29 Questions
What economic event in North America in the late 1990s is largely attributed to the end of the Cold War?
Economic boom
Which industry is Frigidaire mentioned in as a foreign-owned brand?
Appliances
In the context of international marketing, what does 'SRC' stand for?
Self-Reference Criterion
What type of companies have to deal with foreign customers, competitors, and suppliers?
Companies with a global presence
Which aspect of global commerce thrives during peacetime?
Economic growth
Which of the following events can impact global business according to the text?
Natural disasters
What is the total amount of foreign direct investment in the United States?
$3 trillion
What was Apple's total revenue in 2013?
$171 billion
What is the term for the performance of business activities designed to plan, price, promote, and direct the flow of a company's goods and services to consumers or users in more than one nation for a profit?
International Marketing
According to Exhibit 1.3, what represents the uncontrollable elements of the foreign environment for each foreign market?
The third (outer) circle
What is the goal of an international marketing program?
To achieve marketing objectives
What are the controllable elements in the marketplace, according to Exhibit 1.3?
Product, price, promotion, distribution, and research
What is the most challenging aspect of confronting international markets according to the text?
Evaluating and adjusting marketing efforts to unfamiliar cultures
What do the outer circles in Exhibit 1.3 represent?
Levels of uncertainty a marketing manager must evaluate
What factor does the text emphasize the importance of guarding against when studying the market systems of different cultures?
Measuring and assessing markets against fixed values and assumptions of their own cultures
What role do political and legal forces play in determining or modifying a marketer's reaction to situations, according to the text?
They are an uncontrollable factor in the domestic environment
What must international marketers be aware of in order to effectively adapt to different cultures?
Their own frames of reference
What is the primary purpose of evaluating and adjusting marketing efforts to different cultures, according to the text?
To create a more effective marketing strategy for each unique culture
What is the likely consequence of deteriorating internal economic conditions on a country's foreign investment?
Imposition of restrictions against foreign investment and purchasing
What is the primary obstacle to assessing a foreign market in its true light?
The Self-Reference Criterion and Ethnocentrism
Which of the following is an uncontrollable factor in the foreign environment?
Political stability
What is the notion that people in one's own company, culture, or country know best how to do things?
Ethnocentrism
What is the term for the unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions?
The Self-Reference Criterion
What happens when internal economic conditions deteriorate, according to the passage?
Restrictions against foreign investment and purchasing are imposed
What type of companies are better equipped to internationalize?
Companies with high technology and/or marketing-based resources
What happens when we fail to recognize cultural differences in international marketing involvement?
We are less likely to take action to address cultural differences
What is the first step in isolating SRC influences and being vigilant of ethnocentrism?
Define the business problem or goal in home-country cultural traits
What is the benefit of having key managers who are well networked internationally?
They are able to accelerate the internationalization process
What is a characteristic of companies that are more likely to internationalize?
Smaller home markets and larger production capacities
Study Notes
International Marketing
- International marketing involves activities designed to plan, price, promote, and direct the flow of a company's goods and services to consumers or users in more than one nation for a profit.
- The international marketing task involves molding the controllable elements of the marketplace (product, price, promotion, distribution, and research) within the framework of the uncontrollable elements (competition, politics, laws, consumer behavior, level of technology, and so forth) in such a way that marketing objectives are achieved.
The Self-Reference Criterion and Ethnocentrism
- The Self-Reference Criterion (SRC) is an unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions.
- Ethnocentrism is the notion that people in one's own company, culture, or country know best how to do things.
- Both the SRC and ethnocentrism impede the ability to assess a foreign market in its true light.
Factors Favoring Faster Internationalization
- Companies with high technology and/or marketing-based resources are better equipped to internationalize than traditional manufacturing companies.
- Smaller home markets and larger production capacities favor internationalization.
- Firms with key managers well networked internationally are able to accelerate the internationalization process.
The Importance of Cultural Awareness
- International marketers must be aware of cultural differences and adapt to cultures they are not attuned to.
- They must be vigilant of SRC influences and ethnocentrism to avoid being unaware of the importance of cultural differences.
Global Commerce and Peace
- Global commerce thrives during peacetime, and economic booms are often linked to peaceful periods.
The Internationalization of U.S. Business
- Foreign direct investment in the United States is over $3 trillion.
- Many companies are seeking foreign markets, and existing foreign operations must be more competitive to succeed against multinationals.
International Sales and Revenue
- Revenues generated on investments abroad are crucial to U.S. companies.
- In many cases, foreign sales overtake those in the U.S.
The Total Environment of an International Marketer
- The total environment of an international marketer involves controllable elements, uncontrollable domestic elements, and uncontrollable elements of the foreign environment.
- Each foreign market presents different problems involving some or all of the uncontrollable elements.
Test your knowledge on foreign-owned brands that are commonly mistaken as American, and explore the presence of foreign investment in various industries such as automobiles, appliances, convenience stores, news, entertainment, hotels, and more. Learn about the benefits of international marketing and its challenges.
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