Professional Documents
Culture Documents
environment.
Cont…
The difficulties created by different environments and culture are
the international marketer’s primary concern.
The primary obstacles to success in international marketing are a
person’s self-reference criterion (SRC) and an associated
ethnocentrism.
The SRC is an unconscious reference to one’s own cultural
values, experiences, and knowledge as a basis for decisions.
Closely connected is ethnocentrism, that is, the notion that people
in one’s own company, culture, or country know best how to do
things.
Cont…
A study of international marketing should begin with an understanding
of what marketing is and how it operates in an international context.
We hope you can remember the concepts of general marketing you have
seen in your principles of marketing.
Lets define what “marketing “means?
Export Marketing
This covers all marketing activities involved in exporting of
organizations product to other countries.
The primary focus of the organization is the domestic marketing but it
also tries to search market outside home country and try to adapt the
product to local requirement through product modification.
The product is produced in the domestic market.
The management tries to sell surplus product outside the home
market.
Cont…
Export marketing means exporting goods to other
countries of the world as per the procedures framed by
the exporting country as well as by the importing country.
According to B. S. Rathor “Export marketing includes the
management of marketing activities for products which
cross the national boundaries of a country”.
“Export marketing means marketing of goods and
services beyond the national boundaries”.
International Trade Concept and Theory
International Trade: is the exchange of goods and services
between one country (and its resident) and other countries (and
their residents).
The theory, indeed form the basis from which we understand why
two nations engage in trade.
Polycentric Orientation
The polycentric orientation is the opposite of ethnocentrism. The
term polycentric describes management’s often-unconscious belief
or assumption that each country in which a company does
business is unique.
Region centric and Geocentric Orientations
The geocentric orientation represents a synthesis of ethnocentrism
and polycentrism; it is a “worldview” that sees similarities and
differences in markets and countries and seeks to create a global
strategy that is fully responsive to local needs and wants.
Cont…
A regiocentric manager might be said to have a worldview on a
regional scale.
For example, a U.S. company that focuses on the countries
included in the North American Free Trade Agreement (NAFTA)—
the United States, Canada, and Mexico --- has a regiocentric
orientation. Similarly, a European company that focuses its
attention on the EU or Europe is regiocentric.
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.
Products reach foreign markets indirectly–Trading companies–
Foreign customers who contact firm–Wholesalers–Distributors–
Web sites
Cont…
to the organization.
Cont…
a. Tariff barrier
boundary.
To Protect infant home industry from advanced foreign competitors
Cont…