In this discussion topic you are asked to Explain how and why international marketing is important in a business venue (Module objective #2). You will be graded on how well your discussion demonstrates competence in this learning objective, not by how much you write. Start your own thread answering the prompt bellow and reply to as many threads by other students as you want. Please reply to at least two other student posts, to create interaction and active discussion.
Prompt:
Research shows that an important part of the value of higher education is in the networking and "social opportunities" that come from classmates and professors. Put simply, the friends and connections you make will open doors in the future. Post here your major, specialization and a bit about your current or future career. What would be your dream job? Whether your job is international or not, how could you benefit from the lessons in this course?
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INTERNATIONAL MARKETING
MODULE 2
ABOUT THE MODULE
Module objectives. By the end you will be able to: 1. Define International Marketing and Cross-cultural Marketing, contrasting
their similarities and differences.
2. Explain why international and cross-cultural marketing are important in any business venue.
3. Name examples of and identify uncontrollable forces that require international marketing action.
4. Create a (SW)OT analysis, labeling uncontrollable forces in a foreign environment as opportunities or threats.
Textbook equivalence Cateora, Chapter 1
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ABOUT THE COURSE
International Marketing definition
“The performance of business activities designed to create, price, promote and distribute products and services in more than one nation.”
Despite the relatively narrow definition above, Marketing can always benefit from an International perspective. This is because:
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CONCEPTS
Some reasons why International Marketing is not optional
Global mobility
Ease and frequency of international travel means that foreigners living in the country are a growing customer base.
Global competition
Whether national firms want it or not, international companies are competing in the U.S. The other side of this is an increased opportunity for global cooperation.
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CONCEPTS
Some reasons why International Marketing is not optional
Internet and digital markets
Internet and its users do not care (much) about country borders. The trend to digitalize and go online (of which this course is an example) will only make global understanding more important.
Unfavorable economy and saturated local markets
As of today, U.S. and European economies have seen better times. Even when everything goes well, relying exclusively on one mature, saturated market may be unwise.
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ABOUT THE COURSE
Cross-Cultural Marketing definition
“The performance of business activities designed to create, price, promote and distribute products and services to more than one culture.”
The latter part of the definition, including culture, means that effectively all marketing is cross-cultural marketing. This is because all countries are culturally diverse within! Companies are engaging in crosscultural marketing every time they target and reach cultural or ethnic minorities.
One lesson to learn from 2020 was the importance of culturally-aware marketing!
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International companies in the United States
Try to guess. Which of the following well-known companies are U.S.-owned?
CONCEPTS
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Ben & Jerry
Gillete
Lucy Strike
Budweiser
American Apparel
Trader Joe's
7-11
Burger King
General Electric
AT&T
The Wall Street Journal
Columbia Pictures
Gap
Chrysler
T Mobile
AMC Cinemas
American Express
Smith&Wesson
CONCEPTS
Check the nationality of these companies clicking here (or go to slide 20 of this deck). Think deeply and try to answer honestly and self-critically these questions:
⊡ Did any of the results surprise you?
⊡ Was any of these not being American disappointing to you?
⊡ Does your perception of any of these companies improves/worsens knowing their nationality? Does it depend on the foreign country?
For 5 Extra credit points, I would love to hear your thoughts on this (open your own thread or post on someone else’s on this same prompt on the D2L topic “General Discussion”. Or over Zoom if you are more comfortable that way.
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CONCEPTS
Globalization
Refers to the trend of increasing global interdependence and commerce among countries and cultures. Research and evidence say that it has a mostly positive effect on the local economies.
However, a critical view of globalization must recognize that not everyone has the same power or ability to benefit from it, and that not all forms of interdependence are positive.
I recommend you do your own research and develop an informed opinion.
