International Mkting Flashcards
International Marketing definition
marketing activities of company that serves different markets in various countries
aims at setting the stage within the company for an effective implementation of market-related activities and CRM across countries
growing importance of IM
globalization / worldwide growth in int. business operations
continued increase of int. exports
ever-increasing economic interdependencies between major economic regions of the world
multiple challenges in IM for companies
operating in multi-country context implies:
differences in environments - social/cultural, economic, competitive, technological, regulatory/polit/legal
differences in c. behavior, market segments
differences in marketing infrastrucutres: media, distribution, logistics
in response:
need to adjust to these differences
coordinate operations across national borders
“real challenge”
degree of adjustment and coordination to different markets
need for global ratonalization (economies of scale, scope)
need for local responsiveness (adaption to local markets, culture, governements)
think globally - act locally
glocal globalization (standardization) - speed, low cost production, low complexity
localization (differentiation) - culturally close to customer, flexible response, regional/local market penetration
history of internationalization
1950-1970 multinational phase
1970s global phase
2000s anti-globalization phase
five major drivers of globalization
market competitive cost technology government
increasing importance of emerging markets
gdp growth slows down
first world / mature markets become saturated
local marketing environments
emerging markets
- unsophisticated customer weak purchasing power, great lack of infrastructure
new growth markets in newly industrializing economies
- more demanding customers, rapidly developing infrastructure
mature markets
- slow growth (except technology), intense competition for customer satisfaction
characteristics of emerging markets
market structure
-affordability and accessibility z premium p&s
competitive environment
-need for market creation,developement, strong brands & longer product-lifecycles
socio/political environment
-necessity to reevaluate competitive advantage and to integrate ventures into local context
resource supply
-effective management and innovation of affordable, versatile and often disruptive p/s
infrastructure
-adaption of marketing mix and usage of available and creative marketing tools
four tier structure of emerging markets
global - willing to pay global prices
glocal - demand customized products
local
bottom - 4bn affordable category
PESTLE Analysis
politicaal economic,…
how to assess market growth
measure of growth that measures annual growth rate in % for specific period of time
result is a steady hypothetical growth rate
country entry evaluation procedure
stage 1 country identification
stage 2 preliminary screening
stage 3 in-depth screening —– pestle
stage 4 final selection
CAGR advantages disadvantages
+
easy to calculate and understand
low information and time requirement
valuable initial indicator for assessing a country´s performance in a specific market
-
relative measure, absolute volume not considered
measurement method: only two points used
volatility and possible stagnation is ignored
based on historical data - valid for future?
market expansion strategy (matrix)
countries x segments
concentration
diversification
- narrow focus, 2. country focus, 3. country diversification, 4. global diversification
timing selection
waterfall strategy
sprinkler strategy
waterfall strategy
principle of concentration
int markets entered gradually
excessive market research
customization of marketing activities
sprinkler stratgey
principle of diversification
activity in as many markets as possible (in short time)
high standardization of marketing activities
failure and withdrawal from some markets accepted
waterfall +-
\+ time for building up fin and personnel resources time to learn from beginner problems distribution of risk (over time) pot. expansion of product lifecylcle
-
competitors can leapfrog
sprinkler +-
+
first mover advantage / market entry barriers vs followe
distribution of risk (regionally)
capacity utilization, volume for products
making full use of comp edge
-
need for many financial and personnel resources
(in short time period)
major losses in case of strategy failure
entry decision recommendations
company-internal factors
limited resources, risk-averse, low int. experience
company-external factors
high entry barriers and costs, heterogeneity
competitive factors
high degree of globalization in industry
short product lifecylces
high profitability of pioneer strategy
internal/external -x waterfall
comp. factors -x sprinkler
standardization
uniform global/regional product strategy
capitalizes on commonalities in customer needs
cost saving passed on via low prices
-x product driven orientation: lower cost mass product
customization
country tailored product strategy
focus on cross-border differences of target customers
appropiate changes are made to match local market conditions
-x market driven orientation increase customer satisfaction by adapting products to local needs
mixed approach
modular - parts used worldwide
common platform - attachments to match local requirements
standardization +-
+
cost reduction
cater global segments
important in very competitive categories
-
off-target/failure to meet local customer needs
lose foreigness and COE
vulnerability to trade barriers
avoid over-standardization
over-customization
factors speaking for standardization
customer similarity
interdependence of market
cost synergies
appropriateness and brand fit?
make sense?, positive country association effect?
change-over strategies
fade-in /fade-out - combine new global brand with existing
transparent forewarning - inform customer intensely
summary axing - over night replacement
COE
country associated / HQ
country image has halo effect on evaluation of product
not stable over time, customers might be informed about country,
influence of demographics
product category
marketing mix 3 cs
extension
channels, government policies
company
competitor
customer
costs set floor to pricing
collusion, opportunistic, predatory pricing
price sensitivity sets ceiling to pricing
distribution channels
government policies
variation of type and length of channel
arbitrage opportunities -x gray imports
government policies
direct impact on pricing ( sales tax, tariffs)
indirect impact on pricing (int. rates, currency, inflation)
variations in distribution and government policies lead to price differentials between countries
benefits and dangers of int. price differentiation
…..
reasons for standardizing and differentiating price
…..
Three well known cultural typologies
Hofstede
Trompenaars
Hall
factors for standardization differentiation in global communication?
….
