Professional Documents
Culture Documents
International Marketing
International Marketing
Marketing Mix:
Product policy;
Advertising;
Pricing;
Distribution.
Competitive Strategy:
Conceptual development;
Competitive advantage vs. competitive positioning;
Sources of competitive advantage and performance implications.
Strategic Alliances:
Learning and trust;
Recipes for alliance success;
Performance of different types of alliance.
Global Sourcing:
Global sourcing in a service context;
Benefits of global sourcing;
Country of origin issues in global sourcing.
Multinational Performance:
Determinants of performance;
A different interpretation of performance.
Measurement Issues;
For example, an American firm going into the Indian market would
research to segment Indian consumers without incorporating knowledge of
U.S. buyers.
Here the idea is that every country's market is different from the others and
that it hence demands to be approached differently.
This approach is a long term strategy and involves a lot of research and
investment.
Inter-market Segmentation: This involves the detection of segments that exist
across borders. It may be noted that that not all segments that exist in one country will exist in
another and that the sizes of the segments may differ significantly.
For example, there is a huge small car segment in India, while it is considerably smaller in the
U.S. Inter-market segmentation entails several benefits.
The fact that products and promotional campaigns may be used across markets; introduces
economies of scale, and learning that has been acquired in one market may be used in
another.
e.g., a firm that caters to a segment of premium quality cell phone buyers in one country can
put its experience to use in another country that features that same segment. (Even though
segments may be similar across the cultures, it should be noted that it is still necessary to
learn about the local market.
For example, for a product, although a segment common across two countries may seek the
same benefits, the cultures of each country may cause people to respond differently to it.
International marketing strategies are developed by various multinational companies on
a global level in order to set a common brand platform for their products and brands. It
is then passed on to each local or domestic market which makes adjustments for their
country and manages its implementation. Such a structure ensures a global brand
consistency, pricing and messaging. It also can have significant cost savings as major
advertising and marketing campaigns can be developed centrally
Globalization has created new marketing behaviors, opportunities and challenges
thereby making international marketing somewhat different from domestic marketing.
Due to deregulation and technological advances in transportation and communication,
companies can market in, and consumers can buy from almost any country in the world.
In this situation of heightened competition, it is important for companies to offer
products that would be of interest in the global marketplace and also adjust their product
and service features to each country’s different cultures and values. They must choose
what to produce, and how to price and communicate their products considering the
different legal and political differences, language, and currency fluctuations.[5] To sum
up, when multinational companies segment their target markets and position their
products, cross-cultural literacy is necessary, which is a concept of glocalisation,
requiring a company to “think globally and act locally”. Without an understanding of
cultural and structural differences between countries, even leading global corporations
can fail in specific markets.
After the decision to invest has been made, the exact mode of
operation has to be determined. The risks concerning
operating in foreign markets is often dependent on the level
of control a firm has, coupled with the level of capital
expenditure outlayed. The principal modes of engagement
are listed below: