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NEED OF STUDY
There are several good reasons for studying marketing.
First of all, marketing issues are important in all areas of the
organizationcustomers are the reasons why businesses exist
!n fact, marketing efforts "including such services as promotion
and distribution# often account for more than half of the price of
a product. $s an added benefit, studying marketing often helps
us become more savvy consumers. %e will learn, for instance,
that the per unit price of a bigger package is fre&uently higher
than that of a smaller one, and that more expensive products are
fre&uently not better in &uality.
Criteria that must be met for marketing to occur:
'everal criteria must be met for marketing to occur(
There must be two parties, each with unsatisfied needs or
wants. This want, of course, could be money for the seller.
)ach must have something to offer. *arketing involves
voluntary +exchange, relationships where both sides must
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be willing parties. Thus, a consumer who buys a soft drink
in a vending machine for ./0 must value the soft drink,
available at that time and place, more than the money.
1onversely, the vendor must value the money more. "!t is
interesting to note that money is, strictly speaking, not
necessary for this exchange to take place. !t is possible,
albeit a bit cumbersome, to exchange two ducks for a pair
of shoes.#
The parties must be able to communicate. This could be
through a display in a store, an infomercial, or a posting on
e2ay.
The marketing vs. the selling concet: Two approaches to
marketing exist. The traditional selling concept emphasizes
selling existing products. The philosophy here is that if a
product is not selling, more aggressive measures must be taken
to sell ite.g., cutting price, advertising more, or hiring more
aggressive "and obnoxious# sales3people. %hen the railroads
started to lose business due to the advent of more effective
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trucks that could deliver goods right to the customer5s door, the
railroads cut prices instead of recognizing that the customers
ultimately wanted transportation of goods, not necessarily
railroad transportation. 'mith 1orona, a manufacturer of
typewriters, was too slow to realize that consumers wanted the
ability to process documents and not typewriters per se. The
marketing concept, in contrast, focuses on getting consumers
what they seek, regardless of whether this entails coming up
with entirely new products.
The ! "s#ro$uct% lace &$istribution'% romotion% an$
ricerepresent the variables that are within the control of the
firm "at least in the medium to long run#. !n contrast, the firm is
faced with uncertainty from the environment.
The suggested framework of international marketing includes
motivation for internationalization, '%6T analysis, a mix of
international marketing decisions and consolidation of
marketing efforts on the basis of reviewing markets
performance.
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(EY TE)*
)e+geocentric orientation: the approach that considers a region
as a uniform market segment and a firm following this approach
adopts a similar marketing strategy within the region but not
across the region.
,eocentric orientation: the approach that treats the whole
world as a single market and attempt to formulate integrated
marketing strategies.
Self reference criterion: an unconscious reference to one5s own
cultural value, experience and knowledge as a basis for decision
making.
Theor- of mercantilism: attributes wealth of a nation by the
size of its accumulated treasures, usually measured in terms of
gold. $ theory that holds that national should accumulate
financial wealth in the form of gold by encouraging exports and
discouraging imports.
Theor- of international ro$uct life c-cle: the cyclical pattern
followed by the international markets over a time due to a
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variety of factors which explains the shift in the markets as well
as manufacturing bases of the firms.
Domestic marketing: marketing practice within the domestic
markets.
Foreign marketing: methods and practices used in the home
markets and also applied in overseas markets with little
adaptation.
Comarative marketing: 1omparative study of two or more
marketing system to find out the differences and similarities.
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)E./E0 OF SU12ECT
0hat is marketing3
$lmost every marketing textbook has a different definition
of the term +marketing., The $merican *arketing $ssociation
"$*$# uses the following( +The process of planning and
executing the conception, pricing, promotion, and distribution of
ideas, goods, and services to create exchanges that satisfy
individual and organizational ob9ectives., From this definition,
we see that(
*arketing involves an ongoing process. The environment
is +dynamic., This means that the market tends to change
what customers want today is not necessarily what they
want tomorrow. For example, sales of beef are declining in
the :nited 'tates because consumers have become health
oriented. 'imilarly, Tupperware parties are less popular
today than they once were because there are fewer
housewives who do not work outside the home.
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This process involves both planning and implementing
"executing# the plan.
'ome of the main issues involved include(
o *arketers help design products, finding out what
customers want and what can practically be made
available given technology and price constraints.
o *arketers distribute productsthere must be some
efficient way to get the products from the factory to
the end3consumer.
o *arketers also promote products, and this is perhaps
what we tend to think of first when we think of
marketing. <romotion involves advertisingand
much more. 6ther tools to promote products include
trade promotion "store sales, coupons, and rebates#,
obtaining favorable and visible shelf3space, and
obtaining favorable press coverage.
o *arketers also price products to +move, them. %e
know from economics that, in most cases, sales
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correlate negatively with pricethe higher the price,
the lower the &uantity demanded. !n some cases,
however, price may provide the customer with a
+signal, of &uality. Thus, the marketer needs to price
the product to "1# maximize profit and "-#
communicate a desired image of the product.
o *arketing is applicable to services and ideas as well
as to tangible products. For example, accountants
may need to market their tax preparation services to
consumers.
T4E *5)(ET/N, EN./)ON*ENT
E6E*ENTS OF T4E EN./)ON*ENT:
The marketing environment involves factors that, for the
most part, are beyond the control of the company. Thus, the
company must adapt to these factors. !t is important to observe
how the environment changes so that a firm can adapt its
strategies appropriately. 1onsider these environmental forces(
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Cometition:
1ompetitors often +creep, in and threaten to take
away markets from firms. For example, ?apanese auto
manufacturers became a serious threat to $merican car
makers in the late 1>;/s and early 1>=/s. 'imilarly, the
@otus 1orporation, maker of one of the first commercially
successful spreadsheets, soon faced competition from
other software firms. Aote that while competition may be
frustrating for the firm, it is good for consumers. "!n fact,
we will come back to this point when we consider the legal
environment#. Aote that competition today is increasingly
global in scope.
Economics:
'ome firms in particular are extremely vulnerable to
changes in the economy. 1onsumers tend to put off buying
a new car, going out to eat, or building new homes in bad
times. !n contrast, in good times, firms serving those needs
may have difficulty keeping up with demand.
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"olitical:
2usinesses are very vulnerable to changes in the
political situation. For example, because consumer groups
lobbied 1ongress, more stringent rules were made on the
terms of car leases. The tobacco industry is currently the
target of much negative attention from government and
public interest groups. 1urrently, the desire to avoid aiding
the enemy may result in laws that make it more difficult
for $merican firms to export goods to other countries.
6egal:
Firms are very vulnerable to changing laws and
changing interpretations by the courts. Firms in the :.'.
are very vulnerable to lawsuits. *cBonald5s, for example,
is currently being sued by people who claim that eating the
chain5s hamburgers caused them to get fat. 'ome impacts
of the legal environment.
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Firms are significantly limited in what they can do by
various lawssome laws, for example, re&uire that
disclosures be made to consumers on the effective interest
rates they pay on products bought on installment. $
particularly interesting group of laws relate to antitrust.
These laws basically exist to promote fair competition
among firms. 'ome principles involved here include(
o Collusion: Firms may not +conspire, to fix prices
"agree that they will not sell below an agreed upon
price# or reduce services.
o "re$ation: Firms may not sell their products below
their cost of production for the purpose of driving
competitors out of business so that they, themselves,
can raise prices when competition is reduced.
o *arket share: Firms which have an unacceptably
large market share may be +broken, up by court
order so that many smaller firms will be around to
compete. "This is what happened to $TCT, and at
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times, !2* has been worried about this prospect#. D
Tying( $ firm that controls a valuable product may
not re&uire the consumer to buy a more
commonplace one to get the scarce product. For
example, !ntel controls many of the newest
microprocessors "e.g., <entium !E#. !ntel also makes
motherboards for computersF however, motherboards
are made by a lot of firms. !ntel would be thought to
abuse its effective monopoly power if it re&uired
consumers to buy a motherboard in order to get its
newest chips.
Technological:
1hanges in technology may significantly influence
the demand for a product. For example, the advent of the
fax machine was bad news for Federal )xpress. The
!nternet is a ma9or threat to travel agents.
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Social:
1hanges in customs or demographics greatly
influence firms. Fewer babies today are being born,
resulting in a decreased demand for baby foods. *ore
women work outside the home today, so there is a greater
demand for prepared foods. There are more unmarried
singles today. This provides opportunities for some firms
"e.g., fast food restaurants# but creates problems for others
"e.g., manufacturers of high &uality furniture that many
people put off buying until marriage#. Today, there are
more +blended, families that result as parents remarry
after divorce. These families are often strapped for money
but may re&uire +duplicate, items for children at each
parent5s residence.
Environmental scanning:
!ts helps the firm understand developments in the market.
'uch developments may involve changes in the market place
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due to social trends "e.g., Gerber, a manufacturer of baby
products, faces a serious challenge with declining :.'. birth
rates#, technology "e.g., E1H makers are threatened by BEB
players#, or new or potential competitors "e.g., !nternet service
providers are being threatened by increasing marketing efforts
from *'A#. Aote that environmental scanning must be
performed continuously, since environmental change does not
cease.
Economic c-cles(
The economy goes through cycles. !n the late 1>>/s, the
:.'. economy was &uite strong, and many luxury goods were
sold. 1urrently, the economy is somewhat weak, and many firms
are facing the results. 1ar makers, for example, have seen
declining profit margins "and even losses# as they have had to
cut prices and offer low interest rates on financing. Generally, in
good economic times, there is a great deal of demand, but this
introduces a fear of possible inflation. !n the :.'., the Federal
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Heserve will then try to prevent the economy from
+overheating., This is usually done by raising interest rates. This
makes businesses less willing to invest, and as a result, people
tend to make less money. Buring a recession, unemployment
tends to rise, causing consumers to spend less. This may result
in a +bad circle,, with more people losing their 9obs due to
lowered demands. 'ome businesses, however, may take this
opportunity to invest in growth now that things can be bought
more cheaply.
