International Marketing: Key Concepts and Definitions

Posted on Mar 6, 2025 in Business Administration and Management (BAM)

Key Concepts in International Marketing

The 4 Phases of International Planning

  1. Analysis and Screening: Company character, environmental factors.
  2. Adapting the Marketing Mix: Tailoring to target markets.
  3. Marketing Plan Development.
  4. Implementation, Evaluation, and Control.

The 4-Step Error Self-Reference Criterion (SRC)

  1. Define the business problem in home-country values, habits, or norms.
  2. Define the business goal in foreign-country cultural habits, norms, and values through consultation with natives. Make no value judgments.
  3. Isolate the SRC.
  4. Redefine the problem without SRC for the optimum business goal.

Dumping

  • Selling products below their cost of production.
  • Selling products in a foreign country below the price of the same product in the home market.

Two Dimensions of Quality

  1. Market-perceived quality
  2. Performance quality

Consumer perception of a quality product has more to do with market-perceived quality than performance quality. Because the consumer expects performance quality to be a given, quality to the consumer is more than compliance.

Planning Types

Corporate planning: A long-term notion, covering a generalized goal for the company as a whole.

Strategic planning: Used at the highest levels of management and deals with long and short-term goals of the company.

Tactical planning: Refers to the allocation of resources used to implement strategic planning goals in specific markets. Decisions are made at the local level.

Trade Restrictions

Embargo: A total restriction on export to a foreign country.

Boycott: A total restriction on import.

International Marketing (INTM) Definition

International Marketing is the performance of business activities designed to plan, price, promote, and direct the flow of a company’s goods and services to consumers in more than one country for a profit.

Country Classifications

MDCs (more-developed countries): Includes industrialized countries with high per capita incomes (e.g., England, United States).

LDCs (less-developed countries): Refers to industrially developing countries just entering world trade, many of which are in Asia and Latin America.

LLDCs (least-developed countries): Includes industrially underdeveloped, agrarian countries with extremely low per capita income levels, and little world trade involvement (e.g., Central Africa and parts of Asia).

Time Systems

M-time (Monochronic): Typifies most Western cultures, tending to concentrate on just one thing at a time. They divide time into small units and are concerned about promptness. Most low-context cultures use M-time.

P-time (Polychronic): Is more dominant in high-context cultures. It is characterized by the simultaneous occurrence of many things and by a great involvement with people.

Self-Reference Criterion (SRC) and Ethnocentrism

SRC: Is an unconscious reference to one’s own cultural experiences, values, and knowledge as a basis for decisions.

Ethnocentrism: The belief that one’s own company or culture knows best. Both must be avoided by international marketers.

Cultural Customs

Imperatives: Customs that must be recognized and accommodated.

Electives: Customs where adaptation is helpful but not necessary.

Exclusives: Customs in which an outsider must not participate.

Integrated Marketing Communications (IMC)

Integrated marketing communications (IMC) are composed of advertising, sales promotions, trade shows, personal selling, direct selling, and public relations.

Role of Public Relations (PR)

Means creating good relationships with the popular press to help companies communicate messages to their publics—customers, the general public, and governmental regulators. The job also consists of managing unfavorable rumors, stories, and events.

Sales Promotion

Activities based in marketing that stimulate consumer purchases and improve retailer effectiveness and cooperation.

Strategic International Alliance (SIA)

A Strategic International Alliance (SIA) is a business relationship between two or more companies to share mutual need and risk in achieving a common objective. Example: Alliance and licensing agreements between APPLE, MOTOROLA, and IBM to develop Power-PC platforms.