INTERNATIONAL

MARKETING
 Chapter 1
Introduction to International
Marketing
 Content
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. 2.
2. General
General acceptance
acceptance ofof the
the free
free
1. The
The rapid
rapid growth
growth ofof the
the World
World market
market system
system among
among
Trade
Trade Organization
Organization and
and regional
regional developing
free
free trade
trade areas,
areas, e.g.,
e.g., NAFTA
NAFTA developing countries
countries in
in Latin
Latin
and the European Union America,
America, Asia,
Asia, and
and Eastern
Eastern
and the European Union Europe
Europe

3.
3. Impact
Impact of
of the
the Internet
Internet and
and other
other 4.
global
global media
media on on the
the dissolution
dissolution 4. Managing
Managing global
global environmental
environmental
of resources
resources
of national
national borders
borders
1.1. Global Perspective

 On the left, a rail link between North and South Korea has opened for the first time in
nearly 60 years to provide transportation of raw materials and managers from the South,
bound for a special economic development zone at Kaesong in the North.
 On the right, the saber rattling of North Korea that threatens the peace and commerce in
the entire East Asia area, and perhaps beyond, as North Korean missiles are now capable
of reaching the United States.
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 marketing is defined as 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.
 The only difference between the definitions of domestic marketing and
international marketing is that in the latter case, marketing activities take place
in “more than one country”.
 Marketing concepts, processes, and principles are universally applicable all over
the world.
1.3. International Marketing: A Definition
1.3. International Marketing: A Definition
1.3. International Marketing: A Definition
1.3. International Marketing: A Definition
1.3. International Marketing: A Definition
1.4. The International Marketing Task

7. Structure of 1. Competition
Distribution Domestic environment Environmental
(Uncontrollables) uncontrollables
country market A
(Controllables) 1. Competition
Price Product 2. Technology
5. Target Environmental
Political- Market 7 uncontrollables
6. Geography and country
Legal Place or 2 .Technology
Infrastructure Promotion market B
Distribution

4. Culture 3. Economy Environmental

uncontrollables
5. Political- 3. Economy country
Legal market C

4. Culture
1.5. Environmental Adaptation Needed

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

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

Continuum

Adaptation Standardization
(of Marketing Mix) (of Marketing 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:
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:
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 tâm)

Marketing

Global Marketing (Region/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 as secondary to domestic operations

2. Polycentric or Multi-Domestic Marketing Concept:

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.
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 of unemployment
(9) National defense
(10) Enhancement of business size
(11) Retaliation and bargaining.
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.
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.
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.
1.10. Trade Barriers 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.
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.
1.10. Trade Barriers
 Tariffs:
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.
 Tariffs are taxes imposed by a government on goods entering its borders.
1.10. Trade Barriers
 Tariffs:

Inflationary pressures, special interests’ privileges (đặc

Increase quyền), government control and political considerations in
economic matters, and the number of tariffs

Weaken Balance-of-payment positions, supply and demand

patterns, and international relations by starting trade wars

Restrict Manufacturer’s supply sources, choices available to

consumers, and competition
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.
1.10. Trade Barriers
 Boycotts and Embargoes (Tẩy chay và Cấm vận):
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.
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.
 Standards:
 Nontariff barriers of this category include standards to protect health,
safety, and product quality.
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Tài liệu tham khảo của chương 1
 Philip R. Cateora...[et all], International marketing, McGraw-Hill
education, 2024.
 Tài liệu tham khảo:
 [1] Philip Kotler, Gary Armstrong, Marc Oliver Opresnik,
Principles of Marketing, Pearson, 2021. [TVL240121227]
 [2] Michael R. Solomon, Saint Joseph’s University, Consumer
behavior, Pearson, 2020. [TVL240121226]
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