NATURE AND

SCOPE OF
INTERNATIONAL
MARKETING
Learning 1. Describe the meaning of international marketing and
Outcomes the reasons for a firm to go global.
2. Identify the actors involved in international
At the end of marketing.
the chapter
you should be 3. Differentiate between domestic and international
able to… marketing.
4. Describe the levels of international marketing,
ranging from domestic to global marketing.

5. Explain the international marketing orientations.

Nature and Scope of International Marketing

Concepts of International Marketing

Why Firms Go International
Difference between Marketing in the Domestic
and International Markets
Levels of International Marketing
International Marketing Orientation
Major Actors in International Marketing
Concept of International
Marketing
 Marketing involves carrying out business activities directed at
the flow of goods and services from producer to consumers or
the collection of activities undertaken by the firm to relate
profitably to its market.

✓ A firm’s first activity is to study its own prospective buyers.

Who are they? Where are they? What factors are important in
their purchase of our product or service?
✓ The second activity is to develop products or services that
satisfy the customers’ needs and wants.

✓ The third matter is to set prices and terms on these products

that appear reasonable to buyers, while at the same time
returning a fair profit.
✓ Distribution is the fourth activity, which entails making
products available when and where buyers can be conveniently
accessed.
✓ The fifth action is promotion, which is about informing and
persuading the market about the products or services on offer.

Marketing managers must plan and coordinate these

activities in order to produce successful, integrated marketing
programs.
 For services, there are further functions that marketing
managers must take into account, including the process of
service delivery, service providers (people), physical
evidence, and positioning.
The role of intensive marketing in
Creating value in Your business

The case of @Everything Samgyup

Your firm
Your Product
Your customers
Your Price
Your Price
 Your growth

From home delivery Rooftop Al Fresco Dining Indoor Dining

 Your expansion
CARABUY.CO FOOD DELIVERY SERVICES
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Carabuy Co <carabuy.co@gmail.com>
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Hi Nyka,
Greetings!
Carabuy.co is a platform likened to FoodPanda, GrabFood and LalaFood of the Metro Manila,
but was established in Solano during the pandemic period last June 2020. Overtime, the
platform has now over 4,000 users servicing different areas in Nueva Vizcaya and has been
providing most of our partner stores with additional revenues of up to Php200K monthly.
Should incase you need to know more about us, please feel free to send us a message for
clarification through this email or through our FB Page
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know the stores we are currently partnered with.
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For your registration as a Partner Store in our Platform, please follow below steps:
Expansion
 Expansion (Locations are always across/beside schools,
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Branches in nearby
commercial towns Moto Foodcab
 International Marketing
✓ Defined as the performance of business activities designed to
plan, price, promote, and direct the flow of a company’s goods
and services to consumers in more than one nation, for profit.

✓ Simply performing one or more of the marketing activities

listed above across national boundaries
✓ It involves the performance of all the marketing functions
in more than one country (the difference between single-
country, dual-country, or multi-country marketing).

The key difference of domestic and international

marketing is that in the latter case marketing activities
take place in more than one country.
Why Firms Go International?
 Going international is an important and complex decision
made by companies at different levels of growth. In the
face of the general forces that drive international trade and
internationalization, there are specific factors that motivate
firms to go international.
 Such factors include: emerging regional economic and
political integration; enhancement in technology;
improvements in transportation and telecommunication;
world economic growth; transition to market economies;
and converging consumer needs.
 Economic integration, for instance, lowers or eliminates
barriers and promotes trade within common markets. As a
result, subsidiaries are established in specific markets to take
advantage of free trade within the region.
These factors are expected to trigger internationalization between
nations and create opportunities for companies to participate in
international marketing; however, there are more specific factors
that attract individual firms to acquire a global orientation and go
international.

❑ First and foremost, most companies go international for the

purpose of growth and expansion in terms of sales, profits, global
coverage, customer base, etc.
❑ Second, companies go abroad because expanding the size and scope of
markets helps them to achieve economies of scale in their operations
and in marketing costs.

❑ Third, a product may be near the end of its life cycle in the domestic
market but at the same time experience a growth market abroad.

❑ Fourth, for some product lines, competition in foreign markets may

be less intense than domestically and the firm moves to a less
competitive market to take advantage of that market.
❑ Fifth, if the firm or country has excess capacity, it can produce for export
to foreign markets at a favourable marginal cost per unit.

