INTERNATIONAL MARKETING VS DOMESTIC MARKETING -
KEY DIFFERENCES AND SPECIAL PROBLEMS
International marketing refers to the application of marketing principles
across national boundaries. While the fundamental principles of marketing
remain the same whether applied domestically or internationally,
important differences exist in terms of the marketing environment when
operating in foreign markets. As such, international marketing strategy
often needs to be adapted from the domestic approach. This article
examines the key differences between domestic and international
marketing and outlines the special problems faced in international
marketing.
Defining International Marketing
International marketing involves the application of marketing principles to
more than one country. There are two main elements:
Marketing of goods and services across national frontiers. This refers
to the typical export/import activities of a company.
Marketing activities of an organization operating in a foreign
country, where the parent company overseas and coordinates
activities. Multinational enterprises (MNEs) carry out international
marketing on this basis.
International marketing is effectively marketing on a global basis.
Companies undertake international marketing for strategic reasons such
as growth opportunities, cost reduction, diversification, or competitive
pressures.
Fundamentals of Marketing Apply Universally The core principles and
practices of marketing are universal in application. Marketing concepts
relating to analyzing customer needs, market segmentation, positioning,
and the marketing mix can be applied whether in a domestic or
international context. The best way to think about international marketing
is marketing in a globally competitive environment.
However, the strategies and tactics employed in international marketing
often differ substantially from domestic marketing due to differences in
the marketing environment between countries. When entering foreign
markets, marketing strategies need adapting to account for country-by-
country variations.
Key Environmental Differences
There are several important differences in the international marketing
environment compared to the domestic market:
Political/Legal - The political system and regulatory environment
often vary greatly across international markets. Issues such as
political stability, trade agreements, legal protections, and
government bureaucracy need evaluating.
Cultural - Differences in culture, values, customs, and language are
a major issue in international marketing. Adapting products and
communications for different cultural norms is critical. This poses a
very difficult problem.
Economic - Factors such as income levels, distribution of wealth,
infrastructure development, and consumer spending patterns may
be radically different between markets. Pricing and promotional
strategies must fit local economic conditions.
Currency - Dealing in multiple currencies brings risks of exchange
rate fluctuations and currency controls. Marketing plans must
account for varying monetary environments.
Language - Communicating in local languages is important when
marketing internationally, even when using a common language like
English where meanings/nuances differ across countries.
Marketing Infrastructure - The availability and role of marketing
channels such as media, distribution channels, market research
agencies, etc. vary enormously across countries. Marketing
strategies must utilize available infrastructure.
Trade Restrictions - Tariffs, quotas, customs procedures, and
import/export paperwork are substantial trade barriers. Negotiating
these restrictions is a key consideration.
Geographical Distance - International marketing often involves
greater physical distances between producer and consumer. This
results in higher transport costs and longer lead times compared to
domestic marketing.
Business Practices - How business is conducted can differ markedly,
from how meetings are organized to how contracts are negotiated.
Marketers must understand local business etiquette.
Adapting To Different Environments
The various environmental differences outlined above demonstrate why
marketing strategies must be tailored for each market rather than
applying a standardized approach everywhere. An international marketing
orientation involves understanding local environments and adapting
accordingly.
Marketers must research local conditions regarding culture, politics,
economics, laws, infrastructure, trade policies, and business customs.
International marketing plans can then be developed that are suited to
each target country.
In reality, very few companies adopt a fully adaptable approach. Most
pursue an approach between full standardization and full adaptation.
Elements of marketing mix such as product quality and core features are
standardized worldwide to achieve efficiencies and consistency. Aspects
like promotional messages and channels are adapted locally. This dual
approach provides a balance between marketing efficiency and local
market needs.
In summary, while marketing principles apply universally, the differences
across international markets mean that marketing strategy and practice
must be tailored country-by-country. An international marketing
orientation recognizes these differences and adjusts strategy
appropriately.
Objectives of International Business
Companies pursue international business for reasons that ultimately relate
to supporting overall growth and profitability objectives:
Sell Surplus Output - Exporting excess production can allow
companies to optimize productive capacity and lower average costs.
Marginal cost export pricing improves profitability.
Sales/Production Stability - International business can help stabilize
sales and output by mitigating seasonal or cyclical demand patterns
in domestic markets.
Finance Imports - Export revenues can be used to pay for necessary
imports of products, technology, or components. This improves
access to needed resources.
Contribute to National Goals - Some companies pursue international
business out of a sense of social responsibility and a desire to
support national economic development.
Growth Opportunities - Expanding overseas provides an avenue for
growth beyond saturated or declining domestic markets. Developing
countries offer major growth potential.
Lower Costs - Shifting production activities to lower cost locations
offshore reduces operating costs and boosts international price
competitiveness.
Enhance Image - Success in international markets improves
corporate prestige and brand image, which also supports domestic
positioning.
Industry Nature - Some industries like natural resources and
commodities are inherently global. International business is
mandatory for such sectors.
Political Reasons - Host countries may require international firms to
export a portion of local production as a condition of market access.
Economic Incentives - Many countries offer incentives like tax
breaks and subsidies to encourage export activity and attract
foreign investment.
Profit Advantage - International business can be more profitable
than saturated and competitive domestic markets. New growth
markets offer higher margins.
Competitive Pressures - Global competitors may force firms to
internationalize defensively to counter the threat. Preemptively
entering a rival's home market is an example.
Monopoly Advantages - Control of resources, intellectual property,
brands, or technology may allow international business on a
monopoly basis.
Strategic Vision - Systematic international expansion is driven by a
long-term strategic vision and the desire to build global competitive
advantage.
Fundamentals of Marketing Apply Universally The core principles and
practices of marketing are universal in application. Marketing concepts
relating to analyzing customer needs, market segmentation, positioning,
and the marketing mix can be applied whether in a domestic or
international context. The best way to think about international marketing
is marketing in a globally competitive environment.
However, the strategies and tactics employed in international marketing
often differ substantially from domestic marketing due to differences in
the marketing environment between countries. When entering foreign
markets, marketing strategies need adapting to account for country-by-
country variations.
Key Environmental Differences
There are several important differences in the international marketing
environment compared to the domestic market:
Political/Legal - The political system and regulatory environment
often vary greatly across international markets. Issues such as
political stability, trade agreements, legal protections, and
government bureaucracy need evaluating.
Cultural - Differences in culture, values, customs, and language are
a major issue in international marketing. Adapting products and
communications for different cultural norms is critical. This poses a
very difficult problem.
Economic - Factors such as income levels, distribution of wealth,
infrastructure development, and consumer spending patterns may
be radically different between markets. Pricing and promotional
strategies must fit local economic conditions.
Currency - Dealing in multiple currencies brings risks of exchange
rate fluctuations and currency controls. Marketing plans must
account for varying monetary environments.
Language - Communicating in local languages is important when
marketing internationally, even when using a common language like
English where meanings/nuances differ across countries.
Marketing Infrastructure - The availability and role of marketing
channels such as media, distribution channels, market research
agencies, etc. vary enormously across countries. Marketing
strategies must utilize available infrastructure.
Trade Restrictions - Tariffs, quotas, customs procedures, and
import/export paperwork are substantial trade barriers. Negotiating
these restrictions is a key consideration.
Geographical Distance - International marketing often involves
greater physical distances between producer and consumer. This
results in higher transport costs and longer lead times compared to
domestic marketing.
Business Practices - How business is conducted can differ markedly,
from how meetings are organized to how contracts are negotiated.
Marketers must understand local business etiquette.
Adapting To Different Environments
The various environmental differences outlined above demonstrate why
marketing strategies must be tailored for each market rather than
applying a standardized approach everywhere. An international marketing
orientation involves understanding local environments and adapting
accordingly.
Marketers must research local conditions regarding culture, politics,
economics, laws, infrastructure, trade policies, and business customs.
International marketing plans can then be developed that are suited to
each target country.
In reality, very few companies adopt a fully adaptable approach. Most
pursue an approach between full standardization and full adaptation.
Elements of marketing mix such as product quality and core features are
standardized worldwide to achieve efficiencies and consistency. Aspects
like promotional messages and channels are adapted locally. This dual
approach provides a balance between marketing efficiency and local
market needs.
In summary, while marketing principles apply universally, the differences
across international markets mean that marketing strategy and practice
must be tailored country-by-country. An international marketing
orientation recognizes these differences and adjusts strategy
appropriately.
Objectives of International Business
Companies pursue international business for reasons that ultimately relate
to supporting overall growth and profitability objectives:
Sell Surplus Output - Exporting excess production can allow
companies to optimize productive capacity and lower average costs.
Marginal cost export pricing improves profitability.
Sales/Production Stability - International business can help stabilize
sales and output by mitigating seasonal or cyclical demand patterns
in domestic markets.
Finance Imports - Export revenues can be used to pay for necessary
imports of products, technology, or components. This improves
access to needed resources.
Contribute to National Goals - Some companies pursue international
business out of a sense of social responsibility and a desire to
support national economic development.
Growth Opportunities - Expanding overseas provides an avenue for
growth beyond saturated or declining domestic markets. Developing
countries offer major growth potential.
Lower Costs - Shifting production activities to lower cost locations
offshore reduces operating costs and boosts international price
competitiveness.
Enhance Image - Success in international markets improves
corporate prestige and brand image, which also supports domestic
positioning.
Industry Nature - Some industries like natural resources and
commodities are inherently global. International business is
mandatory for such sectors.
Political Reasons - Host countries may require international firms to
export a portion of local production as a condition of market access.
Economic Incentives - Many countries offer incentives like tax
breaks and subsidies to encourage export activity and attract
foreign investment.
Profit Advantage - International business can be more profitable
than saturated and competitive domestic markets. New growth
markets offer higher margins.
Competitive Pressures - Global competitors may force firms to
internationalize defensively to counter the threat. Preemptively
entering a rival's home market is an example.
Monopoly Advantages - Control of resources, intellectual property,
brands, or technology may allow international business on a
monopoly basis.
Strategic Vision - Systematic international expansion is driven by a
long-term strategic vision and the desire to build global competitive
advantage.
Fundamentals of Marketing Apply Universally The core principles and
practices of marketing are universal in application. Marketing concepts
relating to analyzing customer needs, market segmentation, positioning,
and the marketing mix can be applied whether in a domestic or
international context. The best way to think about international marketing
is marketing in a globally competitive environment.
However, the strategies and tactics employed in international marketing
often differ substantially from domestic marketing due to differences in
the marketing environment between countries. When entering foreign
markets, marketing strategies need adapting to account for country-by-
country variations.
Key Environmental Differences
There are several important differences in the international marketing
environment compared to the domestic market:
Political/Legal - The political system and regulatory environment
often vary greatly across international markets. Issues such as
political stability, trade agreements, legal protections, and
government bureaucracy need evaluating.
Cultural - Differences in culture, values, customs, and language are
a major issue in international marketing. Adapting products and
communications for different cultural norms is critical. This poses a
very difficult problem.
