Download INTERNATIONAL MARKETING • Planning and conducting

INTERNATIONAL MARKETING
 Planning and conducting transactions satisfying objectives
 Across national borders
 Constantly changing macroenvironmental factors
Firm (controllable): marketing mix, research
Domestic environment (uncontrollable): political/legal, economic, competitive structure
Foreign environment (uncontrollable): political/legal, economic, competitive forces, technology,
distribution structures, geography and infrastructure, cultural factors
Intl. marketing questions: adjust marketing mix, sourcing, global competition
Globalisation: boundaries between national markets are fading. Countries, institutions, individuals
all linked – spread and analysis of information, role of technology.
Firms globalise international strategies to take advantage of underlying market, cost, environmental
and competitive factors
Global presence means viability against other local and global players
Globalisation drivers: market
 Growth in world trade, emergence of trade blocs, globalised distribution channels
 Firms made global investment, shifting location of industries, impact of new technology
 Convergent consumer demand
Globalisation drivers: cost
 Avoid inefficiencies and duplication in single-country approach. Need to achieve economies
of scale, synergies
 Size as a major assets – M&As
Globalisation: environment
 Decreasing government barriers
 Rapid technological evolution
 Emergence of born global businesses
Globalisation drivers: competitive factors
 Leading companies taking advantage of globalisation – unchallenged players.
 New markets for growth
Strategic planning process:
1. assessment, analysis
 Understand and adjust core strategy
 Market and competitive analysis: customers, structure of global industry
 Internal analysis: assess international readiness
2. Objective setting
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Competitive strategy: cost, differentiation, focus
Country market choice
Segmentation: standardisation
Bases for global segmentation
 Environmental: geographic, political, economic, sociocultural
 Marketing management: product, price, promotion, distribution
3. Develop global marketing program
 Standardisation, marketing program, location of value-additive activities, competitive
moves
4. Implement – balance local and global concerns
Challenges of global marketing
 Local resistance and patriotism
 Balancing country managers and global managers
 Ability to develop and implement strategy through management, structure, culture
Management process
 Ensure local managers participate in strategy development, control their marketing budget
 Local managers – generate ideas
 Portfolio of brands (local, regional, global)
Organisational structure
 Matrix structure: focus on customer, replaces country by country approach
 Global account management: relationships with important customers (internal systems)
Corporate culture
 Commit to global marketplace, no country favouritism
 Transparent management development system
Benefits of international marketing:
 Economies of scale
 Spreading risk, reduce vulnerability to increased competition
 Increased technical and managerial skill
Motivations to internationalise
 Proactive: profit, unique product, technology advantage, exclusive information,
managerial urge, tax benefits, economies of scale
 Reactive: competitive pressure, overproduction/excess capacity, declining/saturated
domestic market, proximity to ports and customers
 Change agents (internal): same as proactive
 Change agents (external): demand, other firms, distributors, export agents, government
activity
Cultural environment
Culture: integrated system of learned behaviour patterns, distinguishing characteristic of members
of any given society (code of conduct). Gives individuals an identity.
Major elements: language, religion, values/attitudes, customs, materialism, education, social
institutions
Acculturation: adjust/adapt to another culture, key to international success
Context culture
 High context: social context strongly affects meaning of message (e.g. Saudi Arabia) - implicit
 Low context: meaning explicitly expressed by words, less affected by social context (e.g.
North America)
International marketers can act as change agents – introduce new products, ideas, practices (though
can be accused of cultural imperialism)
Cultural universals are generalisations concerning a given culture; e.g. music, cuisine, personal
names, etiquette, jokes
Language:
 verbal (words, gestures, body position, eye contact). Local language important in
international marketing (information gathering, communications, context)
 non-verbal: time flexibility, rapport, physical space and touching, non-verbal gestures
Religion: belief in higher power, reason for being. Shapes attitudes toward entrepreneurship,
consumption and social organisation
Values and attitudes: shared beliefs, particularly toward change (positive in industrialised countries,
less in tradition-bound countries)
Manners and customs: understanding, negotiations, decision-making and personal relations.