Key terms

1. Define Marketing

The performance of business activities designed to plan, price,

promote, and direct the flow of a company’s goods and services to
consumers or users in more than one nation for a profit
• Unfamiliar problems
• Different levels of uncertainty
Molding the controllable elements of the marketplace (product, price,
promotion, distribution, and research) within the framework of the
uncontrollable elements (competition, politics, laws, consumer behavior,
level of technology, and so forth) in such a way that marketing
objectives are achieved
International Marketing environment refers to the controllable and
uncontrollable forces that influence upon the marketing decision.
2. controllable elements
the aspects of trade over which a company has control and influence
with short and long run they include product, price, promotion,
distribution, and research.
3.uncontrollable elements
factors in the business environment over which the international
marketer has no control or influence; may include competition, politics,
law, weather, consumer behavior and level of technology , and so forth.

4.domestic environment uncontrollables

Elements like political, and legal forces , economic conditions,
competitive structure, in the home country that effect international
successes of venture come under the domestic uncontrollable
For example decision taking regarding foreign policy by governments
can impact international marketing success
5.foreign environment uncontrollables Forces like Political stability
(Political/legal forces)
Class structure (Competitive force ,Level of technology, Geography
,Cultural forces) and Economic climate (Structure of distribution ,
Infrastructures ) while business internationally are foreign environment
uncontrollable , all these factors are present foreign markets .
6.self-reference criterion (SRC)
an unconscious reference to one's own cultural values, experience, and
knowledge as a basis for decision
7.global awareness
a frame of reference, important to the success of a businessperson, that
embodies tolerance of cultural differences and knowledge of cultures,
history, world market potential, and global economic, social, and
political trends.

2.The marketer's task is the same whether applied in Dimebox,

Texas, or Dar Es Salaam, Tanzania." Discuss.
The only difference between domestic marketing and international
marketing is that the activities take place in more than one country.
Therefore, the marketing task is the same throughout the world.
Business goal is to make a profit by promoting, pricing, and distributing
products for which there is a market. If this is the case, what is the
difference between domestic and international marketing. The answers
lies not with different concepts of marketing but with the environment
within which marketing plans must be implemented.
3.How can the increased interest in international marketing on the
part of U.S. Firms be explained?
Current interest in international marketing can be explained by changing
competitive structures, coupled with shifts in demand characteristics in
markets throughout the world. With the increasing globalization of
markets, companies find they are unavoidably enmeshed with foreign
customers, competitors and suppliers, even within their own borders.
They face competition on all fronts, from domestic firms and from
foreign firms.
A huge portion of all consumer products, from CD players to
dinnerware, sold in the United States is foreign made.
4.Discuss the four phases of international marketing involvement.
There are 4 phases of international marketing involvement; which are no
direct foreign marketing, infrequent foreign marketing, regular foreign
market and international marketing.
In no direct foreign marketing stage:
The company may not actively involve in international marketing. But
yet there are still have possibility of the product to sell in oversea through
the distributor or wholesaler without the knowledge of the producer. It
focuses to operate in the domestic market. No serious effort are made by
the firm to enter the foreign market
Infrequent of temporary foreign marketing:
in this stage, the firm gets involved in foreign marketing just to dispose its
temporary surplus or to utilize excess capacity. Because it finds similar
market as home in terms of domestic, geographic, cultural similarities.
Temporary surplus may be caused by fluctuations of in production levels
or demand. As a result it infrequently markets its products abroad.
Regular foreign marketing:
it’s the full process of internationalization. Here the firm is serious to
foreign market commitment. It produces a fixed amount especially for
export. The firm makes serious effort to develop the foreign markets. It
appoints foreign or domestic middlemen or sets up its own distribution
channel and sales force in foreign markets to explore the marketing
potentials. It frequently visits to the foreign countries. Here, it’s
considered some of the countries as its target market

International marketing: in this phase the firm gives full effort in

marketing internationally. Firm will now fully concentrated both in
domestic and international market. Here it installs different production
unit in different countries and produces, set prices, advertises according
to those segments’ specifications. So, it’s also called multinational
marketing. For example- Uniliver, Nestle do their business according to
this phase.

Global marketing:
At this stage, companies treat the world, including their home market, as
one market. Market segmentation decisions are no longer focused on
national borders instead; market segments are defined by income levels,
usage patterns or other factors that often span countries and regions. All
marketing strategies regarding pricing, advertising, policies etc. are
taken considering the whole population of the world. For example- Coca
cola with red can.

1st phase- domestic firms that have no foreign business except for
foreign customers who seek out the firm themselves

2nd phase- domestic firms that sell their temporary surpluses abroad

3rd phase- domestic firms that sell their goods abroad on a continuous
basis
4th phase- international company that produces a product specifically for
the world market

5. Discuss the conditions that have led to the development of global

markets.
A global market has emerged due to new communications technology,
travel and increased exposure to the other parts of the world. Through
these conditions, needs and demands are converging into one global
market such as the need for high quality, reasonably priced, standardized
products.
6.Differentiate between a global company and a multinational
company
Global company: has locations in multiple countries, but has created 1
company culture with 1 set of processes that facilitates a more efficient
and effective single global organization.
Multinational company: has locations and facilities in multiple countries,
but each location function in its own way, essentially as its own entity.

7.Discuss the three factors necessary to achieve global awareness

1. Tolerance of and a willingness to learn about cultural differences
– This is a vital element within international marketing. Being tolerable
i.e. understanding and accepting cultural differences can allow for a
better understanding of the differences between home and foreign
markets. By understanding the differences between markets means that
the marketing manager can make business decisions that meet home and
foreign goals. As many of us will have different cultural backgrounds
then managers and other employees need to be mindful of these
differences. We don’t have to accept these differences, but we have to be
able to tolerate and allow these differences to be of benefit to the
business.
2. Knowledge of cultures and history – The knowledge of culture is
important for managers to understand as it helps them to understand the
behaviors in foreign markets. Knowledge of history assists managers by
giving them a broader idea on consumer behavior and, can help in the
planning process. By knowing the history of a certain culture or nation it
gives a better understanding as to how people in a foreign market act and
think. In more cases there are cultural differences between markets so, a
manager would use that knowledge of culture and history to make
effective and valued business decisions.
3. Knowledge of world market potential, and global economic,
social, and political trends – Marketing managers need to keep up with
world markets as conditions within a business environment can rapidly
change. Countries that are still undergoing social, economic and political
changes are former republics of the Soviet Union, along with many other
countries
8.Prepare your lifelong plan to be globally aware
I personally strive to be globally aware and all that I do. The globally
aware person has the knowledge, competencies, values, and dispositions
to act in an informed manner, demonstrate empathy, engage in effective
intergroup communication, and build community across social, cultural,
political, environmental, geographic, and economic boundaries. Being
globally aware is not always easy, however is extremely
necessary to successfully interact and communicate with those around
us.

9.Discuss the three factors necessary to achieve global awareness

1. Objectivity- in assessing opportunities, evaluating potential and
responding to problems
2. Tolerance towards cultural differences- understanding cultural
differences and working with people from other cultures
3. Knowledgeability- about cultures, history, world market potentials,
global economy and social trends

10.Define and discuss the idea of global orientation

- Global orientation means operating as if all the markets in a company's
scope of operations (including domestic market) are approachable as a
single global market and to standardize the marketing mix where
culturally feasible and cost effective or to adapt the marketing mix
where culturally required and cost effective.
- A global orientation does not mean to follow a single strategy of
standardization without regard for cultural difference