ST)5TE,/C "65NN/N, 5ND T4E *5)(ET/N,
")OCESS
"lans an$ lanning:
<lans are needed to clarify what kinds of strategic
ob9ectives an organization would like to achieve and how this is
to be done. 'uch plans must consider the amount of resources
available. 6ne critical resource is capital. *icrosoft keeps a
great deal of cash on hand to be able to +9ump, on opportunities
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that come about. 'mall startup software firms, on the other
hand, may have limited cash on hand. This means that they may
have to forego what would have been a good investment
because they do not have the cash to invest and cannot find a
way to raise the capital. 6ther resources that affect what a firm
may be able to achieve include TrademarksIbrand names( !t
would be very difficult to competefactors such as( <atents( !t
would be difficult toagainst 1oke and <epsi in the cola
market. 1ompete against !ntel and $*B in the microprocessor
market since both these <eople( firms have a number of
patents that it is difficult to get around. )ven with all of
*icrosoft5s money available, it could not immediately hire the
Bistribution( 'tores have spacepeople needed to manufacture
computer chips. For only a fraction of the products they are
offered, so they must turn many away. $ firm that does not have
an established relationship with stores will be at a disadvantage
in trying to introduce a new product.
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<lans are sub9ect to the choices and policies that the
organization has made. 'ome firms have goals of social
responsibility, for example. 'ome firms are willing to take a
greater risk, which may result in a very large payoff but also
involve the risk of a large loss, than others.
Strategic marketing is best seen as an ongoing an$ never+
en$ing rocess. Typically(
The organization will identify the ob9ectives it wishes to
achieve. This could involve profitability directly, but often
profitability is a long term goal that may re&uire some
intermediate steps. The firm may seek to increase market
share, achieve distribution in more outlets, have sales grow
by a certain percentage, or have consumers evaluate the
product more favorably. 'ome organizations have
ob9ectives that are not focused on monetary profite.g.,
promoting literacy or preventing breast cancer.
$n analysis is made, taking into consideration issues such
as organizational resources, competitors, the competitors5
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strengths, different types of customers, changes in the
market, or the impact of new technology.
2ased on this analysis, a plan is made based on tradeoffs
between the advantages and disadvantages of different
options available.
This strategy is then carried out. The firm may design new
products, revamp its advertising strategy, invest in getting
more stores to carry the product, or decide to focus on a
new customer segment.
$fter implementation, the results or outcome are
evaluated. !f results are not as desired, a change may have
to be made to the strategy. )ven if results are satisfactory,
the firm still needs to monitor the environment for
changes.
6evels of lanning an$ strategies:
<lans for a firm can be made at several different levels. $t
the corporate level, the management considers the ob9ectives of
the firm as a whole. For example, *icrosoft may want seek to
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grow by providing high &uality software, hardware, and services
to consumers. To achieve this goal, the firm may be willing to
invest aggressively.
<lans can also be made at the business unit level. For
example, although *icrosoft is best known for its operating
systems and applications software, the firm also provides
!nternet access and makes video games. Bifferent managers will
have responsibilities for different areas, and goals may best be
made by those closest to the business area being considered. !t is
also more practical to hold managers accountable for
performance if the plan is being made at a more specific level.
2oeing has both commercial aircraft and defense divisions.
)ach is run by different managers, although there is some
overlap in technology between the two. Therefore, plans are
needed both at the corporate and at the business levels.
6ccasionally, plans will be made at the functional level, to
allow managers to specialize and to increase managerial
accountability. *arketing, for example, may be charged with
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increasing awareness of *icrosoft game consoles to 88J of the
:.'. population or to increase the number of units of *icrosoft
6ffice sold. Finance may be charged with raising a given
amount of capital at a given cost. *anufacturing may be
charged with decreasing production costs by 8J.
The firm needs to identify the business it is in. Kere, a
balance must be made so that the firm5s scope is not defined too
narrowly or too broadly. $ firm may define its goal very
narrowly and then miss opportunities in the market place. For
example, if Bell were to define itself only as a computer
company, it might miss an opportunity to branch into <B$s or
!nternet service. Thus, they might instead define themselves as a
provider of +information solutions., $ company should not
define itself too broadly, however, since this may result in loss
of focus. For example, a manufacturer of baking soda should
probably not see itself as a manufacturer of all types of
chemicals. 'ometimes, companies can define themselves in
terms of a customer need. For example, 4* sees itself as being
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in the business of making products whose surfaces are bonded
together. This accounts for both <ost3!t notes and computer
disks.
$ firm5s mission should generally include a discussion of
the customers served "e.g., %al3*art and Aordstrom5s serve
different groups#, the kind of technology involved, and the
markets served.
'everal issues are involved in selecting target customers.
%e will consider these in more detail within the context of
segmentation, but for now, the firm needs to consider issues
such as(
The size of various market segmentsF
Kow well these segments are being served by existing
firmsF
1hanges in the markete.g., growth of segments or
change in technologyF
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Kow the firm should be positioned, or seen by customers.
For example, %al3*art positions itself as providing value
in retailing, while Aordstrom5s defines itself more in terms
of high levels of customer service.
The 1oston Consulting ,rou &1C,' matri7 provides a firm
an opportunity to assess how well its business units work
together. )ach business unit is evaluated in terms of two factors(
market share and the growth prospects in the market. Generally,
the larger a firm5s share, the stronger its position, and the greater
the growth in a market, the better future possibilities. Four
combinations emerge(
$ star represents a business unit that has a high share in a
growing market. For example, *otorola has a large share
in the rapidly growing market for cellular phones.
$ question mark results when a unit has a small share in a
rapidly growing market. The firm5s position, then, is not as
strong as it would have been had its market share been
greater, but there is an opportunity to grow. For example,
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Kewlett3<ackard has a small share of the digital camera
market, but this is a very rapidly growing market.
$ cash cow results when a firm has a large share in a
market that is not growing, and may even be shrinking.
2rother has a large share of the typewriter market.
$ dog results when a business unit has a small share in a
market that is not growing. This is generally a somewhat
unattractive situation, although dogs can still be profitable
in the short run. For example, 'mith 1orona how has a
small share of the typewriter market.
Firms are usually best of with a portfolio that has a balance
of firms in each category. The cash cows tend to generate cash
but re&uire little future investment. 6n the other hand, stars
generate some cash, but even more cash is needed to invest in
the futurefor research and development, marketing
campaigns, and building new manufacturing facilities.
Therefore, a firm may take excess cash from the cash cow and
divert it to the star. For example, 2rother could +harvest, its
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profits from typewriters and invest this in the unit making color
laser printers, which will need the cash to grow. !f a firm has
cash cows that generate a lot of cash, this may be used to try to
improve the market share of a &uestion mark. $ firm that has a
number of promising stars in its portfolio may be in serious
trouble if it does not have any cash cows to support it. !f it is
about to run out of cashregardless of how profitable it isis
becomes vulnerable as a takeover target from a firm that has the
cash to continue running it.
$ S0OT &8Strengths% Oortunities% 0eaknesses% an$
Threats9' analysis is used to help the firm identify effective
strategies. 'uccessful firms such as *icrosoft have certain
strengths. *icrosoft, for example, has a great deal of
technology, a huge staff of very talented engineers, a great deal
of experience in designing software, a very large market share, a
well respected brand name, and a great deal of cash. *icrosoft
also has some weaknesses, however( The game console and
*'A units are currently running at a loss, and *'A has been
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unable to achieve desired levels of growth. Firms may face
opportunities in the current market. *icrosoft, for example, may
have the opportunity to take advantage of its brand name to
enter into the hardware market. *icrosoft may also become a
trusted source of consumer services. *icrosoft currently faces
several threats, including the weak economy. 2ecause fewer
new computers are bough during a recession, fewer operating
systems and software packages.
Hather than merely listing strengths, weaknesses,
opportunities, and threats, a '%6T analysis should suggest how
the firm may use its strengths and opportunities to overcome
weaknesses and threats. Becisions should also be made as to
how resources should be allocated. For example, *icrosoft
could either decide to put more resources into *'A or to
abandon this unit entirely. *icrosoft has a great deal of cash
ready to spend, so the option to put resources toward *'A is
available. *icrosoft will also need to see how threats can be
addressed. The firm can earn political good will by engaging in
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charitable acts, which it has money available to fund. For
example, *icrosoft has donated software and computers to
schools. !t can forego temporary profits by reducing prices
temporarily to increase demand, or can +hold out, by
maintaining current prices while not selling as many units.
Criteria for effective marketing lans:
*arketing plans should meet several criteria(
The plan must be specific enough so that it can be
implemented and communicated to people in the firm.
+!mproving profitability, is usually too vague, but
increasing net profits by 8J, increasing market share by
1/J, gaining distribution in -,/// more stores, and
reducing manufacturing costs by -J are all specific.
The plan must be measurable so that one can see if it has
been achieved. The above plans involve specific numbers.
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The goal must be achievable or realistic. <lans that are
unrealistic may result in poor use of resources or lowered
morale within the firm.
The goals must be consistent. For example, a firm cannot
ordinarily simultaneously plan improve product features,
increase profits, and reduce prices.
