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Scope and Challenge of International Marketing
Scope and Challenge of International Marketing
Global Marketing
- At this stage, companies treat the world including their home market as one
market.
- Market segmentation decisions are no longer focused on national borders instead
market segments are defined by income level, usage patterns, or other factors that
frequently span countries and regions.
- Often the transition from international marketing to global marketing is catalyzed
by a company’s crossing the threshold at which more than half its sales revenues
comes from abroad.
Strategic Orientation
Researchers reveal 3 relatively distinctive approaches that seem to dominate strategic
thinking in firms involved in international markets:
- Domestic Market Extension Orientation: the domestic company seeks sales
extension of its domestic products into foreign markets. It views its international
operations as secondary to and an extension of its domestic operations. Domestic
business is its priority, and foreign sales are seen as a profitable extension of
domestic operations. The firms’ orientation remains basically domestic.
- Multidomestic Market Orientation: a company guided by this concept has a strong
sense that country markets are vastly different and that market success requires an
almost independent program for each country. Firms with this orientation market
on a country-by-country basis, with separate marketing strategies for each
country. Each of the country markets has separate marketing mixes with little
interaction among them.
- Global Market Orientation: referred to as a global company. Its marketing activity
is global, and its market coverage is the world. They strive for efficiencies of
scale by developing a standardized marketing mix applicable across national
boundaries. The world as a whole is viewed as the market, and the firm develops
a global marketing strategy. The global marketing concept views an entire set if
country markets (whether the home market plus 1 other country or the home
market and 100 other countries) as a unit, identifying groups of prospective
buyers with similar needs as a global market segment and developing a marketing
plan that strives for standardization wherever it is cost and culturally effective.