Approaching International Marketing (UNIT 2)

Approaching International Marketing involves navigating various factors to

successfully expand a business or product into global markets. Here’s an overview of how
companies typically approach international marketing:

1. Market Research

 Understanding Global Markets: Conducting in-depth research to understand

different markets, customer needs, economic environments, and cultural preferences.
 Identifying Opportunities: Finding regions or countries where the product or service
has potential based on demand, competition, and market readiness.

2. Cultural Considerations

 Cultural Adaptation: Tailoring marketing strategies to fit the cultural norms, values,
and behaviors of each target market. This may include localizing language, aesthetics,
and even messaging tone.
 Consumer Behavior: Different regions have varying attitudes towards products,
services, and brands. Understanding how local consumers make purchasing decisions
is crucial.

3. Market Entry Strategy

 Exporting: Selling products directly to foreign markets from the home country.
 Licensing and Franchising: Allowing a foreign company to produce or sell products
using your brand.
 Joint Ventures: Partnering with local businesses to leverage their market knowledge
and networks.
 Direct Investment: Establishing operations, manufacturing, or offices in a foreign
market.

4. Legal and Regulatory Compliance

 Understanding Local Laws: Each country has unique business regulations, including
those on advertising, consumer protection, and intellectual property.
 Tariffs and Trade Barriers: Companies must navigate taxes, tariffs, and
import/export restrictions to enter new markets.

5. Pricing Strategy

 Local pricing: Be mindful of purchasing power, currency fluctuations, and taxes

when setting prices. You may need to tailor your pricing for different markets.
 Distribution and logistics costs: Factor in the cost of getting products to market,
including customs duties, shipping, and warehousing.
6. Distribution and Supply Chain

 Local partners: Identify and collaborate with local distributors, wholesalers, or

retailers to enter the market. In some cases, joint ventures or partnerships may help
overcome market entry barriers.
 Digital channels: E-commerce and digital marketplaces provide opportunities to
reach international customers more efficiently.
 Supply chain management: Ensure you have a reliable supply chain to meet demand
in different regions, especially in terms of production, transportation, and
warehousing.

7. Digital Marketing and Social Media

 Localized digital marketing: Tailor online content (websites, social media, ads) to
local preferences and platforms. For example, in China, you’d need to focus on
platforms like WeChat or Baidu rather than Instagram or Google.
 SEO and SEM: Localize search engine optimization and marketing efforts to target
relevant keywords in the local language.
 Influencer marketing: Collaborate with local influencers who have a deep
connection with the target audience.

8. Cross-Border Branding

 Global brand consistency: Ensure that your brand identity, values, and mission
remain consistent across markets.
 Local brand perception: However, be mindful of how your brand is perceived in
different countries and adjust your messaging or positioning accordingly.

9. Sales Channels and Distribution

 Omnichannel strategy: Integrate both online and offline channels. Ensure your
product is accessible through a variety of mediums like local retailers, e-commerce,
and direct sales.
 Exporting and franchising: Choose the appropriate method of market entry, whether
exporting directly, using intermediaries, licensing, or franchising.