Consumer 1ehavior:
1onsumer behavior involves the psychological processes
that consumers go through in recognizing needs, finding ways to
solve these needs, making purchase decisions "e.g., whether or
not to purchase a product and, if so, which brand and where#,
interpret information, make plans, and implement these plans
"e.g., by engaging in comparison shopping or actually
purchasing a product#.
Sources of influence on the consumer(
The consumer faces numerous sources of influence. 6ften,
we take cultural influences for granted, but they are significant.
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$n $merican will usually not bargain with a store owner. This,
however, is a common practice in much of the %orld. <hysical
factors also influence our behavior. %e are more likely to buy a
soft drink when we are thirsty, for example, and food
manufacturers have found that it is more effective to advertise
their products on the radio in the late afternoon when people are
getting hungry.
T4E ,6O156 *5)(ET"65CE
,lobali:ation of *arkets an$ Cometition(
Trade is increasingly global in scope today. There are
several reasons for this. 6ne significant reason is technological
because of improved transportation and communication
opportunities today, trade is now more practical. Thus,
consumers and businesses now have access to the very best
products from many different countries. !ncreasingly rapid
technology lifecycles also increases the competition among
countries as to who can produce the newest in technology. !n
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part to accommodate these realities, countries in the last several
decades have taken increasing steps to promote global trade
through agreements such as the General Treaty on Trade and
Tariffs, and trade organizations such as the %orld Trade
6rganization "%T6#, Aorth $merican Free Trade $greement
"A$FT$#, and the )uropean :nion "):#.
Stages in the /nternational /nvolvement of a Firm:
%e discussed several stages through which a firm may go
as it becomes increasingly involved across borders. $ purely
domestic firm focuses only on its home market, has no current
ambitions of expanding abroad, and does not perceive any
significant competitive threat from abroad. 'uch a firm may
eventually get some orders from abroad, which are seen either
as an irritation "for small orders, there may be a great deal of
effort and cost involved in obtaining relatively modest revenue#
or as Licing on the cake.L $s the firm begins to export more, it
enters the export stage, where little effort is made to market the
product abroad, although an increasing number of foreign orders
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are filled. !n the international stage, as certain country markets
begin to appear especially attractive with more foreign orders
originating there, the firm may go into countries on an ad hoc
basisthat is, each country may be entered se&uentially, but
with relatively little learning and marketing efforts being shared
across countries. !n the multi3national stage, some efficiencies
are pursued by standardizing across a region "e.g., 1entral
$merica, %est $frica, or Aorthern )urope#. Finally, in the
global stage, the focus centers on the entire %orld market, with
decisions made optimize the product5s position across markets
the home country is no longer the center of the product. $n
example of a truly global company is 1oca 1ola.
Aote that these stages represent points on a continuum
from a purely domestic orientation to a truly global oneF
companies may fall in between these discrete stages, and
different parts of the firm may have characteristics of various
stagesfor example, the pickup truck division of an auto3
manufacturer may be largely domestically focused, while the
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passenger car division is globally focused. $lthough a global
focus is generally appropriate for most large firms, note that it
may not be ideal for all companies to pursue the global stage.
For example, manufacturers of ice cubes may do well as
domestic, or even locally centered, firms.
Some forces in international tra$e(
The text contains a rather long3winded appendix
discussing some relatively simple ideas. 1omparative
advantage, discussed in more detail in the economics notes,
suggests trade between countries is beneficial because these
countries differ in their relative economic strengthssome have
more advanced technology and some have lower costs. The
!nternational <roduct @ife 1ycle suggests that countries will
differ in their timing of the demand for various products.
<roducts tend to be adopted more &uickly in the :nited 'tates
and ?apan, for example, so once the demand for a product "say,
E1Hs# is in the decline in these markets, an increasing market
potential might exist in other countries "e.g., )urope and the rest
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of $sia#. !nternalizationItransaction costs refers to the fact that
developing certain very large scale pro9ects, such as an
automobile intended for the %orld market, may entail such large
costs that these must be spread over several countries.
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*5)(ET/N, )ESE5)C4
"rimar- vs. secon$ar- research:
There are two kinds of market research( <rimary research
refers to the research that a firm conducts for its own needs
"e.g., focus groups, surveys, interviews, or observation# while
secondary research involves finding information compiled by
someone else. !n general, secondary research is less expensive
and is faster to conduct, but it may not answer the specific
&uestions the firm seeks to have answered "e.g., how do
consumers perceive our productM#, and its reliability may be in
&uestion.
Secon$ar- sources(
$ number of secondary sources of country information are
available. 6ne of the most convenient sources is an almanac,
containing a great deal of country information. $lmanacs can
typically be bought for N1/.// or less. The :.'. government also
publishes a guide to each country, and the handbook
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!nternational 2usiness !nformation( Kow to Find !t, Kow to :se
!t.
'everal experts may be available. $nthropologists and
economists in universities may have built up a great deal of
knowledge and may be available for consulting. 1onsultants
specializing in various regions or industries are typically
considerably more expensive. 6ne should be careful about
relying on the opinions of expatriates "whose views may be
biased or outdated# or one5s own experience "which may relate
to only part of a country or a certain sub segment# and may also
suffer from the limitation of being a sample of size 1.
4ar$ vs. soft $ata(
LKardL data refers to relatively &uantifiable measures such
as a country5s GB<, number of telephones per thousand
residents, and birth rates "although even these supposedly
Lob9ectiveL factors may be sub9ect to some controversy due to
differing definitions and measurement approaches across
countries#. !n contrast, LsoftL data refers to more sub9ective
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issues such as country history or culture. !t should be noted that
while the LhardL data is often more convenient and seemingly
ob9ective, the LsoftL data is fre&uently as important, if not more
so, in understanding a market.
Data reliabilit-(
The accuracy and ob9ectivity of data depend on several
factors. 6ne significant one is the motivation of the entity that
releases it. For example, some countries may want to exaggerate
their citizens5 literacy rates owing to national pride, and an
organization promoting economic development may paint an
overly rosy picture in order to attract investment. 'ome data
may be dated "e.g., a census may be conducted rarely in some
regions#, and some countries may lack the ability to collect data
"it is difficult to reach people in the interior regions of @atin
$merica, for example#. Bifferences in how constructs are
defined in different countries "e.g., is military personnel counted
in people who are employedM# may make figures of different
9urisdictions non3comparable.
48
4.
Cost of $ata(
*uch government data, or data released by organizations
such as the %orld 2ank or the :nited Aations, is free or
inexpensive, while consultants may charge very high rates.
/ssues in rimar- research(
1ultural factors often influence how people respond to
research. %hile $mericans are used to market research and tend
to find this relatively un3threatening, consumers in other
countries may fear that the data will be reported to the
government, and may thus not give accurate responses. !n some
cultures, criticism or confrontation are considered rude, so
consumers may not respond honestly when they dislike a
product. Technology such as scanner data is not as widely
available outside the :nited 'tates. @ocal customs and
geography may make it difficult to interview desired
respondentsF for example, in some countries, women may not be
allowed to talk to strangers.
4.
4;
E6ECT)ON/C CO**E)CE
"rosects for electronic commerce(
)lectronic commerceusually in the form of sales,
promotion, or support through the !nternetis a hot topic at the
moment, evidenced by the high market capitalization of firms
involved in this kind of business. Growth rates have been
considerable over the last two years and are expected to persist,
at least to some extent, for at least the next several years. Oet, it
should be recognized that so far, sales over the !nternet account
for only a small portion of salesespecially outside the :.'.
Obstacles to $iffusion(
6bstacles to the diffusion of !nternet trade come both
from enduring sources and temporary roadblocks which may be
overcome as consumer attitudes change and technology is
improved. 1urrently, !nternet connections are slower than
desired so that downloading pictures and other information may
take longer than consumers are willing to wait. LGlitchesL in
4;
4=
online ordering systems may also frustrate consumers, who are
unable to place their orders at a given time or have difficulty
navigating through a malfunctioning site. The lack of non3
)nglish language sites in some areas may also be off3putting to
consumers, and registering domain names in some countries is
difficult. Further, shipping small packages across countries may
be inefficient due to high local postage rates and inefficiencies
in customs processing. *ost of these obstacles may be
overcome within next few years.
6ther obstacles may, however, have considerably greater
staying power. First, there are legal problems, as several
different countries may seek to impose their 9urisdiction on
advertising and laws of product assortment and business
practices. Further, the maintenance of databases, which are
essential to delivering on the promises of e3commerce, may
conflict with the privacy rules of some countriesthis is
currently a hot issue of contention between the :nited 'tates
and the )uropean :nion. Finally, there are issues of taxation and
4=
4>
collection. %hile the 1linton $dministration has sought to get
the %T6 to go along with a three year tax LmoratoriumL on
!nternet purchases much like the one observed in the :.'.,
strong opposition is expected. $ great attraction of e3commerce
in )urope is that people may order from other countries and thus
evade local sales taxes, which can be prohibitive "e.g., -8J in
Benmark and 1.J in Germany#. 'ome firms will ship to
customers in neighboring countries without collecting sales
taxes or duties, with the responsibility of paying falling on the
consumer. $lthough most consumers who order and do not
arrange to pay for these taxes get away with it, fines for those
caught through random checks can be severe.
