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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
Presentations students questions
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Assignments
Interview export manager
Lego international expansion
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Content lecture II
Globalization and International Business
EPRG CONCEPT
Assignments
Lego
Presentations students questions
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Lego
http://www.youtube.com/watch?v=-w6I51w4R60
http://www.youtube.com/watch?v=-w6I51w4R60http://www.youtube.com/watch?v=-w6I51w4R60http://www.youtube.com/watch?v=-w6I51w4R60http://www.youtube.com/watch?v=-w6I51w4R60http://www.youtube.com/watch?v=-w6I51w4R608/2/2019 IM Lecture II 2012
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Content lecture II
Globalization and International Business
Efficient consumer response
Assignments
Lego
Presentations students questions