INTRODUCTION TO

INTERNATIONAL MARKETING
CHAPTER 1
References

Main courbooks :
[1] Cateora, P. R., Meyer, R. B. M. F.,
Gilly, M. C., & Graham, J. L.
(2024). International marketing.
McGraw-Hill Education.
Additional books
[1]. Cherunilam, F. (2016). International
marketing. Himalaya Publishing House.
 Chapter outline

1.1. Global Business Trends

1.2. The Internationalization of V.N. Business
1.3. International Marketing: A Definition
1.4. The International Marketing Task
1.5. Environmental Adaptation
1.6. Self-Reference Criterion (SRC) and Ethnocentrism: Major
Obstacles
1.7. Developing a Global Awareness
1.8. Stages of International Marketing Involvement
1.9. Protectionism
1.10. Trade Barriers
1.1. Global Business Trends

1.
1. The
The rapid
rapid growth
growth of
of
the
the 2.
2. General
General acceptance
acceptance
World
World Trade
Trade of
of the
the free
free market
market
Organization
Organization system
system among
among
and
and regional
regional free
free trade
trade developing
developing countries
countries in
in
areas,
areas, e.g.,
e.g., NAFTA
NAFTA and
and Latin
Latin America,
America, Asia,
Asia, and
and
the
the Eastern
Eastern Europe
Europe
European
European Union
Union

3.
3. Impact
Impact ofof the
the Internet
Internet
and
and other
other global
global media
media 4.
4. Managing
Managing global
global
on
on the
the dissolution
dissolution ofof environmental
environmental resources
resources
national
national borders
borders
 1.1. Global Business Trends

• Today most business activities are global in scope. Technology,

research, capital investment, and production, as well as
marketing, distribution, and communications networks, all have
global dimensions.

• Every American company is international, at least to the extent

that its business performance is conditioned in part by events
that occur abroad.

• The challenge of international marketing is to develop strategic

plans that are competitive in these intensifying global markets.
For a growing number of companies, being international is no
longer a luxury but a necessity for economic survival.
1.2. The Internationalization of V.N.
Business

Increasing globalization of markets

Firms face competition on all fronts (mặt trận)

Many V.N. companies are now foreign
controlled:
VN. firms seeking foreign markets to increase
profits
1.3. International Marketing: A
Definition

International
International marketing
marketing is is defined
defined as as thethe
performance
performance of of business
business activities
activities designed
designed toto plan,
plan,
price,
price, promote,
promote, and
and direct
direct the
the flow
flow of
of aa company’s
company’s
goods
goods and
and services
services to to consumers
consumers or or users
users in
in more
more
than
than one
one nation
nation for
for aa profit.
profit.
The
The only
only difference
difference between
between the the definitions
definitions of
of
domestic
domestic marketing
marketing and and international
international marketing
marketing isis
that
that in
in the
the latter
latter case,
case, marketing
marketing activities
activities take
take
place
place in
in “more
“more than
than oneone country”.
country”.
Marketing
Marketing concepts,
concepts, processes,
processes, and and principles
principles are
are
universally
universally applicable
applicable allall over
over the
the world
world
1.3. International Marketing: A
Definition
1.3. International Marketing: A
Definition
1.4. The International Marketing Task
Foreign Environment
(Uncontrollables)
7. Structure of 1. Competition
Distribution Domestic environment Environmental
(Uncontrollables) uncontrollables
country market A
(Controllables) 1. Competition
Price Product 2. Technology
5. Political- Target Environmental
Market 7
6. Geography and Legal uncontrollables
Infrastructure Promotion Place or 2 .Technology country
Distribution market B
4.
Culture Environmental
3. Economy
uncontrollable
5. Political- 3. Economy s
Legal country
4. market C
Culture
1.5. Environmental Adaptation
Needed

Differences
Differences are
are in
in the
the uncontrollable
uncontrollable environment
environment
of
of international
international marketing
marketing

Firms
Firms must
must adapt
adapt to
to uncontrollable
uncontrollable environment
environment of
of
international
international marketing
marketing byby adjusting
adjusting the
the
marketing
marketing mix
mix (product,
(product, price,
price, promotion,
promotion, and
and
distribution)
distribution)

Continuum
Adaptation Standardization
(of Marketing (of Marketing Mix)
Mix)
INFLUENCED BY 7 ENVIRONMENTAL FACTORS
1.6. Self-Reference Criterion (SRC) and
Ethnocentrism: Major Obstacles

The key to successful international marketing is

adaptation to environmental differences from one
market to another.

