chapter1The--Scope-and-Challenge-of-International-

McGraw-Hill/IrwinCopyright©2013byTheMcGraw-HillCompanies,Inc.Allrightsreserved.TheScopeandChallengeofInternationalMarketingChapter11-2LearningObjectivesLO1ThebenefitsofinternationalmarketsLO2ThechangingfaceofU.S.businessLO3ThescopeoftheinternationalmarketingtaskLO4Theimportanceoftheself-referencecriterion(SRC)ininternationalmarketingLO5TheincreasingimportanceofglobalawarenessLO6Theprogressionofbecomingaglobalmarketer1-3LectureOutlineTheInternationalizationofU.S.BusinessInternationalMarketingDefinedTheInternationalMarketingTaskMarketingControllablesDomesticUncontrollablesForeignUncontrollablesSelf-ReferenceCriterion:AnObstacleBecomingInternationalStagesofInternationalMarketingInvolvementGlobalMarketsandGlobalMarketingDevelopingAGlobalAwareness1-4GlobalCommerceCausesPeaceGlobalcommercethrivesduringpeacetimeEconomicboominNorthAmericainthelate1990slargelyduetotheendofthecoldwar，OpeningoftheformerlycommunistcountriestotheworldtradingsystemInternationaltradeflourishesasrelationshipsbetweencountriesimprove.Thishasarippleeffectandapositiveimpactoftheeconomiesofallcountriesinvolved.1-5GlobalPerspectives：BoeingCustomersinmorethan150countries165,000employeesworkin70countries787DreamlinerpartsfromAustralia,France,India,Italy,Japan,Russia,andSwedenMorethan12,000commercialjetsinserviceworldwidecarryabout1BtravelersperyearNASAServicesintheconstructionandoperationofthe16-countryInternationalSpaceStation,TheSpaceandIntelligenceSystemsDivisionproduces&launchescommunicationssatellitesaffectingpeopleineverycountry.1-6GlobalPerspectives：BoeingNocompanydoesmoretoenablepeoplefromallcountriestomeetface-to-faceforbothrecreationandcommerce.Thisinteractionyieldsthemutualgainassociatedwithbusinessrelationships,personalrelationships&mutualunderstanding.Theyarethefoundationofglobalpeace&prosperity.Thebenefitsofinternationalmarkets1-7GlobalPerspectives：DanielLubetzky’sPeaceWorks.UsedafellowshiptostudyhowtofosterjointventuresbetweenArabsandIsraelisinStanford.CreatedacompanythatcombinedrawmaterialsfromIsraelandArabpartners.ProducedthefirstproductMoshe&Ali’sGourmetFoods.Now5,000storesintheU.S.&headquartersonParkAvenueBusinessoperationsinIsrael,Egypt,Indonesia,Turkey,andSriLanka.1-8GlobalPerspectives：DanielLubetzky’sPeaceWorks.CommercialbenefitsofcooperationbetweentheinvolvedArabs,Israelis,Thelonger-lastingandfundamentalappreciationforoneanother’scircumstancesandcharacter.Thebenefitsofinternationalmarkets1-9ThechangingfaceofU.S.businessMoreUScompaniesexporting,importing,andmanufacturingabroad.Moreforeign-basedfirmsoperatinginU.S.marketsThegrowthofregionaltradeareasTherapidgrowthofworldmarketsTheincreasingnumberofcompetitorsforglobalmarkets.Today,everyAmericancompanyisinternational1-10EveryAmericancompanyisinternationalMostbusinessactivitiesareglobalinscope.Technology,research,capitalinvestment,production,marketing,distribution,andcommunicationsnetworksareglobaldimensions.AffectedbythesuccessoftheEuropeanUnion,theexport-ledgrowthinSouthKorea,therevitalizedMexicaneconomy,theeconomicchangestakingplaceinChina,militaryconflictsintheMiddleEast,climatechange.TheInternationalizationofU.S.BusinessesExhibit1.1ForeignAcquisitionsofU.S.Companies,Sources:Compiledfromannualreportsoflistedforms,2012.1-111-12ThechangingfaceofU.S.businessIncreasinglylargershareofcorporateprofitsaregeneratedbyinternationaloperationsCompetitionforU.S.marketswasnotamongU.S.businesseswiththesamerelativecost,labor,andproductbutincludescompetitorsfromtheworldoverU.S.multinationalsfacecompetitionfromnewrivalsfromdevelopedaswellasdevelopingcountriesGrowthofnewmarketscreatedbychangesinLatinAmerica,Asia,EasternEuropeandtheformerUSSRstates,India,andtheMENAregion.1-131-14CROSSINGBORDERS1.1Gigante：Mexico’slargestsupermarketchainsHasseveralstoresinLAcournty,storeshelvesareavarietyofBimbobakeryproducts.GrupoBimbopurchasedAmericanbrand-namedfirms,Oroweat,Webers,SaraLee,andMrs.Baird’sBread.BedeniedtoopenanewmarketnearDisneyland,eventuallyforcedtoallowtoopenExhibit1.2SelectedU.S.CompaniesandTheirInternationalSalesSource:Compiedfromannualreportsoflistedfirms,20121-151-161-17CitibankBranchIntheheartofBrazil，AvenidaPaulista1776Duringfinancialcrisisyears,internationaloperationsmuchbetterthandomesticones.EmergingmarketssuchasChina,India,andBrazilprovedrelativelyresilientduringtheglobalfinancialcrisisthatbeganin2008.1-18U.S.Companies&TheirInternationalSalesThechangingworldeconomyhascreatedopportunities.AproductthathasreachedmatureinwesternmarkethavetremendouspotentialinBrazil,RussiaorChina.Thereducedbarriersandaccesstocross-bordertrademakesfirmstosourcefromvariouscountries,andsellworldwide.1-19U.S.Companies&TheirInternationalSalesDeregulatedmarketsintheformerUSSRandEasternEuropeOpenforeigninvestmentpoliciesinAsia,SouthAmerica,andAfricahavecreatednewopportunitiesIthasallowedbusinessestoexpandinternationally1-20Fourtrendsinfluencefutureinternationalbusiness1.TherapidgrowthoftheWorldTradeOrganizationandnewfreetradeagreementsaroundthewor