Economic - Factors such as income levels, distribution of wealth,
infrastructure development, and consumer spending patterns may
be radically different between markets. Pricing and promotional
strategies must fit local economic conditions.
Currency - Dealing in multiple currencies brings risks of exchange
rate fluctuations and currency controls. Marketing plans must
account for varying monetary environments.
Language - Communicating in local languages is important when
marketing internationally, even when using a common language like
English where meanings/nuances differ across countries.
Marketing Infrastructure - The availability and role of marketing
channels such as media, distribution channels, market research
agencies, etc. vary enormously across countries. Marketing
strategies must utilize available infrastructure.
Trade Restrictions - Tariffs, quotas, customs procedures, and
import/export paperwork are substantial trade barriers. Negotiating
these restrictions is a key consideration.
Geographical Distance - International marketing often involves
greater physical distances between producer and consumer. This
results in higher transport costs and longer lead times compared to
domestic marketing.
Business Practices - How business is conducted can differ markedly,
from how meetings are organized to how contracts are negotiated.
Marketers must understand local business etiquette.
Adapting To Different Environments
The various environmental differences outlined above demonstrate why
marketing strategies must be tailored for each market rather than
applying a standardized approach everywhere. An international marketing
orientation involves understanding local environments and adapting
accordingly.
Marketers must research local conditions regarding culture, politics,
economics, laws, infrastructure, trade policies, and business customs.
International marketing plans can then be developed that are suited to
each target country.
In reality, very few companies adopt a fully adaptable approach. Most
pursue an approach between full standardization and full adaptation.
Elements of marketing mix such as product quality and core features are
standardized worldwide to achieve efficiencies and consistency. Aspects
like promotional messages and channels are adapted locally. This dual
approach provides a balance between marketing efficiency and local
market needs.
In summary, while marketing principles apply universally, the differences
across international markets mean that marketing strategy and practice
must be tailored country-by-country. An international marketing
orientation recognizes these differences and adjusts strategy
appropriately.
Objectives of International Business
Companies pursue international business for reasons that ultimately relate
to supporting overall growth and profitability objectives:
Sell Surplus Output - Exporting excess production can allow
companies to optimize productive capacity and lower average costs.
Marginal cost export pricing improves profitability.
Sales/Production Stability - International business can help stabilize
sales and output by mitigating seasonal or cyclical demand patterns
in domestic markets.
Finance Imports - Export revenues can be used to pay for necessary
imports of products, technology, or components. This improves
access to needed resources.
Contribute to National Goals - Some companies pursue international
business out of a sense of social responsibility and a desire to
support national economic development.
Growth Opportunities - Expanding overseas provides an avenue for
growth beyond saturated or declining domestic markets. Developing
countries offer major growth potential.
Lower Costs - Shifting production activities to lower cost locations
offshore reduces operating costs and boosts international price
competitiveness.
Enhance Image - Success in international markets improves
corporate prestige and brand image, which also supports domestic
positioning.
Industry Nature - Some industries like natural resources and
commodities are inherently global. International business is
mandatory for such sectors.
Political Reasons - Host countries may require international firms to
export a portion of local production as a condition of market access.
Economic Incentives - Many countries offer incentives like tax
breaks and subsidies to encourage export activity and attract
foreign investment.
Profit Advantage - International business can be more profitable
than saturated and competitive domestic markets. New growth
markets offer higher margins.
Competitive Pressures - Global competitors may force firms to
internationalize defensively to counter the threat. Preemptively
entering a rival's home market is an example.
Monopoly Advantages - Control of resources, intellectual property,
brands, or technology may allow international business on a
monopoly basis.
Strategic Vision - Systematic international expansion is driven by a
long-term strategic vision and the desire to build global competitive
advantage.
Fundamentals of Marketing Apply Universally The core principles and
practices of marketing are universal in application. Marketing concepts
relating to analyzing customer needs, market segmentation, positioning,
and the marketing mix can be applied whether in a domestic or
international context. The best way to think about international marketing
is marketing in a globally competitive environment.
However, the strategies and tactics employed in international marketing
often differ substantially from domestic marketing due to differences in
the marketing environment between countries. When entering foreign
markets, marketing strategies need adapting to account for country-by-
country variations.
Key Environmental Differences
There are several important differences in the international marketing
environment compared to the domestic market:
Political/Legal - The political system and regulatory environment
often vary greatly across international markets. Issues such as
political stability, trade agreements, legal protections, and
government bureaucracy need evaluating.
Cultural - Differences in culture, values, customs, and language are
a major issue in international marketing. Adapting products and
communications for different cultural norms is critical. This poses a
very difficult problem.
Economic - Factors such as income levels, distribution of wealth,
infrastructure development, and consumer spending patterns may
be radically different between markets. Pricing and promotional
strategies must fit local economic conditions.
Currency - Dealing in multiple currencies brings risks of exchange
rate fluctuations and currency controls. Marketing plans must
account for varying monetary environments.
Language - Communicating in local languages is important when
marketing internationally, even when using a common language like
English where meanings/nuances differ across countries.
Marketing Infrastructure - The availability and role of marketing
channels such as media, distribution channels, market research
agencies, etc. vary enormously across countries. Marketing
strategies must utilize available infrastructure.
Trade Restrictions - Tariffs, quotas, customs procedures, and
import/export paperwork are substantial trade barriers. Negotiating
these restrictions is a key consideration.
Geographical Distance - International marketing often involves
greater physical distances between producer and consumer. This
results in higher transport costs and longer lead times compared to
domestic marketing.
Business Practices - How business is conducted can differ markedly,
from how meetings are organized to how contracts are negotiated.
Marketers must understand local business etiquette.
Adapting To Different Environments
The various environmental differences outlined above demonstrate why
marketing strategies must be tailored for each market rather than
applying a standardized approach everywhere. An international marketing
orientation involves understanding local environments and adapting
accordingly.
Marketers must research local conditions regarding culture, politics,
economics, laws, infrastructure, trade policies, and business customs.
International marketing plans can then be developed that are suited to
each target country.
In reality, very few companies adopt a fully adaptable approach. Most
pursue an approach between full standardization and full adaptation.
Elements of marketing mix such as product quality and core features are
standardized worldwide to achieve efficiencies and consistency. Aspects
like promotional messages and channels are adapted locally. This dual
approach provides a balance between marketing efficiency and local
market needs.
In summary, while marketing principles apply universally, the differences
across international markets mean that marketing strategy and practice
must be tailored country-by-country. An international marketing
orientation recognizes these differences and adjusts strategy
appropriately.
Objectives of International Business
Companies pursue international business for reasons that ultimately relate
to supporting overall growth and profitability objectives:
Sell Surplus Output - Exporting excess production can allow
companies to optimize productive capacity and lower average costs.
Marginal cost export pricing improves profitability.
Sales/Production Stability - International business can help stabilize
sales and output by mitigating seasonal or cyclical demand patterns
in domestic markets.
Finance Imports - Export revenues can be used to pay for necessary
imports of products, technology, or components. This improves
access to needed resources.
Contribute to National Goals - Some companies pursue international
business out of a sense of social responsibility and a desire to
support national economic development.
Growth Opportunities - Expanding overseas provides an avenue for
growth beyond saturated or declining domestic markets. Developing
countries offer major growth potential.
Lower Costs - Shifting production activities to lower cost locations
offshore reduces operating costs and boosts international price
competitiveness.
Enhance Image - Success in international markets improves
corporate prestige and brand image, which also supports domestic
positioning.
Industry Nature - Some industries like natural resources and
commodities are inherently global. International business is
mandatory for such sectors.
Political Reasons - Host countries may require international firms to
export a portion of local production as a condition of market access.
Economic Incentives - Many countries offer incentives like tax
breaks and subsidies to encourage export activity and attract
foreign investment.
Profit Advantage - International business can be more profitable
than saturated and competitive domestic markets. New growth
markets offer higher margins.
Competitive Pressures - Global competitors may force firms to
internationalize defensively to counter the threat. Preemptively
entering a rival's home market is an example.
Monopoly Advantages - Control of resources, intellectual property,
brands, or technology may allow international business on a
monopoly basis.
Strategic Vision - Systematic international expansion is driven by a
long-term strategic vision and the desire to build global competitive
advantage.
Fundamentals of Marketing Apply Universally The core principles and
practices of marketing are universal in application. Marketing concepts
relating to analyzing customer needs, market segmentation, positioning,
and the marketing mix can be applied whether in a domestic or
international context. The best way to think about international marketing
is marketing in a globally competitive environment.
However, the strategies and tactics employed in international marketing
often differ substantially from domestic marketing due to differences in
the marketing environment between countries. When entering foreign
markets, marketing strategies need adapting to account for country-by-
country variations.
Key Environmental Differences
There are several important differences in the international marketing
environment compared to the domestic market:
Political/Legal - The political system and regulatory environment
often vary greatly across international markets. Issues such as
political stability, trade agreements, legal protections, and
government bureaucracy need evaluating.
Cultural - Differences in culture, values, customs, and language are
a major issue in international marketing. Adapting products and
communications for different cultural norms is critical. This poses a
very difficult problem.
Economic - Factors such as income levels, distribution of wealth,
infrastructure development, and consumer spending patterns may
be radically different between markets. Pricing and promotional
strategies must fit local economic conditions.
Currency - Dealing in multiple currencies brings risks of exchange
rate fluctuations and currency controls. Marketing plans must
account for varying monetary environments.
Language - Communicating in local languages is important when
marketing internationally, even when using a common language like
English where meanings/nuances differ across countries.
Marketing Infrastructure - The availability and role of marketing
channels such as media, distribution channels, market research
agencies, etc. vary enormously across countries. Marketing
strategies must utilize available infrastructure.
Trade Restrictions - Tariffs, quotas, customs procedures, and
import/export paperwork are substantial trade barriers. Negotiating
these restrictions is a key consideration.
Geographical Distance - International marketing often involves
greater physical distances between producer and consumer. This
results in higher transport costs and longer lead times compared to
domestic marketing.
Business Practices - How business is conducted can differ markedly,
from how meetings are organized to how contracts are negotiated.
Marketers must understand local business etiquette.
Adapting To Different Environments
The various environmental differences outlined above demonstrate why
marketing strategies must be tailored for each market rather than
applying a standardized approach everywhere. An international marketing
orientation involves understanding local environments and adapting
accordingly.
Marketers must research local conditions regarding culture, politics,
economics, laws, infrastructure, trade policies, and business customs.
International marketing plans can then be developed that are suited to
each target country.
In reality, very few companies adopt a fully adaptable approach. Most
pursue an approach between full standardization and full adaptation.
Elements of marketing mix such as product quality and core features are
standardized worldwide to achieve efficiencies and consistency. Aspects
like promotional messages and channels are adapted locally. This dual
approach provides a balance between marketing efficiency and local
market needs.
