Data on
potential markets
Corporate
level
External environment
Business
Selection of
Level of commitment
level
entry methods
Resources/capabilities
Functional
level
Organization/
allocation of
resources
FIGURE 6.1
The decision sequence in interna tion al marketing
The Corporate Level
We begin at the corporate level, where
decide whether to become involved in inter-
national markets and determine the resources they are willing to commit. Thus, th is stage
is primarily concerned with the analysi s of international markets. Decisions here will be
dependent on matching the results of that analysis with the company's objectives. These
objectives, in turn, will be determined by the many motivating factors we have discussed
in the earlier sections. The level of resources that the company is willing to commit should
be determined by the strategy that
needed to achieve the objectives that have been set.
The Business Level
Business-level
begin
the assessment of the stakeholders
business. It is important to clearly identify the different stakeholder groups, understand their and evaluate
power, because the stakeholders provide the broad guide-
THE INTERNATIONAL MARKETING PLAN
135
lines within which the finn operates. In the case of international marketing, it is particu-
larly important to address the concerns of the stakeholders in the host company.
Recall from Chapter 1 that the situation analysis concerns a thorough examination
of the factors that influence the businesses ' ability to successfully market a product or serv-
ice. The results lead to a realistic set of objectives. Conducting a situation analysis in an
international setting is a bit more extensive. It not only includes the normal assessment of
external environmental
and resources/capabilities, it also includes a determination
of the level of commitment exhibited by the business, as well as possible methods of entry.
These last two factors are interrelated in that a company's level of commitment to interna-
tional markets will directly influence
they employ exporting, a joint venture, or
some other method of entry.
In turn, level of commitment and
of entry are influenced by the evaluation
of environmental factors as well as resources and capabilities. The latter audits not only
the weaknesses of the company, but also the strengths of the company, which are often taken
for granted. This is particularly important in international markets ;
example, customer
brand loyalty may be much stronger in certain
others, and products may be
at the end of their life in the domestic market but may be ideal for less sophisticated markets.
INTEGRATED MARKETING
•
GOING GLOBAL TAKES COORDINATION
Importing technology and the evolution ,of a global economy
its name recognition in Europe, the company teamed with
has made global marketing a reality for many American com-
clothing manufacturer Benetton, an established name there.
panies. Larger corporations are not alone in their p ursuit of
PedEx sponsors one of Benetton's formula ' racing cars in
business abroad: the Department of Commerce reports that
Europe.
60% of American firms ex.porting products today have fewer
Karen Rogers, manager of key customer marketing at
than 100 employees. Ametican bus inesses have plenty of
FedEx, added that sponsoring events domestically or inter-
sons to market their products in other countries. According
nationally also gives a company the opportunity to meet with
to consulting fir m Deloitte and Touche, about 95% of the
perspective customers in a social setting and affords a series
world's population and two-thirds of its total purchasing power
of spin-offs, such as promotions and product giveaways.
are currently located outside the U.S.
In distributing products globally, many American corpo-
Moreover, the decision to
products in other
rations team with large multinational companies that do not
tries not only opens new markets, but can also greatly expand
offer competitive products but have the resources and
a company's business. For example, if a U.S . bicycle
expertise to distribute and market those goods. This can be a
facturer focu ses only on the U.S. market, it loses the
cost-effective alternative tosetting up operations outside the .
tunity to increase revenues in countries where bicycles are a
U.S.
primary mode of transportation.
.
Many small and mid-sized companies that are uncertain
Global 'marketing can also breathe life into a foundering
whether to open operations in another country investigate the
product, and may even extend its lifespan. Additionally, a
possibility of using an export management company. These
eign product often can command a higher price
because
companies typically provide services that range from research
consumers around the world expect foreign items to cost more.
to negotiating contracts with overseas distributors.
However, implementing a global strategy requires a great
deal of coordination. For example, many companies that have
Sources: Dom DelPrete, "Winning Strategies Lead to Global
successfull y built a strong brand in the U.S. have found that
keting Success; ' Marketing News, August 18,
pp. 1-2;
their domestic identity has little, if any, impact in markets
Frank Rose, "Think Globally, Script LocaJiy," Fortune , Nov. 8,
where they are relatively unknown. An advertis ing campaign
1999, pp. 157-16 1; Lambeth Hochwald, "Are You Smart Enough
is one way to deal with this problem. Attaching y.our
to Sell Globally?" Sales
Marketing Management. July 1998,
pp. 53-55; Erica Rasm usson, "Global Warning," Sales
Mar-
rate identity to a known, respected entityin your target
keting Management, Nov. 2000, p. 17.
ket is another. When FedEx, for example, wanted to increase
136