Page 229 - Foundations of Marketing

196 Part 3 | Customer Behavior and E-Marketing

Technological advances and rapidly changing political and economic conditions are making it
easier than ever for companies to market their products overseas as well as at home. With most
of the world’s population and two-thirds of total purchasing power outside the United States,
international markets represent tremendous opportunities for growth. Accessing these markets
can promote innovation, while intensifying competition can spur companies to develop global
strategies. For instance, the upscale hotel chain Four Seasons is expanding into Sub-Saharan
2
Africa with the intent to develop outdoor safari adventures for worldwide travelers.
In deference to the increasingly global nature of marketing, we devote this chapter to the
unique features of global markets and international marketing. We begin by considering the
nature of global marketing strategy and the environmental forces that create opportunities and
threats for international marketers. Next, we consider several regional trade alliances, mar-
kets, and agreements. Then we examine the modes of entry into international marketing and
companies’ degree of involvement in it, as well as some of the structures that can be used to
organize multinational enterprises. Finally, we examine how fi rms may alter their marketing
mixes when engaging in international marketing efforts. All of these factors must be consid-
ered in any marketing plan that includes an international component.

LO 1 . Understand the nature of THE NATURE OF GLOBAL MARKETING
global marketing strategy.
STRATEGY

International marketing involves developing and performing marketing activities across
national boundaries. For instance, Walmart has approximately 2,200,000 employees and oper-
ates 10,000 stores in 27 countries; Starbucks serves tens of millions of customers a week at
3
more than 5,500 shops in over 50 countries. General Motors sells more cars in China than in
international marketing
Developing and performing the United States.
marketing activities across Firms are finding that international markets provide tremendous opportunities for growth.
national boundaries To encourage international growth, many countries offer significant practical assistance and

© iStockphoto.com /Holger Mette

International Marketing
McDonald’s markets its prod-
ucts in many different countries
and has seen great opportuni-
ties for expansion into China.

Copyright 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.