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THE CONCEPT OF INTERNATIONAL MARKETING MANAGEMENT VS GLOBALIZATION

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Title: THE CONCEPT OF INTERNATIONAL MARKETING MANAGEMENT VS GLOBALIZATION


1
THE CONCEPT OF INTERNATIONAL MARKETING
MANAGEMENT VS GLOBALIZATION
2
Globalization
  • The shift towards a more integrated and
    interdependent world economy.
  • Two components
  • .The globalization of markets.
  • .The globalization of production.

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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
7
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
8
Stages of International Marketing Involvement
1. No Direct Foreign Marketing 2. Infrequent
Foreign Marketing 3. Regular Foreign
Marketing 4. International Marketing 5.
Global Marketing
9
Trends in Global Business
Countries are striving to integrate
Businesses EU EAC SADC COMESA NAFTA Etc This
suggests a need for global thinking
10
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)
11
  • So.
  • WHAT IS
  • INTERNATIONAL MARKETING?

12
INTERNATIONAL MARKETING
  • Marketing carried on across national boundaries
  • Vern Tepstra

13
  • International Marketing
  • The performance of business activities designed
    to plan, price, promote and direct the flow of a
    companys goods and services to consumers or
    users in more than one nation for profit.
  • Philip R. Cateora
  • John L. Graham

14
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
15
International Marketing Concepts
Concept EPRG Scheme
Domestic Market Extension Ethnocentric
Multi-Domestic Market Polycentric
Global Marketing Regionocentric/ Geocentric

16
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.
Global product life cycles. All consumers want
the most advanced products
Product Life Cycle
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.
17
A Comparison of Assumptions About Global and
International Companies
Application Global Companies
International Companies
Domestic / national competitive relationships
Ability to compete in national markets is
affected by a firms global position
Competition
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
Consumers prefer a globally standardized good if
it carries a lower price
Price
18
A Comparison of Assumptions About Global and
International Companies
Application Global Companies International
Companies
National product image, sensitive to national
needs.
Global product image, sensitive to national
differences and global needs.
Promotion
Place
Global standardization of distribution.
National distribution channels.
19
  • Self Reference Criteria (SRC)
  • Represents viewing rest of the world from the
    perspective of home market.

20
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.
21
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
22
Target
Implement
Organise Department Subsidiary Joint Venture
Allocate Resources Budget Arrange Resources
Export
Review Modify Set New Targets
23
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
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