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Welcome to class of

Stages of International Marketing


and Strategic Orientation

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

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