Chapter 1
§ International marketing and trade play a very important role in promoting pace. All the interactions that take place yields not just mutual gain associated with business relationships but also personal relationships and mutual understanding. The latter are the foundation of global peace and prosperity.
§ When international marketing is done well, by large companies or small, the needs or wants of costumers in other lands are well understood, and prosperity and peace are promoted along the way.
§ Slow economies, increasing competition, and anti-Americanism have impacted companies sales such us Mc Donald’s.
§ You still have to plan and forecast, but markets, particularly international ones, are ultimately unpredictable. The natural fluctuations in markets are best managed by trough building strong interpersonal and commercial relationships and broad portfolio of business. Flexibility means survival.
§ The four most dynamic trends and events that are affecting global business today are:
1. The rapid growth of the World Trade Organization and regional free trade areas such as the North America Free Trade Area and the European Union
2. The trend toward the acceptance of the free market system among developing countries in Latin America, Asia, and Eastern Europe.
3. The burgeoning impact of the internet and other global media on the dissolution of national borders.
4. The mandate to properly manage the resources and global environment for the generation to come.
U.S. companies owned by foreigners. Companies from the United Kingdom lead the group of investors, with companies from Netherlands, Japan, Germany, and Switzerland following in that order.
U.S. Multinationals abroad are nothing new. They have been since after World War II. What is relatively new to for U.S. companies is having their global competitors competing with them in their own market, the United States.
For the firm venturing into international marketing for the first time and those already experienced, the requirement is generally the same: a thorough and complete commitment to foreign markets and, for many, new ways of operating.
International Marketing is the performance of business activities designed to plan, price, promote, and direct the flow of a company’s goods and services to consumers and users in more than one nation for a profit.
Uncontrollable Elements: Competition, legal restrains, government controls, weather, fickle consumers, politics, laws, consumer behavior, level of technology, etc.
Controllable Elements: What makes marketing interesting is the challenge of molding the controllable elements of marketing decisions (product, price, promotion, distribution, and research) whiting the framework of the uncontrollable elements of the market place.
PNTR: permanently normalized trade relations
WTO: World Trade Organization
SRC: Self-Reference Criterion. It is an unconscious reference to one’s own culture values, experiences, and knowledge as a basis for decisions.
Ethnocentrism: the notion that one’s own culture or company knows best how to do things.
To be global aware: is to have (1) tolerance of cultural differences, and (2) knowledge of cultures , history, world market potential, and global economic, social, and political trends