In summary, while marketing principles apply universally, the differences
across international markets mean that marketing strategy and practice
must be tailored country-by-country. An international marketing
orientation recognizes these differences and adjusts strategy
appropriately.
Objectives of International Business
Companies pursue international business for reasons that ultimately relate
to supporting overall growth and profitability objectives:
Sell Surplus Output - Exporting excess production can allow
companies to optimize productive capacity and lower average costs.
Marginal cost export pricing improves profitability.
Sales/Production Stability - International business can help stabilize
sales and output by mitigating seasonal or cyclical demand patterns
in domestic markets.
Finance Imports - Export revenues can be used to pay for necessary
imports of products, technology, or components. This improves
access to needed resources.
Contribute to National Goals - Some companies pursue international
business out of a sense of social responsibility and a desire to
support national economic development.
Growth Opportunities - Expanding overseas provides an avenue for
growth beyond saturated or declining domestic markets. Developing
countries offer major growth potential.
Lower Costs - Shifting production activities to lower cost locations
offshore reduces operating costs and boosts international price
competitiveness.
Enhance Image - Success in international markets improves
corporate prestige and brand image, which also supports domestic
positioning.
Industry Nature - Some industries like natural resources and
commodities are inherently global. International business is
mandatory for such sectors.
Political Reasons - Host countries may require international firms to
export a portion of local production as a condition of market access.
Economic Incentives - Many countries offer incentives like tax
breaks and subsidies to encourage export activity and attract
foreign investment.
Profit Advantage - International business can be more profitable
than saturated and competitive domestic markets. New growth
markets offer higher margins.
Competitive Pressures - Global competitors may force firms to
internationalize defensively to counter the threat. Preemptively
entering a rival's home market is an example.
Monopoly Advantages - Control of resources, intellectual property,
brands, or technology may allow international business on a
monopoly basis.
Strategic Vision - Systematic international expansion is driven by a
long-term strategic vision and the desire to build global competitive
advantage.
Fundamentals of Marketing Apply Universally The core principles and
practices of marketing are universal in application. Marketing concepts
relating to analyzing customer needs, market segmentation, positioning,
and the marketing mix can be applied whether in a domestic or
international context. The best way to think about international marketing
is marketing in a globally competitive environment.
However, the strategies and tactics employed in international marketing
often differ substantially from domestic marketing due to differences in
the marketing environment between countries. When entering foreign
markets, marketing strategies need adapting to account for country-by-
country variations.
Key Environmental Differences
There are several important differences in the international marketing
environment compared to the domestic market:
Political/Legal - The political system and regulatory environment
often vary greatly across international markets. Issues such as
political stability, trade agreements, legal protections, and
government bureaucracy need evaluating.
Cultural - Differences in culture, values, customs, and language are
a major issue in international marketing. Adapting products and
communications for different cultural norms is critical. This poses a
very difficult problem.
Economic - Factors such as income levels, distribution of wealth,
infrastructure development, and consumer spending patterns may
be radically different between markets. Pricing and promotional
strategies must fit local economic conditions.
Currency - Dealing in multiple currencies brings risks of exchange
rate fluctuations and currency controls. Marketing plans must
account for varying monetary environments.
Language - Communicating in local languages is important when
marketing internationally, even when using a common language like
English where meanings/nuances differ across countries.
Marketing Infrastructure - The availability and role of marketing
channels such as media, distribution channels, market research
agencies, etc. vary enormously across countries. Marketing
strategies must utilize available infrastructure.
Trade Restrictions - Tariffs, quotas, customs procedures, and
import/export paperwork are substantial trade barriers. Negotiating
these restrictions is a key consideration.
Geographical Distance - International marketing often involves
greater physical distances between producer and consumer. This
results in higher transport costs and longer lead times compared to
domestic marketing.
Business Practices - How business is conducted can differ markedly,
from how meetings are organized to how contracts are negotiated.
Marketers must understand local business etiquette.
Adapting To Different Environments
The various environmental differences outlined above demonstrate why
marketing strategies must be tailored for each market rather than
applying a standardized approach everywhere. An international marketing
orientation involves understanding local environments and adapting
accordingly.
Marketers must research local conditions regarding culture, politics,
economics, laws, infrastructure, trade policies, and business customs.
International marketing plans can then be developed that are suited to
each target country.
In reality, very few companies adopt a fully adaptable approach. Most
pursue an approach between full standardization and full adaptation.
Elements of marketing mix such as product quality and core features are
standardized worldwide to achieve efficiencies and consistency. Aspects
like promotional messages and channels are adapted locally. This dual
approach provides a balance between marketing efficiency and local
market needs.
In summary, while marketing principles apply universally, the differences
across international markets mean that marketing strategy and practice
must be tailored country-by-country. An international marketing
orientation recognizes these differences and adjusts strategy
appropriately.
Objectives of International Business
Companies pursue international business for reasons that ultimately relate
to supporting overall growth and profitability objectives:
Sell Surplus Output - Exporting excess production can allow
companies to optimize productive capacity and lower average costs.
Marginal cost export pricing improves profitability.
Sales/Production Stability - International business can help stabilize
sales and output by mitigating seasonal or cyclical demand patterns
in domestic markets.
Finance Imports - Export revenues can be used to pay for necessary
imports of products, technology, or components. This improves
access to needed resources.
Contribute to National Goals - Some companies pursue international
business out of a sense of social responsibility and a desire to
support national economic development.
Growth Opportunities - Expanding overseas provides an avenue for
growth beyond saturated or declining domestic markets. Developing
countries offer major growth potential.
Lower Costs - Shifting production activities to lower cost locations
offshore reduces operating costs and boosts international price
competitiveness.
Enhance Image - Success in international markets improves
corporate prestige and brand image, which also supports domestic
positioning.
Industry Nature - Some industries like natural resources and
commodities are inherently global. International business is
mandatory for such sectors.
Political Reasons - Host countries may require international firms to
export a portion of local production as a condition of market access.
Economic Incentives - Many countries offer incentives like tax
breaks and subsidies to encourage export activity and attract
foreign investment.
Profit Advantage - International business can be more profitable
than saturated and competitive domestic markets. New growth
markets offer higher margins.
Competitive Pressures - Global competitors may force firms to
internationalize defensively to counter the threat. Preemptively
entering a rival's home market is an example.
Monopoly Advantages - Control of resources, intellectual property,
brands, or technology may allow international business on a
monopoly basis.
Strategic Vision - Systematic international expansion is driven by a
long-term strategic vision and the desire to build global competitive
advantage.
Fundamentals of Marketing Apply Universally The core principles and
practices of marketing are universal in application. Marketing concepts
relating to analyzing customer needs, market segmentation, positioning,
and the marketing mix can be applied whether in a domestic or
international context. The best way to think about international marketing
is marketing in a globally competitive environment.
However, the strategies and tactics employed in international marketing
often differ substantially from domestic marketing due to differences in
the marketing environment between countries. When entering foreign
markets, marketing strategies need adapting to account for country-by-
country variations.
Key Environmental Differences
There are several important differences in the international marketing
environment compared to the domestic market:
Political/Legal - The political system and regulatory environment
often vary greatly across international markets. Issues such as
political stability, trade agreements, legal protections, and
government bureaucracy need evaluating.
Cultural - Differences in culture, values, customs, and language are
a major issue in international marketing. Adapting products and
communications for different cultural norms is critical. This poses a
very difficult problem.
Economic - Factors such as income levels, distribution of wealth,
infrastructure development, and consumer spending patterns may
be radically different between markets. Pricing and promotional
strategies must fit local economic conditions.
Currency - Dealing in multiple currencies brings risks of exchange
rate fluctuations and currency controls. Marketing plans must
account for varying monetary environments.
Language - Communicating in local languages is important when
marketing internationally, even when using a common language like
English where meanings/nuances differ across countries.
Marketing Infrastructure - The availability and role of marketing
channels such as media, distribution channels, market research
agencies, etc. vary enormously across countries. Marketing
strategies must utilize available infrastructure.
Trade Restrictions - Tariffs, quotas, customs procedures, and
import/export paperwork are substantial trade barriers. Negotiating
these restrictions is a key consideration.
Geographical Distance - International marketing often involves
greater physical distances between producer and consumer. This
results in higher transport costs and longer lead times compared to
domestic marketing.
Business Practices - How business is conducted can differ markedly,
from how meetings are organized to how contracts are negotiated.
Marketers must understand local business etiquette.
Adapting To Different Environments
The various environmental differences outlined above demonstrate why
marketing strategies must be tailored for each market rather than
applying a standardized approach everywhere. An international marketing
orientation involves understanding local environments and adapting
accordingly.
Marketers must research local conditions regarding culture, politics,
economics, laws, infrastructure, trade policies, and business customs.
International marketing plans can then be developed that are suited to
each target country.
In reality, very few companies adopt a fully adaptable approach. Most
pursue an approach between full standardization and full adaptation.
Elements of marketing mix such as product quality and core features are
standardized worldwide to achieve efficiencies and consistency. Aspects
like promotional messages and channels are adapted locally. This dual
approach provides a balance between marketing efficiency and local
market needs.
In summary, while marketing principles apply universally, the differences
across international markets mean that marketing strategy and practice
must be tailored country-by-country. An international marketing
orientation recognizes these differences and adjusts strategy
appropriately.
Objectives of International Business
Companies pursue international business for reasons that ultimately relate
to supporting overall growth and profitability objectives:
Sell Surplus Output - Exporting excess production can allow
companies to optimize productive capacity and lower average costs.
Marginal cost export pricing improves profitability.
Sales/Production Stability - International business can help stabilize
sales and output by mitigating seasonal or cyclical demand patterns
in domestic markets.
Finance Imports - Export revenues can be used to pay for necessary
imports of products, technology, or components. This improves
access to needed resources.
Contribute to National Goals - Some companies pursue international
business out of a sense of social responsibility and a desire to
support national economic development.
Growth Opportunities - Expanding overseas provides an avenue for
growth beyond saturated or declining domestic markets. Developing
countries offer major growth potential.
Lower Costs - Shifting production activities to lower cost locations
offshore reduces operating costs and boosts international price
competitiveness.
Enhance Image - Success in international markets improves
corporate prestige and brand image, which also supports domestic
positioning.
Industry Nature - Some industries like natural resources and
commodities are inherently global. International business is
mandatory for such sectors.
Political Reasons - Host countries may require international firms to
export a portion of local production as a condition of market access.
Economic Incentives - Many countries offer incentives like tax
breaks and subsidies to encourage export activity and attract
foreign investment.
Profit Advantage - International business can be more profitable
than saturated and competitive domestic markets. New growth
markets offer higher margins.
Competitive Pressures - Global competitors may force firms to
internationalize defensively to counter the threat. Preemptively
entering a rival's home market is an example.
Monopoly Advantages - Control of resources, intellectual property,
brands, or technology may allow international business on a
monopoly basis.
Strategic Vision - Systematic international expansion is driven by a
long-term strategic vision and the desire to build global competitive
advantage.
