There are five common marketing orientations.

The production orientation assumes that customers want lower prices or higher
quality. This approach is generally only used for commodity sales, passive exports,
and foreign niches.

The sales orientation assumes that foreign customers are similar to domestic
customers, so the company simply sells abroad what it can sell at home.

The customer orientation, in contrast, holds the country as a constant and varies
the product and marketing method.

The strategic marketing orientation adapts product strategy by degree.

Finally, the social marketing orientation considers decisions from the perspective of
all stakeholders. Firms using this approach try to act in a socially responsible way

[6-7] The big-car syndrome explains that U.S. marketers assume that products
designed for Americans are superior and that they will be preferred by foreign
consumers. U.S. automakers believe that the American desire for big cars means
that only big cars should be exported to overseas markets.

The left-hand-drive syndrome is a corollary to the big-car syndrome. Exported U.S.

cars are the same left-hand-drive models as are sold in the United States for the
right-hand traffic patterns even though many countries have traffic laws requiring
drivers to drive on the left side of the road. Both the big-car syndrome and the left-
hand-drive syndrome describe American firms' great reluctance to modify products
to fit foreign consumers' needs

The rate of product adoption is affected by the following product attributes:

relative advantage (positive relationship). The greater advantage a product

possesses, the more likely the product adoption will be. Dishwashing machines have
no relative advantage in countries that are not time-sensitive due to abundant
labor.

compatibility (positive relationship). The more a product is compatible with local

customs and habits, the more likely the product adoption will be. Hair removing or
leg shaving is not compatible with the customs of European and Asian women.

trialability/divisibility (positive relationship). The more a product can be tried in

small quantities, the more likely the product adoption will be. American automobiles
cannot be bought on a trial basis, making most foreign consumers afraid of the risks
associated with purchasing of these cars.
observation (positive relationship). The more observable a product is, the more
likely the product adoption will be. American blue jeans and cigarettes are highly
observable because they are consumed or used in the public.

complexity (negative relationship). The more complex a product is, the less likely
the product adoption will be. Computers have become much less complex due to
ready-made software.

price (negative relationship). The higher a product's price is, the less likely the
product adoption will be. Such American durable products as refrigerators and
washing machines carry high prices, making it difficult for foreign consumers to
afford them

Firms can use different pricing strategies. 17-16

A skimming strategy involves charging a high price for a new product by aiming first
at consumers willing to pay the price, and then progressively lowering the price.

Firms using a penetration strategy introduce a product at a low price to induce a

maximum number of consumers to try it.

A cost-plus strategy involves pricing at a desired margin over cost. Keep in mind
that export price escalation may occur. This typically happens for two reasons.

First, channels of distribution usually include additional intermediaries because

exporters need to contract with organizations that know how to sell in foreign
markets. Second, tariffs and transport are additional costs that may be passed on
to consumers.

Finally, remember that pricing in highly volatile currencies can be extremely

troublesome.

Promotion can vary significantly depending on the company, the product, and the
country of operation. Push promotion uses direct selling while pull relies on mass
media. [17-23]

[17-26] Companies face numerous challenges because of diverse national

environments. Very often, companies find that they have to adapt their promotion
to local market conditions. For example, companies may find that promotion in
rural areas requires specially designed strategies. Similarly, government
regulations can pose problems as can differences in income levels.

Keep in mind that even if a standardized approach is possible it may not always be
beneficial.

17-41 The difference between total market potential and a companys sales is a
result of gaps.
A usage gap exists when collectively, all competitors sell less than the market
potential.

A product line gap exists when the company lacks some product variations.

A distribution gap exists when a company misses geographic or intensity coverage.

A competitive gap exists when competitors sales are not explained by product line
and distribution gaps.