Understanding International Markets: Core Principles

International Marketing: Key Concepts

Understanding Ethnocentrism and the SRC

The most effective way to control the influence of ethnocentrism and the Self-Reference Criterion (SRC) is to recognize their effects on our behavior.

Achieving Global Awareness

The most effective way to achieve organizational global awareness is by having a culturally diverse senior executive staff or board of directors.

Avoiding Errors in Business Decisions

To avoid errors in business decisions, it’s necessary to conduct a cross-cultural analysis that isolates the self-reference criterion influences. The first step is defining the business problem or goal in home-country cultural traits, habits, or norms.

Impact of Competition in the Domestic Market

When M&G Inc. faced competition from Beige N in its home market, this illustrates the impact of competition in the domestic market on a company’s business.

The Role of Self-Reference Criterion

When confronted with a set of facts, one reacts spontaneously based on assimilated knowledge. When faced with a problem in another culture, the tendency is to react instinctively and refer to one’s self-reference criterion for a solution.

Defining International Marketing

International Marketing is the performance of business activities designed to plan, price, promote, and direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit.

Global Marketing Stage

For a company at the global marketing stage of internationalization, market segments are defined by income levels, usage patterns, or other factors that frequently span countries and regions.

Understanding Self-Reference Criterion (SRC)

Self-reference criterion is an unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decisions.

Accelerating Internationalization

A firm with key managers well networked internationally has a better chance of accelerating the internationalization process.

Preparing a Marketing Plan

Controllable variables in a marketing plan include price, product, channels of distribution, and promotion.

Stages of International Marketing Involvement

A firm may be in more than one stage simultaneously.

Foreign Investment in the United States

Companies from the United Kingdom lead in foreign investment in the United States.

Avoiding Errors in Cross-Cultural Analysis

To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that isolates the self-reference criterion influences. The first step is defining the business problem or goal in home-country cultural traits, habits, or norms.

Obstacles to Success in International Marketing

Primary obstacles to success in international marketing are a person’s self-reference criterion and an associated ethnocentrism.