International marketing consists of all business activities that direct the flow of goods and services
from a company to consumers or users in more than one nation, in exchange of a profit.
International Marketing Phases
INDIRECT: In the first phase of international marketing, companies typically export their products
to foreign markets through intermediaries such as agents, distributors, or trading companies.
INFREQUENT: In the second phase, companies begin to establish direct contacts with potential
customers and conduct occasional direct sales, but international business still represents a small
fraction of their overall revenue.
REGULAR: In the third phase, companies become more committed to international business,
investing in market research, establishing their own sales organizations, and adapting their
products and marketing strategies to local conditions.
INTERNATIONAL: In the fourth phase, companies develop a global marketing strategy, treating the
world as a single market with similar customer needs and preferences, and standardizing their
product offering, brand image, and marketing mix.
REGIONAL: In the fifth phase, companies recognize regional differences in customer behavior and
market conditions and tailor their marketing strategies to specific regions, such as Europe, Asia, or
Latin America.
GLOBAL: In the final phase, companies strive for a truly global presence by integrating their
operations and marketing efforts across different regions, achieving economies of scale and scope,
and creating a consistent brand image and customer experience worldwide.
Ethnocentrism is a conscious or deliberate bias towards one's own culture, while SRC is an
unconscious or automatic bias based on one's own cultural assumptions.
Ethnocentrism is a domestic-oriented approach in which a company assumes that its home
country's values, preferences, and behaviors are universal and tries to impose them in other
markets.
Regiocentrism is a regional-oriented approach in which a company recognizes regional
differences in customer needs and preferences and adapts its products and marke ting mix to
different regions.
Geocentrism is a global-oriented approach in which a company treats the world as a single
market with similar customer needs and preferences and standardizes its product offering, brand
image, and marketing mix across different markets.
Efficient and Effective= Productive
Domestic market: A company's home market, or the market in which it primarily operates and
generates revenue.
Market extension: A market entry strategy in which a company expands into international
markets by simply offering its existing products or services to customers in those markets.
Multidomestic markets: A market structure in which a company operates in multiple markets
with a decentralized approach, adapting its products and marketing strategies to each local market
to meet specific customer needs and preferences.
Global market: A market structure in which a company treats the world as a single market, using
a standardized product offering and marketing strategy across all markets in which it operates.
Market orientations: An approach to marketing that involves focusing on different aspects of
the market, such as product, production, selling, or societal needs, to guide a company's
marketing strategy and tactics.
Regional markets: A market structure in which a company focuses on a specific geographic
region, such as Europe, Asia, or Latin America, and tailors its marketing strategies to the unique
characteristics and customer preferences of that region.
Monochronic cultures (M-time) are those that view time as a valuable resource that should be
carefully managed and used efficiently. They tend to schedule appointments and meetings
precisely and stick to a strict schedule. They prioritize being on time and may view lateness as a
sign of disrespect or lack of professionalism.
Polychronic cultures (P-time) are those that view time as flexible and less important than
building relationships and meeting people's needs. They tend to value human interaction and
personal relationships more than adhering to a strict schedule. They may have a more relaxed
attitude towards time and may be comfortable with delays or interruptions.
Domestic non-controllable variables:
Economic conditions, such as interest rates, inflation, and unemployment
Technological advancements and changes in consumer behavior
Legal and regulatory environment, such as tax laws and consumer protection laws
Political and social factors, such as government stability, public opinion, and demographic changes
International non-controllable variables:
Exchange rates and currency fluctuations
Trade policies, tariffs, and quotas
Cultural and language differences
Infrastructure and logistics, such as transportation systems and communication networks
Legal and regulatory environment in foreign countries