Page 116 - DMGT547_INTERNATIONAL_MARKETING

Unit 6: Negotiation and Decision Making

The intersection is the result of the process of internationalization. Many American and European Notes
authors see international marketing as a simple extension of exporting, whereby the marketing
mix 4P’s is simply adapted in some way to take into account differences in consumers and
segments. It then follows that global marketing takes a more standardised approach to world
markets and focuses upon sameness, in other words the similarities in consumers and segments.

Differences between Domestic Marketing and International Marketing

International marketing strategies are developed by various multinational companies on a
global level in order to set a common brand platform for their products and brands. It is then
passed on to each local or domestic market which makes adjustments for their country and
manages its implementation. Such a structure ensures a global brand consistency, pricing and
messaging. It also can have significant cost savings as major advertising and marketing campaigns
can be developed centrally.
Globalization has created new marketing behaviours, opportunities and challenges thereby
making international marketing somewhat different from domestic marketing. Due to
deregulation and technological advances in transportation and communication, companies can
market in, and consumers can buy from almost any country in the world. In this situation of
heightened competition, it is important for companies to offer products that would be of interest
in the global marketplace and also adjust their product and service features to each country’s
different cultures and values. They must choose what to produce, and how to price and
communicate their products considering the different legal and political differences, language,
and currency fluctuations.

Entering into International Market

A mode of entry into an international market is the channel which your organization employs
to gain entry to a new international market. This lesson considers a number of key alternatives,
but recognizes that alteratives are many and diverse. Here you will be consider modes of entry
into international markets such as the Internet, Exporting, Licensing, International Agents,
International Distributors, Strategic Alliances, Joint Ventures, Overseas Manufacture and
International Sales Subsidiaries. Finally we consider the Stages of Internationalization.

It is worth noting that not all authorities on international marketing agree as to which mode of
entry sits where. For example, some see franchising as a stand-alone mode, whilst others see
franchising as part of licensing. In reality, the most important point is that you consider all
useful modes of entry into international markets - over and above which pigeon-hole it fits into.

Most executives are quite clear that international marketing is different from home-country
marketing, and most multinational companies insist that their senior managers have international
experience on their resumes. Despite this pragmatic recognition of the uniqueness of the
international marketplace, there has been little agreement over the exact nature of this
distinctiveness. Although the question has been long and inconclusively discussed by academics
and business analysts, agreement has been limited to the valid but rather obvious observation
that international marketing, as opposed to marketing in a single country, takes place in an
environment of increased complexity and uncertainty, in areas as varied as consumer behavior
and government regulation. This suggests that the differences between domestic and
international marketing are differences of degree rather than underlying differences of kind.
In fact, there are certain distinctive characteristics in international operations that, while they
may not establish international marketing as a separate theoretical subdomain of marketing,
nevertheless have a great bearing on managerial decisions.

LOVELY PROFESSIONAL UNIVERSITY 111