cultural Dynamics of International Markets
markets are a result of culture. Marketers constantly adjusting their efforts
to cultural demands of the market, BUT they also act as “cultural change
agents” whenever the product or idea being marketed is innovative for
buyers e.g Iphones iPOD smartphones, iPad.
What is Culture? SUM of the values and beliefs rituals….which acquired from
socialization and acculturation (adjusting to a new culture)
Value:….. people posses many values and some values are more important
than the others.
Belief: a mental acceptance …. BELIEFS are long lasting and not subject to
significant change. Attitude: a mental…. Attitude contains cognitive (our mental contruction of
the phenomenon), affective (how we feel about it), behavioural (our
tendencies to act regarding to act regarding the person, object or idea)
ALL VALUES ARE BELIEFS. BUT NOT ALL BELIEFS ARE VALUES.
Terminal Values: end state of existence that is personally&socially worth
striving for for example, harmony, peace and equality. An instrumental value
relates to the means by which one attempts to achieve terminal value, for
example honesty, forgiveness, love, open minded are instrumental values.
These values establish the core components of an individuals cognitive
system which are used to collect, interpret, and respond to external stimuli.
Adolf Hitler’s end value: social recognition, security and power. His
instrumental values would be ambition and obedience for example.
LINGUISTIC DISTANCE. PROVES USEFUL to marketing segmentation and
strategic entry decisions, crossing “wider” language differences increases
transaction costs. Singular for of “you” where as in chinese theres ni, nin and
nimen. Ignoring social context and status.
FACTUAL KNOWLEDGE: different meanings of colors, different tastes (spicy,
salty, sweet, sour), cultural symbols; and other traits native to a culture that
marketers can anticipate, study and absorb. INTERPRETIVE KNOWLEDGE:
ability to … for example meaning of time (different across cultures),
attitudes toward other people and certain objects
Cultural imperatives: a country’s customs that must be accommodated (be
met or avoided) to ensure business success. For example: guanxi in China.
Imperative in one country might not be the case in another. Eg prolonged
eye contact). Cultural electives: customs to which adaptation is useful but
not necessary (drink alcoholic beverages, greet someone with kisses or bow
in Japan/Korea) however doing so can be seen as a gesture of goodwill.
Cultural exclusives: foreigners must carefully refrain from participating in
those that are reserved. Foreign managers need to be perceptive enough
when they are dealing with these factors and have the adaptability to
respond to each. Impacts on business relationships and broader marketing
Each language can reveal unspoken attitudes and information.
M-Time: monochromic, most low context cultures operate m time. P time:
Chapter 5 The Economic and Technological Environments
Marketers must understand consumer attitudes, preferences and past habits
in order to cater to their needs and wants.
Adam Smith-Absolute Advantage: countries produce products for which
they have a cost or resource advantage.
David Ricardo-Comparative Advantage: why certain countries focus on
certain products and not others; opportunity cost. Countries should produce goods which they possess a comparative advantage, not sol