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International versus Domestic Marketing
The article that is going to be discussed in the present essay is “International versus Domestic Marketing: Four Conceptual Perspectives” by Anne C. Perry (1990). The reason why this article was selected is that due to the current global financial crisis, the issues of globalization and entering international markets is an imperative action by the companies that want to acquire a substantial and sustainable competitive advantage. The purpose of the article is to show the differences between domestic and international marketing and recapitulate academic literature on the subject based on the four views of International Marketing.
The present paper will analyze Perry’s article and will compare it with similar articles on the subject of international marketing such as the articles by Steenkamp & Hofstede (2002) and Sheth and Parvatiyar (2001. The purpose is to study the various aspect of international versus domestic marketing as well as to examine any evolutions on the matter and suggest points for further research. At this point, it should be mentioned the imperative need on studying international marketing reactions on the current financial crisis.
International versus Domestic Marketing
The purpose of the article was to show the differences between domestic and international marketing. The writer was based on a bibliographical search of the topic by studying the theoretical views from Bartels, McInness, Kotler, Levitt, Porter etc. The purpose of the article was to show how international marketing has evolved during the years both in series and in parallel with US marketing. The nature of the article is conceptual and it is not addressed to marketing professionals in essence of providing them guidance on how to enter international markets but it aims at targeting students, researchers and teachers as well as providing them with a new look on international marketing.
The basic concept were the article was based on was Perlmutter’s typology of managers’ and companies orientation towards international business. According to Perlmutter there are three approaches for a company seeking to do business abroad mainly: ethnocentrism, polycentrism and geocentrism. Apart from Permutter’s “drama in three acts” the writer added a fourth one. These four points are what, according to the writer, form international marketing mainly ” 1) an extension of domestic/local marketing 2) a collection of national marketings 3) a form of generic marketing or 4) global marketing as the product of a new international integrative order” (Perry, 1990:43).
The writer goes on analyzing these four parts. On the analysis of international marketing as an extension of Domestic Marketing, the writer is based on Bartels’ view on ethnocentrism whereas according to Bartel marketing is a process that has two sides i.e. the technical one that is based on global concepts on how to transcend national boundaries and cultural differences and the social one where it acknowledges that there are different societal elements from one country to another. According to this view, foreign companies adapt their marketing policies to the needs of local countries but they do it grudgingly. According to this view, international marketing is an extension of domestic marketing.
Following, the writer makes an analysis of polycentrism i.e. there are many separate marketing systems for each country. According to Perry (1990) this view was evolved into a “multi-domestic” approach which suggests that there are as many marketing as the number of countries.
The third step of Perry’s analysis was focused on the International Marketing as a Form of Generic Marketing based on the definitions given by Alderson (1965) and McInnes (1964)on separations among actual and potential economic suppliers and demanders. Perry (1990) moves on Bartel’s (1970) concept of world marketing and Robinson’s (1978) view which, as the writer suggested, can be extended to international marketing since he was suggesting that there is no difference between domestic and international business.
Perry (1990) concludes that generic marketing includes all aspects i.e. international, foreign and domestic marketing and generic marketing is actually a single form of marketing which has a diversity of marketing techniques. A disadvantage, however, of generic marketing is that it does not take into consideration the exogenous change factor coming outside the local market.
Then, the writer analyses the point of international marketing as Global Marketing and the Product of a New International Integrative Order starting with Buzzel’s (1968) point of standardization meaning the offering of standard products in contrast with the offering of localized products. A basic point of her analysis on the matter was Levitt’s (1983) thesis where he stated that markets’ globalization ignores the national differences which are “vestiges of the past” (Levitt, 1983:96). According to Levitt (1983) only products that are not related to technology will be left for local marketing.
The writer goes ones analyzing the critics against Levitt position i.e. standardization of products is not always possible, that we should rather talk about “intercultural marketing”
The writer ends up presenting the parallel as well as sequential views of international marketing i.e. IM as an extension of domestic marketing, as a collection of national marketing, as a manifestation of generic marketing and finally as global marketing and recapitulates the different approaches by separating marketing systems which are different in nature and similar in nature as well as the nature of the forces shaping international marketing i.e. endogenous and exogenous.
The article of Sheth and Parvatiyar (2001) on “ The antecedents and consequences of integrated global marketing” is based on similar concepts like the ones presented by Perry (1990) and suggest that currently is followed the geocentric orientation and the globally integrated functional management approach. A substantial difference from Perry’s article is that the analyze the contextual determinants of international marketing based on the relevant literature. However, they support that international marketing does not have a theory that is well-accepted and they believe that the determinants of international marketing i.e. government policy, political stability, North-South dichotomy etc. start becoming extinct due to the development of a borderless word which is driven by technology advances, regional integration etc. Therefore, international marketing will be based more on similarities among countries rather than differences and the writers seem to support more Levitt’s view as described above.
- Quote paper
- Fotini Mastroianni (Author), 2013, The differences between domestic and international marketing, Munich, GRIN Verlag, https://www.grin.com/document/355388