by Dr. Satyendra Singh University of Winnipeg Canada
The International Model SRC: ones own cultural values, experiences, and knowledge as a basis for decisions
Ethnocentrism: ones own culture or company knows best how to do things
SRC and ethnocentrism impede the ability to assess a foreign market in its true light
Culture: Self Reliance Criterion (SRC) and Ethnocentrism The Obstacle Meanings, values, symbols, and behavior relevant to our own culture are different from those of foreign cultures
Relying on ones SRC could produce an inadequately adapted marketing program Avoiding the Obstacle Define the goal in foreign-country cultural traits, habits, or norms, with natives of the target country. Make no value judgments.
Isolate the SRC influence on the goal.
Redefine the goal without the SRC influence.
Developing a Global Mindset Tolerance of cultural differences Understanding such differences and accepting and working with others
Knowledge of Cultures History Market potential Economic, social, and political trends Example of Cultural Difference
Stages of International Marketing Infrequent Foreign Marketing No Direct Foreign Marketing International Marketing Regular Foreign Marketing Global Marketing Stages of International Marketing Stage 1: No Direct Foreign Marketing Not active foreign customer seekers Foreign markets via domestic wholesalers/distributors Unsolicited orders Internet Stage 2: Infrequent Foreign Marketing 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 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 Orientation Domestic Marketing Extension Multidomestic Marketing Global Marketing EPRG Schema Ethnocentric Polycentric Regio/Geocentric Strategic Orientations Domestic Market Extension Orientation (Stage 1/2) Extension of domestic products into foreign markets International markets are secondary Prime focusmarket excess domestic products abroad Firms orientation is domestic Multi-Domestic Market Orientation (Stage 2/3) 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 standardizationproduct/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 multi- domestic strategy for other brands