This chapter addresses the who, what, why, and how of international marketing by giving an overview of the nature of international business. The chapter also examines the criteria that determine when a company has successfully transformed itself into a multinational firm. To dispel some popularly held misconceptions, there is an explicit treatment of the benefits of international trade. | Chapter 1 Nature of International Marketing Challenges and Opportunities Process of International Marketing International Dimensions of Marketing Domestic Marketing vs. International Marketing Multinational Corporations (MNCs) - Pros and Cons - Multinationality and Market Performance - Characteristics of MNCs The Process of Internationalization Benefits of International Marketing Definition of International Marketing Multinational process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services and to create exchanges that satisfy individual and organizational objectives Dimensions of Marketing Consumer Marketing vs. Business-to-Business Marketing Domestic Marketing vs. Foreign Marketing Comparative Marketing International Marketing vs. Global/Multinational Marketing Domestic Marketing vs. International Marketing - similar in nature but not in scope (scale)? - different in degree but not in kind? MNCs (MULTINATIONAL CORPORATIONS) Cons - Exploitation - Erosion of a Nation's Sovereignty Pros - Power and Prestige - Social Responsibility - Market Performance Transnationality Index (TNI) Foreign Assets/Total Assets Foreign Sales/Total Sales Foreign Employment/Total Employment Characteristics of MNCs Definition by Size - market value - sales - profits - assets - number of employees Characteristics of MNCs Definition by Structure - number of countries in which the firm does business - citizenship of corporate owners and top managers Characteristics of MNCs Definition by Performance - commitment of corporate resources to foreign operations - amount of rewards from that commitment Characteristics of MNCs Definition by Behavior - ethnocentricity - polycentricity - geocentricity Behavior/ Attitude Ethnocentricity - orientation toward home country - centralization of decision making - efficient but not effective Behavior/ Attitude Polycentricity - strong orientation to host country - decentralization of decision making - . | Chapter 1 Nature of International Marketing Challenges and Opportunities Process of International Marketing International Dimensions of Marketing Domestic Marketing vs. International Marketing Multinational Corporations (MNCs) - Pros and Cons - Multinationality and Market Performance - Characteristics of MNCs The Process of Internationalization Benefits of International Marketing Definition of International Marketing Multinational process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services and to create exchanges that satisfy individual and organizational objectives Dimensions of Marketing Consumer Marketing vs. Business-to-Business Marketing Domestic Marketing vs. Foreign Marketing Comparative Marketing International Marketing vs. Global/Multinational Marketing Domestic Marketing vs. International Marketing - similar in nature but not in scope (scale)? - different in degree but not in kind? MNCs (MULTINATIONAL CORPORATIONS) .
