Global Dimensions of Marketing

Describe the importance of international marketing from the perspectives of the individual firm and the nation.    

      Global marketing is important to many U.S. firms. The Coca&-Cola Company, for example, depends on foreign markets for over three&-quarters of its revenues. Others rely on imports as a source of raw materials and component parts. But foreign trade is less important to the United States than it is to many other nations. Only 10 percent of the U.S. gross national product is from exports. In other countries, the percentage is considerably higher.

Identify the major components of the environment for international marketing.

      A variety of environmental factors can influence marketing decision making in the international context. This chapter categorizes these factors as economic, social&-cultural, and political&-legal.

Identify the various methods of entering international markets.

      Several levels of involvement in world marketing are possible, including indirect or direct exporting, foreign licensing, overseas marketing, and foreign production and marketing.

Differentiate between a global marketing strategy and a multinational marketing strategy.

      Some firms use a global marketing strategy, in which they apply their domestic marketing strategies directly in foreign markets with little or no modifications. Marketers of products such as Coca&-Cola feel that tastes around the world are sufficiently homogeneous to allow the effective use of their existing marketing strategies everywhere. In contrast, other firms employ a multinational marketing strategy whereby they employ different marketing programs to match the characteristics and requirements of buyers in each foreign market.

Describe the alternative product and promotional strategies used in international marketing.

      Alternative product and promotional strategies for international markets include (1) straight extensions, whereby the same product is introduced in the foreign market using the same promotional strategy as in the domestic market; (2) promotional adaptation, in which the same product is introduced with a unique promotional strategy designed for the specific market; (3) product adaptation, wherein product modifications are made but the same promotional strategy is used; (4) dual adaptation, in which modifications of both product and promotional strategies are employed; and (5) product invention, whereby the firm decides to develop an entirely different product and combine it with a new promotional strategy to take advantage of unique foreign opportunities.

Explain the attractiveness of the United States as a target market for foreign marketers.

            A number of factors contribute to the attractiveness of the U.S. market to foreign firms: its large population, high levels of discretionary income, political stability, general acceptance of foreign investment, and relatively controlled economic ills. Recent declines in the value of the dollar relative to foreign currencies have also attracted many foreign marketers.