M.N. Elahee Global Marketing
Jan 26, 2016
M.N. Elahee
Global Marketing
M.N. Elahee
International Marketing: A Definition
Global or international marketing is defined as theperformance of business activities designed to plan,price, promote, and direct the flow of a company’sgoods and services to consumers or users in morethan one nation for a profit
Global or international marketing is defined as theperformance of business activities designed to plan,price, promote, and direct the flow of a company’sgoods and services to consumers or users in morethan one nation for a profit
Marketing concepts, processes, and principles are universally applicable all over the world
Marketing concepts, processes, and principles are universally applicable all over the world
M.N. Elahee
The International Marketing Task
7
3. Economy
Environmentaluncontrollablescountry market A
Environmentaluncontrollablescountrymarket B
Environmentaluncontrollablescountrymarket C
1. Competition
1. Competition
2. TechnologyPrice Product
Promotion Place orDistribution
6. Geography andInfrastructure
Foreign Environment(Uncontrollables)
7. Structure ofDistribution
3. Economy
5. Political-Legal
Domestic environment(Uncontrollables)
(Controllables)
2 .Technology
4. Culture
5. Political-Legal
4. Culture
Target Market
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Reasons for Going Global:
Foreign markets with higher profit opportunities Stagnant or shrinking domestic markets Need larger customer base to achieve
economies of scale Keeping pace with competition Reduce dependency on single market Reach a larger market Reap higher profits Prolong the lifecycle of their products
M.N. Elahee
Global Integration Forces
Driving ForcesDriving Forces Technology Culture Market Needs Costs Free Markets and Economic Integration Strategy and Action
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Global Integration Forces
Restraining ForcesRestraining Forces Culture Market Differences Costs National Controls Nationalism Peace vs. War/ Stability Organization History Domestic Focus
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Developing a Global Awareness
To be globally aware is to have:To be globally aware is to have:
1. Tolerant of Cultural Differences, and
2. Knowledgeable of: (a) Culture, (b) History, (c) World Market Potential,(d) Global Economic, Social and Political Trends
M.N. Elahee
Cultural Differences
When Nike learned that this stylized “Air” logo resembled “Allah” in Arabic script, it apologized and pulled the shoes from distribution.
M.N. Elahee
Stages of International Marketing Involvement
In general, firms go through five different phases in going international:In general, firms go through five different phases in going international:
Infrequent Foreign MarketingInfrequent Foreign Marketing
No Direct Foreign MarketingNo Direct Foreign Marketing
International MarketingInternational Marketing
Regular Foreign MarketingRegular Foreign Marketing
Global MarketingGlobal Marketing
M.N. Elahee
Strategic Orientation: EPRG Schema
Orientation EPRG Schema
Domestic MarketingExtension
Multi-DomesticMarketing
Global Marketing
(Ethnocentric)
(Polycentric)
(Regio/Geocentric)
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Ethnocentric Orientation
Guided by domestic market extension concept: Domestic strategies, techniques, and personnel
are perceived as superior International customers are considered as
secondary International markets are regarded primarily as
outlets for surplus domestic production International marketing plans are developed in-
house by the international division
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Polycentric Orientation
Guided by the multidomestic market concept: Focuses on the importance and uniqueness of each
international market Likely to establish businesses in each target country Fully decentralized, minimal coordination with
headquarters Marketing strategies are specific to each country Result: No economies of scale, duplicated
functions, higher final product costs
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Regiocentric Orientation
Guided by the global marketing concept: World regions that share economic, political,
and/or cultural traits are perceived as distinct markets
Divisions are organized based on location Regional offices coordinate marketing activities
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Geocentric Orientation
Guided by the global marketing concept: The world is perceived as a total market with
identifiable, homogenous segments Targeted marketing strategies aimed at market
segments, rather than geographic locations Regiocentric and Geocentric are synonymous with a
Global Marketing Orientation where a uniform, standardized marketing strategy is used for several countries, countries in a region, or the entire world
M.N. Elahee
Major Decisions in Global Marketing
Deciding to go abroad Deciding which markets to enter Deciding how to enter the markets Deciding on marketing programs Deciding on marketing organization
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Major International Marketing Decisions
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Deciding Which Markets to Enter
Before going abroad, the company should try to define its international marketing objectives and policies.
What Volume of Foreign Sales is Desired?
How Many Countries to Market In?
What Types of Countries to Enter?
Choose Possible Countries and Rank Based on Market Size, Market Growth, Cost of
Doing Business, Competitive Advantage, and Risk Level
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Major Markets for the US
Canada Mexico Japan China UK
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Leading Suppliers
Canada China Mexico Japan Germany
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Any Question
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