10. Performance Monitoring and Feedback Loop

 Track metrics: Monitor sales, customer engagement, and brand performance in each
market.
 Adjust and optimize: Use the insights from data to tweak your marketing strategy,
product offerings, or pricing to suit market conditions better.
What is International Marketing Research?
International marketing research involves studying and analyzing markets outside a
company’s domestic boundaries to make informed decisions for global business expansion.
International marketing research requires a deep understanding of diverse cultures, as
consumer behavior, preferences, and market dynamics can vary significantly across
countries. International marketing research helps in identifying viable entry strategies for
international markets. This involves assessing the regulatory environment, and competition,
and understanding the economic landscape.
Significance of International Marketing Research
1. Global Market Understanding: International marketing research provides businesses
with a comprehensive understanding of the global marketplace. It helps identify and
analyze diverse consumer preferences, cultural variations, economic conditions, and
regulatory landscapes. This understanding is essential for tailoring products, services, and
marketing strategies to specific international markets.
2. Informed Decision Making: Informed decision-making is a cornerstone of successful
international expansion. Through thorough research, companies can gather data on market
potential, competition, and consumer behavior in different countries. This information
allows businesses to make strategic decisions related to market entry, product adaptation,
pricing strategies, and promotional activities.
3. Risk Mitigation: International markets come with inherent risks, including political
instability, economic volatility, and legal complexities. Marketing research enables
companies to assess and anticipate these risks, allowing them to develop strategies for risk
mitigation. This proactive approach enhances the chances of success and minimizes the
impact of unforeseen challenges.
4. Resource Optimization: Conducting international marketing research helps in
optimizing resource allocation. It allows companies to allocate resources more efficiently
by focusing on markets with the highest potential for success. This includes identifying
target demographics, understanding consumer needs, and aligning products and marketing
messages with the preferences of the target audience.
Process of International Marketing Research
The following steps are involved in carrying out international marketing research,
1. Defining the Research Problem
The first step in the marketing research process is defining the research problem. This
denotes that the objective or purpose of the research study should be clearly laid down. This
is essential to give a clear direction to research and to avoid confusion. The research
process thus begins with defining the research problem and establishing specific research
objectives. Market researcher must be sure that the problem definition is sufficiently broad
enough to cover the entire range of response possibilities, and not be clouded by his self-
reference criterion. Defining the research problem is vital in collecting the required
information, avoiding gathering irrelevant information, and analysing and interpreting data.
Thus, defining the research problem may be the pivotal task in the entire study. In defining
the problem, two important considerations are taken into account, that is market structure
and product concept. Market structure denotes the size of the market, its stage of
development, the number of competitors and their market shares, and the channels through
which the market is reached. The meaning of the product in a particular environment refers
to the Product Concept.
2. Carrying out Situational Analysis
Situational analysis helps in defining the research problem more clearly and may also
enable the formulation of the research hypothesis. Situational analysis is particularly
significant when marketing research is conducted by an outside agency, because the
situational analysis is intended to familiarise the researcher with the company and its
environment, hence making the problem more comprehensible to the researcher. The
researcher analyses the situation by obtaining relevant information about the company, its
competitors, and other information pertinent to the problem.
3. Conducting Informal Investigation
This stage is in fact an extension of the previous stage. Situational analysis is mainly
confined to information from company sources, but in this stage, the researcher collects
more information from external sources, such as competitors, middlemen, advertising
agencies, customers, etc. In some cases of research problems, the required information will
be obtained by this step so that it will not be necessary to continue the research. But, if the
formal investigation reveals the necessity for a further investigation, the next step will have
to be taken; i.e., formulating a research design.
4. Formulating a Research Design
A research design is the specification of methods and procedures for obtaining the required
information. It is the overall pattern of the framework of the research project that stipulates
what information is to be gathered from which sources and by what procedures. A research
design thus spells out the type of information required, the sources of the information, and
the methods or techniques of data collection.
5. Collection of Information
As the research design states the information requirements, sources of information, and
methods of data collection, the next step taken will be the collection of data. The marketer’s
lack of familiarity with a country’s basic socio-economic and cultural patterns results in a
huge demand for information, which can be available both from primary as well as
secondary sources. Availability, reliability, comparability, and validating of data are some
of the problems encountered with secondary data. Most countries do not have governmental
agencies that collect data on a regular basis which might be needed by a marketer.
6. Processing, Analysis and Interpretation of Data
Once the data have been collected, the next step in the research process is the analysis and
interpretation of findings in light of marketing problems in order to produce meaningful
guides for management decisions. Presentation of research findings is the final step, for
which the data must be analysed and interpreted. The raw data collected have to be
processed and presented in an appropriate form, such as tables to make them easily
amenable to analysis. Analysis should be followed by interpretation, which consists of
expressing the findings in more meaningful terms, such as percentages, and drawing useful
inferences from them.
7. Presentation of Research Findings
The information extracted from the respondents will not serve the intended purpose unless
provided to decision-makers in a timely manner. High-quality international information
systems design will be an increasingly significant competitive tool as businesses are going
international and resources must be invested accordingly. The research findings should be
presented in an appropriate form depending upon a number of factors like the nature of
research, its purpose and use, the persons who use them, etc.

