International Marketing Theory Flashcards
What is globalisation?
The interdependence of the world’s economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information.
What elements does a firm need to consider before they internationalise?
Culture is key!
Mobilising resources - can we do it?
Competitive edge - Will we lose our position?
Timing - When do we move?
Experience - Do we use Uppsala? Can we command the same position in other markets?
How have we met the challenge of building a consistent identity with local relevance? (EXAM QUESTION)
Which parts of the marketing mix have been adapted to resonate with Chinese consumers for IKEA?
Marketing mix PROMOTION - social media PLACE - centred stores PRICE - 60% less SERVICES - Assembly assistances
What stayed the same?
NOT PRODUCTS
Product names
What are some standardised perspectives on internationalisation?
Sustainability and the triple bottom line, a global issue
Resource-Based view
Resources and investment are key to global success
What are the benefits of acting locally or global localisation?
Having a social role can sometimes make for a better long term strategy rather than quick short term profit.
Can mean less cultural appropriation as the company can understand the role they play in the community
UN Global Goals can set the standard for good business from global brands
Why is global marketing converging with domestic marketing?
More interconnectedness in communications
Emerging economy wealth
Innovation in logistics and technology transfer
People mobility and democratisation of leadership
What is an example of global marketing converging with domestic?
Trivago - different presenters for different markets
Communication adaptation rather than a full campaign and market positioning
What is an example of a highly standardised international marketing module?
Hilton
Easier for service providers due to quality and consistency of identity
Capitalised on the same requirement needs
- effective training in country hubs to ensure people understand the corporate culture and franchises are well operated
The same could be said for WHSmith
Who is the largest consumer market?
China in 2018
Change from the US who posed great threat as power shift is more prevalent
What is the market potential outside of China?
95%
Trade surplus
What are the 6 types of marketing across borders?
Export marketing - sending products elsewhere
International marketing - greater involvement in local marketing environment
Multi-domestic marketing - limited national company tailoring to local markets eg: food and drink
eg: Tesco
Regional marketing - standardised strategies for Europe etc.
eg: Samsung with 7 design centres
Global marketing - the global MNC with high standardisation, not every market, only 8-9 true global brands
The born global
- Must have people, convergence of global and local markets and the innovation of supply chains to exist.
What is marketing?
Management process that researches, identifies and satisfies customer needs and creates exchanges of value.
Do we need to be successful at home to be successful overseas?
Sometimes it is seen that companies need to be successful in one market before moving to another.
Peter’s suggested structure:
Focus: what are the global market opportunities and threats?
Scope: Geographic market segments
Complexity and skills: domestic to multi-domestic to global
What is Cavusgil’s perspective of the knowledge base of international managers? (1998)
Go through the stages of export - international - multidomestic - regional - global.
Get country regional knowledge after gaining the domestic market knowledge and cross border transactions.
At the top cultural level, international marketers have a richer understanding of values inherent within a culture.
What is external diversity?
Cultural differences arising externally to the firm. Can be due to changes in consumer behaviour, trade barriers, language barriers
Diversity is key but this type can be the largest part of the job
eg: McDonalds in Russia
