4 phases of international marketing involvement

This company may or may not have a separate export marketing division, but essentially uses the same marketing strategies in both its domestic and export markets. Define and discuss the idea of global orientation. For example, in the first stage a company begins by filling unsolicited orders, but does not actively seek to export.

We return to this notion when we consider alternative organizational systems and structures for international marketing later in this chapter, but essentially the multinational company which will predominantly have a geocentric perspective will be concerned to achieve complete integration of its marketing strategies throughout the world.

In this stage, little or no change is seen in company organization or product lines. However, few companies today fit this model because customers around the world increasingly seek long term commercial relationships.

Markets across national boundaries are a key consideration in the marketing strategy of the company.

The company's headquarters are located in New York, US.

4 phases of international marketing involvement

Marketing When company has decide to involve in international marketing, they have to do study and analysis of market potential in the country they interested to do business so that they can decide the level of involvement they would like to commit. Before venturing into an unfamiliar market, companies should prepare themselves properly. Company has no intention to maintain the international demand and only focus in domestic demand. Benetton, one of the largest clothing manufacturers in Italy has a global presence across countries and more than 5, stores. For instance, the investing company must take into account the impact on and interaction with the community and all other stakeholders—employees, local government, the environment, legal and tax compliance, transparency, public image and sustainability. Alternatively, a company may become totally involved and invest large sums of money and effort to capture and maintain a permanent, specific position in the market. Company has no intention to maintain the international demand and only focus in domestic demand. However the sales of the company still depend to the domestic market and the sales in foreign market is just a bonus for the company.

When only there are surplus of product after distributing the domestic market then only the company would sell to oversea market.

International marketers are taking these opportunities to go global, and that actually gives them competitive advantage in foreign land Helsen, In no direct foreign marketing stage, the company may not actively involve in international marketing.

The company not only setting up sales subsidiaries but the production plant in the foreign country.

transition to international marketing

For example, Proton the Malaysia national carmaker also setting up sales subsidiaries in Europe market and Proton major sales are still come from domestic market and also Proton production plant are only in Malaysia. The company may then begin to invest in production and other facilities in overseas markets and eventually the company move towards becoming a fully fledged global marketer.

International marketing involvement pdf

For example, Canadians entering the international marketplace usually address the U. Study your competition. Developing markets in phases enables the exporter to monitor their progress and make any necessary changes as they progress along the path to export success. Not only is there an active recognition that foreign markets exist and represent possible marketing opportunities, but because of this, attempts are made to cultivate sales across national boundaries in a proactive manner. A firm may employ foreign or domestic overseas intermediaries or it may have its own sales force or sales subsidiaries in important markets. A firm may enter into marketing across national boundaries passively, due to problems in their domestic market, or actively, by seeking attractive opportunities abroad. This means that they are essentially world oriented in their approach to their marketing and planning. Company may has own sales subsidiaries in the foreign market.

Stage 5: Investment abroad If sales are brisk, profits encouraging and opportunities promising, the company may choose to expand its presence in the target market.

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