❑ Sixth, geographical diversification (that is, going international) may be a

more desirable alternative than product-line diversification.

❑ Seventh, perhaps the most obvious reason to consider world markets is

the potential they offer compared to domestic markets.

Overall, the drivers of internationalization appear to fall under

two categories: general drivers, and firm-specific drivers.
Differences between Marketing in
the Domestic and International
Markets
 Foreign and domestic marketing are the same, in that the purpose is to
create and manage profitable exchange relationships between an
organization and its markets. However, although the activities and goals of
international marketing are the same as those of domestic marketing, the
implementation of a firm’s marketing programs may be very different.

Under international marketing, marketing managers encounter

trade barriers, different cultures (including foreign languages,
aesthetics, material culture, religion, attitude, values, etc.), and
foreign trade legislation.
In other words, foreign and domestic marketing are dissimilar in three
important ways:

i. Differences in environmental characteristics of domestic and

foreign markets often require different applications of marketing
principles, concepts, and techniques.

ii. Foreign marketing involves crossing national borders and is thus

concerned with a unique set of issues and problems.
iii. Special techniques and methods are sometimes needed.
This is due to the fact that some tasks associated with
international marketing are not included (or are less
intense) in domestic marketing (e.g., cultural research,
political factors, exchange rates, trade laws,
longdistance distribution.)
Levels of International Marketing
 Once a company has opted to go international, it has to
decide the degree of marketing involvement and
commitment that it is prepared to undertake. The decision
made by the company will determine the level of
engagement in international marketing.
There are four levels that may be used to distinguish the degree of
international marketing involvement:

Domestic marketing
- The main focus of
domestic marketing is the
home country, with least
involvement in foreign
countries.
Export Marketing
- In export marketing, the
firm directly or indirectly exports
its products and services to foreign
countries, with limited international
commitment. The focus is to
market the domestic market’s
excess abroad, making the foreign
market secondary.
International Marketing

- Companies in this
stage are fully committed
and involved in
international marketing
activities.
Global Marketing
- At the global marketing
level, the most profound change is
the orientation of the company
toward markets and associated
planning activities. At this stage,
companies treat the world,
including their home market, as one
market.
International Marketing Orientations
Companies are led into international and even global markets by
burgeoning consumer or customer demand, and strategic
thinking is secondary to “filling the next order.”
The strategic approach to international marketing reveals three
relatively distinct orientations that seem to dominate strategic
thinking in firms involved in international marketing: (i) domestic
market extension, (ii) multi-domestic market, and (iii) global
marketing.
Domestic Market Extension
- The domestic company seeking the extension of sales of its
domestic products into foreign markets. It views its international operations
as an extension of its domestic operations; the primary motive is to market
excess domestic production.

- This domestic market extension strategy can be very profitable;

large and small exporting companies approach international marketing from
this perspective.

-Firms with this marketing approach are classified as ethnocentric.

Multi-domestic Market Orientation
- Once a company recognizes the
importance of differences in overseas
markets and the value of offshore
business to the organization, its
orientation toward international business
may shift to a multi-domestic marketing
strategy.
-Firms with this orientation
would be classified as polycentric.
Global Market Orientation
-A company guided by the global marketing orientation or
philosophy is generally referred to as a global company; its
marketing activity is global, and its market coverage is the world.
The world as a whole is viewed as the market, and the firm develops
a global marketing strategy.

-The global marketing company would fit the regiocentric

or geocentric classifications.
 Major Actors in
International Marketing
 Major actors in international marketing include:

Exporters
-are firms that market products abroad but produce largely
in their home country.
 Major actors in international marketing include:
Importers
-include companies, firms, or individuals that buy goods
from abroad.
 Major actors in international marketing include:
Service Companies
-are companies that offer different exporting and importing
services to the parties involved in international marketing,
such as banks, investment bankers and brokers, airlines and hotels,
companies, public accounting firms, consulting companies, advertising
agencies, and so forth.
 Major actors in international marketing include:

Multinational Corporations
-are companies that manufacture products and services in several
countries. These corporations maintain their headquarters in home
countries while expanding their operations into several foreign countries.