Fundamentals of Marketing Apply Universally The core principles and
practices of marketing are universal in application. Marketing concepts
relating to analyzing customer needs, market segmentation, positioning,
and the marketing mix can be applied whether in a domestic or
international context. The best way to think about international marketing
is marketing in a globally competitive environment.
However, the strategies and tactics employed in international marketing
often differ substantially from domestic marketing due to differences in
the marketing environment between countries. When entering foreign
markets, marketing strategies need adapting to account for country-by-
country variations.
Key Environmental Differences
There are several important differences in the international marketing
environment compared to the domestic market:
Political/Legal - The political system and regulatory environment
often vary greatly across international markets. Issues such as
political stability, trade agreements, legal protections, and
government bureaucracy need evaluating.
Cultural - Differences in culture, values, customs, and language are
a major issue in international marketing. Adapting products and
communications for different cultural norms is critical. This poses a
very difficult problem.
Economic - Factors such as income levels, distribution of wealth,
infrastructure development, and consumer spending patterns may
be radically different between markets. Pricing and promotional
strategies must fit local economic conditions.
Currency - Dealing in multiple currencies brings risks of exchange
rate fluctuations and currency controls. Marketing plans must
account for varying monetary environments.
Language - Communicating in local languages is important when
marketing internationally, even when using a common language like
English where meanings/nuances differ across countries.
Marketing Infrastructure - The availability and role of marketing
channels such as media, distribution channels, market research
agencies, etc. vary enormously across countries. Marketing
strategies must utilize available infrastructure.
Trade Restrictions - Tariffs, quotas, customs procedures, and
import/export paperwork are substantial trade barriers. Negotiating
these restrictions is a key consideration.
Geographical Distance - International marketing often involves
greater physical distances between producer and consumer. This
results in higher transport costs and longer lead times compared to
domestic marketing.
Business Practices - How business is conducted can differ markedly,
from how meetings are organized to how contracts are negotiated.
Marketers must understand local business etiquette.
Adapting To Different Environments
The various environmental differences outlined above demonstrate why
marketing strategies must be tailored for each market rather than
applying a standardized approach everywhere. An international marketing
orientation involves understanding local environments and adapting
accordingly.
Marketers must research local conditions regarding culture, politics,
economics, laws, infrastructure, trade policies, and business customs.
International marketing plans can then be developed that are suited to
each target country.
In reality, very few companies adopt a fully adaptable approach. Most
pursue an approach between full standardization and full adaptation.
Elements of marketing mix such as product quality and core features are
standardized worldwide to achieve efficiencies and consistency. Aspects
like promotional messages and channels are adapted locally. This dual
approach provides a balance between marketing efficiency and local
market needs.
In summary, while marketing principles apply universally, the differences
across international markets mean that marketing strategy and practice
must be tailored country-by-country. An international marketing
orientation recognizes these differences and adjusts strategy
appropriately.
Objectives of International Business
Companies pursue international business for reasons that ultimately relate
to supporting overall growth and profitability objectives:
Sell Surplus Output - Exporting excess production can allow
companies to optimize productive capacity and lower average costs.
Marginal cost export pricing improves profitability.
Sales/Production Stability - International business can help stabilize
sales and output by mitigating seasonal or cyclical demand patterns
in domestic markets.
Finance Imports - Export revenues can be used to pay for necessary
imports of products, technology, or components. This improves
access to needed resources.
Contribute to National Goals - Some companies pursue international
business out of a sense of social responsibility and a desire to
support national economic development.
Growth Opportunities - Expanding overseas provides an avenue for
growth beyond saturated or declining domestic markets. Developing
countries offer major growth potential.
Lower Costs - Shifting production activities to lower cost locations
offshore reduces operating costs and boosts international price
competitiveness.
Enhance Image - Success in international markets improves
corporate prestige and brand image, which also supports domestic
positioning.
Industry Nature - Some industries like natural resources and
commodities are inherently global. International business is
mandatory for such sectors.
Political Reasons - Host countries may require international firms to
export a portion of local production as a condition of market access.
Economic Incentives - Many countries offer incentives like tax
breaks and subsidies to encourage export activity and attract
foreign investment.
Profit Advantage - International business can be more profitable
than saturated and competitive domestic markets. New growth
markets offer higher margins.
Competitive Pressures - Global competitors may force firms to
internationalize defensively to counter the threat. Preemptively
entering a rival's home market is an example.
Monopoly Advantages - Control of resources, intellectual property,
brands, or technology may allow international business on a
monopoly basis.
Strategic Vision - Systematic international expansion is driven by a
long-term strategic vision and the desire to build global competitive
advantage.
Fundamentals of Marketing Apply Universally The core principles and
practices of marketing are universal in application. Marketing concepts
relating to analyzing customer needs, market segmentation, positioning,
and the marketing mix can be applied whether in a domestic or
international context. The best way to think about international marketing
is marketing in a globally competitive environment.
However, the strategies and tactics employed in international marketing
often differ substantially from domestic marketing due to differences in
the marketing environment between countries. When entering foreign
markets, marketing strategies need adapting to account for country-by-
country variations.
Key Environmental Differences
There are several important differences in the international marketing
environment compared to the domestic market:
Political/Legal - The political system and regulatory environment
often vary greatly across international markets. Issues such as
political stability, trade agreements, legal protections, and
government bureaucracy need evaluating.
Cultural - Differences in culture, values, customs, and language are
a major issue in international marketing. Adapting products and
communications for different cultural norms is critical. This poses a
very difficult problem.
Economic - Factors such as income levels, distribution of wealth,
infrastructure development, and consumer spending patterns may
be radically different between markets. Pricing and promotional
strategies must fit local economic conditions.
Currency - Dealing in multiple currencies brings risks of exchange
rate fluctuations and currency controls. Marketing plans must
account for varying monetary environments.
Language - Communicating in local languages is important when
marketing internationally, even when using a common language like
English where meanings/nuances differ across countries.
Marketing Infrastructure - The availability and role of marketing
channels such as media, distribution channels, market research
agencies, etc. vary enormously across countries. Marketing
strategies must utilize available infrastructure.
Trade Restrictions - Tariffs, quotas, customs procedures, and
import/export paperwork are substantial trade barriers. Negotiating
these restrictions is a key consideration.
Geographical Distance - International marketing often involves
greater physical distances between producer and consumer. This
results in higher transport costs and longer lead times compared to
domestic marketing.
Business Practices - How business is conducted can differ markedly,
from how meetings are organized to how contracts are negotiated.
Marketers must understand local business etiquette.
Adapting To Different Environments
The various environmental differences outlined above demonstrate why
marketing strategies must be tailored for each market rather than
applying a standardized approach everywhere. An international marketing
orientation involves understanding local environments and adapting
accordingly.
Marketers must research local conditions regarding culture, politics,
economics, laws, infrastructure, trade policies, and business customs.
International marketing plans can then be developed that are suited to
each target country.
In reality, very few companies adopt a fully adaptable approach. Most
pursue an approach between full standardization and full adaptation.
Elements of marketing mix such as product quality and core features are
standardized worldwide to achieve efficiencies and consistency. Aspects
like promotional messages and channels are adapted locally. This dual
approach provides a balance between marketing efficiency and local
market needs.
In summary, while marketing principles apply universally, the differences
across international markets mean that marketing strategy and practice
must be tailored country-by-country. An international marketing
orientation recognizes these differences and adjusts strategy
appropriately.
Objectives of International Business
Companies pursue international business for reasons that ultimately relate
to supporting overall growth and profitability objectives:
Sell Surplus Output - Exporting excess production can allow
companies to optimize productive capacity and lower average costs.
Marginal cost export pricing improves profitability.
Sales/Production Stability - International business can help stabilize
sales and output by mitigating seasonal or cyclical demand patterns
in domestic markets.
Finance Imports - Export revenues can be used to pay for necessary
imports of products, technology, or components. This improves
access to needed resources.
Contribute to National Goals - Some companies pursue international
business out of a sense of social responsibility and a desire to
support national economic development.
Growth Opportunities - Expanding overseas provides an avenue for
growth beyond saturated or declining domestic markets. Developing
countries offer major growth potential.
Lower Costs - Shifting production activities to lower cost locations
offshore reduces operating costs and boosts international price
competitiveness.
Enhance Image - Success in international markets improves
corporate prestige and brand image, which also supports domestic
positioning.
Industry Nature - Some industries like natural resources and
commodities are inherently global. International business is
mandatory for such sectors.
Political Reasons - Host countries may require international firms to
export a portion of local production as a condition of market access.
Economic Incentives - Many countries offer incentives like tax
breaks and subsidies to encourage export activity and attract
foreign investment.
Profit Advantage - International business can be more profitable
than saturated and competitive domestic markets. New growth
markets offer higher margins.
Competitive Pressures - Global competitors may force firms to
internationalize defensively to counter the threat. Preemptively
entering a rival's home market is an example.
Monopoly Advantages - Control of resources, intellectual property,
brands, or technology may allow international business on a
monopoly basis.
Strategic Vision - Systematic international expansion is driven by a
long-term strategic vision and the desire to build global competitive
advantage.
Fundamentals of Marketing Apply Universally The core principles and
practices of marketing are universal in application. Marketing concepts
relating to analyzing customer needs, market segmentation, positioning,
and the marketing mix can be applied whether in a domestic or
international context. The best way to think about international marketing
is marketing in a globally competitive environment.
However, the strategies and tactics employed in international marketing
often differ substantially from domestic marketing due to differences in
the marketing environment between countries. When entering foreign
markets, marketing strategies need adapting to account for country-by-
country variations.
Key Environmental Differences
There are several important differences in the international marketing
environment compared to the domestic market:
Political/Legal - The political system and regulatory environment
often vary greatly across international markets. Issues such as
political stability, trade agreements, legal protections, and
government bureaucracy need evaluating.
Cultural - Differences in culture, values, customs, and language are
a major issue in international marketing. Adapting products and
communications for different cultural norms is critical. This poses a
very difficult problem.
Economic - Factors such as income levels, distribution of wealth,
infrastructure development, and consumer spending patterns may
be radically different between markets. Pricing and promotional
strategies must fit local economic conditions.
Currency - Dealing in multiple currencies brings risks of exchange
rate fluctuations and currency controls. Marketing plans must
account for varying monetary environments.
Language - Communicating in local languages is important when
marketing internationally, even when using a common language like
English where meanings/nuances differ across countries.
Marketing Infrastructure - The availability and role of marketing
channels such as media, distribution channels, market research
agencies, etc. vary enormously across countries. Marketing
strategies must utilize available infrastructure.
Trade Restrictions - Tariffs, quotas, customs procedures, and
import/export paperwork are substantial trade barriers. Negotiating
these restrictions is a key consideration.
Geographical Distance - International marketing often involves
greater physical distances between producer and consumer. This
results in higher transport costs and longer lead times compared to
domestic marketing.
Business Practices - How business is conducted can differ markedly,
from how meetings are organized to how contracts are negotiated.
