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ThescopeandChallengeofInternationalMarketingSelf-referencecriterion(SRC)andethnocentrism:Majorobstacles
Developingaglobalawareness
SeeChap1PPT16
Self-ReferenceCriterion(SRC)andEthnocentrism:MajorObstaclesSRCisanunconsciousreferencetoone’sownculturalvalues,experiences,andknowledgeasabasisfordecisionsEthnocentrismreferstothenotionthatone’sowncultureorcompanyknowsbesthowtodothingsBoththeSRCandethnocentrismimpedetheabilitytoassessaforeignmarketinitstruelightReactionstomeanings,values,symbols,andbehaviorrelevanttoourownculturearedifferentfromthoseofforeignRelyingonone’sSRCcouldproduceanunsuccessfulmarketingprogramAvoidingtheSelfReferenceCriterionToavoidtheSRC,thefollowingstepsaresuggested:1:Definethebusinessproblemorgoalinhome-countryculturaltraits,habits,ornorms2:Definethebusinessproblemorgoalinforeign-countryculturaltraits,habits,ornorms.Makenovaluejudgments3:IsolatetheSRCInfluenceintheproblemandexamineitcarefullytoseehowitcomplicatestheproblem4:RedefinetheproblemwithouttheSRCinfluenceandsolvefortheoptimumbusinessgoalsituation*DevelopingaGlobalAwarenessTobegloballyawareistohave:1. TolerantofCulturalDifferences,andKnowledgeableof: (a)Culture,(b)History,(c)WorldMarketPotential, (d)GlobalEconomic,SocialandPoliticalTrendsThescopeandChallengeofInternationalMarketingStagesofInternationalMarketingInvolvement
ThewayofenteringInternationalmarket
SeenextpageStrategicorientation—EPRGschema
StagesofInternationalMarketingInvolvementIngeneral,firmsgothroughfivedifferentphasesingoinginternational:InfrequentForeignMarketingNoDirectForeignMarketingInternationalMarketingRegularForeignMarketingGlobalMarketingStrategicOrientation:EPRGSchemaOrientationEPRGSchemaDomesticMarketingExtensionMulti-DomesticMarketingGlobalMarketing(Ethnocentric)(Polycentric)(Regio/Geocentric)Generally,fourdistinctiveapproachesdominatestrategicthinkingininternationalmarketing:StrategicOrientation:EPRGSchema1.EthnocentricorDomesticMarketingExtensionConcept:2.PolycentricorMulti-DomesticMarketingConcept:OppositeofethnocentrismManagementofthesemultinationalfirmsplaceimportanceoninternationaloperationsasasourceforprofitsManagementbelievesthateachcountryisuniqueandallowseachtodevelopownmarketingstrategieslocallyHomecountrymarketingpracticeswillsucceedelsewherewithoutadaptation;however,internationalmarketingisviewedassecondarytodomesticoperationsGenerally,fourdistinctiveapproachesdominatestrategicthinkingininternationalmarketing:StrategicOrientation:EPRGSchema3.Regiocentric:4.Geocentric:RegiocentricandGeocentricaresynonymouswithaGlobalMarketingOrientationwhereauniform,standardizedmarketingstrategyisusedforseveralcountries,countriesinaregion,ortheentireworldSeestheworldasonemarketanddevelopsastandardizedmarketingstrategyfortheentireworldThescopeandChallengeofInternationalMarketingProductionathome
ProductionaboardExportingIndirectexpo.Directexpo.ContractualformsFDIExportthroughreactivemodelicensingAgentproactivemodeFranchisingJVWhollyownedaff.ContractManufacturinggreen-fieldinv.ManagementcontractacquisitionTurnkeyproject
ThescopeandChallengeofInternationalMarketingDiscussthedifferencesbetweenglobalcompanyandmultinationalcompany?WhatisSRCandgiveanexampletoillustrateshowitinfluenceyourwayofthinking?TheglobalEnvironmentofInternationalMarketingTheconstantlychangingglobalenvironment
GATTandWTO
IMFandWBG
WorldTradeOrganization(WTO)Itsetsmanyrulesgoverningtradebetweenits132membersWTOprovidesapanelofexpertstohearandruleontradedisputesbetweenmembers,and,unlikeGATT,issuesbindingdecisionsUnlikeGATT, isaninstitution,notanagreementTheInternationalMonetaryFund(IMF)IMFwascreatedtoassistnationsinbecomingandremainingeconomicallyviableItassistscountriesthatseekcapitalforeconomicdevelopmentandrestructuringIMFloanscomewithstipulationsthatborrowingcountriesslashspendingandimposecontrolstocurbinflationIthelpsmaintainstabilityintheworldfinancialmarketsObjectivesoftheIMFinclude:stabilizationofforeignexchangeratesestablishconvertiblecurrenciestofacilitateinternationaltradelendmoneytomembersinfinancialtroubleWorldBankGroup(WBG)ThefunctionsoftheWBGinclude:ThegoalofWBGistoreducepovertyandtheimprovementoflivingstandardsbypromotingsustainablegrowthandinvestmentinpeople.lendingmoneytocountriestofinancedevelopmentprojectsineducation,health,andinfrastructure;providingassistanceforprojectstothepoorestdevelopingcountries;lendingdirectlytotheprivatesectorindevelopingcountrieswithlong-termloans,equityinvestments,andotherfinancialassistance;provideinvestorswithinvestmentguaranteesagainst“noncommercialrisk,”sodevel
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