Module 2 Flashcards
refers to the ONGOING PROCESS of interaction, integration, and interdependence among people, businesses, and governments worldwide
Globalization
It involves the EXCHANGE OF GOODS, services, ideas, technology, culture, and finance across national boundaries
Globalization
Different definitions of Globalization:
He highlighted the concept of
STANDARDIZATION of products and the convergence of consumer tastes worldwide
Theodore Levitt
Emphasize the need for a more INCLUSIVE AND FAIR GLOBAL ECONOMIC SYSTEM that benefits all, rather than just a few powerful entities.
Joseph Stiglitz
The TRANSFORMATION OF MODERN SOCIETIES, emphasizing the impact
of globalization on social
structures, culture, and politics.
Anthony Giddens
strategic decision
made by a company to capitalize on opportunities in different countries, expand its customer base, access new
markets, and potentially reduce costs by sourcing materials or labor from different regions
Going Global
Globalization and its effects on business
- Advancements in Technology
- Trade Liberalization and Tariff Reductions
- Outsourcing and Offshoring
- Cultural Integration and localization
A PESTLE factor that says Globalization is greatly influenced by these factors
such as GOVERNMENT POLICIES, trade agreements,
geopolitical stability, and the regulatory environment
Political Factors
These include economic growth rates, exchange
rates, inflation, interest rates, and the overall
economic stability of different countries
Economic Factor
Understanding social trends, demographics,
consumer behavior, lifestyle changes, and cultural
differences across countries is essential for
businesses expanding globally
Social Factors
Advances in communication, transportation, digitalization, and information technology have enabled businesses to operate on a global scale
Technological Factors
These factors encompass regulations, laws, and
compliance requirements in different countries
Legal Factors
Companies expanding globally must consider
these factors in their operations to ensure
compliance and address the growing concerns related to environmental sustainability.
Environmental Factors
Identification of global consumer trends
- Online Platforms and Databases
- Social Media and Analytics
- Surveys and interviews
It means an UNDIFFERENTIATED use of the same Marketing Mix. In this case, the firm simply REPLICATES, WITHOUT ANY CHANGES the same strategy
in the different markets in which it operates
Standardization
It means that each country/market has its Marketing Mix. It aim of EFFICIENTLY MEETING THE SAESPECIFIC NEEDS and respecting the values of local consumers
Adaptation
With the world becoming more INTERCONNECTED than ever before, companies have the opportunity to
expand their reach and tap into NEW CUSTOMER BASES across different
countries and regions
Entering new markets
Forming this strategy with LOCAL COMPANIES OR ORGANIZATIONS in the target market. This allows companies to leverage the expertise and knowledge of local partners, which can be crucial for navigating the complexities of different markets
Strategic Partnerships
This has opened up new opportunities for
small and medium-sized enterprises (SMEs) to expand their markets globally
WITHOUT THE NEED OF A PHYSICAL PRESENCE in each market
E-Commerce and Online Platforms
This involves ADAPTING PRODUCTS, marketing messages, and business practices to SUIT THE LOCAL MARKET
Localization
Technology’s Impact on Global Business
- Market reach
- Efficiency
- Competitiveness
Under Market reach
- Digital marketing and e-commerce
- Global platforms and marketplaces
3, Cross-border Communication
Under Efficiency
- Automation and AI
- Cloud Computing
- Data Analytics
Under Competitiveness
- Innovation and Product Development
- Supply Chain Optimization
- Customer Experience Enhancement
It refers to the process of INTEGRATING DIGITAL TECHNOLOGIES into various aspects of an organization or business, with the aim of enhancing operational efficiency, improving customer experiences, and fostering innovation.
Digital Transformation
It refers to the practice of
PROTECTING COMPUTER SYSTEMS,
networks, devices, and data from unauthorized access, cyber attacks, damage, or theft
Cybersecurity
Challenges of Cybersecurity
Cyber Threat Landscape
Complexity of Networks
Data Privacy and Compliance
Supply Chain Vulnerabilities
Skills Gap and Cybersecurity Talent
They help a company to promote, sell and distribute its products to its customers.