Marketers must understand local business etiquette.
Adapting To Different Environments
The various environmental differences outlined above demonstrate why
marketing strategies must be tailored for each market rather than
applying a standardized approach everywhere. An international marketing
orientation involves understanding local environments and adapting
accordingly.
Marketers must research local conditions regarding culture, politics,
economics, laws, infrastructure, trade policies, and business customs.
International marketing plans can then be developed that are suited to
each target country.
In reality, very few companies adopt a fully adaptable approach. Most
pursue an approach between full standardization and full adaptation.
Elements of marketing mix such as product quality and core features are
standardized worldwide to achieve efficiencies and consistency. Aspects
like promotional messages and channels are adapted locally. This dual
approach provides a balance between marketing efficiency and local
market needs.
In summary, while marketing principles apply universally, the differences
across international markets mean that marketing strategy and practice
must be tailored country-by-country. An international marketing
orientation recognizes these differences and adjusts strategy
appropriately.
Objectives of International Business
Companies pursue international business for reasons that ultimately relate
to supporting overall growth and profitability objectives:
Sell Surplus Output - Exporting excess production can allow
companies to optimize productive capacity and lower average costs.
Marginal cost export pricing improves profitability.
Sales/Production Stability - International business can help stabilize
sales and output by mitigating seasonal or cyclical demand patterns
in domestic markets.
Finance Imports - Export revenues can be used to pay for necessary
imports of products, technology, or components. This improves
access to needed resources.
Contribute to National Goals - Some companies pursue international
business out of a sense of social responsibility and a desire to
support national economic development.
Growth Opportunities - Expanding overseas provides an avenue for
growth beyond saturated or declining domestic markets. Developing
countries offer major growth potential.
Lower Costs - Shifting production activities to lower cost locations
offshore reduces operating costs and boosts international price
competitiveness.
Enhance Image - Success in international markets improves
corporate prestige and brand image, which also supports domestic
positioning.
Industry Nature - Some industries like natural resources and
commodities are inherently global. International business is
mandatory for such sectors.
Political Reasons - Host countries may require international firms to
export a portion of local production as a condition of market access.
Economic Incentives - Many countries offer incentives like tax
breaks and subsidies to encourage export activity and attract
foreign investment.
Profit Advantage - International business can be more profitable
than saturated and competitive domestic markets. New growth
markets offer higher margins.
Competitive Pressures - Global competitors may force firms to
internationalize defensively to counter the threat. Preemptively
entering a rival's home market is an example.
Monopoly Advantages - Control of resources, intellectual property,
brands, or technology may allow international business on a
monopoly basis.
Strategic Vision - Systematic international expansion is driven by a
long-term strategic vision and the desire to build global competitive
advantage.
Fundamentals of Marketing Apply Universally The core principles and
practices of marketing are universal in application. Marketing concepts
relating to analyzing customer needs, market segmentation, positioning,
and the marketing mix can be applied whether in a domestic or
international context. The best way to think about international marketing
is marketing in a globally competitive environment.
However, the strategies and tactics employed in international marketing
often differ substantially from domestic marketing due to differences in
the marketing environment between countries. When entering foreign
markets, marketing strategies need adapting to account for country-by-
country variations.
Key Environmental Differences
There are several important differences in the international marketing
environment compared to the domestic market:
Political/Legal - The political system and regulatory environment
often vary greatly across international markets. Issues such as
political stability, trade agreements, legal protections, and
government bureaucracy need evaluating.
Cultural - Differences in culture, values, customs, and language are
a major issue in international marketing. Adapting products and
communications for different cultural norms is critical. This poses a
very difficult problem.
Economic - Factors such as income levels, distribution of wealth,
infrastructure development, and consumer spending patterns may
be radically different between markets. Pricing and promotional
strategies must fit local economic conditions.
Currency - Dealing in multiple currencies brings risks of exchange
rate fluctuations and currency controls. Marketing plans must
account for varying monetary environments.
Language - Communicating in local languages is important when
marketing internationally, even when using a common language like
English where meanings/nuances differ across countries.
Marketing Infrastructure - The availability and role of marketing
channels such as media, distribution channels, market research
agencies, etc. vary enormously across countries. Marketing
strategies must utilize available infrastructure.
Trade Restrictions - Tariffs, quotas, customs procedures, and
import/export paperwork are substantial trade barriers. Negotiating
these restrictions is a key consideration.
Geographical Distance - International marketing often involves
greater physical distances between producer and consumer. This
results in higher transport costs and longer lead times compared to
domestic marketing.
Business Practices - How business is conducted can differ markedly,
from how meetings are organized to how contracts are negotiated.
Marketers must understand local business etiquette.
Adapting To Different Environments
The various environmental differences outlined above demonstrate why
marketing strategies must be tailored for each market rather than
applying a standardized approach everywhere. An international marketing
orientation involves understanding local environments and adapting
accordingly.
Marketers must research local conditions regarding culture, politics,
economics, laws, infrastructure, trade policies, and business customs.
International marketing plans can then be developed that are suited to
each target country.
In reality, very few companies adopt a fully adaptable approach. Most
pursue an approach between full standardization and full adaptation.
Elements of marketing mix such as product quality and core features are
standardized worldwide to achieve efficiencies and consistency. Aspects
like promotional messages and channels are adapted locally. This dual
approach provides a balance between marketing efficiency and local
market needs.
In summary, while marketing principles apply universally, the differences
across international markets mean that marketing strategy and practice
must be tailored country-by-country. An international marketing
orientation recognizes these differences and adjusts strategy
appropriately.
Objectives of International Business
Companies pursue international business for reasons that ultimately relate
to supporting overall growth and profitability objectives:
Sell Surplus Output - Exporting excess production can allow
companies to optimize productive capacity and lower average costs.
Marginal cost export pricing improves profitability.
Sales/Production Stability - International business can help stabilize
sales and output by mitigating seasonal or cyclical demand patterns
in domestic markets.
Finance Imports - Export revenues can be used to pay for necessary
imports of products, technology, or components. This improves
access to needed resources.
Contribute to National Goals - Some companies pursue international
business out of a sense of social responsibility and a desire to
support national economic development.
Growth Opportunities - Expanding overseas provides an avenue for
growth beyond saturated or declining domestic markets. Developing
countries offer major growth potential.
Lower Costs - Shifting production activities to lower cost locations
offshore reduces operating costs and boosts international price
competitiveness.
Enhance Image - Success in international markets improves
corporate prestige and brand image, which also supports domestic
positioning.
Industry Nature - Some industries like natural resources and
commodities are inherently global. International business is
mandatory for such sectors.
Political Reasons - Host countries may require international firms to
export a portion of local production as a condition of market access.
Economic Incentives - Many countries offer incentives like tax
breaks and subsidies to encourage export activity and attract
foreign investment.
Profit Advantage - International business can be more profitable
than saturated and competitive domestic markets. New growth
markets offer higher margins.
Competitive Pressures - Global competitors may force firms to
internationalize defensively to counter the threat. Preemptively
entering a rival's home market is an example.
Monopoly Advantages - Control of resources, intellectual property,
brands, or technology may allow international business on a
monopoly basis.
Strategic Vision - Systematic international expansion is driven by a
long-term strategic vision and the desire to build global competitive
advantage.
Fundamentals of Marketing Apply Universally The core principles and
practices of marketing are universal in application. Marketing concepts
relating to analyzing customer needs, market segmentation, positioning,
and the marketing mix can be applied whether in a domestic or
international context. The best way to think about international marketing
is marketing in a globally competitive environment.
However, the strategies and tactics employed in international marketing
often differ substantially from domestic marketing due to differences in
the marketing environment between countries. When entering foreign
markets, marketing strategies need adapting to account for country-by-
country variations.
Key Environmental Differences
There are several important differences in the international marketing
environment compared to the domestic market:
Political/Legal - The political system and regulatory environment
often vary greatly across international markets. Issues such as
political stability, trade agreements, legal protections, and
government bureaucracy need evaluating.
Cultural - Differences in culture, values, customs, and language are
a major issue in international marketing. Adapting products and
communications for different cultural norms is critical. This poses a
very difficult problem.
Economic - Factors such as income levels, distribution of wealth,
infrastructure development, and consumer spending patterns may
be radically different between markets. Pricing and promotional
strategies must fit local economic conditions.
Currency - Dealing in multiple currencies brings risks of exchange
rate fluctuations and currency controls. Marketing plans must
account for varying monetary environments.
Language - Communicating in local languages is important when
marketing internationally, even when using a common language like
English where meanings/nuances differ across countries.
Marketing Infrastructure - The availability and role of marketing
channels such as media, distribution channels, market research
agencies, etc. vary enormously across countries. Marketing
strategies must utilize available infrastructure.
Trade Restrictions - Tariffs, quotas, customs procedures, and
import/export paperwork are substantial trade barriers. Negotiating
these restrictions is a key consideration.
Geographical Distance - International marketing often involves
greater physical distances between producer and consumer. This
results in higher transport costs and longer lead times compared to
domestic marketing.
Business Practices - How business is conducted can differ markedly,
from how meetings are organized to how contracts are negotiated.
Marketers must understand local business etiquette.
Adapting To Different Environments
The various environmental differences outlined above demonstrate why
marketing strategies must be tailored for each market rather than
applying a standardized approach everywhere. An international marketing
orientation involves understanding local environments and adapting
accordingly.
Marketers must research local conditions regarding culture, politics,
economics, laws, infrastructure, trade policies, and business customs.
International marketing plans can then be developed that are suited to
each target country.
In reality, very few companies adopt a fully adaptable approach. Most
pursue an approach between full standardization and full adaptation.
Elements of marketing mix such as product quality and core features are
standardized worldwide to achieve efficiencies and consistency. Aspects
like promotional messages and channels are adapted locally. This dual
approach provides a balance between marketing efficiency and local
market needs.
In summary, while marketing principles apply universally, the differences
across international markets mean that marketing strategy and practice
must be tailored country-by-country. An international marketing
orientation recognizes these differences and adjusts strategy
appropriately.
Objectives of International Business
Companies pursue international business for reasons that ultimately relate
to supporting overall growth and profitability objectives:
Sell Surplus Output - Exporting excess production can allow
companies to optimize productive capacity and lower average costs.
Marginal cost export pricing improves profitability.
Sales/Production Stability - International business can help stabilize
sales and output by mitigating seasonal or cyclical demand patterns
in domestic markets.
Finance Imports - Export revenues can be used to pay for necessary
imports of products, technology, or components. This improves
access to needed resources.
Contribute to National Goals - Some companies pursue international
business out of a sense of social responsibility and a desire to
support national economic development.
Growth Opportunities - Expanding overseas provides an avenue for
growth beyond saturated or declining domestic markets. Developing
countries offer major growth potential.
Lower Costs - Shifting production activities to lower cost locations
offshore reduces operating costs and boosts international price
competitiveness.
