Republic of the Philippines

Governor Mariano Villafuerte Community College

Garchitorena Campus, Pambuhan, Garchitorena Camarines Sur

CEB- Res. No. 955-2017

In partial fulfillment for the requirements of Academic Subject ABUS 160-

International Marketing

Stages of International Marketing Involvement

Prepared by:

ROCHELLE MARTIREZ
MARIA LIZA BIEN
JOEL ABRERA
MARC CHARLES BIEN

SUBMITTED TO:
SUSY C. MARTIREZ, MBA, PLT
SUBJECT TEACHER

October 13 2021
Date Submitted
STAGES OF INTERNATIONAL
MARKETING INVOLVEMENT
 Once a company has decided to go international, it has to decide the degree of marketing
involvement and commitment it is prepared to make. These decisions should reflect
considerable study and analysis of market potential and company capabilities – a process not
always followed. Many companies begin tentatively in international marketing, growing as they
again experience and gradually changing strategy and tactics as they become more committed.
Others enter international marketing after much research and with fully developed long range
plans, prepared to make investments to acquire a market position and often evincing bursts of
international activities.

The levels of involvement are not same for all the firms. It varies from firms to firms depending
upon its internal and external factors. Internal factors are monetary and non monetary
resources and external factors are government policies and market potential.

After a company decides to enter into international market, it must decides the degree of
marketing involvement. A firm may get itself involve in foreign marketing in any of the five
following ways.
1. No direct Foreign Marketing:

A company in this stage does not actively cultivate customers outside national boundaries;
however this company’s products may reach foreign markets. Sales may be made to trading
companies as well as foreign customers who come directly to the firm. Or products may reach
foreign markets via domestic wholesalers or distributors who sell abroad without explicit
encouragement or even knowledge of the producer. As companies develop web sites on the
internet, many receive orders from international Web surfers. Often an unsolicited order from a
foreign is what piques the interest of a company to seek additional international sales.

2. Infrequent Foreign Marketing:

Temporary surpluses caused by variations in production levels or demand may result in

infrequent marketing overseas. The surpluses are characterized by their temporary nature;
therefore sales to foreign markets are made as goods are available, with little or no intention of
maintaining continuous market representation. As domestic demand increases and absorbs
surpluses, foreign sales activity is withdrawn. In this stage, little or no change is seen in
company organization or product lines. However, few companies today fit this model because
customers around the world increasingly seek long term commercial relationships. Further,
evidence exists that financial returns from initial international expansions are limited.

3. Regular Foreign Marketing:

At this level, the firm has permanent productive capacity devoted to the production of goods to
be marketed in foreign markets. A firm may employ foreign or domestic overseas
intermediaries or it may have its own sales force or sales subsidiaries in important markets. The
primary focus of operations and production is to service domestic market needs. However, as
overseas demand grows, production is allocated for foreign markets, and products may be
adapted to meet the needs of individual foreign markets. Profit expectations from foreign
markets move from being seen as a bonus to regular domestic profits to a position in which the
company becomes dependent on foreign sales and profits to meet its goals.

4. International Marketing:

In this phase gives full effort in marketing internationally. Firm will now fully concentrated both
in domestic and international market. Here it installs different production unit in different
countries and produces, set prices, advertises according to those segments’ specifications. So,
it’s also called multinational marketing. For example- Uniliver, Nestle do their business
according to this phase.

5. 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 levels, usage patterns or other factors that often span countries and
regions. All marketing strategies regarding pricing, advertising, policies etc. are taken
considering the whole population of the world. For example- Coca cola with red can.

In the first two stages of involvement, the firm relies more on other for marketing its
products in foreign markets while in the later stages, it may engage its own personnel in selling
the products. The marketing task in the earlier stages is simple, i.e. only selling, while in the
later stages, serious research is necessary and serious attempts are made to locate and satisfy
the needs of the customers. However before entering into the international market the firm
should undertake a thorough analysis of the markets and its resources to get a success.

Regardless of the means employed to gain entry into foreign market, a company may make
little or no actual; market investment – that is, its marketing involvement may be limited to
selling a product with little or no thought given to development of market control.
Alternatively, a company may become totally involved and invest large sums of money and
effort to capture and maintain a permanent, specific position in the market. In general, one of
five (sometimes overlapping) stages can describe the international marketing involvement of a
company. Although the stages of international are presented here in a linear order, the reader
should not infer that a firm progresses from one stage to another; quite to the contrary, a firm
may begin its international involvement at any one stage or be in more than one stage
simultaneously. For example, because of a short product life cycle and a thin but widespread
market for many technology products, many high tech companies large and small see the entire
world, including their home market, as a single market and strive to reach all possible
customers as rapidly as possible.

REFERENCES:

Daffodil International University,

Faculties & Departments, Business & Entrepreneurship, Business Administrators

Shah Alam Kabib Pramanik(2015)