BA 486International Marketing

Dr. Frankenberger

Intro_05.ppt

What is International Marketing?

• U.S. marketing principles applied to more than one country market:– Exchanges: across international borders– Satisfaction: of company & customer needs

• But with a difference in the company’s marketing environments– Internal: management’s approach to international

marketing; experience, resources, etc.– External: uncontrollable elements in the external

environment

Uncontrollable Elements in the External Environment

Standard domestic market variables…

• Economic• Political/legal• Level of technology• Consumer social-

demographics• Competitive forces

…plus special international factors…

• Geography & infrastructure

• Communication & distribution

• Cultural characteristics

International marketing is essentially a matter of

investigating and adapting to a company’s foreign environments

Orientations to foreign marketing

Ethnocentric – USA is best!

Polycentric – each country is unique

Regio/Geocentric – the region/world is one market

Management Orientation leads to different approaches to foreign markets

No/infrequent foreign marketing

Foreign/International marketing

Global marketing

Least international commitment

• Domestic only• Export only

Ethnocentric

Limited to substantial international commitment

• Focus on individual countries or regions• each country seen as an independent market• different marketing program for each country• polycentric

Extensive internationalcommitment

• the world is one market• Focus on segments rather than countries or regions• geocentric

Domestic Market Extension

Multi-domestic Marketing

Global Marketing

Beware the pitfalls of SRC

Self Reference Criterion• Referring to one’s own cultural experience, knowledge,

etc. as the basis for decisions about foreign markets.

Avoiding SRC

Ask the right question …• Campbell’s might introduce a soup product to

India. What information would help with this decision?

In India, people eat with their fingers… does this knowledge influence the type of information you seek?

Avoiding SRC

• Frito Lay wants to introduce a snack chip in Thailand. What flavor would be appropriate?

Prawn? … or BBQ?

Focus group research indicates that while prawn is the favorite flavor in Thailand for most food items, Thais prefer Western flavors for potato chips.

• If nearly 100% of the population in Central America watches the nightly TV soap operas while enjoying a beverage from the fridge, what can we assume about demand for electric appliances?

• BE CAREFUL – don’t make assumptions based on the way things are in the U.S.– Up to 35% of households have no electricity:

• Most TVs (esp. rural) are battery powered• Most refrigerators are gas powered

Adapting to Foreign Marketplaces

Getting to global…Getting to global…

1. Be Tolerant of Cultural Differences, and

2. Be Knowledgeable of: (a) Culture, (b) History, (c) World Market Potential,(d) Global Economic, Social and Political Trends