International Marketing

Philip R. Cateora, Mary C. Gilly, and John L. Graham

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Introduction
To understand a societys actions and its points
of view, you need to appreciate:
The influence of historical events
The geographical uniqueness to which a culture
has had to adapt
Culture can be defined as society's accepted basis
for responding to external and internal events
To interpret a cultures behavior and attitudes, a
marketer must have some idea of a countrys
history and geography
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History Perspective
in Global Business
History helps define a nations mission
How it perceives its neighbors
How it perceives itself
Its place in the world
Insights into history are important for
understanding current attitudes
It is necessary to study culture as it is now as
well as to understand culture as it was
A countrys history

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Geography and Global
Markets
Geography an element of the uncontrollable
environment that confronts every marketer
Affects a societys culture and economy
Physical makeup limits a nations ability to supply
its peoples needs
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Geography, Nature
and Economic Growth
As countries prosper, natural barriers are
overcome
Environmental issues
Disruption of ecosystems
Relocation of people
Inadequate hazardous waste management
Industrial pollution
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Social Responsibility
and Environmental Management
Environmental protection is not an optional extra
Pollution is on the verge of getting completely out of
control
China has 16 of the worlds 20 most polluted cities
Critical issue: the disposal of hazardous waste
Sustainable development

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Demographic Factors: Dynamics of
Global Population Trends
Global population trends determine todays demand
for goods
Rural/urban population shifts
Rates of growth
Age levels
Population control
Changes in population will profoundly affect future
demand
The most important deterrent to population control
is cultural attitudes about the importance of large
families


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Controlling
Population Growth
Procreation is one of the most culturally
sensitive uncontrollable factors
Perhaps the most important deterrent to
population control is cultural attitudes about the
importance of large families
Family planning and all that it entails is by far
the most universal means governments use to
control birthrates, but some economists believe
that a decline in the fertility rate is a function of
economic prosperity and will come only with
economic development
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Rural/Urban Migration
Result of a desire for greater access to:
Sources of education
Health care
Improved job opportunities
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Top 10 Mega Cities by 2015
City Country Population (millions)
1. Tokyo Japan 26.4
2. Mumbai India 26.1
3. Lagos Nigeria 23.2
4. Dhaka Bangladesh 21.1
5. Sao Paulo Brazil 20.4
6. Karachi Pakistan 19.2
7. Mexico City Mexico 19.2
8. New York USA 17.4
9. Jakarta Indonesia 17.3
10. Calcutta India 17.3
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Population Decline and Aging
Population growth in many countries has
dropped below the rate necessary to maintain
present levels
A nation needs a fertility rate of about 2.1
children per woman
Not one major country has sufficient internal
population growth to maintain itself
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population (over 65 years)
1. Monaco 6. Sweden
2. Japan 7. Spain
3. Germany 8. Austria
4. Italy 9. Bulgaria
5. Greece 10. Estonia
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Social/Demographic factors
At the beginning of 2012, the size of the world
population surpassed the seven
billion milestone and the population aged
below 30 accounted for more than half of the
world's population.
The size of this young population continues to
grow at a robust pace, particularly in
developing economies where an
unprecedented number of children are moving
into adolescence.
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Emerging and developing economies,
particularly in the Middle East and Africa, have
a younger population than developed
economies.
At the beginning of 2012, 53.1% of the
population in emerging and developing
economies was aged below 30 compared to
35.6% in developed economies;

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In 2012, India and China had the youngest
population in terms of size with the number of
people aged below 30 at 704 million and 497
million respectively.
According to the United Nations (UN), India's
total population is forecast to overtake China's
by 2025 despite falling fertility from 4.7
children born per female in 1980 to 2.6 in
2011;

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Countries in sub-Saharan Africa had the
youngest proportion of population in the
world with over 70% of the region's
population aged below 30.
In terms of median age (middle value of age
distribution), Niger had the youngest
population in 2011 at 15.4 years, followed by
Uganda (15.7 years) and Mali (16.2 years);
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The young population in many emerging and
developing economies will benefit from a
demographic dividend - a rise in the rate of
economic growth due to a rising share of
working age people in a population.
In 2012, 89.7% of the global population aged
below 30 lived in emerging and developing
economies:


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Opportunity for a demographic
dividend (Summary)

Population trends over the next few decades
will largely be governed by decisions made by
the 3.5 billion young people aged below 30 in
2012.
This is the largest generation to enter
adolescence, and their decisions regarding
size and birth spacing of families will shape
population trends and consumer trends over
coming decades;

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Summary
Declining birth rates and marriages are
major factors in shrinking the size of
households;
People marrying and having children
later in life also contributes to the
growing number of single-person
households and shared households of
unrelated occupants.

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Household behaviours are also shifting.
Besides smaller households, there has been
an increase in non-traditional homes, more
apartment dwellers, and more consumers are
renting vs. buying.
Purchasing habits also vary by household and
marketers will be able to utilize our new
information to better target the consumers
they are trying to reach

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Summary
A prospective international marketer should be
reasonably familiar with the world, its climate,
and topographic differences
Geographic hurdles must be recognized as
having a direct effect on marketing and the
related activities of communications and
distribution
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Group Activity
* Join with your chosen group ( 6 members
each group);
* Search and discuss the country of origin of
your chosen company based on the
international environments we just
discussed ( history, geography and
demographic factors related to the
companys operation)
* Report your findings in the class
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