International Marketing Strategy Strategy International Marketing Strategy Strategy
International Marketing Management
Anna Zarkada
PRODUCTION ORIENTATION
SALESORIENTATION
MARKETING ORIENTATION Social responsibility
sustainabilityand humanistic
Orientation
Evolution of marketing thought 20th CenturyEvolution of marketing thought 20th Century
21st Century trends…21st Century trends…
Personal branding
Brand communities
Lovemarks
Brand community segmentsBrand community segments
Marketer’s Marketer’s dreamdream
GLOBALIZATIONGLOBALIZATION
the reduction and removal of barriers between national borders in order to facilitate the flow of goods, capital, services and labour
UN definition
... Globalization & society... Globalization & society
Globalization and marketingGlobalization and marketing
Corporate Level
1. Integrate sourcing, production and marketing.
2. Allocate resources across products & countries.
3. Coordinate marketing across products & countries.
Business Level Marketing
1. Coordinate marketing activities across countries for each brand.
2. Standardize the marketing mix across countries or regions.
Market: common customer needs, global customers, global channels, transferable marketing, leading markets
Competitive: common competitors using global strategies
Cost: scale economies, scope economies, sourcing advantages, avoidance of duplication
Government:favorable trade policies, acceptance of foreign investment, compatible technical standards, common marketing regulations
Globalization DriversGlobalization Drivers
MARKETS IN WHICH BUYER PREFERENCES ARE SIMILAR ACROSS
COUNTRIES
Both customer and competitive features could be conducive to global markets.
Global Markets: DefinitionGlobal Markets: Definition
PRODUCT MARKETS IN WHICH
LOCAL CONSUMERS HAVE PREFERENCES AND FUNCTIONAL REQUIREMENTS
WHICH DIFFER WIDELY FROM ONE ANOTHER
Multidomestic Markets: DefinitionMultidomestic Markets: Definition
Multidomestic Markets Global Markets
Market boundaries Markets are defined withincountry borders. Customers andcompetitors are of local origin.
Markets transcend country borders.Customers and/or competitorscross frontiers to buy and to sell.
Customers Significant differences existamong customers from differentcountries; segments are definedlocally.
Significant similarities exist amongcustomers from different countries;segments cut across geographicfrontiers.
Competition Competition takes place amongprimarily local firms; eveninternational companies competeon a country-by-country basis.
Competitors are few and present inevery major market. Rivalry takeson regional or global scope.
Interdependence Each local market operation inisolation from the rest.Competitive actions in onemarket have no impact elsewhere.
Local markets operateinterdependently. Competitiveactions in one market impact othermarkets.
Strategies Strategies are locally based. Littleadvantage exists in coordinatingactivities among markets.
Strategies are regional or global inscope. Great advantage exists incoordinating activities withinregions or worldwide.
Key DifferencesKey Differences
STRATEGIC OPTIONS IN INTERNATIONAL MARKETING
STRATEGIC OPTIONS IN INTERNATIONAL MARKETING
I. Foreign Market Entry(International Manager)
Strategy Formulation:
Growth: Product/Market DevelopmentMature: Cost, Differentiation, NicheGlobal: Competitive Attack, Learning
Strategy Implementation:
Exports, Direct/IndirectLicensing, Franchising, FDI, J.V.Strategic Alliance
Local Marketing
Sustainable Competitive Advantage Country Attractiveness
Demand CompetitionResource Analysis
II. Local Marketing (Country Manager)
Strategy Formulation:
Skimming vs Penetration?Profit vs Market Share?Global Competitive Moves?Change Customer Preferences?
Sustainable Competitive Advantage
Resource AnalysisGlobal vs Small FSAs, LSAs
Market AnalysisMarketSegmentation
Competition
Country Manager
PriceGlobal?
Adv/PromoGlobal?
ChannelsGlobal?
ProductGlobal?
Marketing Tactics
III. Global Marketing(Headquarters Management)
Multi-domestic MarketsGlobal Markets
GlobalCustomers
GlobalCompetitors
Portfolio of Country Markets
Global Pricing
Global Adv/Promo
Global Channels
Global Products
Core Global Marketing Strategy
CompetitiveLeverage
ImprovedQuality
Customer Preference
Lower CostScale/Scope
Advantages for Coordination
LocalCompetitors
LocalCustomers
LocalMarketing
LocalMarketingCountry A
LocalMarketingCountry B
LocalMarketingCountry C
LocalMarketingCountry D
LocalMarketingCountry E