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“Are Russia’s companies ready for implementation of Global Marketing ??”
With an export quote of approximately 70% for commodities ( oil, gas, lumber &
metals) Russia’s export package will need a strong growth in sectors with a higher
added value component, to gain an improved share in the global economy as suitable
for a larger economy ( 6th in volume)
OECD reports for Russia 1) the priorities for 2013, as supported by indicators.
 Lower barriers to foreign investments.
 Reduce state control over economic activities and other barriers to
competition.
 Raise the effectiveness of innovation policy.
Complementary:
 Raise the quality of public administration.
 Reform the healthcare system.
( OECD 2013)
A limited number of Russian companies (mainly LSE’s) are already active on global
level but limited to the energy and other commodities sectors.
As we will define “Global Marketing” as:
 Global marketing is defined as the organization’s commitment to coordinate
its marketing activities across national boundaries in order to find and satisfy
global customer needs better than the competition.
This implies that the organization is able to:
# develop a global marketing strategy, based on similarities and differences
between markets.
# Exploit the knowledge of the “Home Organization” through worldwide
diffusion( learning) and adaptation.
# Transfer knowledge and “best practices” from any of its markets and use
them in other international markets.
The government of the Russian federation is strongly involved in the globalization
process but in Russian (business) society there are at least three different responses
to globalization – full acceptance, selective acceptance and radical rejection
(Tsyganov 2012)
Entering WTO in 2012 and as a result of the globalization process, Russia will be
influenced by economic problems in other WTO member states more easily.
The influence of globalization of Russian economy will be huge and authorities
should improve Russian legislation to create possibilities for national manufacturers
and service suppliers, to enter the international market, to be able to compete with
foreign products and to create innovations. But it is also necessary to create terms
and requirements in banking and investment spheres to secure and protect bank
depositors, reduce risks of negative impact of economic problems in other countries
which, because of close economic connections, could affect Russian investors
(Drozdova 2012)
Industry globalism & Preparedness for internationalization.
The companies are not able to influence the degree of industry globalism , as it is
mainly determined by the international marketing environment. In the case of a high
degree of industry globalism there are many interdependencies between markets,
customers and suppliers, and the industry is dominated by a few, large powerful
players (global) whereas the other of the spectrum (local) represents a multi domestic market environment, where markets exist independently from one another.
The degree of preparedness is mainly determined by the company’s ability to carry
out strategies in the international marketplace i.e. the actual skills in international
business operations. These skills or organizational capabilities may consist out of
personal skills ( e.g. language, cultural sensitivity etc.), the managers’ international
experience or financial resources
If the company has only limited international experience, no financial resources and
a weak position in the home market, the company. at first, should try to improve its
performance in the domestic market. Better “to stay at home” ( Solberg 1997)
Development of the “Global Marketing” concept.
The form of the company’s response to global market opportunities depends greatly
on the management’s assumptions or beliefs; both conscious and unconscious,,
about the nature of doing business around the world, to summarize in four
orientations: ( Perlmutter 1969)
 Ethnocentric
 Polycentric
 Regiocentric
 Geocentric
The region- and geocentric oriented companies ( in contrast to ethnocentric and
polycentric) seeks to organize and integrate production and marketing on a regional
or global scale. Each international unit is an essential part of the overall
multinational network, and communications and controls between head office and
affiliates are less top-down than in the case of the ethnocentric company.
( Hollensen2007)
“Key Terms” in the “Global Marketing” oriented company:
 Coordination of marketing activities
 To find global customer needs
 Satisfy global customers
 Being better than the competition.
The global marketing oriented company strives to achieve the slogan:
- “ think globally but act locally” (the “Glocalization “ framework)
Comparison of the global marketing and management style of SME’s and
LSE’s.
In daily practice of global marketing, there is an indication of a “convergence” in
business policy , with SME’s and LSE’s.
The reason underlying the “convergence” is that many large multinationals ( such as
IBM, Philips, GM and ABB) have begun downsizing operations, so in reality, many
LSE’s act as a confederation ( network) of small, autonomous, entrepreneurial and
action oriented companies
The main qualitative differences between marketing and marketing styles in SME’s
and LSE’s:
 Resources ( financial)
 Formation of strategy/ decision-making processes.
 Organization
 Risk taking
 Flexibility
 Take advantages of “economies of scale” and “economies of scope”
 Use of information sources.
 Business education / specialist expertise.
Forces for “global coordination / integration”
In the shift towards integrated global marketing, greater importance will be attached
to transnational similarities to target markets across national borders and less on
cross-national differences. The major drivers are: (Sheth and Parvatyar 2001, Segal-Horn
2002)
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
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Removal of trade barriers (deregulation)
Global accounts / customers.
Relationship management /network organization.
Standardized worldwide technology
Worldwide markets
“Global village”
Worldwide communication
Global cost drivers.
Forces for “market responsiveness”
 Cultural differences
 Regionalism / protectionism.
 “De globalization”
( Hollensen 2007)
Creating value by using information.
Fundamentally, there are four ways of using information to create business value.
( Marchand, 1999)
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Managing risks
Reducing costs
Offering products and services
Inventing new products.
Summary / Recommendations
Global marketing is defined as the company’s commitment to coordinate its
marketing activities across national boundaries in order to find and satisfy global
customer needs better than the competition does.
The company should be able to:
 Develop a global marketing strategy, based on the similarities and differences
between markets.
 Exploit the knowledge of the “home organization” through worldwide
diffusion ( learning) and adaptations.
 Transfer knowledge and “best practices” from any of its markets and use them
in other international markets.
( Hollensen 2007)
CdT-12/03/2013
Amsterdam – Moscow – Warsaw – Kazan - Yerevan