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International marketing
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International marketing (IM) or global marketing refers to marketing carried out by
companies overseas or across national borderlines. This strategy uses an extension of the
techniques used in the home country of a firm.[1] It refers to the firm-level marketing practices
across the border including market identification and targeting, entry mode selection, marketing
mix, and strategic decisions to compete in international markets.[2] According to the American
Marketing Association (AMA) "international marketing is the multinational process of
planning and executing the conception, pricing, promotion and distribution of ideas, goods, and
services to create exchanges that satisfy individual and organizational objectives."[3] In contrast
to the definition of marketing only the word multinational has been added.[3] In simple words
international marketing is the application of marketing principles to across national boundaries.
However, there is a crossover between what is commonly expressed as international marketing
and global marketing, which is a similar term.
The intersection is the result of the process of internationalization. Many American and
European authors see international marketing as a simple extension of exporting, whereby the
marketing mix 4P's is simply adapted in some way to take into account differences in consumers
and segments. It then follows that global marketing takes a more standardised approach to world
markets and focuses upon sameness, in other words the similarities in consumers and segments.

Contents
[hide]
• 1 Further definitions
• 2 Topics covering the micro-context of international marketing
• 3 Differences between domestic marketing and international marketing
• 4 Mode of engagement in foreign markets
○ 4.1 Exporting
 ○ 4.2 Joint ventures
○ 4.3 Direct investment
• 5 References

[edit] Further definitions

Cateora and Ghauri (1999) International Marketing is the performance of business activities
that direct the flow of a company's goods and services to consumers or users in more than
one nation for a profit.
International marketing is often not as simple as marketing your product to more than one nation.
[4]
Companies must consider language barriers, ideals, and customs in the market they are
approaching.[4] Tailoring your marketing strategies to attract the specific group of people you are
attempting to sell to is highly important and can serve the number one cause of failure or success.
[4]

As with other elements of marketing, there is no single definition of international marketing.

