Topic 1, INTERNATIONAL MARKETING STRATEGY Flashcards
Define Global marketing
The firm’s commitment to coordinate its marketing activities across national boundaries in order to find and satisfy global customer needs better than the competition.
Define the ethno-centric vision in relation to International Marketing
International activities focus on national traits, focusing specifically on the cultural and ethnic composition of the target market.
“International activities subordinated to the national strategy”
Define the poly-centric vision in relation to International Marketing
In a poly-centric strategy vision, the company adjusts to the specific market, to reach the broadest possible audience.
“International activities according to each market”
Define the regional-centric vision in relation to International Marketing
International activities organized according to big regions
Regiocentric orientation is the view that specific regions of the world are characterized by similarities. A regiocentric orientation is evident when a company develops an integrated strategy for a particular geographic area.
Marketing approach is localized or adaptation by region.
Define the geo-centric vision in relation to International Marketing
International marketing activities according to international market segments
Name the 4 p’s of global marketing
Price, product, place, and promotion of a good or a service
Identify 3 proactive reasons and 3 reactive reasons for globalization
Proactive (change in strategy in terms of interests of the company to operate certain skills or market opportunities):
- Profit and growth objectives
- Technological competence / unique product
- Opportunities in the market / market information
Reactive (reaction to threats or pressure in their current markets, adjusting to them):
- Competitive pressures
- Small and saturated domestic market
- Orders from abroad with no action done
Which marketing elements may hinder the internationalization of the company in its early stages?
Barriers hindering internalization:
- Financial capabilities
- Contacts (lack of contacts in the market) / Customers / Information
- Management / culture (poor knowledge of global markets)
- Marketing elements (lack of distribution channels abroad)
- Administrative (payment guarantees, fees and import duties)
Which commercial risks may hinder the further internationalization process?
Commercial risks:
- Fluctuations in the exchange rate
- Nonpayment of customers for the disputes over the contract, bankruptcy or insolvency
- Refusal to accept a product for justified reasons or simply due to fraud
- Delays and or damage to the shipping process
Which general market risks may hinder the further internationalization process?
General market risks:
- Competition from other companies
- Differences in the use of products in other markets
- Language and cultural differences
- Complexity of delivery services
Which political risks may hinder the further internationalization process?
Political risks:
- Destination currency controls that limit payments
- Tariffs
- Confusing regulations and taxes on imports
- Complexity of local commercial documentation
- Political instability, wars etc
Which are the key areas for control in marketing?
The marketing control system:
- Strategic control
- Efficiency control
- Annual plan control
- Profit control (budget control)
