Download International marketing

INTERNATIONAL
MARKETING
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THE SCOPE AND CHALLENGE OF
INTERNATIONAL MARKETING
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INTERNATIONAL MARKETING
Cateora and Graham define international marketing as “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.”
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THE INTERNATIONAL
MARKETING TASK
The company that wishes to do international
marketing must operate on three different planes
simultaneously.


Some of these planes are directly under the control of
the marketer, while other planes may only partially
controllable.
These planes are related to the company
environment, the domestic environment, and the
foreign environment.
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Foreign environment
(Uncontrollable)
Political/
legal forces
Domestic environment
(Uncontrollable)
Economic
forces
(Controllable)
Cultural
forces
Political/
legal forces
Geography
infrastructure
Price
Promotion
Product
Channels of
distribution
Economic
climate
Structure of
distribution
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Competitive
Competitive forces
structure
Level of
technology
Marketing Decision Factors


These factors are found within the company
environment where the marketer has control
over them.
These factors are:
 Price
 Promotion
 Product
 Place (Channels of Distribution)
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Domestic Environment Factors

These factors are related to how the domestic
environment affects your marketing decisions.

These tend to be more uncertain to the
marketer, but on some level may still be
controllable.
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Domestic Environment Factors
(Cont.)
These factors are:
Political/Legal Forces
 Economic Climate
 Competitive Structure

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Foreign Environment Factors

These factors are related to how the foreign
environment affects your marketing decisions.

These tend to be the most uncertain to the
marketer, and is very difficult to be controlled.
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Foreign Environment Factors
These factors are:
Political/Legal Forces
 Cultural Forces
 Geography and Infrastructure
 Structure of Distribution
 Level of Technology
 Competitive Forces
 Economic Forces

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MAJOR OBSTACLES
Self-reference criterion (SRC)
SRC is an unconscious reference to one’s own cultural
values, experiences, and knowledge as a basis for
decisions.
The Self-Reference Criterion (SRC) is when you as the
marketer unconsciously expect that everyone is like you.
You expect that they have:
 The same cultural values
 Experiences
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 Knowledge
MAJOR OBSTACLES (cont.)
Ethnocentrism
Ethnocentrism is the notion that one’s own culture or
company knows best how to do things.
This
is the idea that things done in your culture is the
correct or best way of doing things.
You tend not to look through the eyes of the foreign
consumer.
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Steps to avoid errors in business decisions
1.
Define the business problem or goal in home-country
cultural traits, habits, or norms.
2.
Define the business problem or goal in foreign-country
cultural traits, habits, or norms through consultation
with natives of the target country.
3.
Isolate the SRC influence in the problem and examine
it carefully to see how it complicates the problem.
4.
Redefine the problem without the SRC influence and
solve for the optimum business goal situation.
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STAGES OF INTERNATIONAL
MARKETING INVOLVEMENT
No direct foreign marketing
• A company does not actively cultivate customers outside national
boundaries.
• The product may reach foreign markets by –
-- Making sales to trading companies and foreign customers
who come directly to the firm.
-- Domestic wholesalers/distributors who sell abroad without
explicit encouragement or knowledge of the producer.
-- Developing websites on the Internet.
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Infrequent foreign marketing
• Sales to foreign markets are made as goods are available
(temporary surpluses).
• There is little or no change in company organization or
product lines.
• The company has little or no intention of maintaining
continuous market representation.
• Foreign sales activity is withdrawn as domestic demand
increases.
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Regular foreign marketing
• The firm has permanent productive capacity devoted to
the production of goods to be marketed in foreign
markets.
• The firm may employ foreign or domestic overseas
middlemen or it may have its own sales force n important
foreign markets.
• As overseas demand grows, products may be adapted to
meet the needs of individual foreign markets.
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International marketing
• Companies are fully committed and involved in
international marketing activities.
• Companies seek markets all over the world.
• The products are a result of planned production for markets
in various countries.
• The firm’s marketing activities as well as the production of
goods take place outside the home market.
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Global marketing
• Companies treat the world, including their home-market, as
one market, the market coverage is the world.
• The company develops a standardized marketing mix
which is applicable across national boundaries.
• Market segments are defined by consumer characteristics,
usage patterns, legal constraints, or other factors that often
span countries and regions.
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STRATEGIC ORIENTATION
EPRG schema
Domestic market
extension orientation
Ethnocentric orientation
Multidomestic
market orientation
Polycentric orientation
Global marketing
orientation
Regiocentric / Geocentric
orientation
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