1. 2. Differences between international and domestic
marketing
International marketing retains basis markets tenets of
«satisfaction» and «exchange». The fact that in
international marketing, the transactions take places across national borders
highlights the difference between domestic and international marketing.
The basic principles of marketing still apply, but their
applications, complexity, and intensity may vary substantially. Some
adjustments are necessary in international marketing context. For example, the
following figure shows the elements of marketing mix for international firms
Figure 1: The elements of the Marketing
Mix for international firms
BUSINESS
STRATEGIES
Differentiation Cost leadership
Focus
MARKETING
MIX
PRODUCT
Develop tangible and intangible features that meet
customer needs in divers markets
PLACE
Get products and services into customers' hands via
transportation and merchandising
PROMOTION
Devise ways to enhance desirability of the product or
service to potential buyers
PRICING
Develop policies that bring in revenue and strategically
shape the competitive environment
KEY DECISION-MAKING FACTORS
· Target customers: industrial or consumer
· Cultural influences
· Competition
· Standardization vs. customization
· Legal forces
· Economic factors/income levels
· Changing exchange rates
Source, Ricky W. Griffin, International business, 2005,
page 459
A company looking for improvement in its present position by
exploring market abroad, could do it only through international marketing
analysis and perspectives. International marketing have form ranging from
import-export trade to licensing, joint ventures, wholly owned subsidiaries,
turnkey operations and managements contracts. With international marketing
rather than domestic one, some specific approaches have been developed. The
approaches supply the answers of standardization and customization concerns.
We distinguish the ethnocentric approach that
is a managerial approach in which a firm operates internationally the same way
it does domestically. This approach avoids the expense of development of new
marketing product. It is generally used by some firms experiencing first
internationalization. Firm adopting this approach may fail because it does not
take into account the idiosyncratic needs of its foreign customers. Should
there be an attempt to adjust the firm's marketing mix to satisfy customers,
then we talk about polycentric approach. In this approach, the
corporate customizes its operations for each market it serves. Polycentric
approach is more costly. However, it may yield revenues, since it exactly meet
customers needs. Multidomestic international firms use to adopt this approach.
Finally, firm may choose the geocentric approach, in which a
firm analyses the needs of its customers worldwide and then adopts standardized
operating practices for all markets. There is a nuance between ethnocentric and
geocentric approaches. Both argue for standardization. However, the
ethnocentrism stagnate on the basis of what the firm does in its home country,
whereas geocentric starts with not such home country bias. Instead, the
geocentric approach considers the needs of all the firm's customers around the
world and then standardizes on that basis.
How may the local ideas, goods, and services fit into the
international markets? May supplies be domestically-based or from abroad? What
are necessary adjustments the firm might do to overcoming global competition?
These are some issues the international marketing ought to deal with. In
addition, international marketing is subject to a new set of macro
environmental factors, to different constraint, to different laws, cultures and
societies.
1. 3. International marketing environment
International marketer operating around the world encountered
various environment-related norms. The most critical environmental elements
able to shape international marketing activities are cultural, economic,
financial and political. [2] The last one, matter of the present thesis, will
be fully described in the next chapter.
| 