6ocus of the site(
'ome firms have chosen to maintain a global site, with
reference only to local sales or support officesF others, in
contrast, have uni&ue sites for each country. !n some cases, a
global site wills hyperlink surfers to a country or region relevant
site. Aote that some confusion exists since many sites outside
4>
7/
the :.'. maintain the L.comL designation rather than their
countries5 respective suffix "e.g., L.deL for Germany, L.seL for
'weden, and L.auL for $ustralia#. 'ome firms have experienced
problems getting their banks to accept credit card charges in
more than one currency, and thus it may be difficult to indicate
precise prices in more than one denomination "one site based in
2ritain offered its $merican customers to be as accurate as
possible, based on current exchange rates, although the charge
could be off Lby a few pennies.L#
6ifec-cle stages across the 0orl$:
!t has been suggested that )urope runs some five years
behind the :.'. in electronic commerce, but some sources
dispute this, suggesting that lack of success among $merican
retailers may have other origins, such as inade&uate adaptation
"for example, some 2ritish users are put off by $merican
)nglish#. There are, however, some factors which cause most
countries run behind. )ven in )urope, !nternet access
penetration rates are lower than they are in the :.'., and the
7/
71
slower speed associated with downloading $sian characters is
discouraging. !n some countries, credit card penetration is lower,
and even in )uropean countries with high penetration rates,
consumers are reluctant to use them. Further, the fact that
consumers in most countries have to pay a per minute phone
charge discourages the essential casual and relaxed browsing
common in the :.'. so long as unlimited cable or hardwired
access is not offered.
ECONO*/CS
4istorical 1asis for Tra$e(
Throughout history, countries have tended to trade with
each other, but usually to a much lesser extent than they do
today. There are several reasons(
Bifficulties in transportation and communication made it
difficult to transport manufactured goods which would, in
any event, arrive with long delays after manufacturingF
71
7-
2order disputes, a history of invasions, and other tensions
between countries discouraged trade with historical or
potential enemiesF and
<aper money was less readily available, so it was more
difficult to match products for barter between the same
buyer and sellers.
Nevertheless% countries $i$ have to tra$e ;ith each other to
a more limite$ e7tent since:
1ertain natural resources "e.g., iron, gold# were not readily
available in some countriesF
'ome countries did not have the technology to produce
certain goods "e.g., when steel was introduced, it could be
made only in some countries#F
!n some countries, there was a demand for certain
specialized goods, but not enough of a market to 9ustify
local production within reasonable economies of scale.
7-
74
To$a-% tra$e is necessitate$ b- several factors:
Technological advances are so fast that, at any point, a
different country may have the latest and most effective
technology in compelling areas "e.g., computers, medical#F
1ertain product lines "e.g., automobiles# re&uire
tremendous economies of scale to be cost effective, so
these costs must be spread over several different marketsF
%ith advances in transportation, it becomes essential to
take advantage of relative strengths that different countries
have "e.g., technological leadership, low labor costs#.
$bsolute advantage is typically measured in terms of labor
input and refers to the number of units that one worker can
produce in one unit of time. For example, suppose that a
?apanese worker can produce fifteen shirts in one hour, while a
*alaysian worker can produce only five. Thus, the ?apanese
worker has the absolute advantage. Kowever, suppose that the
?apanese worker can produce two cars a week, while the
*alaysian worker can produce only one tenth of a car in that
74
77
amount of time. !t can be shown that, assuming that these are the
only two countries that can trade with each otherF it would be to
the advantage of both countries to trade ?apanese cars for
*alaysian shirts. This is known as relative advantage. !n
practice, it is often more useful to think of relative technological
sophistication vs. lower labor costs.
"rotectionism:
$lthough trade generally benefits a country as a whole,
powerful interests within countries fre&uently put obstacles
i.e., they seek to inhibit free trade. There are several ways this
can be done(
Tariff barriers: $ duty, or tax or fee, is put on products
imported. This is usually a percentage of the cost of the
good.
<uotas: $ country can export only a certain number of
goods to the importing country. For example, *exico can
export only a certain &uantity of tomatoes to the :nited
77
78
'tates, and $sian countries can send only a certain &uota
of textiles here.
=.oluntar-= e7ort restraints: These are not official
&uotas, but involve agreements made by countries to limit
the amount of goods they export to an importing country.
'uch restraints are typically motivated by the desire to
avoid more stringent restrictions if the exporters do not
agree to limit themselves. For example, ?apanese car
manufacturers have agreed to limit the number of
automobiles they export to the :nited 'tates.
Subsi$ies to $omestic ro$ucts: !f the government
supports domestic producers of a product, these may end
up with a cost advantage relative to foreign producers who
do not get this subsidy. :.'. honey manufacturers receive
such subsidies.
Non+tariff barriers% such as differential standards in
testing foreign and domestic products for safety, disclosure
of less information to foreign manufacturers needed to get
78
7.
products approved, slow processing of imports at ports of
entry, or arbitrary laws which favor domestic
manufacturers.
2ustifications for rotectionism: 'everal 9ustifications have
been made for the practice of protectionism. 'ome appear to
hold more merit than others(
"rotection of an =infant= in$ustr-: 1osts are often
higher, and &uality lower, when an industry first gets
started in a country, and it thus be very difficult for that
country to compete. Kowever, as the industry in the
country matures, it may be better able to compute. Thus,
for example, some countries have attempted to protect
their domestic computer markets while they gained
strength. The :.'. attempted to protect its market for small
autos $merican manufacturers were caught unprepared for
the switch in demand away from the larger cars caught
:.'. auto makers unprepared. This is generally an
accepted reason in trade agreements, but the duration of
7.
7;
this protection must be limited "e.g., a maximum of five to
ten years#.
)esistance to unfair foreign cometition: The :.'. sugar
industry contends that most foreign manufacturers
subsidize their sugar production, so the :.'. must follow
to remain competitive. This argument will hold little merit
with the dispute resolution mechanism available through
the %orld Trade 6rganization.
"reservation of a vital $omestic in$ustr-: The :.'.
wants to be able to produce its own defense products, even
if foreign imports would be cheaper, since the :.'. does
not want to be dependent on foreign manufacturers with
whose countries conflicts may arise. 'imilarly, ?apan
would prefer to be able to produce its own food supply
despite its exorbitant costs. For an industry essential to
national security, this may be a compelling argument, but
it is often used for less compelling ones "e.g.,
manufactures of funeral caskets or honey#.
7;
7=
/ntervention into a temorar- tra$e balance: $ country
may want to try to reverse a temporary decline in trade
balances by limiting imports. !n practice, this does not
work since such moves are typically met by retaliation.
*aintenance of $omestic living stan$ar$s an$
reservation of >obs( !mport restrictions can temporarily
protect domestic 9obs, and can in the long run protect
specific 9obs "e.g., those of auto makers, farmers, or steel
workers#. This is less of an accepted argumentthese
workers should instead by retrain to work in 9obs where
their country has a relative advantage.
)etaliation: The proper way to address trade disputes is
now through the %orld Trade 6rganization. !n the past,
where enforcement was less available, this might have
been a reasonable argument.
Aote that while protectionism generally hurts a country
overall, it may be beneficial to specific industries or other
interest groups. Thus, while sugar price supports are bad for
7=
7>
consumers in general, producers are an organized group that can
exert a great deal of influence. !n contrast, the individual
consumer does not have much of an incentive to take action to
save about N8.// a year.
Effects of rotectionism(
<rotectionism tends to lead to additional tariffs or other
protectionist measures by other countries in retaliation, reduced
competition "which results in inflation and less choice for
consumers#, a weakening of the trade balance "due in part to
diminished export abilities resulting from foreign retaliations
and in part because of the domestic currency loses power as
there is less demand for it#. $n overall effect may be a vicious
cycle of trade wars as each country responds to the other with a
Ltit for tat.L
EFFO)TS TO ENCOU)5,E T)5DE:
The General $greement on Trade and Tariffs "G$TT#, which
was negotiated at the 2retton %oods 1onference in 1>7;, sought
7>
8/
to encourage international trade following %orld %ar !!, when
many countries were in bad shape after the war.
There ;ere several ob>ectives:
To encourage trade in generalF
To replace non3tariff barriers with tariff barriersi.e., it is
acceptable but not encourage able to impose some burden
on foreign products, but this must be in the form of a
readily identifiable duty rather than a more vague
restriction which is less transparentF
)ecirocit-( 1ountries should respond in kind when other
countries reduce tariffs or barriersF
<roviding the most favorable trade terms offered to anyone
to all members of the agreement.
Aote that the above represent general principles, which in
practice are implemented with numerous exceptions. For
example, the :ruguay Houndtable $greement, which set up the
%orld Trade 6rganization, literally runs several thousand pages.
8/
81
The ): and A$FT$ are accepted, but go against the provision
of offering the best terms available to everyone.
The 1>>7 :ruguay Hound Table $greement resulted in the
establishment of the %orld Trade 6rganization "%T6#. The
main thrust of this organization is to expand the scope of trade
affected "e.g., services are now covered#, the protection of
intellectual property "e.g., patents, copyrights, and trademarks#
and, most importantly, to provide binding decisions on disputes
which member countries must meet.
Stages in /nternational Tra$e 5greements(
Trade between countries is generally started graduallyit
takes a long time before barriers are eliminated entirely or even
reduced dramatically. The stages on slide 11 are points on a
continuum. 'tarting with heavy barriers to trade, countries may
decide to move toward a Lfree trade area,L where two countries
agree on one or more trade liberalizationse.g., two countries
agree that bananas and steel can now be traded between the two
81
8-
countries with only a three percent duty "in contrast, say, to a
fifteen percent duty that existed earlier#. %ater melons and
charcoal may then be added later, along with products that may
follow over time.
$ customs union involves a more systematic trade
agreement with reductions in duties and &uotas covering a large
spectrum of goods and services. For example, A$FT$
systematically reduced tariffs and improved access of 1anada,
the :.'., and *exico, to each others5 markets. 'ignificant
barriers still exist, however.
