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Transcript
Management Information Systems
MANAGING THE DIGITAL FIRM, 12TH EDITION GLOBAL EDITION
Case D
Internationalization Philosophies
Domestic
Marketing
Export
Marketing
Multinational
Marketing
Global
Marketing
Low or no
international
commitment
Limited
international
commitment
Substantial
international
commitment
Extensive
international
commitment
Focus on
domestic
consumers and
home country
environment
Involves direct
or indirect
export
Focus on
different
international
countries
Focus on
regions
market
segments
rather than
countries
Domestic focus
Ethnocentric
Polycentric
Regiocentric
Geocentric
Raising commitment/ involvement to international markets
Ethnocentric Orientation
• Guided by domestic market extension concept
• Domestic strategies, techniques, and personnel are
perceived as superior.
• International markets are secondary, regarded primarily
as outlets for surplus domestic production.
• International marketing plans are developed in-house
by the international
division.
• E.g. Disney resort in France: Disneyland Resort Paris
had to adapt it to local preferences: European fairy
tales, food, and dress code for staff.
Polycentric Orientation
• Guided by the multidomestic marketing concept
• Focuses on the importance and uniqueness of each
international market
• Firms establish independent businesses in each target
country.
• Fully decentralized, minimal coordination with
headquarters
• Marketing strategies are specific to each country.
• Outcomes:
– No economies of scale
– Duplicated functions
– Higher final product costs
Regiocentric Orientation
• Guided by the global marketing concept
• World regions that share economic, political,
and/or cultural traits are perceived as distinct
markets. (e.g. EU, NAFTA*)
• Divisions are organized based on location.
• Regional offices coordinate marketing
activities.
Geocentric Orientation
• Guided by the global marketing concept
• Marketing strategies aimed at market
segments, rather than geographic locations
• Maximizes efficiencies worldwide and
provides standardized product or service
throughout the world
• E.g. McDonalds