Furthermore some authors define international marketing and global marketing differently. It can
be distinguished between different levels of international marketing: "At its simplest level,
international marketing involves the firm in making one or more marketing mix decisions across
national boundaries. At its most complex level, it involves the firm in establishing manufacturing
facilities overseas and coordinating marketing strategies across the globe."[5] Another definition
sees international marketing as the international involvement of business activities:
"International marketing is the performance of business activities that direct the flow of a
company's goods and services to consumers or users in more than one nation for a profit."[6] It
can be also defined as "the application of marketing orientation and marketing capabilities to
international business."[7] "The international market goes beyond the export marketer and
becomes more involved in the marketing environment in the countries in which it is doing
business."[8]
Some definition refer to the term global marketing: "Global/transnational marketing focuses
upon leveraging a company's assets, experience and products globally and upon adapting to
what is truly unique and different in each country."[8] "Global marketing refers to marketing
activities coordinated and integrated across multiple country markets."[9]
[edit] Topics covering the micro-context of international
marketing
According to Kotabe, the following topics covers the micro-context of international marketing.[10]
Organisational and consumer behaviour:
• organisational buying behaviour;
• international negotiations;
• consumer behaviour;
• country of origin.
Marketing entry decisions:
• initial mode of entry
 • specific modes of entry
• exporting;
• joint ventures.
Local market expansaion: marketing mix decisions:
• global standardisation vs. local responsiveness
• Marketing mix:
• product policy;
• advertising;
• pricing;
• distribution.
Global strategy:
• Competitive strategy:
• conceptual development;
• competitive advantage vs. competitive positioning;
• sources of competitive advantage and performance implications.
• Strategic alliances:
• learning and trust;
• recipes for alliance success;
• performance of different types of alliance.
• Global sourcing:
• global sourcing in a service context;
• benefits of global sourcing;
• country of origin issues in global sourcing.
• Multinational performance:
• determinants of performance;
• a different interpretation of performance.
Analytical techniques in cross-national research:
• measuerment issues;
• reliability and validity issues.
[edit] Differences between domestic marketing and
international marketing
There are various differences between domestic marketing and international marketing. Due to a
language barrier it is more difficult to obtain and interpret research data in international
marketing.[11] Promotional messages needs to consider numerous cultural differences between
different countries.[11] This includes the differences in languages, expressions, habits, gestures,
ideologies and more. For example, in the United States the round O sign made with thumb and
first finger means "okay" while in Mediterranean countries the same gesture means "zero" or
"the worst".[12] In Tunisia it is understood as "I'll kill you" meanwhile for a Japan consumer it
implies "money".[12] Even among the 74 English-speaking nations a word with the same meaning
can differ greatly from the English which is spoken in the United States as the following example
shows:[12]
• Police: bobby (Britain), garda (Ireland), Mountie (Canada), police wallah (South Africa)
• Porch: stoep (South Africa), gallery (Caribbean)
• Bar: pub (Britain), hotel (Australia), boozer (Australia, Britain, New Zealand)
• Bathroom: loo (Britain), dunny (Australia)
• Ghost or monster: wendigo (Canada), duppy (Caribbean), taniwha (New Zealand)
• Barbecue: braai (South Africa), barbie (Australia)
• Truck: lorry (Britain and Australia)
• Festival: feis (Ireland)
• Sweater: jumper (England)
• French fries: chips (Britain)
• Soccer: football (the rest of the world)
• Soccer field: pitch (England)
Three recent international examples of misinterpretation are:[12]
• On a sign in a Bucharest hotel lobby: The lift is being fixed for the next day. During that
time, we regret that you will be unbearable.
• From a Japanese information booklet about using a hotel air conditioner: Cooles and
Heates: If you want just condition of warmin your room, please control yourself.
• In an Acapulco hotel: The manager has personally passed all the water served here.
[edit] Mode of engagement in foreign markets
After the decision to invest has been made, the exact mode of operation has to be determined.
The risks concerning operating in foreign markets is often dependent on the level of control a
firm has, coupled with the level of capital expenditure outlayed. The principal modes of
engagement are listed below:
• Exporting (which is further divided into direct and indirect exporting)
• Joint ventures
• Direct investment (split into assembly and manufacturing)
[edit] Exporting
Direct exporting involves a firm shipping goods directly to a foreign market. A firm employing
indirect exporting would utilise a channel/intermediary, who in turn would disseminate the
product in the foreign market. From a company's standpoint, exporting consists of the least risk.
This is so since no capital expenditure, or outlay of company finances on new non-current assets,
has necessarily taken place. Thus, the likelihood of sunk costs, or general barriers to exit, is slim.
Conversely, a company may possess less control when exporting into a foreign market, due to
not control the supply of the good within the foreign market.
[edit] Joint ventures
A joint venture is a combined effort between two or more business entities, with the aim of
mutual benefit from a given economic activity. Some countries often mandate that all foreign
investment within it should be via joint ventures (such as India and the People's Republic of
China). By comparison with exporting, more control is exerted, however the level of risk is also
increased.
[edit] Direct investment
In this mode of engagement, a company would directly construct a fixed/non-current asset within
a foreign country, with the aim of manufacturing a product within the overseas market.
Assembly denotes the literal assembly of completed parts, to build a completed product. An
example of this is the Dell Corporation. Dell possesses plants in countries external to the United
States of America, however it assembles personal computers and does not manufacture them
from scratch. In other words, it attains parts from other firms, and assembles a personal
computer's constituent parts (such as a motherboard, monitor, GPU, RAM, wireless card,
modem, sound card, etc.) within its factories. Manufacturing concerns the actual forging of a
product from scratch. Car manufacturers often construct all parts within their plants. Direct
investment has the most control and the most risk attached. As with any capital expenditure, the
return on investment (defined by the payback period, Net Present Value, Internal Rate of Return,
etc.) has to be ascertained, in addition to appreciating any related sunk costs with the capital
expenditure.
[edit] References
1. ^ Marketing, Tim McGraw-Hill
2. ^ Joshi, Rakesh Mohan, (2005) International Marketing, Oxford University Press, New
Delhi and New York ISBN 0195671236
3. ^ a b Onkvisit, Sak; John J. Shaw (2004). "Process of international marketing".
International marketing: analysis and strategy (4th ed.). p. 3.
http://books.google.com/books?
id=jvdpDo5Xr7EC&lpg=PP1&pg=PA3#v=onepage&q=&f=false. Retrieved 2009-10-
11.
4. ^ a b c Eagle Business (2007)
5. ^ Doole & Lowe (2001). Note: Doole and Lowe differentiate between international
marketing (simple mix changes) and global marketing (more complex and extensive).
6. ^ Cateora & Ghauri (1999). Note: Cateora and Ghauri consider international marketing
in the absence of global marketing.
7. ^ Muhlbacher, Helmuth & Dahringer (2006). Note: Muhlbacher et al. delineate
international marketing (adapted) and global marketing (standardised).
8. ^ a b Keegan (2002). Note: Keegan takes a strategic, corporate overview to define the
transnational nature of global marketing.
9. ^ Johansson (2000). Note: Jonny K. Johansson defines global marketing as a bigger
brother to international marketing i.e. more of an extension.
10. ^ Paliwoda, Stanley J.; John K. Ryans (2008). "International business vs. international
marketing". International Marketing: Modern and Classic Papers. Peter Buckley, Kotabe
 (2001, p. 461-2). p. 4. http://books.google.com/books?
id=dwZz2eHBCjUC&lpg=PP1&pg=PA4#v=onepage&q=&f=true. Retrieved 2009-10-
22.
11. ^ a b Bennett, Roger; Jim Blythe (2002). "The nature of international marketing".
International marketing: strategy planning, market entry & implementation (3rd ed.).
p. 4. http://books.google.com/books?
id=q58kPJgifT8C&lpg=PP1&pg=PA4#v=onepage&q=&f=false. Retrieved 2009-10-12.
12. ^ a b c d Kurtz, David L. (2008). "Part 6 - Promotional decisions". Contemporary
Marketing (13th ed.). p. 494. http://books.google.com/books?
id=GqCVnz0mpdUC&lpg=PT548&pg=PT548#v=onepage&q=&f=false. Retrieved
2009-10-12.
Retrieved from "http://en.wikipedia.org/wiki/International_marketing"
Categories: Marketing | International economics | International trade
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