The influences of both the foreign and domestic

uncontrollable factors on a marketing mix and then
adjust the marketing mix to minimize the effects.
1.6. Self-Reference Criterion (SRC)
and Ethnocentrism (Vị chủng):Major Obstacles

SRC is an unconscious reference to one’s own cultural

values, experiences, and knowledge as a basis for
decisions.
Ethnocentrism refers to the notion that one’s own
culture or company knows best how to do things.
Both the SRC and ethnocentrism impede the ability to
assess a foreign market in its true light.
Reactions to meanings, values, symbols, and behavior
relevant to our own culture are different from those of
foreign.
Relying on one’s SRC could produce an unsuccessful
marketing program.
1.6. Self-Reference Criterion (SRC)
and Ethnocentrism (Vị chủng):Major Obstacles

To avoid the SRC, the following steps are suggested:

1. Define the business problem or goal in home-country
cultural traits, habits, or norms
2. Define the business problem or goal in foreign-country
cultural traits, habits, or norms. Make no value
judgments
3. Isolate the SRC Influence in the problem and examine
it carefully to see how it complicates the problem
4. Redefine the problem without the SRC influence and
solve for the optimum business goal situation*
1.7. Developing a Global Awareness

To be globally aware is to
have:
1. Tolerant of Cultural Differences, and

2. Knowledgeable of:
(a) Culture, (b) History, (c) World Market Potential,
(d) Global Economic, Social and Political Trends
1.7. Developing a Global Awareness

Opportunities in global business abound for those

who are prepared to confront myriad obstacles
with optimism and a willingness to continue
learning new ways.
1.8. Stages of International Marketing
Involvement

(1) Companies with either high-technology and/or

marketing-based resources appear to be better
equipped to internationalize than more traditional
manufacturing kinds of companies are;
(2) smaller home markets and larger production
capacities appear to favor internationalization;
(3) firms with key managers well networked
internationally are able to accelerate the
internationalization process
 Stages of International Marketing
Involvement
In
In general,
general, firms
firms go
go through
through five
five different
different phases
phases in
in going
going
international:
international:

No
No Direct
Direct Foreign
Foreign Marketing
Marketing

Infrequent
Infrequent Foreign
Foreign Marketing
Marketing

Regular
Regular Foreign
Foreign Marketing
Marketing

International
International Marketing
Marketing

Global
Global Marketing
Marketing
 Orientation of International Marketing

Most problems encountered by the foreign marketer result from the

strangeness of the environment within which marketing programs
must be implemented.

the ability to assess and adjust properly to the impact of an unfamiliar

circumstance.

The successful international marketer possesses the best qualities of

the anthropologist, sociologist, psychologist, diplomat, lawyer,
prophet, and businessperson (Nhà Maketing quốc tế thành công sở hữu
những phẩm chất tốt nhất của nhà nhân chủng học, nhà xã hội học,
nhà tâm lý học, nhà ngoại giao, luật sư, nhà tiên tri và doanh nhân).
 Strategic Orientation: EPRG Schema: Lược đồ

Orientation EPRG Schema

Domestic Marketing (Ethnocentric)

Extension

Multi-Domestic (Polycentric: Đa
Marketing tâm)

Global Marketing (Regio/Geocentric:

Địa tâm)
 Strategic Orientation: EPRG Schema
Generally, four distinctive approaches dominate strategic thinking
in
international marketing:
1. Ethnocentric or Domestic Marketing Extension
Concept:
Home country marketing practices will succeed
elsewhere
without adaptation; however, international marketing
is
viewed
2. as secondary
Polycentric to domestic Marketing
or Multi-Domestic operationsConcept:
Opposite of ethnocentrism
Management of these multinational firms place
importance
on international operations as a source for profits
Management believes that each country is unique
and
allows each to develop own marketing strategies
locally
 Strategic Orientation: EPRG Schema
Generally, four distinctive approaches dominate strategic thinking
in
international marketing:
3. Regiocentric:
Sees the world as one market and develops a
standardized
marketing strategy for the entire world

4. Geocentric:
Regiocentric and Geocentric are synonymous with a
Global
Marketing Orientation where a uniform, standardized
marketing strategy is used for several countries,
countries in
a region, or the entire world
 1.9. Protection Logic and Illogic

International business executives understand the reality that this is a

world of tariffs, quotas, and nontariff barriers designed to protect a
country’s markets from intrusion by foreign companies.

World Trade Organization has been effective in reducing tariffs,

countries still resort to measures of protectionism. Nations utilize
legal barriers, exchange barriers, and psychological barriers to
restrain the entry of unwanted goods.

