Page 253 - Foundations of Marketing

220 Part 3 | Customer Behavior and E-Marketing

Chapter Review

1. Understand the nature of global marketing international marketing. Important trade agreements include
strategy. the North American Free Trade Agreement, European
Union, Southern Common Market, Asia-Pacific Economic
International marketing involves developing and performing
Cooperation, Association of Southeast Asian Nations, and
marketing activities across national boundaries. International
World Trade Organization.
markets can provide tremendous opportunities for growth
and renewed opportunity for the firm. 4. Identify methods of international market entry.
2. Analyze the environmental forces that affect There are several ways to enter international marketing.
Importing (the purchase of products from a foreign source)
global marketing efforts.
and exporting (the sale of products to foreign markets)
A detailed analysis of the environment is essential before are the easiest and most flexible methods. Marketers may
a company enters an international market. Environmental employ a trading company, which links buyers and sellers in
aspects of special importance include sociocultural; eco- different countries but is not involved in manufacturing and
nomic; political, legal, and regulatory; social and ethical; does not own assets related to manufacturing. Licensing and
competitive; and technological forces. Because marketing franchising are arrangements whereby one firm pays fees
activities are primarily social in purpose, they are influenced to another for the use of its name, expertise, and supplies.
by beliefs and values regarding family, religion, education, Contract manufacturing occurs when a company hires a for-
health, and recreation. Cultural differences may affect mar- eign firm to produce a designated volume of the domestic
keting negotiations, decision-making behavior, and product firm’s product to specification, and the final product carries
adoption and use. A nation’s economic stability and trade the domestic firm’s name. Joint ventures are partnerships
barriers can affect marketing efforts. Significant trade barri- between a domestic firm and a foreign firm or government.
ers include import tariffs, quotas, embargoes, and exchange Strategic alliances are partnerships formed to create com-
controls. Gross domestic product (GDP) and GDP per cap- petitive advantage on a worldwide basis. Finally, a firm
ita are common measures of a nation’s economic standing. can build its own marketing or production facilities over-
Political and legal forces include a nation’s political system, seas. When companies have direct ownership of facilities
laws, regulatory bodies, special-interest groups, and courts. in many countries, they may be considered multinational
In the area of ethics, cultural relativism is the concept that enterprises.
morality varies from one culture to another and that business
practices are therefore differentially defined as right or wrong 5. Understand how customization differs from
by particular cultures. In addition to considering the types of globalization.
competition and the types of competitive structures that exist
Although most firms adjust their marketing mixes for dif-
in other countries, marketers also need to consider the com-
ferences in target markets, some firms standardize their
petitive forces at work and recognize the importance of the
marketing efforts worldwide. Traditional full-scale interna-
global customer who is well informed about product choices
tional marketing involvement is based on products custom-
from around the world. Advances in technology have greatly
ized according to cultural, regional, and national differences.
facilitated international marketing.
Globalization, however, involves developing marketing strat-
egies as if the entire world (or regions of it) were a single
3. Understand several important international
entity; a globalized firm markets standardized products in
trade agreements. the same way everywhere. International marketing demands
Various regional trade alliances and specific markets create some strategic planning if a firm is to incorporate foreign
both opportunities and constraints for companies engaged in sales into its overall marketing strategy.

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