148 CHAPTER 6 MARKETINGINGLOBALMARKETS
Summary
MostAmericanfirms havediscoveredthatmanyoppOitunitiesexistininternationalmarketing,as
evidencedbythevastamountofgoodsexportedby U.S.-basedfirms.Therearemanyreasonswhy
U.S.firmschoosetoengageininternationalmarketing.Perhapsthemostattractivereasonsarethe
marketexpansionandprofitopportunitiesaffordedbyforeignmarkets.
Basicprinciplesofdomesticmarketingapplytointel11ationalmarketing.However,thereare
somedifferences,manyofwhicharecenteredonenvironmentalfactorswhichaffectinternational
marketing:(1)theeconomicenvironment,(2)thecompetitiveenvironment,(3)theculturalenviron-
ment, ( 4)thepolitical/legalenvironment,and(5) technologicalenvironmentandtheethicalenvironment.
Oncea firmhasdecidedtoenterapatticularforeignmarket,itmustdecideuponthebestway
toenterthatmarket.A firmhasfivebasicforeignmarketentryoptions,theselectionofwhichdepends
largely onthedegreeof controlthatthefirmswishestomaintainoverits marketingprogram.
Whena firmchoosestomarketitsproductsinternationally,it mustdecidewhethertoadjust
itsdomesticmarketingprogram.Somefirmschoosetocustomizetheirmarketprograms,adjusting
theirmarketingmixtomeettheneedsofeachtargetmarket.Othersusea standat'dized marKeting
mix.inmakingthedecisiontocustomizeorstandardize,thereisa widerangeofpossibilitiesfor
adaptinga finn's product, price, promotion,anddistributionstrategies.
Marketer's Vocabulary
Internationalmarketing Themarketingofacompany',productsand/orservicesoutsideofthat
company'shomenation.
Multinationalmarketing Firmsthatareinvolvedinmarketingaswellas production,research,
humanresourcemanagementandtheemploymentofa foreignworkforce.
Dumping Apracticeinwhicha firmattemptsto selldiscontinuedproducts, seconds,orrepaired
productsinoverseasmarketsatbelowdomesticprices.
Exchangerate Thevalueofonenation'scUlTencyinrelationtothatofanothercountry.
Tariff Ataxplacedonimportedgoods.
Expropriation Theactofa governmenttakingownershipofa firm's plants.
Indirectexporting Occurswhenallofa finn's foreignsalesaremadethroughthefirm's domes-
ticsalesdepartment.
Semidirectexporting Occurswhena firmsellsproductsinforeignmarketsthroughagents,mer-
chantmiddlemen,orothermanufacturers.
Combinationexportmanager Adomesticagentintermediarythatacts as anexportingdepart-
mentforseveralnoncompetingfirms.
Manufacturersexpor tagent Similat·tomanufacturer's agentsindomesticproductsetting.
Webb-PomereneExportAssociation TwoormorefinTIsthatcompetedomestically,butwork
togetherinexportingtheirproducts.
Piggybackexporting Asituationinwhichonemanufacturerthathasexportfacilitiesandover-
seas channelsofdistributionwillhandletheexportingofanotherfirm'snoncompetingbmcomple-
mentat·yproducts.
Directexporting Occurswhenatinnestablishe s anexportdepartmenttoselldirectlytoa for-
eignflnn.