Enhance Image - Success in international markets improves
corporate prestige and brand image, which also supports domestic
positioning.
Industry Nature - Some industries like natural resources and
commodities are inherently global. International business is
mandatory for such sectors.
Political Reasons - Host countries may require international firms to
export a portion of local production as a condition of market access.
Economic Incentives - Many countries offer incentives like tax
breaks and subsidies to encourage export activity and attract
foreign investment.
Profit Advantage - International business can be more profitable
than saturated and competitive domestic markets. New growth
markets offer higher margins.
Competitive Pressures - Global competitors may force firms to
internationalize defensively to counter the threat. Preemptively
entering a rival's home market is an example.
Monopoly Advantages - Control of resources, intellectual property,
brands, or technology may allow international business on a
monopoly basis.
Strategic Vision - Systematic international expansion is driven by a
long-term strategic vision and the desire to build global competitive
advantage.
Fundamentals of Marketing Apply Universally The core principles and
practices of marketing are universal in application. Marketing concepts
relating to analyzing customer needs, market segmentation, positioning,
and the marketing mix can be applied whether in a domestic or
international context. The best way to think about international marketing
is marketing in a globally competitive environment.
However, the strategies and tactics employed in international marketing
often differ substantially from domestic marketing due to differences in
the marketing environment between countries. When entering foreign
markets, marketing strategies need adapting to account for country-by-
country variations.
Key Environmental Differences
There are several important differences in the international marketing
environment compared to the domestic market:
Political/Legal - The political system and regulatory environment
often vary greatly across international markets. Issues such as
political stability, trade agreements, legal protections, and
government bureaucracy need evaluating.
Cultural - Differences in culture, values, customs, and language are
a major issue in international marketing. Adapting products and
communications for different cultural norms is critical. This poses a
very difficult problem.
Economic - Factors such as income levels, distribution of wealth,
infrastructure development, and consumer spending patterns may
be radically different between markets. Pricing and promotional
strategies must fit local economic conditions.
Currency - Dealing in multiple currencies brings risks of exchange
rate fluctuations and currency controls. Marketing plans must
account for varying monetary environments.
Language - Communicating in local languages is important when
marketing internationally, even when using a common language like
English where meanings/nuances differ across countries.
Marketing Infrastructure - The availability and role of marketing
channels such as media, distribution channels, market research
agencies, etc. vary enormously across countries. Marketing
strategies must utilize available infrastructure.
Trade Restrictions - Tariffs, quotas, customs procedures, and
import/export paperwork are substantial trade barriers. Negotiating
these restrictions is a key consideration.
Geographical Distance - International marketing often involves
greater physical distances between producer and consumer. This
results in higher transport costs and longer lead times compared to
domestic marketing.
Business Practices - How business is conducted can differ markedly,
from how meetings are organized to how contracts are negotiated.
Marketers must understand local business etiquette.
Adapting To Different Environments
The various environmental differences outlined above demonstrate why
marketing strategies must be tailored for each market rather than
applying a standardized approach everywhere. An international marketing
orientation involves understanding local environments and adapting
accordingly.
Marketers must research local conditions regarding culture, politics,
economics, laws, infrastructure, trade policies, and business customs.
International marketing plans can then be developed that are suited to
each target country.
In reality, very few companies adopt a fully adaptable approach. Most
pursue an approach between full standardization and full adaptation.
Elements of marketing mix such as product quality and core features are
standardized worldwide to achieve efficiencies and consistency. Aspects
like promotional messages and channels are adapted locally. This dual
approach provides a balance between marketing efficiency and local
market needs.
In summary, while marketing principles apply universally, the differences
across international markets mean that marketing strategy and practice
must be tailored country-by-country. An international marketing
orientation recognizes these differences and adjusts strategy
appropriately.
Objectives of International Business
Companies pursue international business for reasons that ultimately relate
to supporting overall growth and profitability objectives:
Sell Surplus Output - Exporting excess production can allow
companies to optimize productive capacity and lower average costs.
Marginal cost export pricing improves profitability.
Sales/Production Stability - International business can help stabilize
sales and output by mitigating seasonal or cyclical demand patterns
in domestic markets.
Finance Imports - Export revenues can be used to pay for necessary
imports of products, technology, or components. This improves
access to needed resources.
Contribute to National Goals - Some companies pursue international
business out of a sense of social responsibility and a desire to
support national economic development.
Growth Opportunities - Expanding overseas provides an avenue for
growth beyond saturated or declining domestic markets. Developing
countries offer major growth potential.
Lower Costs - Shifting production activities to lower cost locations
offshore reduces operating costs and boosts international price
competitiveness.
Enhance Image - Success in international markets improves
corporate prestige and brand image, which also supports domestic
positioning.
Industry Nature - Some industries like natural resources and
commodities are inherently global. International business is
mandatory for such sectors.
Political Reasons - Host countries may require international firms to
export a portion of local production as a condition of market access.
Economic Incentives - Many countries offer incentives like tax
breaks and subsidies to encourage export activity and attract
foreign investment.
Profit Advantage - International business can be more profitable
than saturated and competitive domestic markets. New growth
markets offer higher margins.
Competitive Pressures - Global competitors may force firms to
internationalize defensively to counter the threat. Preemptively
entering a rival's home market is an example.
Monopoly Advantages - Control of resources, intellectual property,
brands, or technology may allow international business on a
monopoly basis.
Strategic Vision - Systematic international expansion is driven by a
long-term strategic vision and the desire to build global competitive
advantage.
Fundamentals of Marketing Apply Universally The core principles and
practices of marketing are universal in application. Marketing concepts
relating to analyzing customer needs, market segmentation, positioning,
and the marketing mix can be applied whether in a domestic or
international context. The best way to think about international marketing
is marketing in a globally competitive environment.
However, the strategies and tactics employed in international marketing
often differ substantially from domestic marketing due to differences in
the marketing environment between countries. When entering foreign
markets, marketing strategies need adapting to account for country-by-
country variations.
Key Environmental Differences
There are several important differences in the international marketing
environment compared to the domestic market:
Political/Legal - The political system and regulatory environment
often vary greatly across international markets. Issues such as
political stability, trade agreements, legal protections, and
government bureaucracy need evaluating.
Cultural - Differences in culture, values, customs, and language are
a major issue in international marketing. Adapting products and
communications for different cultural norms is critical. This poses a
very difficult problem.
Economic - Factors such as income levels, distribution of wealth,
infrastructure development, and consumer spending patterns may
be radically different between markets. Pricing and promotional
strategies must fit local economic conditions.
Currency - Dealing in multiple currencies brings risks of exchange
rate fluctuations and currency controls. Marketing plans must
account for varying monetary environments.
Language - Communicating in local languages is important when
marketing internationally, even when using a common language like
English where meanings/nuances differ across countries.
Marketing Infrastructure - The availability and role of marketing
channels such as media, distribution channels, market research
agencies, etc. vary enormously across countries. Marketing
strategies must utilize available infrastructure.
Trade Restrictions - Tariffs, quotas, customs procedures, and
import/export paperwork are substantial trade barriers. Negotiating
these restrictions is a key consideration.
Geographical Distance - International marketing often involves
greater physical distances between producer and consumer. This
results in higher transport costs and longer lead times compared to
domestic marketing.
Business Practices - How business is conducted can differ markedly,
from how meetings are organized to how contracts are negotiated.
Marketers must understand local business etiquette.
Adapting To Different Environments
The various environmental differences outlined above demonstrate why
marketing strategies must be tailored for each market rather than
applying a standardized approach everywhere. An international marketing
orientation involves understanding local environments and adapting
accordingly.
Marketers must research local conditions regarding culture, politics,
economics, laws, infrastructure, trade policies, and business customs.
International marketing plans can then be developed that are suited to
each target country.
In reality, very few companies adopt a fully adaptable approach. Most
pursue an approach between full standardization and full adaptation.
Elements of marketing mix such as product quality and core features are
standardized worldwide to achieve efficiencies and consistency. Aspects
like promotional messages and channels are adapted locally. This dual
approach provides a balance between marketing efficiency and local
market needs.
In summary, while marketing principles apply universally, the differences
across international markets mean that marketing strategy and practice
must be tailored country-by-country. An international marketing
orientation recognizes these differences and adjusts strategy
appropriately.
Objectives of International Business
Companies pursue international business for reasons that ultimately relate
to supporting overall growth and profitability objectives:
Sell Surplus Output - Exporting excess production can allow
companies to optimize productive capacity and lower average costs.
Marginal cost export pricing improves profitability.
Sales/Production Stability - International business can help stabilize
sales and output by mitigating seasonal or cyclical demand patterns
in domestic markets.
Finance Imports - Export revenues can be used to pay for necessary
imports of products, technology, or components. This improves
access to needed resources.
Contribute to National Goals - Some companies pursue international
business out of a sense of social responsibility and a desire to
support national economic development.
Growth Opportunities - Expanding overseas provides an avenue for
growth beyond saturated or declining domestic markets. Developing
countries offer major growth potential.
Lower Costs - Shifting production activities to lower cost locations
offshore reduces operating costs and boosts international price
competitiveness.
Enhance Image - Success in international markets improves
corporate prestige and brand image, which also supports domestic
positioning.
Industry Nature - Some industries like natural resources and
commodities are inherently global. International business is
mandatory for such sectors.
Political Reasons - Host countries may require international firms to
export a portion of local production as a condition of market access.
Economic Incentives - Many countries offer incentives like tax
breaks and subsidies to encourage export activity and attract
foreign investment.
Profit Advantage - International business can be more profitable
than saturated and competitive domestic markets. New growth
markets offer higher margins.
Competitive Pressures - Global competitors may force firms to
internationalize defensively to counter the threat. Preemptively
entering a rival's home market is an example.
Monopoly Advantages - Control of resources, intellectual property,
brands, or technology may allow international business on a
monopoly basis.
Strategic Vision - Systematic international expansion is driven by a
long-term strategic vision and the desire to build global competitive
advantage.
Fundamentals of Marketing Apply Universally The core principles and
practices of marketing are universal in application. Marketing concepts
relating to analyzing customer needs, market segmentation, positioning,
and the marketing mix can be applied whether in a domestic or
international context. The best way to think about international marketing
is marketing in a globally competitive environment.
However, the strategies and tactics employed in international marketing
often differ substantially from domestic marketing due to differences in
the marketing environment between countries. When entering foreign
markets, marketing strategies need adapting to account for country-by-
country variations.
Key Environmental Differences
There are several important differences in the international marketing
environment compared to the domestic market:
Political/Legal - The political system and regulatory environment
often vary greatly across international markets. Issues such as
political stability, trade agreements, legal protections, and
government bureaucracy need evaluating.
Cultural - Differences in culture, values, customs, and language are
a major issue in international marketing. Adapting products and
communications for different cultural norms is critical. This poses a
very difficult problem.
Economic - Factors such as income levels, distribution of wealth,
infrastructure development, and consumer spending patterns may
be radically different between markets. Pricing and promotional
strategies must fit local economic conditions.
