International Marketing

CHAPTER 1 The Scope and Challenge of International Marketing .

9 43.7 44.8 57. July 24.0 47.2 38.174 13.2 22.0 28.749 23.377 50.1 55.6 N/A 55.2 41.350 32.464 50.5 30.1 N/A 58.0 51.700 28.3 63.4 36.728 21. Players in the Global Game Company Foreign Revenues ($ Mil) Foreign Foreign Foreign Revenues Profits Assets (% of Total) (% of Total) (% of Total) ExxonMobil 1-4 115.4 45.485 71.2 SOURCE: Adapted from Brian Zajac.7 77. 2000 .1 35.S.138 46.8 26.398 31. “Global Giants”. Forbes.8 54.0 IBM Ford Motor General Motors General Electric Texaco Citigroup Hewlett-Packard 35.2 101.0 8.7 49.8 55.3 62.Top 10 U.5 Wal-Mart Stores Compaq Computer Irwin/McGraw-Hill 22.

Germany Germany Australia Australia Australia U. U.S.K. U. “Name Game”.K. Companies U.K. 2000 . Mexico France 1-2 Irwin/McGraw-Hill SOURCE: Adapted from Kuri Badenhausen. Swiss U.Foreign Acquisitions of U. Forbes. Companies Bestfoods (foods) Ben & Jerry’s (ice cream) Alpo (pet food) Pillsbury (food) Burger King (fast food) Random House (publishing) Chrysler (autos) TV Guide (magazine) New York Post (newspaper) LA Dodgers (sports) Arco (gasoline) CompUSA (retailing) Seagram (alcoholic beverages) Foreign Owner U. Jul 24.K.S.K.

0 267.9 406.9 95.2 243.5 339.4 268. . China and National Accounts.5 948.5 Imports $2. 1997 ($ billions) Country* EU-15 U.7 248.Leading World Trading Countries.4 386.A.1 716.7 384.4 454.6 201.2 577.2 238.0 759.7 105.3 158. Foreign Trade by Commodities.0 114.0 271.289.3 771.5 196.565. OECD 2000.5 337.6 620.723.8 584.0 156.4 1.9 240.5 Total $5.058.2 309.6 372.9 2.5 174. Ministry of foreign Trade and Economic Cooperation.3 121.9 121.7 156.0 314. Germany Japan United Kingdom France Italy Canada Netherlands Belgium/Luxembourg China Spain South Korea Mexico Switzerland Exports $2.6 422.6 377.2 216.S.007.6 488.0 202.4 3-12 Irwin/McGraw-Hill SOURCE: Statistic Report of Import and Export Trade 1999.4 1205.

and every VCR sold in the U.S.S. bonds & notes is issued to foreigners.S.S.       1 out of every 3 U. is imported. farm acres is producing for export 1 of every 6 U.Domestic Policy Repercussions  Influences in the U.S. foreign exchange.S. $1 of every $4 of U. Travel and tourism is the #1 source of U. manufacturing jobs produces for export $1 of every $7 of U. . 9 out of 10 TVs. 2 out of 3 suits. sales goes abroad 1 of every 3 cars.S.

S.The Scope and Challenge of International Marketing I.is concerned with planning and conducting transactions across international borders to satisfy the objectives of individuals and organizations. . Business International Marketing International Marketing . The Internationalization of U. II.

A: There is a trend toward a global economy.The Scope and Challenge of International Marketing .  No longer enough to look at domestic market  Markets across the world being sought after by more competitors  Explosion of international trade  Global linkages become important .Q: Why Study International Marketing? .

It takes the whole world now to make the economics of movie-making work” . we’d lose money.William Mechanic President..The Scope and Challenge of International Marketing “If we only distributed pictures in the U.S. 20th Century Fox .

” .The Scope and Challenge of International Marketing “Half the people in the world have yet to take their first picture. Eastman Kodak Company . Fisher CEO. We just have to sell yellow boxes of film.C.George M. The opportunity is huge. and it’s nothing fancy.

Invented Here. Invented Technology Phonographs 1-3 1% 9 0% 9 0% Color TVs Audiotape Recorders Videotape Recorders 0% 1 0% 4 0% 1 0% 1% 1970 NOW 9 9% Machine Tools Telephones 3 5% 9 9% 2 5% 8 9% 6 4% 9 8% 7 4% Semiconductors Computers 0 Irwin/McGraw-Hill 20 40 60 80 100 . Made Elsewhere U.S.

230 Exports: 481 Imports: 473 160 162 AMERICAS Intra-Trade: 221 Exports: 364 Imports: 455 170 128 ASIA 253 191 143 160 Intra-Trade: 394 Exports: 491 Imports: 360 40 44 72 REST OF WORLD Intra-Trade: 57 Exports: 255 Imports: 303 68 Source: International Trade Statistics General Agreement on Tariffs and Trade Geneva 1993 1992 .World Trade Flows ( in billions of dollars ) WESTERN EUROPE Intra-Trade: 1.

trade laws.International markets have greater growth potential .Some tasks associated with international marketing not included (or less intense ) than in domestic marketing (e. long distance distribution.) .. Comparing Domestic and International Marketing  Similarity: . political factors.g. cultural research. exchange rates.Both carry out transactions that meet the needs of individuals and organizations  Differences: .The Scope and Challenge of International Marketing III.

S.The Scope and Challenge of International Marketing  Why U. Can Compete (given high labor costs): Modernization and automation (investment in R&D) Focus on high capital/labor ratio industries Manage services Use foreign labor in manufacturing industries Do effective marketing research .Lack of awareness of importance of world markets .S.More intense foreign competition (more modern production facilities and lower costs than in past)  How the U. Share of Trade is Declining: .

Being International V.The Scope and Challenge of International Marketing IV. International Marketing Concepts .

International Marketing Concepts Concept Domestic Market Extension Multi-Domestic Market Global Marketing EPRG Schema (Ethnocentric) (Polycentric) (Regio/Geocentric) .

The Scope and Challenge of International Marketing Figure 1.1: International and Global Marketing Multi-Country Marketing Global Marketing .

2: International and Global Marketing and Related Fields of Study International Finance .The Scope and Challenge of International Marketing International Business International Marketing International Trade International Management Figure 1.

2: International and Global Marketing and Related Fields of Study International Management Global Marketing Trade International Finance .The Scope and Challenge of International Marketing International Business International Marketing International Figure 1.

Sign up to vote on this title
UsefulNot useful