The scope and challenge of international marketing.docx
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Thescopeandchallengeofinternationalmarketing
TheScopeAndChallengeOfInternationalMarketing
一Preface
Globalcommercethrivesduringpeacetime.Weshouldunderstandtherolethattradeandinternationalmarketingplayinproducingpeace.Aglobaleconomicboom,unprecedentedinmoderneconomichistory,hasbeenunderwayasthedriveforefficiency,productivity,andopen,unregulatedmarketssweepstheworld.Powerfuleonomic,technological,industrial,political,anddemographicforcesareconvergingtobuildthefoundationofanewglobaleconomicorderonwhichthestructureofaone-worldeconomicandmarketsystemwillbebuilt.
Alltheactivityassociatedwiththedevelopment,production,andmarketingofcommercialaircraftandspacevehiclesrequiresmillionsofpeopleformaroundtheworldtoworktogether.Moreover,nocompanydoesmoretoenableteationandcommerce.Allthisinteractionyieldsnotjustthemutualgainassociatedwithbusinessrelationshipsbutalsopersonalrelationshipsandmutualunderstanding.Thelatterarethefoundationofglobalpeaceandprosperity.
Internationalmarketingishardwork.Makingsalescallsisnovacation.Butinternationalmarketingisimportantwork.Itcanenrichyou,yourfamily,yourcompanyandyourcountry.Andultimately,wheninternationalmarketingisdonewell,bylargecompaniesorsmall,beneedsandwantsofcustomersinotherlandsarewellunderstood,andprosperityandpeacearepromotedalongtheway.
Internationalmarketingisaffectedbyandaffectedallthesethings.Forthefirsttimeinhistory,McDonald’shaspulledoutofinternationalmarketsinbothLatinAmericaandtheMiddleEast.Ofalltheeventsandtrendsaffectingglobalbusinesstoday,fourstandoutasthemostdynamic,theonesthatwillinfluencetheshapeofinternationalbusinessbeyondtoday’s“bumpyroads”andfarintothefuture:
(1)therapidgrowthoftheWorldTradeOrganizationandregionalfreetradeareassuchastheNorthAmericanFreeTradeAreaangEuropeanUnion;
(2)thetrendtowardtheaccertanceofthefreemarketsystemamongdevelopingcountriesinLatinAmerica,Asia,andeasternEurope;(3)theburgoningimpactoftheInternet,mobilephones,andotherglobalmediaonthedissolutionofnationalborders;(4)themandatetomanagetheresourcesandglobalenvironmentproperlyforthegenerationstocome.
Todaymostbusinessactivitiesareglobalinscope.Technology,research,capitalinvestment,andproduction,aswellasmarketing,distribution,andcommunicationsnetworksallhaveglobaldimensions.Everybusinessmustbepreparedtocompeteinanincreasinglyinterdependentglobaleconomicandphysicalenvironment,andallbusinesspeoplemustbeawareoftheeffetsofthestrendswhenmanagingeitheradomesticcompanythatexportsoramultinationalconglomerate.
二InternationalMarketingDefined
Thechallengeofinternationalmarketingistodevelopstrategicplansthatarecompetitiveintheseintensifyingglobalmarkets.Foragrowingnumberofcompaniesbeinginternationalisnolongeraluxurybutanesessityforeconomicsurvival.
Internationalmarketingistheperformanceofbusinessactivitiesdesignedtopian,price,promote,anddirecttheflowofacompany’sgoodsandservicestoconsumersorusersinmorethanonenationforaprofit.Theonlydiffrerncebetweenthedefinitionsofdomesticmarketingandinternationalmarketingisthatinthelattercase,marketingactivitiestakeplaceinmorethanonecountiy.Thisapparentlyminordifference,inmorethanonecountry,accountsforthecomplexityanddiversityfoundininternationalmarketingoperations.Marketingconcepts,processes,andprinciplesareuniversallyapplicable,andthemarketer’staskistheasme,whetherdoingbusinessinDimebox,Texas,orDaresSalssm,Tanzania.Business’sgoalistomakeaprofitbypromoting,pricing,anddistributingproductsforwhichthereisamarket.
Thedifferenceliesnotwithdifferentconceptsofmarketingbutwiththeenvironmentwithinwhichmarketingplansmustbeimplemented.Theuniquenessofforeignmarketingcomesfromtherangeofunfamiliarproblemsandthevarietyofstrategiesnecessarytocopewithdifferentlevelsofuncertaintyencounteredinforeignmarkets.
Competition,legalrestraints,governmentcontrols,weather,fickleconsuners,andanynumberofotheruncontrollableelementscan,andfrequentlydo,affecttheprofitableoutcomeofgood,soundmarketingplans.Generallyspeaking,themarketercannotcontrolorinfluencetheseuncontrollableelementsbutinsteadmustadjustoradapttotheminamannerconsistentwithasuccessfuloutcome.Whatmakesmarketinginterestingisthechallengeofmoldingthecontrollableelementsofmarketingdecisionswithintheframeworkoftheuncontrollableelementsofthemarketplaceinsuchawaythatmarketingobjectivesandachieved.Eventhoughmarketingprinciplesandconceptsareuniversallyapplicable,theenvironmentwithinwhichthemarketermustimplementmarketingplanscanchangedramaticallyfromcountytocountyorregiontoregion.
