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THE CONCEPT OF INTERNATIONAL MARKETING MANAGEMENT VS GLOBALIZATION. Globalization. The shift towards a more integrated and interdependent world economy. Two components: . The globalization of markets. . The globalization of production. Forces Affecting Global Integration.

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globalization
Globalization
  • The shift towards a more integrated and interdependent world economy.
  • Two components:

.The globalization of markets.

.The globalization of production.

slide6

Forces Affecting Global Integration

Restraining Forces

Driving Forces

Culture

Technology

Market Differences

Culture

Costs

Market Needs

National Controls

Cost

Free Markets

Nationalism

Economic Integration

War

Peace

Management Myopia

Management Vision

Organisation History

Strategic Intent

Domestic Focus

Global Strategy & Action

being globally aware
Being Globally Aware

 To be Globally Aware is to be: Objective Tolerant of Cultural Differences

 Knowledgeable of:CulturesHistoryWorld Market PotentialsGlobal Economic, Social and Political Trends

slide8

Stages of International Marketing Involvement

1. No Direct Foreign Marketing

2. Infrequent Foreign Marketing

3. Regular Foreign Marketing

4. International Marketing

5. Global Marketing

trends in global business
Trends in Global Business

Countries are striving to integrate Businesses:

EU

EAC

SADC

COMESA

NAFTA

Etc

This suggests a need for global thinking

new and future possible multinational market groups or trading blocks of the 21st century
New and Future (Possible) Multinational Market Groups or Trading Blocks of the 21st Century

European Union

European Economic Area (EC and EFTA)

North American Free Trade Area

Southern Cone-Mercosur

Asean Free Trade Area (AFTA)

Commonwealth of Independent States (CIS)

Central European Free Trade Area (CEFTA)

slide11
So…….

WHAT IS

INTERNATIONAL MARKETING?

international marketing
INTERNATIONAL MARKETING

“Marketing carried on across national boundaries”

  • Vern Tepstra
slide13
International Marketing:

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 profit.

Philip R. Cateora

John L. Graham

the international marketing task
The International Marketing Task

7

Foreign environment

(uncontrollable)

1

Economic

forces

Political/legal

forces

Domestic environment

(uncontrollable)

2

7

Competitive

structure

Political/

legal

forces

Competitive

Forces

(controllable)

Cultural

forces

Environmental

uncontrollables

country market A

Price

Product

3

Channels of

distribution

Promotion

Environmental

uncontrollables

country

market B

6

Level of

Technology

Geography

and

Infrastructure

Economic climate

Environmental

uncontrollables

country

market C

4

5

Structure of

distribution

international marketing concepts
International Marketing Concepts

Concept EPRG Scheme

Domestic Market Extension Ethnocentric

Multi-Domestic Market Polycentric

Global Marketing Regionocentric/

Geocentric

a comparison of assumptions about global and international companies
A Comparison of Assumptions About Global and International Companies

Application Global Companies International Companies

Products are in different

stages of the product

life cycle in each nation.

Product Life Cycle

Global product life cycles.

All consumers want the

most advanced products

Adjustments to products

initially designed for

domestic markets.

Design

International performance

criteria considered during

design stage.

Products are adapted to

global wants and needs.

Restrained concern for

product suitability.

Products adaptation is

necessary in markets

characterized by national

differences.

Adaptation

Market

Segmentation

Segments reflects group

similarities. Group similar

segments together.

Segments reflect differences

Customized products for

each segments.

Fewer standardized markets.

Expansion of segments into

worldwide proportions

Many customized markets.

Acceptance of regional/

national differences.

a comparison of assumptions about global and international companies17
A Comparison of Assumptions About Global and International Companies

Application Global Companies International Companies

Domestic / national competitiverelationships

Competition

Ability to compete in national markets is affected by a firm’s global position

Standardization limited by requirements to adapt products to national tastes..

Production

Globally standardized production.

Adaptations are handled through modular designs.

The Consumer

Global convergence of consumer wants and needs.

Preferences reflect national differences.

Products differentiated on the basis of design, features,functions, style and image.

Product

Emphasis on value-enhancing distinction.

Consumers willing to pay more for a customized product

Price

Consumers prefer a globally standardized good if it carries a lower price

a comparison of assumptions about global and international companies18
A Comparison of Assumptions About Global and International Companies

Application Global Companies International Companies

National product image, sensitive to national needs.

Promotion

Global product image, sensitive to national differences and global needs.

Place

Global standardization of distribution.

National distribution channels.

slide19
Self Reference Criteria (SRC):

Represents viewing rest of the world from the perspective of home market.

slide20

Cross Cultural Analysis to Isolate

the SRC Influences

Step 1: Define the business problem or goal in home- country cultural traits, habits, or norms.

Step 2: Define the business problem or goal in foreign-country cultural traits, habits, or norms. Make no value judgements.

Step 3: Isolate the SRC Influence in the problem and examine it carefully to see how it complicates the problem.

Step 4: Redefine the problem without the SRC influence and solve for the optimum business goal situation.*

slide21

Framework of International Marketing

Commitment to Exports

Analyse

  • Internal Factors
  • Products
  • Resources
  • External Factors
  • Market Environment
  • Competition

Decide

Target Market

Entry Method

Marketing Strategy

Set

slide22

Target

Implement

Organise

Department

Subsidiary

Joint Venture

Allocate Resources

Budget

Arrange Resources

Export

Review

Modify

Set New Targets

slide23

Finally

‘Companies which will not accommodate the concepts of internationalization are destined to fail. The question is not whether they will fail or not but just when they are going to fail’

Elisante ole Gabriel, 2005