92% of the world’s consumers live outside the U.S. Thus, international marketing is very important. When selling to foreign markets, one must realize that there are major differences between other countries & the U.S. Aside from political and legal differences, there are economic, technological, social (family, religion, education, health ...) & cultural differences.
Each 1 billion in trade deficit yields a loss of 25,000 jobs. [See text for how international trade is measured and protectionism vs. free trade.]
Gray Goods - Goods imported from unauthorized dealer; problem = no manufacturer’s warranty.
Dumping = Sale of export goods at less than “normal” value (less than cost or less than home-country price).
Strategic Adaptations Of The Marketing Mix
1 Keep The Product & Promotion The Same Worldwide (Global Marketing)
- e.g., world brands such as Coca Cola and Marlboro.
- Theodore Levitt is the guru of the “globalization” or “global marketing” approach.
- Promotion mix elements such as advertising present the biggest problem to standardizing a marketing strategy across all borders because promotion is based on a communication process, which can differ from country to country - even if the languages are the same (e.g., the U.S. & the U.K.).
2 Adapt Only The Promotion - e.g., in most of the world, bicycles are promoted as transportation; in U.S. as leisure.
3 Adapt Only The Product - e.g., Canadians prefer a more bitter beer; Barbie looks Asian in Japan.
4 Adapt Promotion & Product - e.g., American cereals in Asia = snack food; therefore, need different flavors (e.g., tofu).
5 Backward Invention - Simplify product & use less technology. This...