Term paper

On

The Scope and Challenge of International Marketing

Submitted to

Abu Sayeed Talukder

Professor

Submitted by

Chowdhury Taifur Sadat

ID: 40916059

Course: Global Marketing

University of Dhaka
International Marketing Defined:

Cateora and Graham define international marketing as “ the performence of business activities
desigend to plan, price, promote and direct the flow of a company’s goods and services to
consumers or usres in more than one nation for a profit.”

What is the difference between marketing domestically and internationally

Marketing concepts are universal (goal is to make a profit)

Difference is that in international marketing ALL environments have to be taken

into consideration when the marketing plan is developed and executed

• Must consider the legal environment, governmental controls, climate &

weather, cultural beliefs, buyer behavior… (uncontrollable elements)

Why international marketing is so important:

Companies can no longer ignore the effects of internationally marketing

• Competition no longer exists just from domestic companies

• In order to sustain profitability and growth margins of the past, companies

have to look for alternative methods of marketing their products and
services

International Marketing Task:

Marketing Plan (controllable)

• Price, Promotion, Product, Place (distribution)

Domestic Environment (uncontrollable)

• Political/legal, competition, economy

Foreign Environment (uncontrollable)

 • Structure of distribution, geography and infrastructure, culture,
political/legal, economy, competition, level of technology…

Other Factors within the Foreign Environment to consider:

Level of technology

Crossing Borders 1.3

Political and legal issues

Culture

Importance of “uncontrollable elements”

In order to succeed internationally a foreign company must understand the impact of the
uncontrollable elements that make up that country’s culture

• “Cultural understanding is like an iceberg – we are not aware of nine-

tenths of it”

• In order to be successful in adapting to the international markets, the

market plan needs to incorporate strategies to anticipate as much of the
uncontrollable factors that influence both the foreign and domestic
markets and allow for maximum flexibility to adjust for future changes

Obstacles to success in international marketing:

“SRC” – Self-reliance criterion & ethnocentrism:

• Using one’s culture, values, experiences as a basis for decisions in

international situations

By reacting to situations in this manner, cultural differences are

ignored, and behavior might be offensive
 The less ego-centric a company is, the greater success it will have
in marketing it’s products and services

To be globally aware, a company must have the following:

Objectivity

Tolerance of cultural differences

Knowledge of cultures, history, world market potential, and global economic,

social, and political trends

Stages of International Marketing Involvement:

1. No Direct Foreign Marketing

Company does not actively pursue customers in foreign markets, but receives
them thru unintended channels

• Products are bought abroad through domestic wholesalers/distributors,

website on the internet

2. Infrequent Foreign Marketing

Company sells to foreign markets only when a temporary surplus of product

exists

• Once surplus is gone, foreign activity is gone

• Few companies fit this model because of the need to develop long term
relationships in foreign countries

3. Regular Foreign Marketing

Companies produce their products and services to primarily sell domestically, but
also internationally

• Through domestic/foreign middlemen, sales force in foreign countries

4. International Marketing

Companies are fully engaged in international marketing strategies

• Companies are now international or multi-national

5. Global Marketing

Change from its marketing activities to all activities focused in a global

perspective

• In most cases companies sales revenues are more than ½ of its total
revenues

• Treat the world as one market

• Market segment is no longer focused on national borders, rather such

things as income levels, usage patterns, or other factors are looked across
borders

Strategic Approaches to Marketing Internationally

1. Domestic Market Extension Orientation

International markets are secondary to its domestic markets

2. Multidomestic Market Orientation

Each country has a specific and separate marketing plan to adjust to differences

3. Global Marketing Orientation

Marketing activities are global

Strives for efficiencies of scale through standardization

Conclusion:

The globalization of markets and competition necessitates all managers to pay attention to the
global environment. Key obstacles to facing international markets are not limited to
envirnmentel issues. Just as important are dificulties asssociated with the marketer’s own self-
reference criteria and ethnocentrism. Both limit the internatinal marketer;s abilities to understand
and adapt to differences prevalent in foreign market. A global awareness and sensibity are the
best solutions to these problems, and these should be nurtured in internetional marketing
organizations.Finally, a global orientation views the globe as the marketplace and market
segments are no longer based solely on national boarders, common consumers characteristics
and behaviors come into play as key to segmentation variables applied across countries.