lecture 3 Flashcards
initial considerations
should the company internationlise at all
- globalisation makes the world increasingly internconnected
- it offers opps to compnaies so many are trying to extend their operations to international markets
- howeever globalisations implies risks too
- therefore companies need to be well prepared to internationlise successfully
decision making determinants
to internationalize
external - uncontrollable, related to the marketing environment
internal - related to companies resources and competences
decision making matrix
the framework helps to est whether to stay at home or further strengthen the global position
ext envir
industry globalism
is uncontrollable dimension, determined by global marketing environment;
- high degree indicates interdependence of markets, customers and suppliers, industry dominated by few global companies eg aircraft and smart phone producers, film industry
- low degree indicates independent multi domestic markets - culturebounded industries eg hairdressing, specefic food
internal envir
preparednss for internationalism
- controllablee dimension related to organisational capabilties - skills, experiences, resources
- the well prepard firm (mature) has a good foundation to dominating the international markets
domestic marketing
- single marketing environmental
- defined geographical boundary
- well known consumer needs
- market monitory to identify potential treats of imports
international marketing
- exploring markets
- beyond the national market
- focus on exporting to close countries ( to satisfy similar consumer needs)
global marketing as a mind set
- world has no centre
- it is a borderless global marketplace for products and resources
- almost anything can be sold and produced everywhere
international marketing orienatation
EPRG framework
EPRG framework
ethnocentric orientation
- consumer needs in home country are the most relevant
- focus on similarities in other countires; practices that succeed at home will be successful eveerywhere
- an extension approach; foreign operations are secondary to the country in which the company is headquartered
- forign markers are dumping grounds, marketing research and manufacturing midifications are limited
ethnocentric orientation
key features, adv,dis, common in
key features
- centralized decision making
- reliance on domestic methods
- assumes domenstic products will universally succeed
adv
- simplied management and control
- economies of scale
dis
- potential cultural insensitivity
- missed market opps
- inefficient strategies for foreign markets
common in
- early internationalization stages
- firms with strong domestic market presence
EPRG framwork
polycentric orientation
- multi domestic/ multinational
- each country is unique and should be targeted in a different way
- national subsidaries develop own business and marketing strategies
- control is decentralied communication is limited
polycentric
problems, responsee, key features
problem - choatic growth lack of communication and coordination-development of local offers
response - from angela ahrendts ceo leverage franchise, global brands;
- product accessories
- price; affordable luxury
- distribution; exculsive
- communication; diverse
key features
- each market is approached individually
- local personnel and practices are valued and priotized
- marketing strategies tailored to each specefic market
adv
- greater adaption to local preferences
- minimizes adaption to local preferences
limitations
- highly decentrlalized approach
- may lead to ineffeciencies due to lack of standardization
- can be costly and time conusming
- potential for inter subsidiary conflicts
EPRG
regioceentric orientation
- coordinating marketing activites within but not across geographic regions
- eg 4 autonomous GM regional executives - 270 different radios installed in cars around world
- talking about becoming a global as opposed to a multinational company that implies that the centeers of expertise may reside anywhere
regiocentric orientation
key features adv dis
key features
- regional strategy; market strategies are developed for regional blocs eg eu, nafta
- shared mangement; staffing and management practices are common within the region
- intergration; seeks a balanace between global intergation and local responsiveness
adv
- flexiblity ; more adabtable than ethocentric but more structured than polycentric
- effeicency can acheive economes od scale within regions
- cultural understanding recognizes cultural similarites within regions
limitation
- regional limitation can overlook country specefic nuances
- potential for isloation ; regions can beocme silos if not inegrated globally
EPRG
geocentric orientation
- world is a singular potential market
- product and services can be offered worldwide but with potential adaptations
- as compnies progress in inteernationalisation country to country similarites and differences in thee conusmer needs and prefereences becomee increaignly appareent
- apple ; offering globally standarized products but adapting marketing stragegies to local cultures and preefeences
geocentric orientation
key features, adv, limitations
key features
- global approach to markets
- recognises similairties and differences in global market
- adopts integrated strategies for different markets
adv
- greater flexibility in strategy
- ability to leverage good practices across markets
- potential for a competitive edge globally
limitations
- may require greater resources
- requiree coordination between headquarters and subsidaries
- can be challenging to strike the right balancee between local and global
global marketing
companiy commitment to coordinate its marketing acitvites acorss the national boundaries in order to find and satsify global consumer needs better than the competition
this implies companu is able to;
- develop a global marketing strategy based on similaries and differences between markets
- exploit the knowlegde through worldwide learning and adaptions
- transfer knowledge and best practices from any market ans use them in other internationsl markets
- global marketing strategy
global marketing strategy
based on similarities and differeences between markets they imply 2 opposite approaches
- globalisation (standarisation); the unique offer for satisfying the same needs of people around the world
- localisation (customermisation, adaptation); consumers in different parts of the world have different needs and preefrences and reuqie different offers
