Strategic International Marketing
Chapter 1 Reason for 'International Marketing'
International marketing is defined as "the process of planning and undertaking transactions across national boundaries that involve..."EXCHANGE"
WTO (World Trade Organization) is an international agency which encourages trade between member nations, administers global trade agreements and resolves disputes when they arise
The predecessor of the World Trade Organization (WTO) was: General Agreement on Tariffs and Trade (GATT)
Forms of international marketing involve:
- joint ventures
The driving forces for international marketing include all of the following: - market needs
A transnational or multinational firm is typically defined as: those that produce goods in more than one country and blend the market specific approach with the standardised production methods
There are five stages of the product life cycle: Introduction, Growths, Maturity, Saturation, Decline
The product trade cycle suggests: that the original exporter will eventually become importers
It is often the case that products which are at maturity stage (of the product life cycle) in Australia will be at what stage in overseas markets? Introduction of Growth
What are the following variables of the marketing mix?
- place and distribution
Based on the explanation of the product trade cycle model, a high technology and expensive consumer product is more likely to be first produced and consumed in a developed country.
The theory of comparative advantage suggests a country can gain from international trade even if it has a disadvantage in all goods.
The restraining forces of international marketing include: differences between various national markets
(e.g. political systems, legal requirements, cultural and societal values, economic developments, controls over entry and access to markets, actual or perceived risks.)
In terms of creating a positive relationship, when selecting a suitable agent or joint-venture partner, firms should study the party's: Networks with which it is involved
The term holistic marketing refers to:
- Social responsibility marketing
- Internal marketing
- Integrated marketing
- Relationship marketing
Country risk is when a firm faces the risk of social/political instability in another country
Cross-cultural risk is when firms face the risk of cultural distance, negotiation patterns, decision-making systems, ethical practices, in another country.
Commercial risk is when firms face the risk of weak partner, operational problem, timing of entry, competitive intensity, poor execution of strategy.
Currency/financial risk is when a firm faces the risk of currency exposure, asset valuation, inflationary and transfer pricing.
A ethnocentric management orientation is one that favors the approach of home country principles and thereby should be applied in every country
hint: ethno for white people are racists
A polycentric management orientation is one that allows each overseas subsidiary to develop its own unique business/marketing approach
hint :poly for many
A regiocentric orientation is one that views the region as the market and develops region-based strategies
hint :r for regional
A geocentric orientation is one that views the world as the market with the flexibility to respond to local needs and wants
hint :g for global
On the "wheel" of international marketing, the controllable elements are: the firm's marketing mix (4p's)
Chapter 3 Economic and Financial Environment
There are four states of economic development
2. Low-middle income
Low Income Countries (Africa, India - High birth rates, low...