International Marketing, Strategic Orientation, Questions and Answers
Q.1. Describe Strategic Orientation.
Often companies are led into international and even global markets by burgeoning consumer or customer demands, and strategic thinking is secondary to “filling the next order”. But putting strategic thinking on the back burner has resulted in marketing failures for even the largest companies.
The consensus of the researchers and authors in the area reveals three relatively distinctive approaches that seem to dominate strategic thinking in firms involved in international markets:
1) Domestic market extension concept
2) Multi-domestic market concept
3) Global marketing concept
Differences in the complexity and sophisticated of a company’s marketing activity depend on which orientation guides its operations. The ideas expressed in each strategic orientation reflect the philosophical orientation that also should be associated with successive stages in the evolution of the international operations in a company.
The domestic company seeking sales extension of its domestic products into foreign markets illustrates this orientation to international marketing. It views its international operations as secondary to and an extension of its domestic operations; the primary motive is to market excess domestic production. Domestic business is its priority, and foreign sales are seen as a profitable extension of domestic operations. Even though foreign markets may be vigorously pursued, the firm’s orientation remains basically domestic. Its attitude toward international sales is typified by the belief that if it sells in St. Louis, it will sell anywhere else in the world. If any efforts are made to adapt the marketing mix to foreign markets the firm’s orientation is to market to foreign customers in the same manner in which the company markets to domestic customers. It seeks markets where demand is similar to the home market and its domestic product will be acceptable. This domestic market extension strategy can be very profitable; large
Often companies are led into international and even global markets by burgeoning consumer or customer demands, and strategic thinking is secondary to “filling the next order”. But putting strategic thinking on the back burner has resulted in marketing failures for even the largest companies.
The consensus of the researchers and authors in the area reveals three relatively distinctive approaches that seem to dominate strategic thinking in firms involved in international markets:
1) Domestic market extension concept
2) Multi-domestic market concept
3) Global marketing concept
Differences in the complexity and sophisticated of a company’s marketing activity depend on which orientation guides its operations. The ideas expressed in each strategic orientation reflect the philosophical orientation that also should be associated with successive stages in the evolution of the international operations in a company.
The domestic company seeking sales extension of its domestic products into foreign markets illustrates this orientation to international marketing. It views its international operations as secondary to and an extension of its domestic operations; the primary motive is to market excess domestic production. Domestic business is its priority, and foreign sales are seen as a profitable extension of domestic operations. Even though foreign markets may be vigorously pursued, the firm’s orientation remains basically domestic. Its attitude toward international sales is typified by the belief that if it sells in St. Louis, it will sell anywhere else in the world. If any efforts are made to adapt the marketing mix to foreign markets the firm’s orientation is to market to foreign customers in the same manner in which the company markets to domestic customers. It seeks markets where demand is similar to the home market and its domestic product will be acceptable. This domestic market extension strategy can be very profitable; large