Download Introduction - International Business courses

International Marketing
15th edition
Philip R. Cateora, Mary C. Gilly, and John L. Graham
Introduction
3
• To understand a society’s actions and its points
of view, you need to appreciate:
– The influence of historical events
– The geographical uniqueness to which a culture
has had to adapt
• Culture can be defined as society's accepted basis
for responding to external and internal events
• To interpret a culture’s behavior and attitudes, a
marketer must have some idea of a country’s
history and geography
Roy Philip
2
History Perspective
in Global Business
3
• History helps define a nation’s mission
– How it perceives its neighbors
– How it perceives itself
– Its place in the world
• Insights into history are important for
understanding current attitudes
• It is necessary to study culture as it is now as
well as to understand culture as it was
– A country’s history
Roy Philip
3
Geography and Global
Markets
3
• Geography – an element of the uncontrollable
environment that confronts every marketer
– Affects a society’s culture and economy
– Physical makeup limits a nation’s ability to supply
its people’s needs
Roy Philip
4
Climate and Topography
3
• Altitude, humidity, and temperature extremes
– South America
– British resistance of the English Channel
– Trade through the Alps
Roy Philip
5
6
Geography, Nature
and Economic Growth
3
• As countries prosper, natural barriers are
overcome
• Environmental issues
–
–
–
–
Disruption of ecosystems
Relocation of people
Inadequate hazardous waste management
Industrial pollution
Roy Philip
7
Social Responsibility
3
and Environmental Management
• Environmental protection is not an optional extra
• Pollution is on the verge of getting completely out of
control
• China has 16 of the world’s 20 most polluted cities
• Critical issue: the disposal of hazardous waste
• Sustainable development
• http://www.time.com/time/specials/2007/0,28757,1661
031,00.html
• http://www.forbes.com/2006/03/21/americas-mostpolluted-cities-cx_rm_0321pollute.html
Roy Philip
8
Resources (1 of 2)
3
• The availability of minerals and the ability to
generate energy are the foundations of modern
technology
• The principal supplements to human energy
–
–
–
–
–
–
–
Animals
Wood
Fossil fuel
Nuclear power
Ocean tides
Geothermal power
The sun
Roy Philip
9
Resources (2 of 2)
3
• United States in perspective
– 1942 – nearly self-sufficient
– 1950 – major importer
– 1973-2000 – increased dependency from 36% to
66%
– Mid-2000’s – predicted to be importing more
than 70% of needs
• The location, quality, and availability of
resources will affect the pattern of world
economic development and trade well into the
21st century
Roy Philip
10
Dynamics of Global
Population Trends
3
• Global population trends determine today’s demand
for goods
–
–
–
–
Rural/urban population shifts
Rates of growth
Age levels
Population control
• Changes in population will profoundly affect future
demand
• The most important deterrent to population control
is cultural attitudes about the importance of large
families
Roy Philip
11
Controlling
Population Growth
3
• Procreation is one of the most culturally
sensitive uncontrollable factors
• Perhaps the most important deterrent to
population control is cultural attitudes about the
importance of large families
• Family planning and all that it entails is by far
the most universal means governments use to
control birthrates, but some economists believe
that a decline in the fertility rate is a function of
economic prosperity and will come only with
economic development
Roy Philip
12
Rural/Urban Migration
3
• Result of a desire for greater access to:
– Sources of education
– Health care
– Improved job opportunities
Roy Philip
13
Population Decline and Aging
3
• Population growth in many countries has
dropped below the rate necessary to maintain
present levels
• A nation needs a fertility rate of about 2.1
children per woman
• Not one major country has sufficient internal
population growth to maintain itself
Roy Philip
14
Summary
3
• A prospective international marketer should be
reasonably familiar with the world, its climate,
and topographic differences
• Geographic hurdles must be recognized as
having a direct effect on marketing and the
related activities of communications and
distribution
Roy Philip
15