Intermediaries
They act as middlemen between various stages in the distribution chain
Marketing intermediaries
are people that represent another person or entity. They serve as an intermediary between buyers and sellers on a PERMANENT BASIS They are most actively present in the real estate industry.
Agents
are similar to agents in their role as intermediaries between buyers and sellers. However, they are not permanent representatives of a person or an entity. They are most active in the trading sector
Brokers
TRUE OR FALSE:
Both agents and brokers are paid on commission for a sale or transaction they have mediated.
True
act as intermediaries between manufacturers and retailers. They buy products from manufacturers or farmers and sell them to retailers.
Wholesalers
Products are purchased in huge quantities from the manufacturer, and the __________ distributes them to retailers.
Wholesalers
They mainly focus on the Business-to Business (B2B) market rather than the Business-to-Consumer (B2C) market.
Wholesalers
are in direct contact with the manufacturer. But unlike wholesalers, they do not sell the products to a retailer but the end user.
Distributors
They usually distribute only from a SPECIFIC MANUFACTURER and provide after-sales services to customers. They are either paid in commission or fees by the manufacturer
Distributors
are the types of intermediaries consumers are most familiar with and interact with the most. Shops, supermarkets, websites, etc., are examples of retail.
Retailers
have a wider reach. They either buy from the manufacturer or another intermediary
Retailers
Advantages of Intermediaries
- Better accessibility of
products and services - Physical distribution of goods
- Storage of supplies
- Better market coverage
- Improve buyer-seller relations
- Before-and-after sales
services
Disadvantages of Intermediaries
- The manufacturer loses some decision-making power.
- The manufacturers’ profit is reduced due to the money they have to pay the intermediaries.
- Intermediaries may be misinformed about the product, there by misinforming the customer.
- Intermediaries may favor a competitor’s product if they offer a better fee
refers to the network of entities, processes, activities, resources, and technologies involved in the production and distribution of goods or services from the raw material stage to the end consumer
Supply Chain
Supply Chain flow
- Raw Materials
- Suppliers
- Manufacturing
- Distribution
- Retail
- Customer
is a system of INTERCONNECTED FRIEGHT FORWARDERS transportation intermediaries and associated companies that work together to provide efficient and reliable logistics services across the world
Global Logistics Network
It refer to the societal values, beliefs, norms, and behaviors that characterize different cultures. These dimensions help explain how culture shapes individuals’ attitudes, preferences, and buying behaviors.
Cultural Dimensions
Power distance impacts on Consumer behavior
- Belief that dominant brands are good
- Unconscious classification of purchase
options based on brand position - high brand loyalty degree
Individualism impacts on Consumer behavior
- No need to group approval for particular brands
- more impulsive purchase rates
- lower levels of prestige-sensitivity and need for ―face
Uncertainty Avoidance impacts on Consumer behavior
- Not Eager to new options
- avoid uncertainty by using familiar brands
- more price conscious.
Masculinity impacts on consumer behavior
Importance for status, power, success, pleasure and prestige
is the awareness of SPECIFIC CULTURAL FACTORS that can influence research.
For brands, it requires marketing teams to be aware of local cultural nuances and develop appropriate messaging that engages their target audience.
Cultural sensitivity
Key Issues in International Marketing
Gender Stereotyping - Axe ad
Slang & Idioms - #WhyIstayed
Graphic Print - China print mistake
Market Adaptation strategies
- Understand Cultural Difference
- Product Adaptation
- Packaging Adaptation
- Marketing Campaign Adaptation
- Test and Iterate
- Compliance and Legal Considerations
Understand Cultural
Differences
Market Research and Consumer behavior
Product Adaptation
Tailor Products to Local Preferences
Address Cultural Sensitivities
Packaging Adaptation
➔ Design and Branding
➔ Language and Information
Marketing Campaign Adaptation
➔ Cultural Context in Messaging
➔ Celebrating Diversity
➔ Localized Media Channels
Test and Iterate
➔ Pilot Studies
➔ Continuous Improvement
Compliance and Legal Considerations
- Compliance with regulations
