Navigating the Stages of International Marketing: Strategies and Perspectives

1. Welcome to class of Stages of International Marketingand Strategic OrientationDr. Satyendra SinghProfessor, Marketing and International BusinessUniversity of WinnipegCanadas.singh@uwinnipeg.cahttp://abem.uwinnipeg.cawww.abem.ca/conference

2. No Direct Foreign Marketing Regular Foreign Marketing Infrequent Foreign Marketing International Marketing Global Marketing Stages of International Marketing…

3. Stages of International Marketing… • Stage 1: No Direct Foreign Marketing • Not active foreign customer seekers • Foreign markets via domestic wholesalers/distributors • Unsolicited orders • Internet • Stage 2: Infrequent Foreign Marketing • Variation in production levels or demands • No commitment to foreign market representation • If domestic demand , foreign activity  • Foreign agents may approach • Managers’ own foreign contacts

4. Stages of International Marketing… • Stage 3: Regular Foreign Marketing • Dedicated production capacity to foreign markets • Own sales force/subsidiaries in foreign markets • Domestic market is still the prime focus, but as the foreign demand , production/products are adapted to meet those customer needs • Depend on foreign sales to meet goal (vs. as a bonus) • Stage 4: International Marketing • Fully committed and involved in international marketing • Planned productions for various foreign markets • Production of goods in foreign markets as well • At this stage, a firm is international or multi-national

5. Stages of International Marketing • Stage 5: Global Marketing • Treats the world including home market as one • Market segments are defined by demographic and psychographic variables • Half of its revenue should come from foreign market • Global perspective is the focus

6. EPRG Schema Orientation Strategic Orientations Domestic Marketing Extension Ethnocentric Multidomestic Marketing Polycentric Global Marketing Regio/Geocentric

7. Strategic Orientations… • Domestic Market Extension Orientation (Stage 1/2) • Extension of domestic products into foreign markets • International markets are secondary • Prime focus—market excess domestic products abroad • Firm’s orientation is domestic • Multi-Domestic Market Orientation (Stage 2/3) • Realizes the difference b/w domestic & foreign markets • Different countries need different products • Separate marketing strategies for each country • Subsidiaries operate independent of one another • Products are adapted, advertising is localized • Might not standardize products

8. Strategic Orientations • Regional/Global Orientation (Stage 4/5) • Truly global – single market • Emphasis on standardization—product/process • Strive for efficiencies of scale by standardizing market mix across national borders, whenever it is cost or culture effective • Pursue a global strategy for major brands or multi-domestic strategy for other brands

9. In-Class Group Activity: 30-45 minutes • The 5-Stage Model and Strategic Orientation • Identify 5 international brands (or Canadians if you wish) • Explain the stage at which each brand is • Provide rationale for the stage of each brand • Map the stage to the strategic orientation • Prepare a 10-minute (Max) group presentation using PowerPoint Slides • Please e-mail the PPT slides at drsatsingh@gmail.com and write “your group # and strategic orientation” in the subject line, so I could browse it before your presentation.