Businesses work together to establish private market barriers, while

the market structure itself may provide formidable barriers to
imported goods.

ROY PHILIP 25
 1.9. Protection Logic and Illogic

(1) protection of an infant industry

(2) protection of the home market
(3) need to keep money at home
(4) encouragement of capital accumulation
(5) maintenance of the standard of living and real wages,
(6) conservation of natural resources
(7) industrialization of a low-wage nation
(8) maintenance of employment and reduction
unemployment
(9) national defense
(10) enhancement of business size
(11) retaliation and bargaining

ROY PHILIP 26
1.9. Protection Logic and Illogic

Economists in general recognize as valid only the

arguments regarding infant industry, national
defense, and industrialization of underdeveloped
countries.

wide shortages of raw materials and agricultural

commodities.

A case might be made for temporary protection of

markets with excess productive capacity or excess
labor when such protection could facilitate an orderly
transition.

Unfortunately, such protection often becomes long

term and contributes to industrial inefficiency while
detracting from a nation’s realistic adjustment to its
world situation.
ROY PHILIP 27
1.9. Protection Logic and Illogic

Does Protectionism Help?

 A recent study on 21 protected industries showed
that while jobs are protected, consumers pay much
higher prices because of protectionism:
+ U.S. consumers pay about $70 billion per year in
higher prices because of tariffs and other protective
restrictions.
+ At the same time, the average cost to consumers
for saving one job in these protected industries was
$170,000 per year.

 Protectionism is politically popular, particularly

during times of declining wages, and/or high
employment, but it rarely leads to renewed growth
in a declining industry.

ROY PHILIP 28
1.10. Trade Barriers

To encourage development of domestic industry

and protect existing industry

Governments may establish such barriers to

trade tariffs and a nontariff barriers

ROY PHILIP 29
 1.10. Trade Barrier Categories
Import policies
Sanitary and phytosanitary measures (Các biện pháp vệ
sinh và kiểm dịch thực vật)
Government procurement
Export subsidies
 Lack of intellectual property protection (Thiếu bảo vệ sở
hữu trí tuệ)
Services barriers
Investment barriers
Government-tolerated anticompetitive conduct (Hành vi
cạnh tranh không lành mạnh được chính phủ bảo vệ)
Trade restrictions affecting electronic commerce
Other barriers

30
1.10. Trade Barriers

Tariffs
Quotas and Import Licenses
Voluntary Export Restraints (VER)
Boycotts and embargoes
Monetary barriers
• Blocked currency
• Government approval
Standards
Antidumping penalties
Domestic subsidies and economic stimuli

31
1.10. Trade Barriers

Tariffs
A tariff is a tax imposed by a government on goods
entering at its borders.
Tariffs may be used as revenue-generating taxes or to
discourage the importation of goods, or for both
reasons.
 Tariff rates are based on value or quantity or a
combination of both.

32
1.10. Trade Barriers

Tariffs are taxes imposed by a government on

goods entering its borders.

Inflationary pressures, special interests’

Increase privileges (đặc quyền), government control
and political considerations in economic
matters, and the number of tariffs
Balance-of-payment positions, supply and
Weaken
demand patterns, and international relations
by starting trade wars

Manufacturer’s supply sources, choices

Restrict
available to consumers, and competition

ROY PHILIP 33
1.10. Trade Barriers

Quotas and Import Licenses

◦ Quota is a specific unit or dollar limit applied to a
particular type of good (increases price of good)
◦ Import licenses limits quantities on a case-by-case basis
◦ Japan and foreign rice; Banana wars between the United
States and the EU

Voluntary Export Restraints (VER)

◦ Often used in the 1980s is an agreement between the
importing country and the exporting country for a
restriction on the volume of exports.
◦ Japan’s VER on U.S. automobiles

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1.10. Trade Barriers

Boycotts and Embargoes

(Tẩy chay và Cấm vận)
A government boycott is an absolute restriction
against the purchase and importation of certain
goods and/or services from other countries.
This restriction even can include travel bans, like the
one once in place for Chinese tourists; the Beijing
government refused to designate Canada as an
approved tourism destination.
A public boycott can be either formal or informal and
may be government sponsored or sponsored by an
industry.

ROY PHILIP 35
1.10. Trade Barriers

Monetary Barriers
 exchange-control restrictions.
 restrictions to preserve its balance-of-payments
position or specifically for the advantage or
encouragement of particular industries.

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1.10. Trade Barriers

Standards
Nontariff barriers of this category include standards to
protect health, safety, and product quality.

ROY PHILIP 37
Casestudy