BA 486 International Marketing Dr. Frankenberger Intro_05.ppt
Dec 22, 2015
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