Currency - Dealing in multiple currencies brings risks of exchange
rate fluctuations and currency controls. Marketing plans must
account for varying monetary environments.
Language - Communicating in local languages is important when
marketing internationally, even when using a common language like
English where meanings/nuances differ across countries.
Marketing Infrastructure - The availability and role of marketing
channels such as media, distribution channels, market research
agencies, etc. vary enormously across countries. Marketing
strategies must utilize available infrastructure.
Trade Restrictions - Tariffs, quotas, customs procedures, and
import/export paperwork are substantial trade barriers. Negotiating
these restrictions is a key consideration.
Geographical Distance - International marketing often involves
greater physical distances between producer and consumer. This
results in higher transport costs and longer lead times compared to
domestic marketing.
Business Practices - How business is conducted can differ markedly,
from how meetings are organized to how contracts are negotiated.
Marketers must understand local business etiquette.
Adapting To Different Environments
The various environmental differences outlined above demonstrate why
marketing strategies must be tailored for each market rather than
applying a standardized approach everywhere. An international marketing
orientation involves understanding local environments and adapting
accordingly.
Marketers must research local conditions regarding culture, politics,
economics, laws, infrastructure, trade policies, and business customs.
International marketing plans can then be developed that are suited to
each target country.
In reality, very few companies adopt a fully adaptable approach. Most
pursue an approach between full standardization and full adaptation.
Elements of marketing mix such as product quality and core features are
standardized worldwide to achieve efficiencies and consistency. Aspects
like promotional messages and channels are adapted locally. This dual
approach provides a balance between marketing efficiency and local
market needs.
In summary, while marketing principles apply universally, the differences
across international markets mean that marketing strategy and practice
must be tailored country-by-country. An international marketing
orientation recognizes these differences and adjusts strategy
appropriately.
Objectives of International Business
Companies pursue international business for reasons that ultimately relate
to supporting overall growth and profitability objectives:
Sell Surplus Output - Exporting excess production can allow
companies to optimize productive capacity and lower average costs.
Marginal cost export pricing improves profitability.
Sales/Production Stability - International business can help stabilize
sales and output by mitigating seasonal or cyclical demand patterns
in domestic markets.
Finance Imports - Export revenues can be used to pay for necessary
imports of products, technology, or components. This improves
access to needed resources.
Contribute to National Goals - Some companies pursue international
business out of a sense of social responsibility and a desire to
support national economic development.
Growth Opportunities - Expanding overseas provides an avenue for
growth beyond saturated or declining domestic markets. Developing
countries offer major growth potential.
Lower Costs - Shifting production activities to lower cost locations
offshore reduces operating costs and boosts international price
competitiveness.
Enhance Image - Success in international markets improves
corporate prestige and brand image, which also supports domestic
positioning.
Industry Nature - Some industries like natural resources and
commodities are inherently global. International business is
mandatory for such sectors.
Political Reasons - Host countries may require international firms to
export a portion of local production as a condition of market access.
Economic Incentives - Many countries offer incentives like tax
breaks and subsidies to encourage export activity and attract
foreign investment.
Profit Advantage - International business can be more profitable
than saturated and competitive domestic markets. New growth
markets offer higher margins.
Competitive Pressures - Global competitors may force firms to
internationalize defensively to counter the threat. Preemptively
entering a rival's home market is an example.
Monopoly Advantages - Control of resources, intellectual property,
brands, or technology may allow international business on a
monopoly basis.
Strategic Vision - Systematic international expansion is driven by a
long-term strategic vision and the desire to build global competitive
advantage.
Fundamentals of Marketing Apply Universally The core principles and
practices of marketing are universal in application. Marketing concepts
relating to analyzing customer needs, market segmentation, positioning,
and the marketing mix can be applied whether in a domestic or
international context. The best way to think about international marketing
is marketing in a globally competitive environment.
However, the strategies and tactics employed in international marketing
often differ substantially from domestic marketing due to differences in
the marketing environment between countries. When entering foreign
markets, marketing strategies need adapting to account for country-by-
country variations.
Key Environmental Differences
There are several important differences in the international marketing
environment compared to the domestic market:
Political/Legal - The political system and regulatory environment
often vary greatly across international markets. Issues such as
political stability, trade agreements, legal protections, and
government bureaucracy need evaluating.
Cultural - Differences in culture, values, customs, and language are
a major issue in international marketing. Adapting products and
communications for different cultural norms is critical. This poses a
very difficult problem.
Economic - Factors such as income levels, distribution of wealth,
infrastructure development, and consumer spending patterns may
be radically different between markets. Pricing and promotional
strategies must fit local economic conditions.
Currency - Dealing in multiple currencies brings risks of exchange
rate fluctuations and currency controls. Marketing plans must
account for varying monetary environments.
Language - Communicating in local languages is important when
marketing internationally, even when using a common language like
English where meanings/nuances differ across countries.
Marketing Infrastructure - The availability and role of marketing
channels such as media, distribution channels, market research
agencies, etc. vary enormously across countries. Marketing
strategies must utilize available infrastructure.
Trade Restrictions - Tariffs, quotas, customs procedures, and
import/export paperwork are substantial trade barriers. Negotiating
these restrictions is a key consideration.
Geographical Distance - International marketing often involves
greater physical distances between producer and consumer. This
results in higher transport costs and longer lead times compared to
domestic marketing.
Business Practices - How business is conducted can differ markedly,
from how meetings are organized to how contracts are negotiated.
Marketers must understand local business etiquette.
Adapting To Different Environments
The various environmental differences outlined above demonstrate why
marketing strategies must be tailored for each market rather than
applying a standardized approach everywhere. An international marketing
orientation involves understanding local environments and adapting
accordingly.
Marketers must research local conditions regarding culture, politics,
economics, laws, infrastructure, trade policies, and business customs.
International marketing plans can then be developed that are suited to
each target country.
In reality, very few companies adopt a fully adaptable approach. Most
pursue an approach between full standardization and full adaptation.
Elements of marketing mix such as product quality and core features are
standardized worldwide to achieve efficiencies and consistency. Aspects
like promotional messages and channels are adapted locally. This dual
approach provides a balance between marketing efficiency and local
market needs.
In summary, while marketing principles apply universally, the differences
across international markets mean that marketing strategy and practice
must be tailored country-by-country. An international marketing
orientation recognizes these differences and adjusts strategy
appropriately.
Objectives of International Business
Companies pursue international business for reasons that ultimately relate
to supporting overall growth and profitability objectives:
Sell Surplus Output - Exporting excess production can allow
companies to optimize productive capacity and lower average costs.
Marginal cost export pricing improves profitability.
Sales/Production Stability - International business can help stabilize
sales and output by mitigating seasonal or cyclical demand patterns
in domestic markets.
Finance Imports - Export revenues can be used to pay for necessary
imports of products, technology, or components. This improves
access to needed resources.
Contribute to National Goals - Some companies pursue international
business out of a sense of social responsibility and a desire to
support national economic development.
Growth Opportunities - Expanding overseas provides an avenue for
growth beyond saturated or declining domestic markets. Developing
countries offer major growth potential.
Lower Costs - Shifting production activities to lower cost locations
offshore reduces operating costs and boosts international price
competitiveness.
Enhance Image - Success in international markets improves
corporate prestige and brand image, which also supports domestic
positioning.
Industry Nature - Some industries like natural resources and
commodities are inherently global. International business is
mandatory for such sectors.
Political Reasons - Host countries may require international firms to
export a portion of local production as a condition of market access.
Economic Incentives - Many countries offer incentives like tax
breaks and subsidies to encourage export activity and attract
foreign investment.
Profit Advantage - International business can be more profitable
than saturated and competitive domestic markets. New growth
markets offer higher margins.
Competitive Pressures - Global competitors may force firms to
internationalize defensively to counter the threat. Preemptively
entering a rival's home market is an example.
Monopoly Advantages - Control of resources, intellectual property,
brands, or technology may allow international business on a
monopoly basis.
Strategic Vision - Systematic international expansion is driven by a
long-term strategic vision and the desire to build global competitive
advantage.
Fundamentals of Marketing Apply Universally The core principles and
practices of marketing are universal in application. Marketing concepts
relating to analyzing customer needs, market segmentation, positioning,
and the marketing mix can be applied whether in a domestic or
international context. The best way to think about international marketing
is marketing in a globally competitive environment.
However, the strategies and tactics employed in international marketing
often differ substantially from domestic marketing due to differences in
the marketing environment between countries. When entering foreign
markets, marketing strategies need adapting to account for country-by-
country variations.
Key Environmental Differences
There are several important differences in the international marketing
environment compared to the domestic market:
Political/Legal - The political system and regulatory environment
often vary greatly across international markets. Issues such as
political stability, trade agreements, legal protections, and
government bureaucracy need evaluating.
Cultural - Differences in culture, values, customs, and language are
a major issue in international marketing. Adapting products and
communications for different cultural norms is critical. This poses a
very difficult problem.
Economic - Factors such as income levels, distribution of wealth,
infrastructure development, and consumer spending patterns may
be radically different between markets. Pricing and promotional
strategies must fit local economic conditions.
Currency - Dealing in multiple currencies brings risks of exchange
rate fluctuations and currency controls. Marketing plans must
account for varying monetary environments.
Language - Communicating in local languages is important when
marketing internationally, even when using a common language like
English where meanings/nuances differ across countries.
Marketing Infrastructure - The availability and role of marketing
channels such as media, distribution channels, market research
agencies, etc. vary enormously across countries. Marketing
strategies must utilize available infrastructure.
Trade Restrictions - Tariffs, quotas, customs procedures, and
import/export paperwork are substantial trade barriers. Negotiating
these restrictions is a key consideration.
Geographical Distance - International marketing often involves
greater physical distances between producer and consumer. This
results in higher transport costs and longer lead times compared to
domestic marketing.
Business Practices - How business is conducted can differ markedly,
from how meetings are organized to how contracts are negotiated.
Marketers must understand local business etiquette.
Adapting To Different Environments
The various environmental differences outlined above demonstrate why
marketing strategies must be tailored for each market rather than
applying a standardized approach everywhere. An international marketing
orientation involves understanding local environments and adapting
accordingly.
Marketers must research local conditions regarding culture, politics,
economics, laws, infrastructure, trade policies, and business customs.
International marketing plans can then be developed that are suited to
each target country.
In reality, very few companies adopt a fully adaptable approach. Most
pursue an approach between full standardization and full adaptation.
Elements of marketing mix such as product quality and core features are
standardized worldwide to achieve efficiencies and consistency. Aspects
like promotional messages and channels are adapted locally. This dual
approach provides a balance between marketing efficiency and local
market needs.
In summary, while marketing principles apply universally, the differences
across international markets mean that marketing strategy and practice
must be tailored country-by-country. An international marketing
orientation recognizes these differences and adjusts strategy
appropriately.
