The scope and challenge of international marketing.docx

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The scope and challenge of international marketing.docx

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

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