International marketing – the issues 621
marketing tool, and the identification of fea-
sible cross-national segments, the means to
international access and profitability, as little
product modification will then be required.
What you need to know
Effects of culture.
Market research of markets abroad.
Psychic or psychological distance, also known
as socio-cultural distance.
Segmentation possibilities.
Modes of market entry.
More than four simple ‘Ps’ to worry about!
What is required to succeed in
foreign markets
This can be summarized in terms of three
main elements, each comprising a number of
variables:
Marketing policy elements:
- Market selection, pricing, packaging.
Firm-specific factors: - Technology, planning, control.
External factors: - Diplomatic relations; subsidies, market
accessibility, market potential.
Evidence of success in foreign
markets
A match between competencies of the firm
with opportunities and threats of the
marketplace.
A competitive advantage that is sustainable in
the light of probable competitive moves.
A commitment of time and resources.
Acculturation, meaning that a knowledge of
the culture is as important as a knowledge of
the language. In that way, social rituals,
including the differences between the French
and the British over observance of the lunch
break, may be better understood.
Differences between domestic and international marketing
If we have only four Ps to worry about, we
exclude much from our consideration. The
difference between international and domestic
marketing is best highlighted by Kotler (1986)
as ‘megamarketing’ as opposed to simply
‘marketing’. It is perhaps easy to oversimplify
the vast number of variables to be managed
within the marketing function, especially in the
international arena, where the marketing man-
ager’s own knowledge of the foreign market is
limited and so the number of variables on
which we need information thereby increases
dramatically. It overlooks many of the individ-
ual variables in return for making a simple
point and providing a mnemonic for marketing
managers. Paliwoda (1995) identified a 10-point
checklist for approaching international market-
ing, consisting of:1 People– all stakeholders, internal and
external to the firm, employees and
customers.
2 Process– which is unique to the corporate
culture and may include willingness or not to
consider a certain form of market entry such
as joint venture.
3 Positioning– differentiation from rivals.
4 Power– market power transferability from
home country to host country.
5 Product/service– delivering value added
through the channel to the foreign consumer.
6 Promotion and publicity– what is available,
what is allowable, what is free.
7 Pricing– an overplayed dimension and the
weakest factor with which to lead.
8 Place of sale/distribution– delivery. From
arrival portside to the final consumer through
channels as diverse as the Internet.
9 Planning and control– with flexibility.
Monitoring is one aspect but another is the
ability to plan ahead with room to manoeuvre
so as not to forestall strategic alternatives.