IM Lecture II 2012

8/2/2019 IM Lecture II 2012

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Block 8International Business

International Marketing


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Content lecture II

International Marketing Management

EPRG CONCEPT

Assignments

Lego

Presenatations students questions


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InternationalMarketingManagement


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easons o ecent nternat ona

Growth

Rapid Increase in Technology

Liberalization, Privatization & Globalization

Development of Institutions supporting& facilitating International Trade

Consumers/Customers Pressure

Increased Global Competitiveness


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International Marketing

Entire marketing strategy will need to be adapted. Understanding of different environments becomes

essential.

Several markets

Differing controllable variables across markets

Differing uncontrollable variables across markets

Giving Differinginfrastructures

Differingadvertising/promotions

Differingcomplexity of market


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Objectives of Going International

Development, Growth & Employment

Defense Needs

Balance of Payment

Control Inflation & Recession

Growth & Profitability

Economies of ScaleMinimizing Risk

Acquiring Inputs, Resources & Technology

Uniqueness Providing Opportunities

Opportunities Arising out of PLC

R&D Cost Spread


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Why is Intl. Marketing Different?

Culture Diverse, Multi-cultured

Markets Widespread, Fragmented,different Data Difficult to get, expensive

Politics Varying stability and attitudes

Governments Attitudes towards foreign trade Competitors Varying levels

Economies Varying levels & Systems

Finance Varying systems & regulatory bodies Currencies Varying & Fluctuating

Businesses Cross Cultural Influences

Control Remote & Difficult


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Manipulate a series of Variables

Controllable by business (Internal) Price

Promotion

Distribution

Product

Uncontrollable by business (External)

Economic structure

Competitors

Cultural

Legal

INTL MKETING ENV


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INTL. MKETING ENV.


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Content lecture II

International Marketing Management

Assignments

Lego

Presentations students questions

EPRG CONCEPT


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ADAPTATION !THE CRITICAL SUCCESS FACTOR

SRC(SELF REFERENCE CRITERIA):Unconscious reference to ones own cultural values,experiences & knowledge as basis for decision making

Isolate the influences of SRC 4 steps

1. Define business problem or goal in terms of the home-country traits, habits, or norms

2. Define business problem or goal in terms of foreign country

cultural traits, habits, or norms. Make no value judgments3. Isolate the SRC influence in the problem and examine itcarefully to see how it complicates the problem

4. Redefine the problem w/o the SRC influence and solve for

optimum business goals


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EPRG CONCEPTHoward PerlmutterOrientation: International Marketing Organization

ETHNOCENTRICConsiders own culture as superiorsame Mkting strategy

Ignore environmental differencesDomestic or extension to export marketing

POLYCENTRIC

Treats region as a uniform mkt. Segment

Adapts similar mkting strategy within region but

across the region

REGIOCENTRIC

GEOCENTRIC

Highly Market Oriented

Considers each mkt. Unique

Decentralization on marketing activitiesNeeds corporate resources

Whole world a single market

Formulate integrated marketing strategies

Economies of scale


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Evolutionary Process- Global Marketing

.

Stages Marketing Market Focus Orientation Marketing Mix Decisions

I Domestic Domestic EthnocentricSMEs Domestic CustomerFocussed

II Export Overseas

Ethnocentric

Food products,

Jewelleries,

-Mainly Domestic customers

-Overseas mkt. only an Extn.

of domestic marketing

- Decisions made at HQ

IIIInternational

Differentiation by

developing

products & brands

PolycentricCorporate

sector

Product development uponCountry needs. Decisions by

individual subsidiaries

IV Multinational

Consolidation of

operations

on regional basis.

Gains from

Economies of Scale

Regiocentric

Product standardization

within regionsbut not across them.

i.e., Regional basis

V GlobalConsolidation on

global basis

Geocentric

IBM, SONY

Globalisation of marketing mix

decisions with local variationsDecision making across globe


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Stages of Domestic to Global

MGMT.

EMPHASIS

FOCUS

MarketingStrategy

Structure

ManagementStyle

anufacturingStance

InvestmentPolicy

PerformanceEvaluation

STAGE - IDOMESTIC

Domestic

Domestic

Domestic

Domestic

MainlyDomestic

Domestic

DomesticMarket Area

STAGE - IIINTL.

Ethnocentric

Extension

International

CentralizedTop Down

MainlyDomestic

Domestic usedWorldwide

Against home

CountryMkt. Share

STAGE IIIMULTINATIONAL

Polycentric

Adaptation

WorldwideArea

DecentralizedBottom Up

Host Country

Mainly in EachHost Country

Each Host CountryMkt. Share

STAGE - IVGLOBAL

Geocentric

Extension

Adaptationcreation

matrix/mixed

Integrated

Lowest CostWorldwide

CrossSubsidization

Worldwide


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Process OfInternationalization


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Content lecture II

Globalization and International Business

ERPG CONCEPT

Assignments

Lego



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Assignments

Interview export manager

Lego international expansion


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Content lecture II


EPRG CONCEPT

Assignments

Lego



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Lego

http://www.youtube.com/watch?v=-w6I51w4R60
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Content lecture II


Efficient consumer response

Assignments

Lego


IM Lecture II 2012

Documents

Transcript of IM Lecture II 2012