Unit 10- Global marketing Flashcards
4 forces impacting entry
- company
- industry
- market
- regional
Hofstede’s Culture Dimensions
- an example of a framework that can be used in analyzing marketing influences
- Power distance index
- invidivualism vs collectivism
- masculinity vs feminity
- uncertainty avoidance index
- long vs short term orientation
- indulgence vs restraint
Company influences
- company’s resources, capabilities, and strategic objectives.
- financial strength, brand recognition, and operational capacity.
Industry influence
- The level of competition, the number of players, and the profitability of the industry in the target market
- have high entry barriers ?
- supply chain and trends
market influences
The overall size and growth potential of the target market, as well as the level of demand for the company’s product or service, are critical considerations.
regional influences
Economic stability, growth prospects, currency exchange rates, and inflation rates
going global chart
resource and risk increase to the right
control increases upwards
Foreign direct investment
- highest risk
- most resources
- most control
- (most expensive)
indirect export
- least risk, resources and control
middle of “going global chart”
- direct exporting
- licensing
-franchising - outsourcing
- joint ventures
2 types of FDIs
- mergers/ acquisition
- Greenfield ingestion: build from the bottom up in a foreign country
4 types of global segments
- global citizens
- global dreamers
- anti globals
- global agnostics
Pricing extensions
one price fits all markets
Pricing adaptations/ polycentric strategy
completely decentralized
- Local markets are treated independently
geocentric strategy
- combo of both
- Standardized pricing with some flexibility
adaptation strategies
- straight extensions
- product adaptations
- communication adaptions
- dual adaptations
- new product development= product invention
gray market
Unauthorized distribution of genuine products, often crossing borders without the brand owner’s approval.
