INTERNATIONAL MARKETING MANAGEMENT

International Marketing Management

International Marketing Management

Part A

Concept of 'Self Reference Criterion' and demonstrate its importance to a marketing firm planning to enter international markets for the first time.

Self reference criterion is the influence of one's culture on the behavior in a given situation. When put in a situation people tend to respond in a way that is closely associated with their culture. In international marketing scenarios? we are talking about working in different cultural environments and hence a self referenced behavior may not be the "correct" behavior from the perspective target culture. (Pervez? 2006? 33-41) Hence realization of these differences of culture and the possibility of self reference criterion is important in international marketing. International marketing is hard work. (Aaker? 1999? 137-144) Companies have to be prepared to confront myriad obstacles with optimism and a willingness to continue learning new ways. Indeed? the salient lesson for those involved in international commerce at the turn of the 21st century is to expect the unexpected. (Calantone? 2004? 185-198) The successful businessperson in the 21st century will have global awareness and a frame of reference that goes beyond a region or even a country and encompasses the world. But international marketing is important work. It can enrich you? your family? your company? and your country. And ultimately? when international marketing is done well? by large companies or small? the needs and wants of customers in other lands are well understood? and prosperity and peace are promoted along the way. Follow along with the slides (or open book) as we cover Chapter 1 - the scope and challenge of international marketing. (Pervez? 2006? 33-41) In many cases? foreign sales were greater than U.S. sales? demonstrating the global reach of these American brands. (Aaker? 1999? 137-144) Apple's performance has been most impressive with total revenues exploding from just $6 billion in 2003 to $24 billion in 2007. Meanwhile? the company maintained its traditional level of 40% revenues from outside the U.S. Companies that never ventured abroad until recently are now seeking foreign markets.

Companies with existing foreign operations realize they must be more competitive to succeed against foreign multinationals. (Buzzell? 1968? 102-113) They have found it necessary to spend more money and time improving their marketing positions abroad because competition for these growing markets is intensifying. (Agrawal? 1994? 26-48) For firms venturing into international marketing for the first time and for those already experienced? the requirement is generally the same: a thorough and complete commitment to foreign markets and? for many? new ways of operating. The self-reference criterion refers to the tendency of individuals? often unconsciously? to use the standards of one's own culture to evaluate others. For example? Americans may perceive more traditional societies to be “backward” and “unmotivated” because they fail to adopt new technologies or social customs? seeking instead to preserve traditional values. (Agrawal? 1994? 26-48) In the 1960s? a supposedly well read American psychology professor referred to India's culture of “sick” because? despite severe food shortages? the Hindu religion did not ...