Date post: | 22-Jan-2018 |
Category: |
Business |
Upload: | dinker-vaid |
View: | 854 times |
Download: | 1 times |
PRESENTATION
ON
EPRG
Dinker Vaid
UNDER
INTERNATIONAL BUSINESS
By
What is International Marketing
Marketing concepts, processes, and principles are universally applicable all over the world
2
It is an approach of a company with truly global outlook, seeking its profit impartially around the world, on a planned and systematic basis.
International marketing is defined as the
performance of business activities designed to plan,
price, promote, and direct the flow of a company’s
goods and services to consumers or users in more
than one nation for a profit.
Domestic v/s International
Similarities
Understanding buyers
needs
Building Goodwill
Research Development
Differences
• Political Entities
• Legal systems
• Cultural differences
• Different monetary systems
• Marketing infrastructure
• Trade Restrictions
• Procedures and documentations
• Highly unpredictable
Factors Influencing Global
Business
Rapid growth of world trade organization
Trend towards acceptance of free
market system among developing countries
Impact of Internet, Mobile phones and other global media
• North American free trade area
• European Union
• Asia
• Europe
• Global channels
• Global customers
Reff: International Marketing by Cateora and Graham
EPRG FRAMEWORK
Ethnocentric
- Home country
orientation
Polycentrism
- Host country orientation
Regiocentrism
- A regional orientation
Geocentrism
- A world orientation
Management orientation – Home country orientation
Perception about market –
Domestic market is superior..
Focuses on similarities between home and
foreign market.
Considers foreign market secondary to an
extension of domestic market.
Marketing strategy – Extension of domestic strategy to foreign market.
Ethnocentric
Companies basic objective – Profitability
Culture - Home country
Technology - Mass production
HRM practices – Overseas operations are managed by people from home country
Managerial predisposition - Manager/MNC rely n values &interests of parent company in formulating and implementing strategic plan
Merits –No cost & efforts needed for adaptation/localization It easy route to internationalization when foreign market exists with similar domestic characteristics
Demerits – No full exploitation of IB opportunities worldwide Main focus on domestic market
Examples Nissan in 1st years exported cars in US markets, sold cars without change then sold car in Japan
Surf – Super washout in Japan
Unilever enters Japan Detergent Market
• It releases Surf Super concentrate
washing powder in Japan.
• Measured sachets for Convenience.
• Fresh Smell.
WHAT WENT WRONG??
Washing powder did not dissolve completely
due to weather conditions.
Low agitation washing machines were more
popular in Japan, in which the super
concentrate surf washing powder did not wash
completely.
Fresh smell was not very significant.
POLYCENTRIC
Management orientation – Host country orientation
Perception about market –Each national market is distinctive Focuses on differences between home country & foreign country
Marketing strategy – Localization / adaptation
Companies basic objective – Public acceptance
POLYCENTRIC
Type of governance – Each local unit sets objectives (bottom up)
Culture-Host country
Technology - Batch production
HRM practices – Local nationals are used in key management positions
Managerial predisposition - MNC tailor strategic plan to meet the need of local culture
Characteristics –
Recognize importance of inherent differences in overseas markets
Subsidiaries are established in overseas market & each is independent with own marketing objectives & plans
Local techniques & personnel best suited to deal with local market conditions
International marketing organized on country to country basis with separate marketing strategy for all
Merits –Adaptation to market characteristics help in better understanding of local needs which will lead to better exploitation of market potentials
Demerits –High cost of national responsive marketing mix for each country Delay in localization
Examples McD (no beef burgers in India)
EPRG FRAMEWORK
Regiocentrism
- A regional orientation
17
Recognizes
regional
commonaliti
es and leads
to the design
of regional
strategies
Management orientation – Regional orientation
Perception about market – Markets can be differentiated on the basis of common regional characteristics
Marketing strategy – Trade- off between standardization & localization
Companies basic objective – Both profitability & public acceptance
Type of governance – Mutually negotiated between region & its subsidiaries
Culture-Regional
Technology - Flexible manufacturing
HRM practices – Regional people are developed for key managerial positions anywhere in region
Managerial predisposition - MNC use a strategy that addresses both local & regional needs
Characteristics –Treat different regions as different market Regions with similarity of marketing characteristics treated as separate market
Merits - Advantages of both localization &standardization
Demerits – Lack of attention to inter regional differences
Examples Punjab (paneer products more)Gujarat (sugar more)
Management orientation – Global orientation
Perception about market – Entire world is a single market that can be effectively tapped by standardized marketing strategy
Marketing strategy – Global standardization
Companies basic objective – Both profitability & public acceptance
Type of governance – Mutually negotiated at all level of organization
Culture- Global
Technology - Flexible manufacturing
HRM practices – Best people anywhere in the world are developed for key managerial positions everywhere in the world
Managerial predisposition - MNC constructs its strategic plan with a global view of operations
Characteristics –Entire world is treated as single market Standardized marketing mix, to give uniform image of product &company for global market Worldwide approach to marketing & its operations
Merits –Economies of large scale production Lower costs advantage of pace
Demerits –
Not successful in many cases Uniform /standard marketing mix not guarantees for sure success in every situation
Examples Microsoft & Nokia standardized products world wide