!n a common market, goods can be moved freely from one
member country to another. $lthough the ): has been calling
itself a common market since the 1>;/s, it has not &uite reached
that reality yet. To understand what is going on here, we need to
understand the distinction between duties "taxes imposed on
goods which are imported, but not on goods produced in the
home country# and excise taxes "such as the $merican sales tax,
which is imposed on all goods, whether they are produced at
8-
84
home or abroad#. 1urrently, individuals can bring almost
anything they want in from other member countries, although
businesses are somewhat less free. For example, one firm
offered to deliver a pallet of two thousand five3hundred beers
from Germany, where LsinL taxes are lower, to Benmark. The
authorities intervened and it was decided that the consumers
would have to go and pick up the beers abroad themselves to
benefit from the lower rates. 6ne can now no longer take in duty
free goods moving from one ): country to another, but one can
buy whatever one wants in another ): country, paying a
possibly lower sales tax there, and bring it back to one5s home
country. !t used to be that many Banish consumers would take a
ferry to Germany and buy a limited &uantity of duty free alcohol
and tobacco which could be taken into Benmark with no
additional duties or excise taxes. This is no longer possible,
since both countries are part of the ):, but now it is possible to
take the ferry and not even go aboard in Germany, buying all
84
87
desired goods in German territorial waters at the lower German
sales tax.
$ monetary union involves countries abandoning their
own currencies and monetary policies. The )uropean :nion will
soon replace the currencies of some member countries with the
)uro "not all countries are eligible to 9oin, since some have too
high a national debt or too large a government budget deficit,
and others have chosen not to 9oin at this time#. $ monetary
union removes the ability of each country to control its own
currencyit can no longer devalue its currency to improve
export opportunitiesbut also introduces greater stability in
exchange rates so that trade will not be interrupted by actual
exchange rate fluctuations or avoided due to fears or exchange
rate instability. Aote that actually implementing a monetary
union is difficult. The ): monetary union will be implemented
over timealthough contracts can now be specified in terms of
)uros, actual currency will not be introduced until next year, and
87
88
even when it is introduced, there will be a period of overlap
where the )uro and the original currencies will coexist.
$ political union involves countries actually merging,
which laws of the union superseding national laws. $t the
present time, no such unions exist, although many trade related
decisions in the ): are now handled through the )uropean
<arliament. "The states of the :nited 'tates and various other
countries such as *exico, 2razil, and Germany are not
genuinely sovereign.# The bottom line here is to recognize that
trade liberalization is a gradual process and that not all countries
will move all the way toward completely free trade.
88
8.
ECONO*/C /SSUES:
"Oen= vs. =close$= currencies: Aot all currencies can
be freely tradedsome countries prohibit their currencies
from leaving their borders, although this is mostly
confined to developing countries that want to encourage
tourists to spend their remaining currency rather than
converting it back to their own currencies and spending it
in their home countries. There are, however, some
currencies for which international markets are not readily
available, because the demand for those currencies is
limited.
E7change rates come in t;o forms:
=Floating=#here% currencies are set on the open market
based on the supply of and demand for each currency. For
example, all other things being e&ual, if the :.'. imports
more from ?apan than it exports there, there will be less
demand for :.'. dollars "they are not desired for
purchasing goods# and more demand for ?apanese yen
8.
8;
thus, the price of the yen, in dollars, will increase, so you
will get fewer yen for a dollar.
=Fi7e$=#currencies ma- be =egge$= to another
currenc- "e.g., the $rgentinean currency is guaranteed in
terms of a dollar value#, to a composite of currencies "i.e.,
to avoid making the currency dependent entirely on the
:.'. dollar, the value might be /.-8P:.'.
dollarQ7P*exican pesoQ8/P?apanese yenQ/.-PGerman
markQ/.1P2ritish pound#, or to some other valuable such
as gold. Aote that it is very difficult to maintain these fixed
exchange ratesgovernments must buy or sell currency
on the open market when currencies go outside the
accepted ranges. Fixed exchange rates, although they
produce stability and predictability, tend to get in the way
of market forcesif a currency is kept artificially low, a
country will tend to export too much and import too little.
Tra$e balances an$ e7change rates: %hen exchange
rates are allowed to fluctuate, the currency of a country
8;
8=
that tends to run a trade deficit will tend to decline over
time, since there will be less demand for that currency.
This reduced exchange rate will then tend to make exports
more attractive in other countries and imports less
attractive at home.
*easuring countr- ;ealth(
There are two ways to measure the wealth of a country.
The nominal per capita gross domestic product "GB<# refers to
the value of goods and services produced per person in a
country if this value in local currency were to be exchanged into
dollars. 'uppose, for example, that the per capita GB< of ?apan
is 4,8//,/// yen and the dollar exchanges for 1// yen, so that
the per capita GB< is "4,8//,///I1//#RN48,///. Kowever, that
N48,/// will not buy as much in ?apanfood and housing are
much more expensive there. Therefore, we introduce the idea of
purchase parity ad9usted per capita GB<, which reflects what
this money can buy in the country. This is typically based on the
relative costs of a weighted LbasketL of goods in a country "e.g.,
8=
8>
48J of the cost of housing, 7/J the cost of food, 1/J the cost
of clothing, and 18J cost of other items#. !f it turns out that this
measure of cost of living is 4/J higher in ?apan, the purchase
parity ad9usted G<B in ?apan would then be "N48,///I"14/J# R
N-.,>-4.
!n general, the nominal per capita G<B is more useful for
determining local consumers5 ability to buy imported goods, the
cost of which are determined in large measure by the costs in the
home market, while the purchase parity ad9usted measure is
more useful when products are produced, at local costs, in the
country of purchase. For example, the ability of $rgentineans to
purchase micro computer chips, which are produced mostly in
the :.'. and ?apan, is better predicted by nominal income, while
the ability to purchase toothpaste made by a :.'. firm in a
factory in $rgentina is better predicted by purchase parity
ad9usted income.
!t should be noted that, in some countries, income is &uite
unevenly distributed so that these average measures may not be
8>
./
very meaningful. !n 2razil, for example, there is a very large
underclass making significantly less than the national average,
and thus, the national figure is not a good indicator of the
purchase power of the mass market. 'imilarly, great regional
differences exist within some countriesincome is much higher
in northern Germany than it is in the former )ast Germany, and
income in southern !taly is much lower than in northern !taly.
Economic tren$s(
1ertain countries have high levels of inflationF this figure,
for example, has run at several hundred percent at various times
in 2razil. !n that case, then, it becomes important to ad9ust
figures for inflation. 'uppose that, as an illustration that the
2razilian economy grew from 1>>; to 1>>= from -// trillion
cruzeiros to 71/ trillion while there was an inflation of 1//J.
The economy, then, did not really double. Therefore, the LrealL
growth, ad9usted for inflation, is "71/3-//#I"1//JQ1//J#31 R
"-1/I-//#31R8J. "Oou will not have to do such calculations on
the exam, but you should understand the principle of real
./
.1
Sinflation ad9ustedT vs. nominal growth.# <lease note that even in
countries that have inflation rates as moderate as 138J,
ad9ustment for inflation is still essential.
%hen one looks at an entire country, note that overall GB<
may increase as population increases while its per capita GB<
increases less or even decreases. 'uppose, for example, that the
GB< of !ndia from 1>>; to 1>>= increases from N1 trillion to
N1./- trillion and that there is no inflation but the population
increases by 4J. The population ad9usted economic growth
would be ""1./-31.//#I1./4#3 1//JR>=.8J31//JR31.8J.
$gain, you will not be asked to make actual calculations on the
exam.
'ome countries run trade deficits over long periods of
time, and when this happens, their currency is expected to
weaken over time. !n principle, this weakening ought to increase
exports and decrease exports, but since countries may be able to
borrow from foreign lenders, this may not always happen in
practice. The :.'., for example, has been able to finance deficit
.1
.-
spending by foreign borrowing. %hile the :.'. dollar declined
sharply against the yen in the 1>=/s and early 1>>/s, it has
remained much more stable in recent years at 1//314/ yen per
dollar.
CU6TU)E
Dealing ;ith culture( 1ulture is a problematic issue for many
marketers since it is inherently nebulous and often difficult to
understand. 6ne may violate the cultural norms of another
country without being informed of this, and people from
different cultures may feel uncomfortable in each other5s
presence without knowing exactly why "for example, two
speakers may unconsciously continue to attempt to ad9ust to
reach an incompatible preferred interpersonal distance#.
0arning about stereot-ing(
%hen observing a culture, one must be careful not to over3
generalize about traits that one sees. Hesearch in social
psychology has suggested a strong tendency for people to
.-
.4
perceive an Lout3groupL as more homogenous than an Lin3
group,L even when they knew what members had been assigned
to each group purely by chance. %hen there is often a Lgrain of
truthL to some of the perceived differences, the temptation to
over3generalize is often strong. Aote that there are often
significant individual differences within cultures.
Definition(
The text defines culture as L$ learned, shared, compelling,
interrelated set of orientations for members of society.L %hile
memorizing definitions is not essential, note the following parts
of the definition(
6earne$: 1ulture is not genetically basedif that were
the case cultures across the %orld would have been much
more similar to each other. %e learn what is considered
appropriate in our culture through trial and error. !f a child
engages in competitive behavior, this might be rewarded in
the :nited 'tates with the expression of parental approval,
.4
.7
while in ?apan it might result in subtle shows of
disapproval, such as lack of attention.
Share$: The beliefs, interpretations, and behaviors are
shared by all or most of the people within the culture, so
that it becomes a truly society3wide phenomenon.
Comelling: 1ulture must have implications "such as
social disapproval if contradicted# in order to be
considered important.