Challenges of Segmenting International Markets

As we’ve outlined in this chapter, companies can’t be all things to all people because buyers
differ in terms of their needs, wants, and demands. Accordingly, just as with consumer
markets and B2B markets, companies typically find it necessary to segment international
markets.
That’s not to say that segmenting international markets is easy; rather, the reverse is true: it
adds a whole new set of complications, including differences in cultural, economic, and
political environments in various countries. Additionally, because of those cultural,
economic, and political differences, consumers in international markets tend to be more
diverse in character than domestic markets. Moreover, the range of income levels and
populations and the diversity of lifestyles in international markets tend to be significantly
greater than in the domestic market. Accordingly, a single marketing strategy for all segments
is questionable at best.

Advantages of Segmenting International Markets

The advantages of segmenting international markets aren’t all that different from the
advantages of segmenting the consumer or B2B markets, but there are some subtle
differences. A marketer in the United States may have a much easier time understanding the
needs and wants of US consumers, but that may not be the case with international consumers.
Segmenting the international market and conducting market research allows the marketer to
have a better understanding of international customers. It also enables the marketer to identify
similarities and differences across international markets, which may lead them to combine
segments across countries or even regions.

Methods of Segmenting International Markets

There are four primary methods of segmenting international markets,

Geographic Segmentation

Just as with domestic markets, international markets can be segmented geographically. A

company might segment by regions, such as Western Europe, the Middle East, Africa, Latin
America, etc. Keep in mind, however, that although geographic segmentation groups
countries by location, they may be very different from one another in other respects. For
example, if you were to consider the countries included in a Western European region, you’d
find that, both culturally and economically, the United Kingdom and Scotland are very
similar, but both differ significantly from neighboring Ireland. Similarly, people in West
Africa tend to share similarities in dress, cuisine, and music, but these characteristics aren’t
shared extensively with groups outside of West Africa.

In terms of geographic segmentation, marketers also need to consider the infrastructure of the
country—the basic physical systems of the nation, such as roads, sewage treatment,
communication, water treatment, electricity, etc. You may have the best product for the
consumers in the international market segment, but if the infrastructure is such that you can’t
reasonably get the products to the consumers, that represents a restraining force that limits the
opportunity.

Although the project is controversial, China has invested billions of dollars in an effort to
strengthen its economy and global trade through its Belt and Road Initiative (BRI), a vast
network of railways, energy pipelines, and highways through six economic corridors, both
westward through former Soviet republics and southward to Pakistan, India, and Southeast
Asia. In order to expand maritime trade traffic, China is investing in port development along
the Indian Ocean, from Southeast Asia to East Africa and parts of Europe. The BRI spans a
multitude of infrastructure projects intended to promote the flow of goods and foreign
investment and is expected to impact more than 80 countries.

Segmentation Based on Political and Legal Factors

As you’ve seen from our discussion of segmenting consumer markets, it’s often done on the
basis of factors such as age, gender, product usage, personality, etc. That’s true as well in
international markets, but the marketer needs to add still another dimension: country
characteristics. These characteristics are typically political and legal factors, such as the type
and stability of the government, how receptive the government is to foreign firms, monetary
regulations, and how complex the bureaucracy of the nation is. There are numerous other
governmental policies that can interfere with international trade, such as tariffs (taxes
imposed on imports), import quotas, currency controls, and local content requirements.

In 2022, in response to Russia’s invasion of Ukraine, major sanctions have been put in place
against Russia by the United States, the European Union, and the United Kingdom. For
example, the United Kingdom imposed a 35 percent tax on some Russian imports, and
several international companies like McDonald’s, Coca-Cola, Starbucks and Marks &
Spencer have either suspended operations in Russia or have withdrawn altogether. It doesn’t
take much to imagine the financial impact on Russia as a result of these sanctions.

Segmentation Based on Economic Factors

Still another way to segment markets internationally is on the basis of economic factors—the
level of economic development and the income levels of the population. This is often
differentiated on the basis of whether the country is developing, developed, or
underdeveloped. This classification is based on the nation’s economic status (i.e., gross
domestic product, gross national product, per capita income, degree of industrialization, and
standard of living).