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BREAKING MYTHS
Myth 1: Globalization is about U.S. influence over the world
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Transnationality Index (TNI) 2018 Top 5 most Transnational Companies
KOF Globalization Index 2019 Top 5 most globalized countries
Rank Country KOF Globalization Index
1 Switzerland 91.19
2 Netherlands 90.71
3 Belgium 90.59
4 Sweden 89.93
5 United
Kingdom 89.84
Rank Company Country TNI
1 Rio Tinto UK 99.3
2 John Swire
& Sons UK 98.8
3 Altice NV Netherlands 97
4 Broadcom Singapore 96.4
5 Anglo
American UK 96
BREAKING MYTHS
Myth 2: Globalization means we are all becoming the same
Globalization increases contact with and availability of foreign options, but local cultural values and customs drive taste and preference.
Despite the extreme interconnectivity and economic integration, the creation of the EU did not make European countries any less different.
As income increases in countries, people can express their own values better, becoming more different from each other.
Because of the latter, overtime culture becomes a better explanatory variable for consumer behavior than income.
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CONCEPTS
International Marketing task
The job of an international marketer is to do what marketers do but paying attention to the complexity and diversity of their markets.
This means designing the product, setting the right price, designing persuasive and informative communications, managing correct distribution. This are controllable variables by the firm
Before settling on each component of this marketing mix, uncontrollable influences and the real-world market must be considered. This is the challenge of global Segmentation, Targeting and Positioning (STP).
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CONCEPTS
International Marketing STP Understand consumer and market differences. Create segments.
Decide which segments to target in each market.
Develop a positioning strategy by defining one different marketing mix per segment.
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MARKETING MIX
SEGMENTATION TARGETING
POSITIONING
Note: “Foreign environment” can mean any new region, state, country, or even a different subcommunity within the old region. The only reason why Foreign environment lists some factors that are not in Domestic environment (technology, distribution, geography and infrastructure) is because these are assumed to be constant and never change at home.
CONCEPTS
Changes in current segments or the entry into a new segment can require targeting decisions and positioning changes
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Uncontrollable force Example Marketing mix change required
Political /legal (domestic, foreign)
A change in local laws, or a difference in the foreign target market regulation , forces stricter quality controls product
Economic forces (domestic, foreign)
A local economic downturn, or the expansion to a developing foreign country, makes the product too expensive now price
Cultural forces (domestic, foreign)
A local underserved population, or foreign customers, do not speak the language of the company’s current website promotion
Competitive forces (domestic, foreign)
An increase in local competition, or a more competitive environment in a foreign target market, forces to increase product visibility distribution
Geography (mostly foreign)
Moving to a region or foreign country in a warmer latitude means that product specifications must be changed product
CONCEPTS
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SEGMENTATION TARGETING POSITIONING
The segment must be: Identifiable Defined by measurable, knowable attributes (age, gender, country of origin) Sizable Big enough to justify a segment Accessible Reachable through communication and distribution Stable Not changing too quickly Different In their response to marketing activities Actionable Requiring a marketing mix that is feasible for the company
Service the segment?
YES or NO
Design the new marketing mix
product price
distribution promotion
CONCEPTS
Stages of International Marketing involvement
⊡ No direct foreign marketing – infrequent foreign marketing
⊡ Regular foreign marketing (e.g. surplus exports)
Segments are still defined in home market. Product adaptations may be done as needed.
⊡ International marketing
Each foreign country or region is its own segment with full marketing mix adaptation.
⊡ Global marketing
Segments may be defined within foreign markets or across countries. Country borders become nonrelevant. Culture or consumer attributes guide segmentation, marketing mix.
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SUMMARY
So remember: ⊡ Adapting to an International Marketing playfield is a must for
successful companies, even if they stay within home country borders.
⊡ Globalization means adapting and understanding differences becomes more important, no less.
⊡ International Marketing involves all the normal marketing tasks (marketing mix, STP…), but acknowledging greater complexity in the environment.
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READINGS
To finish the module, ⊡ Participate in Discussion #2: Importance of international marketing
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ANSWERS
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International companies in the United States
Which of these well-known companies are U.S.-owned?
Trader Joe's
Ben & Jerry
Gillete
Lucy Strike
Budweiser
American Apparel
7-11
Burger King
General Electric
AT&T
The Wall Street Journal
Columbia Pictures
Gap
Chrysler
T Mobile
AMC Cinemas
American Express
Smith&Wesson
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INTERNATIONAL MARKETING