/nterrelate$( $lthough there may be conflicts between
elements of culture "e.g., respect for seniority may come
into conflict with a growing value of achievement in
'ingapore#, for the most part, elements of culture
constitute a coherent and relatively consistent whole. For
example, the tendency for ?apanese business people to
bow when meeting each other and the tendency of lower
level ?apanese employees to show great deference to their
superiors are both manifestations of a strong emphasis on
respect.
.7
.8
Cultural lessons(
%e considered several cultural lessons in classF the
important thing here is the big picture. For example, within the
*uslim tradition, the dog is considered a LdirtyL animal, so
portraying it as Lman5s best friendL in an advertisement is
counter3productive. <ackaging, seen as a reflection of the
&uality of the LrealL product, is considerably more important in
$sia than in the :.'., where there is a tendency to focus on the
contents which Lreally count.L *any cultures observe
significantly greater levels of formality than that typical in the
:.'., and ?apanese negotiator tend to observe long silent pauses
as a speaker5s point is considered.
Elements of culture(
The text considers several elements of culture, such as the
material culture, education, and religion. $nother way to look at
cultural contents involves the areas of(
.8
..
1eliefs: %hile $mericans may attribute success to hard
work or skill, it may be attributed to luck or connections in
other cultures.
5ttitu$es: 2eliefs, feelings, and behavioral intentions may
differ. %hile the $merican may appreciate getting a
bargain in a sale, this may con9ure up images of not being
able to afford the full price in other cultures.
,oals: %hile LprogressL "having new and improved
products, for example# is considered a good thing in the
:.'., many ?apanese parents are concerned that the Lwa3
proL leaves their children unable to write the traditional
?apanese pictographs.
.alues: !n the :.'., individual uni&ueness is generally
considered a good thing while in some cultures fitting in
with the group is a higher priority. Thus, for example, an
$merican may en9oy wearing relatively innovative
clothing, which may be frowned upon in a more
collectivistic society.
..
.;
Cultural characteristics as a continuum(
There is a tendency to stereotype cultures as being one
way or another "e.g., individualistic rather than collectivistic#.
Aote, however, countries fall on a continuum of cultural traits.
Kofstede5s research demonstrates a wide range between the
most individualistic and collectivistic countries, for example
some fall in the middle.
4ofste$e?s Dimensions. Gert Kofstede, a Butch researcher, was
able to interview a large number of !2* executives in various
countries, and found that cultural differences tended to center
around four key dimensions(
/n$ivi$ualism vs. collectivism: To what extent do people
believe in individual responsibility and reward rather than
having these measures aimed at the larger groupM 1ontrary
to the stereotype, ?apan actually ranks in the middle of this
dimension, while !ndonesia and %est $frica rank toward
.;
.=
the collectivistic side. The :.'., 2ritain, and the
Aetherlands rate toward individualism.
"o;er $istance: To what extent is there a strong
separation of individuals based on rankM <ower distance
tends to be particularly high in $rab countries and some
@atin $merican ones, while it is more modest in Aorthern
)urope and the :.'.
*asculinit- vs. femininit- involves a somewhat more
nebulous concept. L*asculineL values involve competition
and Lcon&ueringL nature by means such as large
construction pro9ects, while LfeminineL values involve
harmony and environmental protection. ?apan is one of the
more masculine countries, while the Aetherlands rank
relatively low. The :.'. is close to the middle, slightly
toward the masculine side.
:ncertainty avoidance involves the extent to which a
LstructuredL situation with clear rules is preferred to a
more ambiguous oneF in general, countries with lower
.=
.>
uncertainty avoidance tend to be more tolerant of risk.
?apan ranks very high. Few countries are very low in any
absolute sense, but relatively speaking, 2ritain and Kong
Uong are lower, and the :.'. is in the lower range of the
distribution.
$lthough Kofstede5s original work did not address this, a
fifth dimension of long term vs. short term orientation has been
proposed. !n the :.'., managers like to see &uick results, while
?apanese managers are known for take a long term view, often
accepting long periods before profitability is obtained.
4igh vs. lo; conte7t cultures(
!n some cultures, Lwhat you see is what you getLthe
speaker is expected to make his or her points clear and limit
ambiguity. This is the case in the :.'.if you have something
on your mind, you are expected to say it directly, sub9ect to
some reasonable standards of diplomacy. !n ?apan, in contrast,
facial expressions and what is not said may be an important clue
.>
;/
to understanding a speaker5s meaning. Thus, it may be very
difficult for ?apanese speakers to understand another5s written
communication. The nature of languages may exacerbate this
phenomenonwhile the German language is very precise,
1hinese lacks many grammatical features, and the meaning of
words may be somewhat less precise. )nglish ranks somewhere
in the middle of this continuum.
Ethnocentrism an$ the self+reference criterion(
The self3reference criterion refers to the tendency of
individuals, often unconsciously, to use the standards of one5s
own culture to evaluate others. For example, $mericans may
perceive more traditional societies to be LbackwardL and
LunmotivatedL because they fail to adopt new technologies or
social customs, seeking instead to preserve traditional values. !n
the 1>./s, a supposedly well read $merican psychology
professor referred to !ndia5s culture of LsickL because, despite
severe food shortages, the Kindu religion did not allow the
eating of cows. The psychologist expressed disgust that the
;/
;1
cows were allowed to roam free in villages, although it turns out
that they provided valuable functions by offering milk and
fertilizing fields. )thnocentrism is the tendency to view one5s
culture to be superior to others. The important thing here is to
consider how these biases may come in the way in dealing with
members of other cultures.
"O6/T/C56 5ND 6E,56 /NF6UENCES
The olitical situation(
The political relations between a firm5s country of
head&uarters "or other significant operations# and another one
may, through no fault of the firm5s, become a ma9or issue. For
example, oil companies which invested in !ra& or @ibya became
victims of these countries5 misconduct that led to bans on trade.
'imilarly, $merican firms may be disliked in parts of @atin
$merica or !ran where the :.'. either had a colonial history or
supported unpopular leaders such as the former shah.
;1
;-
1ertain issues in the political environment are particularly
significant. 'ome countries, such as Hussia, have relatively
unstable governments, whose policies may change dramatically
if new leaders come to power by democratic or other means.
'ome countries have little tradition of democracy, and thus it
may be difficult to implement. For example, even though Hussia
is supposed to become a democratic country, the history of
dictatorships by the communists and the czars has left country of
corruption and strong influence of criminal elements.
6a;s across bor$ers(
%hen laws of two countries differ, it may be possible in a
contract to specify in advance which laws will apply, although
this agreement may not be consistently enforceable.
$lternatively, 9urisdiction may be settled by treaties, and some
governments, such as that of the :.'., often apply their laws to
actions, such as anti3competitive behavior, perpetrated outside
their borders "extra3territorial application#. 2y the doctrine
known as compulsion, a firm that violates :.'. law abroad may
;-
;4
be able to claim as a defense that it was forced to do so by the
local governmentF such violations must, however, be compelled
that they are merely legal or accepted in the host country is
not sufficient.
The realit- of legal s-stems:
'ome legal systems, such as that of the :.'., are relatively
LtransparentLthat is, the law tends to be what its plain
meaning would suggest. !n some countries, however, there are
laws on the books which are not enforced "e.g., although ?apan
has antitrust laws similar to those of the :.'., collusion is
openly tolerated#. Further, the amount of discretion left to
government officials tends to vary. !n ?apan, through the
doctrine of administrative guidance, great latitude is left to
government officials, who effectively make up the laws.
6ne serious problem in some countries is a limited access
to the legal systems as a means to redress grievances against
other parties. %hile the :.'. may rely excessively on lawsuits,
;4
;7
the inability to effectively hold contractual partners to their
agreement tends to inhibit business deals. !n many 9urisdictions,
pre3trial discovery is limited, making it difficult to make a case
against a firm whose internal documents would reveal guilt.
This is one reason why personal relationships in some cultures
are considered more significant than in the :.'.since
enforcing contracts may be difficult, you must be sure in
advance that you can trust the other party.
6egal s-stems of the 0orl$(
There are four main approaches to law across the %orld, with
some differences within each(
1ommon law, the system in effect in the :.'., is based on
a legal tradition of precedent. )ach case that raises new
issues is considered on its own merits, and then becomes a
precedent for future decisions on that same issue. $lthough
the legislature can override 9udicial decisions by changing
;7
;8
the law or passing specific standards through legislation,
reasonable court decisions tend to stand by default.
1ode law, which is common in )urope, gives considerably
shorter leeway to 9udges, who are charged with LmatchingL
specific laws to situationsthey cannot come up with
innovative solutions when new issues such as patentability
of biotechnology come up. There are also certain
differences in standards. For example, in the :.'. a
supplier whose factory is hit with a strike is expected to
deliver on provisions of a contract, while in code law this
responsibility may be nullified by such an Lact of God.L
!slamic law is based on the teachings of the Uoran, which
puts forward mandates such as a prohibition of usury, or
excessive interest rates. This has led some !slamic
countries to ban interest entirelyF in others, it may be
tolerated within reason. !slamic law is ultimately based on
the need to please God, so Lgetting aroundL the law is
generally not acceptable. $ttorneys may be consulted
;8
;.
about what might please God rather than what is an
explicit re&uirements of the government.
'ocialist law is based on the premise that Lthe government
is always rightL and typically has not developed a sophisticated
framework of contracts "you do what the governments tells you
to do# or intellectual property protection "royalties are
unwarranted since the government ultimately owns everything#.
Former communist countries such as those of )astern )urope
and Hussia are trying to advance their legal systems to
accommodate issues in a free market.
