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International Marketing

Pepsi sign in Moscow shows the logo in both English and Russian. © PETER TURNLEY/CORBIS

organizational goals. A firm is considered an international whether the firm’s resources are compatible with the for-
organization when it engages in cultivating exchange rela- eign market opportunities. If the response to this first
tionships with individuals or organizations beyond its determination is affirmative, the second consideration is
national boundaries. The decision to do business overseas the market-selection decision, that is, which foreign mar-
is usually influenced either by the domestic or global ket or markets to enter. The third decision concerns the
economy. mode of entry and operational consideration in the attrac-
Companies might be pushed into international mar- tive markets. The fourth, the marketing mix decision,
keting by the general lack of opportunity in the domestic considers the appropriate product, promotion, price, and
markets. Organizations might be pulled into global mar- distribution programs for the selected markets. Finally,
kets, without necessarily abandoning their domestic mar- the marketing organization decision determines the best
kets, by growing opportunities for their products or way for the firm to achieve and maintain control over its
services in other countries. Firms attempting to compete international business operations.
on a global basis should be aware that nations differ Once a firm has prepared a list of promising markets
greatly in their political, legal, economic, and cultural to enter, the difficult task is to collect data related to the
environments. Complexity of the international marketing market potential and environmental forces of each coun-
environment necessitates a careful consideration of try. Conducting research in the international market is
whether to market aboard, where to market, and what difficult because of language diversity, general distrust of
objectives to pursue. outsiders, high illiteracy rates in some countries, and the
prevailing local customs.
ASSESSING FOREIGN MARKETS
In general, in considering global marketing, an organiza- ENTRY MODES
tion faces five major types of decisions. First, before In general, companies select markets that rank high on
expanding the firm’s operations overseas, is to determine market attractiveness. Among factors influencing market

416 ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION