Page 246 - Foundations of Marketing

Reaching Global Markets | Chapter 8 213

Figure 8.1 Levels of Involvement in Global Marketing

Globalized marketing
Marketing strategies are developed for the entire world
(or more than one major region), with the focus on the
similarities across regions and country markets.

Regional marketing
Marketing strategies are developed for each major region, with
the countries in the region being marketed to in the same way
based on similarities across the region’s country markets.

Multinational marketing
International markets are a consideration in the marketing
strategy, with customization for the country markets based on
critical differences across regions and country markets.

Limited exporting
The firm develops no international marketing strategies, but
international distributors, foreign firms, or selected
customers purchase some of its products.

Domestic marketing
All marketing strategies focus on the market
in the country of origin.

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Importing and Exporting
Importing and exporting require the least amount of effort and commitment of resources.
Importing is the purchase of products from a foreign source. Exporting , the sale of products
to foreign markets, enables firms of all sizes to participate in global business. A firm may find
an exporting intermediary to take over most marketing functions associated with marketing
to other countries. This approach entails minimal effort and cost. Modifications in packag-
ing, labeling, style, or color may be the major expenses in adapting a product for the foreign
market.
Export agents bring together buyers and sellers from different countries and collect a
commission for arranging sales. Export houses and export merchants purchase products from
different companies and then sell them abroad. They are specialists at understanding custom-
ers’ needs in global markets. Using exporting intermediaries involves limited risk because no
foreign direct investment is required.
Buyers from foreign companies and governments provide a direct method of exporting
and eliminate the need for an intermediary. These buyers encourage international exchange
by contacting overseas firms about their needs and the opportunities available in export-
ing to them. Indeed, research suggests that many small firms tend to rely heavily on such i mporting The purchase of
native contacts, especially in developed markets, and remain production oriented rather products from a foreign source
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than market oriented in their approach to international marketing. Domestic firms that e xporting The sale of products
want to export with minimal effort and investment should seek out export intermediaries. to foreign markets

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