You are on page 1of 9

Welcome to class of

Stages of International Marketing


and Strategic Orientation

Dr. Satyendra Singh


Professor, Marketing and International Business
University of Winnipeg
Canada
s.singh@uwinnipeg.ca
http://abem.uwinnipeg.ca
www.abem.ca/conference
Stages of International Marketing…
No Direct Foreign Marketing

Infrequent Foreign Marketing

Regular Foreign Marketing

International Marketing

Global Marketing
Stages of International Marketing…
• Stage 1: No Direct Foreign Marketing
– Not active foreign customer seekers
– Foreign markets via domestic wholesalers/distributors
– Unsolicited orders
– Internet
• Stage 2: Infrequent Foreign Marketing
– Variation in production levels or demands
– No commitment to foreign market representation
– If domestic demand , foreign activity 
– Foreign agents may approach
– Managers’ own foreign contacts
Stages of International Marketing…
• Stage 3: Regular Foreign Marketing
– Dedicated production capacity to foreign markets
– Own sales force/subsidiaries in foreign markets
– Domestic market is still the prime focus, but as the
foreign demand , production/products are adapted to
meet those customer needs
– Depend on foreign sales to meet goal (vs. as a bonus)
• Stage 4: International Marketing
– Fully committed and involved in international marketing
– Planned productions for various foreign markets
– Production of goods in foreign markets as well
– At this stage, a firm is international or multi-national
Stages of International Marketing
• Stage 5: Global Marketing
– Treats the world including home market as one
– Market segments are defined by demographic and
psychographic variables
– Half of its revenue should come from foreign market
– Global perspective is the focus
Strategic Orientations
EPRG Schema Orientation

Ethnocentric Domestic Marketing


Extension

Multidomestic
Polycentric
Marketing

Regio/Geocentric Global Marketing


Strategic Orientations…
• Domestic Market Extension Orientation (Stage 1/2)
– Extension of domestic products into foreign markets
– International markets are secondary
– Prime focus—market excess domestic products abroad
– Firm’s orientation is domestic
• Multi-Domestic Market Orientation (Stage 2/3)
– Realizes the difference b/w domestic & foreign markets
– Different countries need different products
– Separate marketing strategies for each country
– Subsidiaries operate independent of one another
– Products are adapted, advertising is localized
– Might not standardize products
Strategic Orientations
• Regional/Global Orientation (Stage 4/5)
– Truly global – single market
– Emphasis on standardization—product/process
– Strive for efficiencies of scale by standardizing market
mix across national borders, whenever it is cost or
culture effective
– Pursue a global strategy for major brands or multi-
domestic strategy for other brands
In-Class Group Activity: 30-45 minutes
• The 5-Stage Model and Strategic Orientation
– Identify 5 international brands (or Canadians if you wish)
– Explain the stage at which each brand is
– Provide rationale for the stage of each brand
– Map the stage to the strategic orientation
– Prepare a 10-minute (Max) group presentation using
PowerPoint Slides
– Please e-mail the PPT slides at drsatsingh@gmail.com
and write “your group # and strategic orientation” in the
subject line, so I could browse it before your presentation.

You might also like