三InternationalMarketingTask
Theinternationalmarketer’staskismorecomplicatedthanthatofthedomesticmarketerbacausetheinternationalmarketermustdealwithatleasttwolevelsofuncontrollableuncertaintyinsteadofone.Uncertaintyiscreatedbytheuncontrollableelementsofallbusinessenvironments,buteachforeigncountryinwhichacompanyoperatesaddsitsownuniquesetofuncontrollablefactors.
Abusinessoperatinginitshomecountryundoubtedlyfeelscomfortableinforecastingthebusinessclimateandadjustingbusinessdecisionstotheseelements.Theprocessofevaluatingtheuncontrollableelementsinaninternationalmarketingprogram,however,ofteninvolvessubstantialdoesofcultural,political,andeconomicshock.
Abusinessoperatinginanumberofforeigncountriesmightfindpolarextremesinpoliticalstability,classstructure,andeconomicclimate—criticalelementsinbusinessdecisions.Thedynamicupheavalsinsomecountriesfurtherillustratetheproblemsofdramaticchangeincultural,political,andeconomicclimateoverrelativelyshortperiodsoftime.Acaseinpointischina,whichhasmovedfromasocialistlegalsysteminwhichallbusinesswasdonewiththestatetoatransitionperiodwhileacommerciallegalsystemdevelops.Inthistransitionalphase,newlaesarepassesbutlefttobeinterpretedbylocalauthorities,andconfusionprevailsaboutwhichrulesarestillinforceandwhichrulesarenolongerapplicable.
Theuncertaintyofdifferentforeignbusinessenvironmentscreatestheneedforaclosestudyoftheuncontrollableelementswithineachnewcountry.Thusastrategysuccessfulinonecountrycanberenderedineffdctiveinanotherbydifferenceinpoliticalclimate,stagesofeconomicdevelopment,leveloftechnology,orotherculturalvariations.
(一)EnvironmentalAdaptationNeeded
Toadjustandadaptamarketingprogramtoforeignmarkets,marketersmustbaabletointerpreteffectivelytheinfluenceandimpactofeachoftheuncontrollableenvironmentalelementsonthemarketingplanforeachforeignmarketinwhichtheyhopetodobusiness.Inabroadsense,theuncontrollableelementsconstitutetheculture;thedifficultyfacingthemarketinadjustingtothecultureliesinrecognizingtheirimpact.Inadomesticmarket,thereactiontomuchoftheenvironment’simpactonthemarketer’sactivitiesisautomatic;thevariousculturalinfluencesthatfillourlivesaresimplyapartofoursocialization,andwereactinamanneracceptabletooursocietywithoutconsciouslythinkingaboutit.
Thetaskofculturalsdjustment,however,isthemostchallengingandimportantoneconfrontinginternationalmarketers;theymustsdjusttheirmsrketingeffortstoculturestowhichtheyarenotattuned.Indealingwithunfamiliarmarkets,marketersmustbeawareoftheframesofrefrerncetheyareusinginmakingtheirdecisionsorevaluatingthepotentialofamarket,bacausejudgmentsarederivedfromexperiencethatistheresultofacculturationinthehomecountry.Onceaframeofreferenceisestablished,itbacomesanimportantfactorindeteeminingormodifyingamarketer’sreactiontosituations—socialandevennonsocial.
But,culturalconditioningislikeaniceberg—wearenotawareofnine-tenthsofit.Inanystudyofthemarketsystemsofdifferentpeoples,theirpoliticalandeconomicstructures,religions,andotherelementsofculture,foreignmarketersmustconstantlyguardagainstmeasuringandassessingthemarketsagainstthefixedvaluesandassumptionsoftheirowncultures.Theymusttakespecificstepstomakethemselvesawareofthehomeculturalreferenceintheiranalysesanddecisionmaking.
(二)TheSelf-referenceCriterionAndEthnocentrism:
MajorObstacles
Thekeytosuccessfulinternationalmarketingisadaptationtoenvironmentaldifferencesfromonemarkettoanother.Adaptationisaconsciouseffortonthepartoftheinternationalmarketertoanticipatetheinfluencesofboththeforeignanddomesticuncontrollablefactorsonamarketingmixandthentoadjustthemarketingmixtominimizetheeffects.
Theprimaryobstaclestosuccessininternationalmarketingareaperson’sself-referencecriterion(SRC)andanassociatedethnocentrism.TheSRCisanunconsciousreferencetoone’sownculturalvalues,experiences,andknowledgeasabasisfordecisions.Closelyconnectedisethnocentrism,thatis,thenotionthatpeopleinone’sowncompany,culture,orcountryknowsbesthowtodothings.EthnocentrismisparticularlyaproblemforAmericanmanagersatthebeginningofthe21stcenturybacauseofAmerica’sdominanceintheworldeconomyduringthelate1990S.Ethnocentrismisgenerallyaproblemwhenmanagersfromaffluentcountrismworkwithmanagersandmarketsinlessaffluentcountries.BoththeSRCandethnocentrismimpedethea