Week 9 - International Marketing Strategy Flashcards
What is international marketing?
- The performance of marketing activities across two or more countries - Jeannet & Hennessy, 2003
- Finding out what customers want around the world and then satisfying these wants better than other competitors, both domestic and internationa. - Terpstra & Sarathy, 1991
- The multinational process of planning and executing the conception, pricing and promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organisational objectives - AMA, 1985
What is global marketing?
The creation of a single strategy for a product, service or company for the entire global market that encompasses many markets or countries simultaneously - Keegan and Green, pp 8-13
What is cross cultural marketing?
Global industries and competition exist. So strategic management has to be global, but marketing needs to be tailored to local context. So called global consumers do not exist.
Challenges of International Marketing Strategy
- Scope
- Complexity
- Risk
- Orientation
Scope in International Marketing
- Size of the global marketplace
- Level of international involvement
- Varying goals in international markets
Complexity in International Marketing Strategy
- Diverse and multicultural markets
- Different economic development
- Varying powers of Players
- Difficulty in obtaining information
Risk in International Marketing Strategy
- The unknown & uncontrollable forces tend to loom large
- Regimes/currencies vary stability which pose high risks
Orientation in International Marketing Strategy
- Psychological distance and self reference criteria/stereotyping
- International marketing managers often need a different mindset to operate successfully in foreign markets.
Why do organisations go ‘international’?
- Saturated home market
- Excess capacity
- Intensifying competition
- Product life cycle differences
- Comparative advantage in product, skill, or technology
- Financial reasons
- Organisational reasons
International Marketing Decision-Making Process
1 - Analysis of the international marketing environment and its impact on a firm’s international marketing.
2 - Analysis of major trends, key success factors, opportunities & threats in international markets.
3- Choices of foreign country-market/s to enter.
4 - Choices of investment modes in foreign markets: Assessment of risk-to-control factors
5- Choices of generic strategy in foreign markets
6 - Development and implementation of the international marketing mix strategies - Standardisation versus adaptation.
International market Selection is made up of…
- International Macro-Environment
- International Micro-Environment
- Assessment Factors: Market attractiveness measures and company strengths/capability
Market attractiveness measures
- Market access
- Market size now and in future
- Profit potential
- Intensity of competition
- Cost of entry and exit barriers
Company strengths/capability
- Goals and orientation
- Resources
- Management skills
- Core competencies
- Competitive advantage
Convergence vs Divergence
- Cultural convergence - Where different cultures become similar or even come together
- Cultural divergence - This is when a culture separates or goes in a different direction.
- Can happen when members of a culture move away from the core values of their culture
Standardisation vs Adaptation
- Standardisation is the pursuit of global market opportunity using an extension of domestic marketing strategy with little or no change in marketing mix in different countries
- Product standardisation means that a product originally designed for a local market is marketed to other countries with virtually no change, except perhaps for the translation of words and other cosmetic changes.
- Adaptation refers to taking into consideration of the differences in a particular market environment and making changes to the marketing mix to fit these conditions in different country markets.