Objectives of International Business
Companies pursue international business for reasons that ultimately relate
to supporting overall growth and profitability objectives:
Sell Surplus Output - Exporting excess production can allow
companies to optimize productive capacity and lower average costs.
Marginal cost export pricing improves profitability.
Sales/Production Stability - International business can help stabilize
sales and output by mitigating seasonal or cyclical demand patterns
in domestic markets.
Finance Imports - Export revenues can be used to pay for necessary
imports of products, technology, or components. This improves
access to needed resources.
Contribute to National Goals - Some companies pursue international
business out of a sense of social responsibility and a desire to
support national economic development.
Growth Opportunities - Expanding overseas provides an avenue for
growth beyond saturated or declining domestic markets. Developing
countries offer major growth potential.
Lower Costs - Shifting production activities to lower cost locations
offshore reduces operating costs and boosts international price
competitiveness.
Enhance Image - Success in international markets improves
corporate prestige and brand image, which also supports domestic
positioning.
Industry Nature - Some industries like natural resources and
commodities are inherently global. International business is
mandatory for such sectors.
Political Reasons - Host countries may require international firms to
export a portion of local production as a condition of market access.
Economic Incentives - Many countries offer incentives like tax
breaks and subsidies to encourage export activity and attract
foreign investment.
Profit Advantage - International business can be more profitable
than saturated and competitive domestic markets. New growth
markets offer higher margins.
Competitive Pressures - Global competitors may force firms to
internationalize defensively to counter the threat. Preemptively
entering a rival's home market is an example.
Monopoly Advantages - Control of resources, intellectual property,
brands, or technology may allow international business on a
monopoly basis.
Strategic Vision - Systematic international expansion is driven by a
long-term strategic vision and the desire to build global competitive
advantage.
Fundamentals of Marketing Apply Universally The core principles and
practices of marketing are universal in application. Marketing concepts
relating to analyzing customer needs, market segmentation, positioning,
and the marketing mix can be applied whether in a domestic or
international context. The best way to think about international marketing
is marketing in a globally competitive environment.
However, the strategies and tactics employed in international marketing
often differ substantially from domestic marketing due to differences in
the marketing environment between countries. When entering foreign
markets, marketing strategies need adapting to account for country-by-
country variations.
Key Environmental Differences
There are several important differences in the international marketing
environment compared to the domestic market:
Political/Legal - The political system and regulatory environment
often vary greatly across international markets. Issues such as
political stability, trade agreements, legal protections, and
government bureaucracy need evaluating.
Cultural - Differences in culture, values, customs, and language are
a major issue in international marketing. Adapting products and
communications for different cultural norms is critical. This poses a
very difficult problem.
Economic - Factors such as income levels, distribution of wealth,
infrastructure development, and consumer spending patterns may
be radically different between markets. Pricing and promotional
strategies must fit local economic conditions.
Currency - Dealing in multiple currencies brings risks of exchange
rate fluctuations and currency controls. Marketing plans must
account for varying monetary environments.
Language - Communicating in local languages is important when
marketing internationally, even when using a common language like
English where meanings/nuances differ across countries.
Marketing Infrastructure - The availability and role of marketing
channels such as media, distribution channels, market research
agencies, etc. vary enormously across countries. Marketing
strategies must utilize available infrastructure.
Trade Restrictions - Tariffs, quotas, customs procedures, and
import/export paperwork are substantial trade barriers. Negotiating
these restrictions is a key consideration.
Geographical Distance - International marketing often involves
greater physical distances between producer and consumer. This
results in higher transport costs and longer lead times compared to
domestic marketing.
Business Practices - How business is conducted can differ markedly,
from how meetings are organized to how contracts are negotiated.
Marketers must understand local business etiquette.
Adapting To Different Environments
The various environmental differences outlined above demonstrate why
marketing strategies must be tailored for each market rather than
applying a standardized approach everywhere. An international marketing
orientation involves understanding local environments and adapting
accordingly.
Marketers must research local conditions regarding culture, politics,
economics, laws, infrastructure, trade policies, and business customs.
International marketing plans can then be developed that are suited to
each target country.
In reality, very few companies adopt a fully adaptable approach. Most
pursue an approach between full standardization and full adaptation.
Elements of marketing mix such as product quality and core features are
standardized worldwide to achieve efficiencies and consistency. Aspects
like promotional messages and channels are adapted locally. This dual
approach provides a balance between marketing efficiency and local
market needs.
In summary, while marketing principles apply universally, the differences
across international markets mean that marketing strategy and practice
must be tailored country-by-country. An international marketing
orientation recognizes these differences and adjusts strategy
appropriately.
Objectives of International Business
Companies pursue international business for reasons that ultimately relate
to supporting overall growth and profitability objectives:
Sell Surplus Output - Exporting excess production can allow
companies to optimize productive capacity and lower average costs.
Marginal cost export pricing improves profitability.
Sales/Production Stability - International business can help stabilize
sales and output by mitigating seasonal or cyclical demand patterns
in domestic markets.
Finance Imports - Export revenues can be used to pay for necessary
imports of products, technology, or components. This improves
access to needed resources.
Contribute to National Goals - Some companies pursue international
business out of a sense of social responsibility and a desire to
support national economic development.
Growth Opportunities - Expanding overseas provides an avenue for
growth beyond saturated or declining domestic markets. Developing
countries offer major growth potential.
Lower Costs - Shifting production activities to lower cost locations
offshore reduces operating costs and boosts international price
competitiveness.
Enhance Image - Success in international markets improves
corporate prestige and brand image, which also supports domestic
positioning.
Industry Nature - Some industries like natural resources and
commodities are inherently global. International business is
mandatory for such sectors.
Political Reasons - Host countries may require international firms to
export a portion of local production as a condition of market access.
Economic Incentives - Many countries offer incentives like tax
breaks and subsidies to encourage export activity and attract
foreign investment.
Profit Advantage - International business can be more profitable
than saturated and competitive domestic markets. New growth
markets offer higher margins.
Competitive Pressures - Global competitors may force firms to
internationalize defensively to counter the threat. Preemptively
entering a rival's home market is an example.
Monopoly Advantages - Control of resources, intellectual property,
brands, or technology may allow international business on a
monopoly basis.
Strategic Vision - Systematic international expansion is driven by a
long-term strategic vision and the desire to build global competitive
advantage.
Fundamentals of Marketing Apply Universally The core principles and
practices of marketing are universal in application. Marketing concepts
relating to analyzing customer needs, market segmentation, positioning,
and the marketing mix can be applied whether in a domestic or
international context. The best way to think about international marketing
is marketing in a globally competitive environment.
However, the strategies and tactics employed in international marketing
often differ substantially from domestic marketing due to differences in
the marketing environment between countries. When entering foreign
markets, marketing strategies need adapting to account for country-by-
country variations.
Key Environmental Differences
There are several important differences in the international marketing
environment compared to the domestic market:
Political/Legal - The political system and regulatory environment
often vary greatly across international markets. Issues such as
political stability, trade agreements, legal protections, and
government bureaucracy need evaluating.
Cultural - Differences in culture, values, customs, and language are
a major issue in international marketing. Adapting products and
communications for different cultural norms is critical. This poses a
very difficult problem.
Economic - Factors such as income levels, distribution of wealth,
infrastructure development, and consumer spending patterns may
be radically different between markets. Pricing and promotional
strategies must fit local economic conditions.
Currency - Dealing in multiple currencies brings risks of exchange
rate fluctuations and currency controls. Marketing plans must
account for varying monetary environments.
Language - Communicating in local languages is important when
marketing internationally, even when using a common language like
English where meanings/nuances differ across countries.
Marketing Infrastructure - The availability and role of marketing
channels such as media, distribution channels, market research
agencies, etc. vary enormously across countries. Marketing
strategies must utilize available infrastructure.
Trade Restrictions - Tariffs, quotas, customs procedures, and
import/export paperwork are substantial trade barriers. Negotiating
these restrictions is a key consideration.
Geographical Distance - International marketing often involves
greater physical distances between producer and consumer. This
results in higher transport costs and longer lead times compared to
domestic marketing.
Business Practices - How business is conducted can differ markedly,
from how meetings are organized to how contracts are negotiated.
Marketers must understand local business etiquette.
Adapting To Different Environments
The various environmental differences outlined above demonstrate why
marketing strategies must be tailored for each market rather than
applying a standardized approach everywhere. An international marketing
orientation involves understanding local environments and adapting
accordingly.
Marketers must research local conditions regarding culture, politics,
economics, laws, infrastructure, trade policies, and business customs.
International marketing plans can then be developed that are suited to
each target country.
In reality, very few companies adopt a fully adaptable approach. Most
pursue an approach between full standardization and full adaptation.
Elements of marketing mix such as product quality and core features are
standardized worldwide to achieve efficiencies and consistency. Aspects
like promotional messages and channels are adapted locally. This dual
approach provides a balance between marketing efficiency and local
market needs.
In summary, while marketing principles apply universally, the differences
across international markets mean that marketing strategy and practice
must be tailored country-by-country. An international marketing
orientation recognizes these differences and adjusts strategy
appropriately.
Objectives of International Business
Companies pursue international business for reasons that ultimately relate
to supporting overall growth and profitability objectives:
Sell Surplus Output - Exporting excess production can allow
companies to optimize productive capacity and lower average costs.
Marginal cost export pricing improves profitability.
Sales/Production Stability - International business can help stabilize
sales and output by mitigating seasonal or cyclical demand patterns
in domestic markets.
Finance Imports - Export revenues can be used to pay for necessary
imports of products, technology, or components. This improves
access to needed resources.
Contribute to National Goals - Some companies pursue international
business out of a sense of social responsibility and a desire to
support national economic development.
Growth Opportunities - Expanding overseas provides an avenue for
growth beyond saturated or declining domestic markets. Developing
countries offer major growth potential.
Lower Costs - Shifting production activities to lower cost locations
offshore reduces operating costs and boosts international price
competitiveness.
Enhance Image - Success in international markets improves
corporate prestige and brand image, which also supports domestic
positioning.
Industry Nature - Some industries like natural resources and
commodities are inherently global. International business is
mandatory for such sectors.
Political Reasons - Host countries may require international firms to
export a portion of local production as a condition of market access.
Economic Incentives - Many countries offer incentives like tax
breaks and subsidies to encourage export activity and attract
foreign investment.
Profit Advantage - International business can be more profitable
than saturated and competitive domestic markets. New growth
markets offer higher margins.
Competitive Pressures - Global competitors may force firms to
internationalize defensively to counter the threat. Preemptively
entering a rival's home market is an example.
Monopoly Advantages - Control of resources, intellectual property,
brands, or technology may allow international business on a
monopoly basis.
Strategic Vision - Systematic international expansion is driven by a
long-term strategic vision and the desire to build global competitive
advantage.
In summary, companies internationalize for diverse reasons spanning
commercial objectives, competitive strategy, exploiting advantages, and
policy motivations. All support overall goals of growth, higher profits, and
strategic positioning.
