International Marketing Strategy Models and Starbucks Business Strengths

Different Marketing Orientations in International Business

Understanding the approach a company takes when entering foreign markets is crucial. These orientations dictate the level of adaptation required for the marketing mix.

1. Domestic Market Extension Orientation

This orientation is illustrated by a domestic company seeking sales extension of its existing domestic products into foreign markets. It is typified by the belief that, if a product sells successfully in the home market, it will sell anywhere else in the world.

Minimal efforts are made to adapt the marketing mix to foreign markets; the firm’s orientation is to market to foreign customers in the same manner as the company markets to domestic customers. It seeks markets where demand is similar to the home market and where its domestic product will be acceptable. This domestic market extension strategy can be very profitable.

2. Multi-Domestic Market Orientation

A company's orientation towards international marketing may shift to a multi-domestic market strategy. A company guided by this concept has a strong sense that country markets are vastly different and that market success requires an almost independent program for each country.

Subsidiaries operate independently of one another in establishing marketing objectives and plans. The domestic market and each of the country markets have separate marketing mixes with little interaction among them.

3. Global Marketing Orientation

In this orientation, marketing activity is global, and its market coverage is the world. A company employing a global marketing strategy strives for economies of scale by developing a product to be sold at a reasonable price to a global market that is somewhat similar to the home market.

The global marketing orientation views an entire set of country markets as a unit, identifying groups of prospective buyers with similar needs as a global market segment, and developing a marketing plan that strives for some level of standardization wherever it is culturally and cost-effective.

Starbucks: Key Business Strengths

Starbucks demonstrates significant competitive advantages in its operations and market approach:

• Market Position: They maintain a strong position with few direct competitors in certain specialized market segments (MS).
• Operational Efficiency: They are able to build a new store in approximately 16 weeks and typically recoup the initial investment within 3 years.
• Distribution and Communication: Because they have a high density of stores in the same locations, distribution logistics and internal communication are streamlined and easier.
• Technological Integration: Starbucks leverages technology; customers can pay using their mobile phone before arriving at the store, offering speed and efficient service solutions.