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Chapter 1 The Scope and Challenge of International Marketing
How can the increased interest in international marketing on the part of the U.S. firms be explained?
1)The U.S. market has reached saturation levels for many products, and increasing numbers of firms are faced with surpluses which must be sold.
2) many firms find that return on investment may be higher in foreign markets than in domestic markets.
3) more firms realize that tomorrow’s markets will be world markets and it is imperative to establish world market positions early.
Discuss the four phases of international marketing involvement.
The first phase is domestic firms which have no foreign business activity except those sales made to foreign customers who come directly to the firm.
The second is domestic firms which have temporary surpluses which are sold abroad on an availability basis with no intention for continuing market representation.
The third is the domestic firms that have permanent productive capacity which is used to produce goods which are sold on a continuing basis in foreign markets.
The fourth is the international company that produces a product for the world market.
Discuss the conditions that have led to the development of global markets.
new communications technology, travel and other factors led the world markets being aware of different products and processes.
Because of this awareness, each market thus had common needs for high quality, reasonably priced, standardized products.
There is a strong feeling that within ideas from the world affected the tastes and perceived needs of every country market
There is a strong feeling that world markets are being driven toward a converging commonality of taste and needs leading toward global markets.
Differentiate between a global company and a multinational company.
A global company assumes countries have the same needs and designs a standardized, high quality, reasonably priced product for those markets it as if there are n
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