Transcript Stages of International Marketing

Welcome to class of
Stages of International Marketing
and Strategic Orientation
by
Dr. Satyendra Singh
University of Winnipeg
Canada
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
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Not active foreign customer seekers
Foreign markets via domestic wholesalers/distributors
Unsolicited orders
Internet
• Stage 2: Infrequent Foreign Marketing
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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
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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
Polycentric
Multidomestic
Marketing
Regio/Geocentric
Global Marketing
Strategic Orientations…
• Domestic Market Extension Orientation (Stage 1/2)
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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)
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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 multidomestic strategy for other brands