Developed countries typically have a high rate of industrialization and a relatively high level
of individual income. Unemployment and poverty are typically low in developed nations, and
citizens enjoy a relatively high standard of living, along with higher life expectancy.37 It’s
likely in developed nations that companies will focus their international marketing efforts.
According to the United Nations in 2020, 36 countries were classified as developed;
interestingly enough, all of these countries were located in either North America, Europe, or
“Developed Asia and Pacific.”

Developing countries, on the other hand, have a lower standard of living, a lower per capita
income, and a slow rate of industrialization. Unemployment and poverty tend to be relatively
high compared to developed countries, as are infant mortality rates. The United Nations
categorized 126 countries as developing, and all of these were located in either Africa, Asia,
Latin America or the Caribbean.

Underdeveloped countries are less developed economically than most other nations. These
countries typically have little industry, and the standard of living is considerably lower than
in developed or developing countries. Infrastructure may also be compromised in terms of
roads, sewage treatment, water quality, etc. As a general rule, although there may be an
attractive market for your company’s product or service in an underdeveloped country, the
challenges of getting the product into the customer’s hands are often difficult to overcome.

Segmentation Based on Cultural Factors

Cultural factors, such as common language, religions, values, and attitudes, can also be used
to segment a country or region. McDonald’s uses a “think global, act local” strategy to help
meet the cultural needs of various market segments. On one hand, it offers a standardized
menu of offerings worldwide, like McNuggets and the McFlurry. On the other hand, it
customizes other offerings on its menu to adapt to the cultural requirements of consumers.
For example, in India, in order to appeal to vegetarian and non-beef-eating customers,
McDonald’s introduced the Maharaja Mac, which is made with a corn and cheese patty. The
company also used the term “Maharaja” to appeal to India’s history and liking of royalty and
called it the “Social Burger” to suggest that it can be eaten quickly, giving people more time
to spend with friends.

McDonald’s not only customizes its menu based on where it operates, but it also customizes
its digital and TV advertisements depending on each country and consumer segment. For
example, in Singapore, McDonald’s ads attempted to appeal to consumers’ love of nightlife
by showing how McDonald’s can enhance a night out, whereas in the United Kingdom, the
company created cartoon ads focusing on Happy Meals to attract the large segment of
children in the UK.

Not to be outdone by McDonald’s, Burger King also offers a wide variety of international
menu items that aren’t available in the United States. Did you know that there’s a Spicy
Shrimp Whopper available in Japan and a SufganiKing (Donut Burger) in Israel? In Norway,
where there is one sauna for every two people, Burger King opened a fully operational spa
complete with a 15-person sauna and media lounge where customers can enjoy their meals.

One model that is particularly useful in assessing culture is social psychologist Geert
Hofstede’s cultural dimensions, originally published in the 1970s. Hofstede had
studied IBM employees in over 50 countries and identified five dimensions that could be
used to distinguish one culture from another. Four of these dimensions directly affect
marketing in different cultures:

 Power Distance Index (PDI). This dimension refers to how much power inequality
exists within a culture and the degree to which people are accepting of this inequality.
A high PDI score suggests that society accepts an unequal distribution of power,
whereas a low PDI score means that power is shared and widely dispersed. If you’re
curious, the United States has a moderately low PDI score of 40 on a scale of 1 to
100, compared to a world average of 55. This means that the United States is less
accepting of hierarchy and authority than nations such as Malaysia, which has the
highest power distance index in the world. This cultural dimension plays an important
role in marketing because, in countries where there is a high power distance index,
marketers need to appeal to the leadership or the head of the family, whereas in low
power distance index countries, it’s more important to reach a broad range of
“ordinary” people who will be the ultimate decision makers.
  Individualism versus Collectivism (IDV). This dimension refers to whether the
culture emphasizes the needs and goals of the group as a whole or whether individual
needs are paramount. Think of individualism and collectivism as an “I” versus a “we”
orientation. An individualistic society places emphasis on attaining personal goals,
whereas a collectivist culture places emphasis on group goals and the well-being of
the group. The United States has a very high individualism score of 91, compared to
many Latin American countries such as Ecuador and Guatemala, which have single-
digit individualism scores. The implications for marketing are important here because
for countries with high individualism, the marketing messages should emphasize how
your products or services benefit them individually, such as by saving time and
rewarding themselves. On the other hand, in countries with a low individualism
ranking, it’s more important to stress how buying your company’s products will
benefit the community as a whole.
 Uncertainty Avoidance (UAI). This dimension refers to the degree to which a
society avoids risk or ambiguity. Societies with a high degree of uncertainty
avoidance compensate for this uncertainty by establishing rules, policies, and
procedures, whereas societies with low uncertainty avoidance more readily accept
change. The UAI for the United States is 46, putting it into the moderate range
compared to European nations like Italy (UAI of 75) and Poland (UAI of 93). Let’s
consider how this affects marketing. Cultures with high uncertainty avoidance
generally prefer to have product characteristics clearly spelled out, complete with
product warranties and money-back guarantees. For example, if you want to market
automobiles in that type of culture, it would be important to focus on the safety
features of the car. Conversely, cultures with low uncertainty avoidance are more
accepting of trying something new.
 Masculinity/Femininity (MAS). This dimension refers to the degree to which
gender-specific roles are valued in the society: Are “masculine” values such as
achievement, ambition, and acquisition or “feminine” values such as quality of life
and service to others valued more? In countries with a high masculinity ranking (e.g.,
Japan), men are intended to lead; women are supposed to follow. This is in direct
contrast to countries with a low masculinity ranking (such as the United States and
Canada), where women are treated equally to men and gender roles are more fluid.
Societies with low masculinity would tend to respond negatively to gender-oriented
promotion, so a neutral approach that appeals to both men and women would be more
appropriate. Consider how many brands in the United States focus on female
empowerment and positive body image. That type of advertising would not appeal to
a society with a masculine orientation.

Target market selection in international

marketing
Target market selection in international marketing is a critical process where a company
identifies and chooses which foreign markets to enter and focus on. The process is more
complex than in domestic markets due to additional factors such as cultural differences,
political environments, economic conditions, and varying consumer behaviors. Here are the
key steps and considerations for effective target market selection:

1. Market Segmentation
International markets can be divided into segments based on various criteria, including:

 Geographic: Country, region, climate

 Demographic: Age, gender, income, education, occupation
 Psychographic: Lifestyle, values, attitudes
 Behavioral: Usage rates, brand loyalty, benefits sought

By segmenting, companies can tailor their strategies to the specific needs and characteristics
of each market.

2. Assess Market Potential

Evaluate the size, growth potential, and overall attractiveness of each market. Key factors
include:

 Market Size: Population, demand for the product or service

 Market Growth Rate: Is the market expanding or contracting?
 Competitive Landscape: How saturated is the market? Who are the competitors?
 Economic Environment: GDP, income levels, purchasing power

3. Consider Entry Barriers

Assess any obstacles that might make entering a particular market more difficult or costly,
such as:

 Tariffs and Trade Barriers: High tariffs, quotas, or trade restrictions

 Legal and Regulatory Issues: Compliance with local laws, product standards, and
business regulations
 Cultural Barriers: Differences in language, consumer preferences, or social norms
 Logistics: Transportation costs, distribution channels, and infrastructure

4. Analyze Competitive Intensity

Understand the competition in the market, which includes:

 Local Competitors: Established local companies with strong market knowledge

 Global Competitors: Other international firms vying for market share
 Market Share and Differentiation: How differentiated is your product, and what is
the level of price competition?

5. Economic and Political Environment

Consider the stability and attractiveness of the country's economic and political environment,
including:

 Political Stability: Risk of political unrest or corruption

 Economic Conditions: Inflation rates, exchange rates, employment levels
 Government Incentives or Restrictions: Foreign investment incentives, subsidies, or
constraints
6. Cultural Compatibility

Cultural alignment between the brand and the target market is critical. Some markets may
require more adaptation, while others are more open to foreign brands. Key cultural factors to
consider include:

 Consumer Behavior: How do people make purchasing decisions?

 Communication Styles: Preferences in advertising tone, directness, or symbolism
 Brand Perception: How is your country of origin perceived?