U.S. la;s of articular interest to firms $oing business
abroa$(
$nti3trust. :.'. antitrust laws are generally enforced in
:.'. courts even if the alleged transgression occurred
outside :.'. 9urisdiction. For example, if two ?apanese
firms collude to limit the %orld supply of E1Hs, they may
;.
;;
be sued by the :.'. government "or in9ured third parties#
in :.'. courts, and may have their :.'. assets seized.
The Foreign 1orrupt !nfluences $ct came about as
1ongress was upset with :.'. firms5 bribery of foreign
officials. $lthough most if not all countries ban the
payment of bribes, such laws are widely flaunted in many
countries, and it is often useful to pay a bribe to get foreign
government officials to act favorably. Firms engaging in
this behavior, even if it takes place entirely outside the
:.'., can be prosecuted in :.'. courts, and many
executives have served long prison sentences for giving in
to temptation. !n contrast, in the past some )uropean firms
could actually deduct the cost of foreign bribes from their
taxes There are some gray areas hereit may be legal to
pay certain LtipsL Vknown as Lfacilitating paymentsLto
low level government workers in some countries who rely
on such payments as part of their salary so long as these
payments are intended only to speed up actions that would
;;
;=
be taken anyway. For example, it may be acceptable to
give a reasonable "not large# facilitating payment to get
customs workers to process a shipment faster, but it would
not be legal to pay these individuals to change the
classification of a product into one that carries a lower
tariff.
$nti3boycott laws. *any $rab countries maintain a
boycott of !srael, and foreigners that want to do business
with them may be asked to 9oin in this boycott by stopping
any deals they do with !srael and certifying that they do
not trade with that country. !t is illegal for :.'. firms to
make this certification even if they have not dropped any
actual deals with !srael to get a deal with boycotters.
Trading %ith the )nemy. !t is illegal for :.'. firms to trade
with certain countries that are viewed to be hostile to the
:.'.e.g., @ibya and !ra&.
;=
;>
SE,*ENT5T/ON% T5),ET/N,% 5ND
"OS/T/ON/N,
The imortance of ST"(
'egmentation is the cornerstone of marketingalmost all
marketing efforts in some way relate to decisions on who to
serve or how to implement positioning through the different
parts of the marketing mix. For example, one5s distribution
strategy should consider where one5s target market is most likely
to buy the product, and a promotional strategy should consider
the target5s media habits and which kinds of messages will be
most persuasive. $lthough it is often tempting, when observing
large markets, to try to be Lall things to all people,L this is a
dangerous strategy because the firm may lose its distinctive
appeal to its chosen segments.
!n terms of the Lbig picture,L members of a segment should
generally be as similar as possible to each other on a relevant
dimension "e.g., preference for &uality vs. low price# and as
;>
=/
different as possible from members of other segments. That is,
members should respond in similar ways to various treatments
"such as discounts or high service# so that common campaigns
can be aimed at segment members, but in order to 9ustify a
different treatment of other segments, their members should
have their own uni&ue response behavior.
5roaches to global segmentation(
There are two main approaches to global segmentation. $t
the macro level, countries are seen as segments, given that
country aggregate characteristics and statistics tend to differ
significantly. For example, there will only be a large market for
expensive pharmaceuticals in countries with certain income
levels, and entry opportunities into infant clothing will be
significantly greater in countries with large and growing
birthrates "in countries with smaller birthrates or stable to
declining birthrates, entrenched competitors will fight hard to
keep the market share#.
=/
=1
There are, however, significant differences within
countries. For example, although it was thought that the !talian
market would demand Lno frillsL inexpensive washing machines
while German consumers would insist on high &uality, very
reliable ones, it was found that more units of the inexpensive
kind were sold in Germany than in !talyalthough many
German consumers fit the predicted profile, there were large
segment differences within that country. $t the micro level,
where one looks at segments within countries. Two approaches
exist, and their use often parallels the firm5s stage of
international involvement. !ntra3market segmentation involves
segmenting each country5s markets from scratchi.e., an
$merican firm going into the 2razilian market would do
research to segment 2razilian consumers without incorporating
knowledge of :.'. buyers. !n contrast, inter3market
segmentation involves the detection of segments that exist
across borders. Aote that not all segments that exist in one
country will exist in another and that the sizes of the segments
=1
=-
may differ significantly. For example, there is a huge small car
segment in )urope, while it is considerably smaller in the :.'.
!nter3market segmentation entails several benefits. The fact
that products and promotional campaigns may be used across
markets introduces economies of scale, and learning that has
been ac&uired in one market may be used in anothere.g., a
firm that has been serving a segment of premium &uality cellular
phone buyers in one country can put its experience to use in
another country that features that same segment. ")ven though
segments may be similar across the cultures, it should be noted
that it is still necessary to learn about the local market. For
example, although a segment common across two countries may
seek the same benefits, the cultures of each country may cause
people to respond differently to the Lhard sellL advertising that
has been successful in one#.
The international product life cycle suggests that product
adoption and spread in some markets may lag significantly
behind those of others. 6ften, then, a segment that has existed
=-
=4
for some time in an Learly adopterL country such as the :.'. or
?apan will emerge after several years "or even decades# in a Llate
adopterL country such as 2ritain or most developing countries.
"%e will discuss this issue in more detail when we cover the
product mix in the second half of the term#.
"ositioning across markets(
Firms often have to make a tradeoff between adapting their
products to the uni&ue demands of a country market or gaining
benefits of standardization such as cost savings and the
maintenance of a consistent global brand image. There are no
easy answers here. 6n the one hand, *cBonald5s has spent a
great deal of resources to promote its global imageF on the other
hand, significant accommodations are made to local tastes and
preferencesfor example, while serving alcohol in :.'.
restaurants would go against the family image of the restaurant
carefully nurtured over several decades, *cBonald5s has
accommodated this demand of )uropean patrons.
=4
=7
ENT)Y ST)5TE,/ES
*etho$s of entr-:
%ith rare exceptions, products 9ust don5t emerge in foreign
markets overnighta firm has to build up a market over time.
'everal strategies, which differ in aggressiveness, risk, and the
amount of control that the firm is able to maintain, are available(
E7orting is a relatively low risk strategy in which few
investments are made in the new country. $ drawback is
that, because the firm makes few if any marketing
investments in the new country, market share may be
below potential. Further, the firm, by not operating in the
country, learns less about the market "%hat do consumers
really wantM %hich kinds of advertising campaigns are
most successfulM %hat are the most effective methods of
distributionM# !f an importer is willing to do a good 9ob of
marketing, this arrangement may represent a Lwin3winL
situation, but it may be more difficult for the firm to enter
=7
=8
on its own later if it decides that larger profits can be made
within the country.
6icensing an$ franchising are also low exposure methods
of entryyou allow someone else to use your trademarks
and accumulated expertise. Oour partner puts up the
money and assumes the risk. <roblems here involve the
fact that you are training a potential competitor and that
you have little control over how the business is operated.
For example, $merican fast food restaurants have found
that foreign franchisers often fail to maintain $merican
standards of cleanliness. 'imilarly, a foreign manufacturer
may use lower &uality ingredients in manufacturing a
brand based on premium contents in the home country.
Contract manufacturing involves having someone else
manufacture products while you take on some of the
marketing efforts yourself. This saves investment, but
again you may be training a competitor.
=8
=.
Direct entr- strategies% where the firm either ac&uires a
firm or builds operations Lfrom scratchL involve the
highest exposure, but also the greatest opportunities for
profits. The firm gains more knowledge about the local
market and maintains greater control, but now has a huge
investment. !n some countries, the government may
expropriate assets without compensation, so direct
investment entails an additional risk. $ variation involves a
9oint venture, where a local firm puts up some of the
money and knowledge about the local market.
*5)(ET 5N56YS/S TOO6S:
Countr- *a + "1ountry *ap is free to all users worldwide
and does not re&uire a login or password.#
2enchmarking national and sectoral trade performance and
competitiveness. <rofiles of 1=7 countries and territories, freely
available. 1ountry *ap provides a wide range of analytical
tools, including the Trade <erformance !ndex on export
competitiveness, Aational )xport <erformance and !mport
=.
=;
<rofile, the econometric trade simulation model Trade 'im on
bilateral trade potential and an assessment of the reliability and
characteristics of national trade statistics. 1ountry *ap also
includes links to Trade !nformation 'ources, Trade 'upport
!nstitutions and current !T1 pro9ects for the country concerned.
Tra$e *a:
Trade statistics for international business development.
$n online database of global trade flows in goods and
services and tariff measures for international business
development and trade promotion, providing detailed export and
import profiles and trends for over 8,4// products in over -//
countries and territories. 2ased on the world5s largest database
16*TH$B), Trade *ap presents importIexport values and
&uantities, growth rates, market shares and market access
information. !t allows users to analyze markets, select priority
countries for export diversification, review the performance of
competing countries and assess opportunities for product
=;
==
diversification by identifying existing and potential trade
between countries.
"ro$uct *a
2usiness information for going global a %eb portal
presenting business information and intelligence in a product
context for ;- product clusters. The product clusters range from
agricultural machinery to wood products. <roduct *ap includes
market studies, price indicators, links to product information,
trade data and links to over -/,/// companies and organizations.
1ompanies can also create their own basic web site, which is
hosted on the portal.
*arket 5ccess *a:
*aking market access barriers transparent *arket $ccess
*ap is an interactive database of tariffs and market access
barriers. !t contains the market access conditions applied at the
bilateral level by over 1;/ importing countries to the products
exported by over -// countries and territories. *arket $ccess
*ap5s strength lies in its wide geographical coverageF its taking
==
=>
into account of almost all multilateral, regional and bilateral
trade agreementsF the integration of ad valorem e&uivalents of
specific tariffsF as well as certificates and rules of origin.
