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International
Marketing MKT630
VU
Lesson
# 1
OVERVIEW
OF INTERNATIONAL MARKETING
Defining
International Marketing:
·
"Marketing is
defined as a process by which
individuals and groups obtain what
they need & want
by
creating
and exchanging products and value with
others.
·
The term
"International
Marketing" refers to
exchanges across national boundaries
for the
satisfaction
of human needs and wants.
·
The extent of a
firm's involvement abroad is a function
of its commitment to the pursuit of
foreign
markets.
·
Global
industries are defined as
those where a firm's competitive
position in one country is
affected
by
its position in other countries, and
vice versa.
Evolution
of Global Marketing:
Firms,
depending on their level
involvement in foreign markets, pass
through following
five
evolutionary
phases.
1.
Domestic marketing
Domestic
marketers tend to be ethnocentric (focus
is solely on domestic market) & pay
little
attention
to changes taking place in the global
market place.
Such firms
produce and sell products and services
only in their home
country.
Firms that keep
focus only on their domestic markets
may be vulnerable to the sudden
changes
forced
on them from foreign competition,
when foreign firms enter the
markets or even when
foreign
firms develop better or cheaper
products.
2.
Export marketing
Exporting
firms fulfill unsolicited /
solicited orders from
foreign countries.
For
growth in export marketing,
however, a company requires physical,
financial and managerial
resources.
When a firm
attempts to export it faces
many issues that include
difficulties in import/export
restrictions,
cost and availability of shipping,
exchange rate fluctuations, collection of
money,
development
of distribution channels
etc.
Export
marketers still tend to take
ethnocentric approach, since they
mostly make products in
their
home countries and have no direct
involvement in the foreign
markets.
3.
International marketing
An
international marketing firm
has polycentric orientation
with emphasis on product
and
promotional
adaptation in foreign markets
whenever necessary.
They make
strategic decisions that are tailored to
suit the cultures of the foreign
countries.
The company may
establish an independent foreign
subsidiary in each and every
foreign market
it
services such efforts
are also called
multi-domestic marketing.
4.
Multinational marketing
Multinational
firms are those that
sell products or services in many
countries.
Economies
of scale in product development,
manufacturing, and marketing are achieved
by
multinational
firms by consolidation of some of
their activities on regional
basis.
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