7. Company Objectives and Resources

Assess whether the target market aligns with the company’s long-term strategic goals and
available resources, including:

 Financial Resources: Can the company afford the market entry and ongoing
operations?
 Managerial Expertise: Does the company have the knowledge and personnel needed
to operate effectively in the chosen market?
 Adaptation Capability: Can the company adapt its product or marketing approach
for different markets?

8. Risk Assessment

Identify and evaluate potential risks of entering each market, such as:

 Currency Fluctuations: Exchange rate volatility

 Political Instability: Risk of political upheaval, civil unrest
 Legal and Regulatory Risks: Changes in laws or policies affecting trade, taxation, or
intellectual property

9. Select Target Markets

After analyzing all factors, prioritize the markets based on their overall attractiveness and the
company’s ability to succeed. Markets can be classified into:

 Primary Markets: High-potential markets with significant opportunities

 Secondary Markets: Moderate potential but worth exploring further
 Tertiary Markets: Low potential or high-risk markets to avoid or deprioritize

10. Develop Market Entry Strategy

Once target markets are selected, the next step is to decide how to enter. Entry strategies may
include:

 Exporting: Selling products directly to the target market

 Licensing/Franchising: Allowing a local company to use your brand and business
model
 Joint Ventures/Partnerships: Partnering with a local business for shared operations
  Direct Investment: Establishing a subsidiary or production facilities in the target
country

International Market Entry Strategies

International market entry strategies are approaches companies use to expand their operations
into foreign markets. These strategies vary based on a company’s goals, resources, and the
nature of the market they are entering. Here's a breakdown of common international market
entry strategies:

1. Exporting

 Direct Exporting: The company sells its products directly to foreign customers or
through intermediaries. This is a low-risk and low-cost entry strategy.
 Indirect Exporting: The company uses a domestic intermediary, such as an export
agent, to sell to foreign markets. It’s less risky but may offer less control over
marketing and distribution.

2. Licensing and Franchising

 Licensing: A company (licensor) grants permission to a foreign company (licensee)

to use its intellectual property, brand, or technology. The licensee pays royalties or
fees. It’s a low-cost method, but it also limits control.
 Franchising: Similar to licensing but usually involves the franchisor giving a
franchisee the right to operate under the company’s brand and sell its products or
services. The franchisee usually receives significant support, but the franchisor has
less direct control.

3. Joint Ventures

 A company partners with a foreign company to create a new, jointly owned

enterprise. This helps share risk and investment while also combining knowledge of
both domestic and foreign markets. However, conflicts may arise regarding shared
control and profits.

4. Strategic Alliances

 These are partnerships between companies that allow for resource sharing, technology
transfer, or marketing efforts, without creating a new legal entity. Strategic alliances
are flexible but may not provide as much commitment or long-term stability as joint
ventures.

5. Foreign Direct Investment (FDI)

  Acquisition or Merger: The company buys a controlling stake in an existing foreign
business. This provides immediate access to a new market but requires significant
capital.
 Greenfield Investment: The company establishes new operations (factories, offices)
from scratch in the foreign country. It offers full control but comes with high risk and
costs.
 Wholly-Owned Subsidiary: The company fully owns and controls its foreign
operations. It provides the most control but also comes with the highest risk.

6. Contract Manufacturing

 A company outsources production to a foreign company. This helps reduce costs and
focus on core activities like marketing or distribution while leveraging lower labor
costs abroad. However, the quality control and supply chain risks are higher.

7. Turnkey Projects

 A company builds a facility for a foreign client and hands over the operations once it
is ready to run. It’s common in sectors like engineering, construction, and
infrastructure. It allows for entering new markets with limited long-term investment.

8. Piggybacking

 Smaller companies enter a foreign market by leveraging the distribution channels and
market knowledge of a larger, established firm. This reduces costs and risks but also
limits the smaller company’s control over its own product.

9. International Agents and Distributors

 Companies hire foreign agents or distributors to represent them in the target market.
Agents typically act as intermediaries, while distributors take ownership of goods and
sell them on their own. It’s a cost-effective way to enter a new market but offers
limited control.