*arket $ccess *ap allows users to analyze the protection of
any geographic grouping and sectoral aggregation. !t also offers
the possibility of simulating tariff reductions using various
negotiation formulae. Beveloped by !T1 in collaboration with
1)<!!, :A1T$B and %T6, *arket $ccess *ap aims to
enhance market transparency, support international trade
promotion, and to facilitate the analysis of related trade policy
issues.
/nvestment *a:
!dentifying foreign investment opportunities
!nvestment *ap is an interactive web3based tool that
combines statistics on foreign direct investment "FB!#,
international trade and market access into a single portal. !t
allows analyses by country, partner and industry. !t also
includes information on the location, sales, employment and
=>
>/
parent company for over ;/,/// foreign affiliates located in
developing countries and economies in transition. !nvestment
*ap, the foreign direct investment with foreign companies,
international trade and tariffs is available online free to 'ub3
'aharan $frica users.
>/
>1
O"/N/ON OF )ES"ONDENT
!t is a process of executing, planning, effective marketing
mix for the purpose of achieving ob9ects for all those
whose involve in the process.
!nternational marketing will helps to improve to banking
facilities and advantages.
!nternational marketing helps to improve to the import C
export goods C services.
The informal interviewing gives valuable indication as to
how use.
!nternational marketing is helps to develop good relations
between two countries and at international level we get
best &uality product.
The concept of !nternational marketing is necessary to
developing countries C it improves economic
development of country.
>1
>-
!nternational marketing will improve the &uality C
&uantity of the product.
!nternational marketing improved the competitive
efficiency of forms.
!nternational marketing product is reasonable one
customer like the product and they keep on demanding.
!nternational marketing depends product life cycle and
individual capacity.
>-
>4
4Y"OT4ES/S
Ao planned activities existing in marketing.
:se of modern technology is essential.
Globalization brings all markets closer.
<olitical stability is essential for global market.
Goods can be made available in a global market.
1lear cut import Vexport policies are necessary.
>4
>7
*52O) F/ND/N,S
&Conclusions'
$ product faces competition in a global market.
<olitical instability affects !nternational market.
)nvironmental challenges create hurdles like natural
calamities.
!nternational marketing decisions are differ than others.
Wuality products are necessary for global market.
$dvance changes in communication system bring market
closer.
Fastest movement of goods and proper logistic
management is possible.
>7
>8
SU,,EST/ONS
Wuality product should be produced.
1ost of productions should be under control.
<eople should vote for political stability.
'imple rules and regulations for import C export business
are necessary.
)3commerce C )3banking should be used.
Hesearch C development using should be proper.
>8
>.
+ S5*"6E DES/,N +
The present research work is important for planning are
development of international marketing, for effective research
purpose, 8/ sample are selected from various organization. They
are of different age groups and they are engaged directly on
indirectly in the field.
5,E ,)OU"
1= 3 -8 -;
-. 3 48 1-
4. 3 78 />
7. 3 88 /-
8. 3 .8 //
Total 8/
>.
>;
The age grou of the reson$ent is state$ as above+
SE@
*ale Female Total
47 1. 8/
For research purpose 47 males and 1. females were
selected. The &uestionnaire containing 1; guest ions were
developing with the help of pro9ect guide. The &uestions are as
under(
<uestion t-e <uestion
no.
Oes I no. types
<ersonal information
*ultiple choice
/>
/7
/7
Total 1;
The &uestionnaire was circulated among the 8/ respondent for
getting information on the sub9ect.
5N56YS/S OF D5T5
Section +A &Buestions ;ise'
>;
>=
<.C+ 4ave -ou notice$D;itnesse$ as unlanne$
changes in
*arketing activities3
Yes No Total
78 /8 8/
78 respondents witnessed unplanned changes in marketing
activities.
/8 respondents do not notice.
<.A+/s their an- goo$ effect of mo$ern technolog- on
/nternational *arketing3
Yes No Total
7= /- 8/
$lmost all agreed to above C very few do not agree.
<.E+Develoment of /nformation F Communication
brings closer+ /nternational *arkets3 Do -ou
agree ;ith3
>=
>>
Yes No Total
7; /4 8/
7; respondents say that development in information C
communication brings closer international markets.
/4 do not agree.
<.!+ ,lobali:ation brings changes in /nternational
*arketing S-stem is it true3
Yes No Total
7/ 1/ 8/
7/ respondents agreed to this C 1/ do not respond
positively.
<.G+ /s it ossible to globali:e ro$uction of goo$s
an$ services3
Yes No Total
71 /> 8/
71 respondents said product can be globalizes.
>>
1//
/> respondents disagreed to this.
<.H+ Domestic *arketing Decisions 5n$ /nternational
*arketing Decisions 5re Not Same3 /s /t True3
Yes No Total
8/ Ail 8/
$ll respondents agreed to above statement.
<.I+ /t /s True That "olitical Forces 0ithin 5 Countr-
5ffect The /nternational *arketing Decisions3
Yes No Total
78 /8 8/
78 respondents agree.
/8 respondents disagree.
<.J+ Do -ou agree that environmental challenges
influence the marketing strateg-3
1//
1/1
Yes No Total
7- /= 8/
7- respondents agree.
/= respondents do not agree.
<.K+Do You 5gree That "olitical Stabilit- 5n$
,overnment "olic- ,reatl- 5ffects The /nternational
*arkets3
Yes No Total
7/ 1/ 8/
7/ respondents agree that political stability C govt.
policies affect international marketing.
1/ do not agree.
<.CL+Do You 5gree That *ore Cometition /s One Of
The Demerits Of /nternational *arket3
Yes No Total
7; /4 8/
1/1
1/-
7; respondents are agreeing for stiff competition.
/4 respondents disagree.
5N56YS/S OF D5T5
Section +A &ercentage ;ise'
<.C+ 4ave You Notice$D0itnesse$ 5s Unlanne$
Changes /n *arketing 5ctivities3
Yes No Total
>/ 1/ 1//
>/J respondents witnessed unplanned changes in
marketing activities.
1/J respondents do not notice.
<.A+ /s Their 5n- ,oo$ Effect Of *o$ern Technolog-
On /nternational *arketing3
Yes No Total
>. /. 1//
$lmost all agreed to above C very few do not agree.
1/-
1/4
<.E+ Develoment Of /nformation F Communication
1rings Closer+ /nternational *arkets3 Do You 5gree
0ith3
Yes No Total
>7 /. 1//
>7J respondents say that development in information C
communication brings closer international markets.
/.J do not agree.
<.!+ ,lobali:ation 1rings Changes /n /nternational
*arketing S-stem /s /t True3
Yes No Total
=/ -/ 1//
=/J respondents agreed to this C -/J do not respond
positively.
1/4
1/7
<.G+ /s /t "ossible To ,lobali:e "ro$uction Of ,oo$s
5n$ Services3
Yes No Total
=- 1= 1//
=-J respondents said product can be globalizes.
1=J respondents disagreed to this.
<.H+ Domestic *arketing Decisions 5n$ /nternational
*arketing Decisions 5re Not Same3 /s /t True3
Yes No Total
1// Ail 1//
$ll respondents agreed to above statement.
<.I+ /t /s True That "olitical Forces 0ithin 5
Countr- 5ffect The /nternational *arketing
Decisions3
1/7
1/8
Yes No Total
>/ 1/ 1//
>/J respondents agree.
1/J respondents disagree.
<.J+ Do -ou agree that environmental challenges
influence the marketing strateg-3
Yes No Total
=7 1. 1//
=7 respondents agree.
1. respondents do not agree.
<.K+Do You 5gree That "olitical Stabilit- 5n$
,overnment "olic- ,reatl- 5ffects The
/nternational *arkets3
1/8
1/.
Yes No Total
=/ -/ 1//
=/J respondents agree that political stability C govt.
policies affect international marketing.
-/J do not agree.
<.CL+Do You 5gree That *ore Cometition /s One Of
The Demerits Of /nternational *arket3
Oes Ao Total
>7 /. 1//
>7J respondents are agreeing for stiff competition.
/.J respondents disagree.
1/16/O,)5"4Y
;;;.google.com
;;;.-ahoo.com
/nternational marketing
1/.
1/;
.iul "rakashan
/nternational marketing
4imala-a "ublication
1/;
1/=
5""END/@
The concet of international marketing
<uestionnaire:
Name:
5ge:
Se7: maleMfemale
<ualification :
"rofession:
4ave You Notice$D0itnesse$ 5s Unlanne$ Changes /n
*arketing 5ctivities3
YesMNo
/s Their 5n- ,oo$ Effect Of *o$ern Technolog- On
/nternational *arketing3
YesMNo
Develoment Of /nformation F Communication 1rings Closer+
/nternational *arkets3 Do You 5gree 0ith3
YesMNo
,lobali:ation 1rings Changes /n /nternational *arketing
S-stem /s /t True3
YesMNo
/s /t "ossible To ,lobali:e "ro$uction Of ,oo$s 5n$ Services3
YesMNo
Domestic *arketing Decisions 5n$ /nternational *arketing
Decisions 5re Not Same3 /s /t True3
YesMNo
1/=
1/>
/t /s True That "olitical Forces 0ithin 5 Countr- 5ffect The
/nternational *arketing Decisions3
YesMNo
Do You 5gree That Environmental Challenges /nfluence The
*arketing Strateg-3
YesMNo
Do You 5gree That "olitical Stabilit- an$ ,overnment "olic-
,reatl- 5ffects the /nternational *arkets3
YesMNo
Do You 5gree That *ore Cometition /s One Of The Demerits
Of /nternational *arket3
YesMNo
Your Oinion3
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