Conclusion

The international market is large—and it keeps growing in population and income. More Canadian companies are becoming aware of the opportunities open to alert and aggressive businesses.

Involvement in international marketing usually begins with exporting. Then a firm may become involved in joint ventures or wholly-owned subsidiaries in several countries. Companies that become this involved are called multinational corporations. These corporations have a global outlook and are willing to move across national boundaries as easily as national firms move across provincial boundaries.

But markets in different countries vary greatly in stages of economic development, income, population, culture, and other factors. These differences must be studied and carefully considered in developing marketing strategies. Lumping foreign nations together under the common and vague heading of «foreigners»—or, at the other extreme, assuming that they’re just like Canadian customers—almost guarantees failure. So does treating them like common Hollywood stereotypes.

Much of what we’ve said about marketing strategy planning throughout the text applies directly in international marketing. Sometimes Product changes are needed. Promotion messages must be translated into the local languages. And, of course, new Place arrangements and Prices are needed. But blending the four Ps still requires knowledge of the all-important customer. The major roadblock to success in international marketing is an unwillingness to learn about and adjust to different peoples and cultures. To those who are willing to make these adjustments, the returns can be great.

Round-table discussion

1. Discuss the typical evolution of corporate involve­ment in international marketing. What impact would complete acceptance of the marketing concept have on the evolutionary process?

2. Distinguish between licensing and contract manu­facturing in a foreign country.

3. Distinguish between joint ventures and wholly-owned subsi- diaries.

4. Discuss the long-run prospects for: (a) multina­tional marketing by Ukrainian firms producing in Ukraine only and (b) multinational firms willing to operate anywhere.

5. How can a producer interested in finding new international marketing opportunities organize its search process? What kinds of opportunities would it look for first, second, and so on?

6. Discuss how market segmenting might have to be modified when a firm moves into international markets.

7. Explain why tariffs and quotas affect international marketing opportunities.

8. Will the elimination of trade barriers between countries in Europe eliminate the need to consider submarkets of European consumers? Why or why not?

9. Discuss the prospects for a Ukrainian entrepreneur who’s considering building a factory to produce machines that make cans for the food industry. There’s some possibility of establishing sales contacts in a few nearby countries.

10. Discuss the value of gross national product per capita as a measure of market potential. Refer to specific data in your answer.

11. Discuss the possibility of a multinational marketer using the same promotion campaign in Ukraine and in many international markets.

12. Describe an effective organization for a multinational firm.

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