10. E-Commerce and Digital Platforms

 With the rise of online platforms, companies can sell directly to international
customers through their websites or third-party e-commerce platforms like Amazon or
Alibaba. This approach requires less physical presence but still involves logistical
challenges such as shipping and local regulations.

Factors to Consider When Choosing a Strategy:

1. Market Potential and Size: The larger the potential market, the more significant
investment may be justified.
2. Regulatory Environment: Some countries have strict regulations regarding foreign
investment, ownership, or business practices.
3. Cost and Risk: Entry strategies differ in their capital requirements and exposure to
risk. The company should assess its ability to absorb losses.
 4. Control: Some entry modes offer more control over business operations than others.
5. Cultural Differences: Understanding local consumer behavior, values, and business
culture is essential to success in a foreign market.
6. Competition: The competitive landscape may require a different approach in highly
contested markets.

International Positioning Strategies

International Positioning Strategies are essential for companies operating in global
markets. These strategies help businesses differentiate themselves from competitors and
position their products or services in a way that resonates with international consumers. Here
are key elements and types of international positioning strategies:

1. Global vs. Local Positioning

 Global Positioning: A unified brand image and messaging across all markets.
Examples include brands like Coca-Cola, Nike, or Apple that maintain a consistent
identity worldwide.
o Advantages: Economies of scale, consistent brand message, easier
management.
o Challenges: Might not resonate with local preferences or cultural differences.
 Local Positioning: Tailoring products, services, and messaging to meet the specific
needs, tastes, and cultural preferences of each market.
o Advantages: Deeper connection with local consumers, more relevant
marketing.
o Challenges: Higher costs, complexity in management, and potential brand
inconsistency.

2. Standardization vs. Adaptation

 Standardization: Using the same marketing mix across all markets with minimal
changes.
o Advantages: Cost efficiency, streamlined production and marketing.
o Challenges: Risk of misalignment with local customer preferences.
 Adaptation: Customizing products and marketing strategies to fit the preferences of
different regions.
o Advantages: Better customer satisfaction, more relevant products.
o Challenges: Increased costs, more complex operations.

3. Cultural Positioning

 Companies can position their products as aligned with specific cultural values or as
being adaptable to various cultural contexts. For instance, McDonald’s adapts its
menu to reflect local tastes while keeping its core identity.
 Example: In India, McDonald’s offers a vegetarian menu, which caters to local
cultural preferences.

4. Price-Based Positioning
  Companies may adopt different pricing strategies depending on the economic context
of each international market.
o Premium Pricing: In some markets, brands position themselves as high-end
or luxury (e.g., Tesla, Louis Vuitton).
o Competitive Pricing: In emerging or price-sensitive markets, brands may
choose a more affordable pricing model to reach a broader audience (e.g.,
Xiaomi smartphones).

5. Product Differentiation Positioning

 Companies emphasize unique product features, quality, innovation, or technology to

stand out in international markets.
 Example: Tesla positions itself as a leader in electric vehicles through innovation and
sustainability across various markets.

6. Brand Reputation Positioning

 A company may leverage its global brand reputation to enter new markets. Brands
with a strong global presence often rely on their established credibility to attract
international consumers.
 Example: Google or Microsoft are positioned globally as trusted technology brands.

7. Ethnocentric, Polycentric, and Geocentric Approaches

 Ethnocentric: A company assumes what works in its home market will work
globally, with little or no adaptation.
 Polycentric: Each market is treated as unique, and products and strategies are fully
adapted.
 Geocentric: The company integrates a global approach while respecting local
differences.

8. Sustainability and CSR Positioning

 As consumers globally become more environmentally conscious, companies use

sustainability and Corporate Social Responsibility (CSR) to position their brands
positively.
 Example: Unilever focuses heavily on sustainability in all of its markets.

9. Technological Positioning

 Some companies leverage their technological edge to position their products in

international markets.
 Example: Samsung and Huawei focus on cutting-edge technology to differentiate
themselves from competitors globally.

Factors Influencing International Positioning Strategies:

 Market research: Understanding local consumer behavior, preferences, and market

conditions.
 Cultural differences: Taking into account cultural nuances, communication styles,
and values.
 Regulatory environment: Complying with legal and regulatory requirements in
different countries.
 Competition: Considering the competitive landscape in each market