Transcript International Marketing Strategy - AUEB e

International Marketing
Strategy
International Marketing Management
Anna Zarkada
Evolution of marketing thought 20th Century
PRODUCTION
ORIENTATION
SALES
ORIENTATION
MARKETING
ORIENTATION
Social responsibility
sustainability
and humanistic
Orientation
21st Century trends…
Lovemarks
Personal branding
Brand
communities
Brand community segments
Marketer’s
dream
the reduction and removal of barriers
between national borders in order to
facilitate the flow of goods, capital,
services and labour
UN definition
GLOBALIZATION
... Globalization & society
Globalization 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.
Globalization Drivers
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
Global Markets: Definition
MARKETS IN WHICH BUYER
PREFERENCES ARE SIMILAR ACROSS
COUNTRIES
Both customer and competitive features
could be conducive to global markets.
Multidomestic Markets: Definition
PRODUCT MARKETS IN WHICH
LOCAL CONSUMERS HAVE PREFERENCES
AND FUNCTIONAL REQUIREMENTS
WHICH DIFFER WIDELY FROM ONE
ANOTHER
Key Differences
Multidomestic Markets
Market boundaries Markets are defined within
country borders. Customers and
competitors are of local origin.
Significant differences exist
Customers
among customers from different
countries; segments are defined
locally.
Competition takes place among
Competition
primarily local firms; even
international companies compete
on a country-by-country basis.
Each local market operation in
Interdependence
isolation from the rest.
Competitive actions in one
market have no impact elsewhere.
Strategies are locally based. Little
Strategies
advantage exists in coordinating
activities among markets.
Global Markets
Markets transcend country borders.
Customers and/or competitors
cross frontiers to buy and to sell.
Significant similarities exist among
customers from different countries;
segments cut across geographic
frontiers.
Competitors are few and present in
every major market. Rivalry takes
on regional or global scope.
Local markets operate
interdependently. Competitive
actions in one market impact other
markets.
Strategies are regional or global in
scope. Great advantage exists in
coordinating activities within
regions or worldwide.
STRATEGIC OPTIONS IN
INTERNATIONAL
MARKETING
I. Foreign Market Entry
(International Manager)
Resource Analysis
Sustainable
Competitive Advantage
Country Attractiveness
Demand Competition
Strategy Formulation:
Growth: Product/Market Development
Mature: Cost, Differentiation, Niche
Global: Competitive Attack, Learning
Strategy Implementation:
Exports, Direct/Indirect
Licensing, Franchising, FDI, J.V.
Strategic Alliance
Local Marketing
II. Local Marketing
(Country Manager)
Country Manager
Resource Analysis
Global vs Small
FSAs, LSAs
Sustainable Competitive
Advantage
Market Analysis
Market
Competition
Segmentation
Strategy Formulation:
Skimming vs Penetration?
Profit vs Market Share?
Global Competitive Moves?
Change Customer Preferences?
Marketing Tactics
Product
Global?
Price
Global?
Adv/Promo
Global?
Channels
Global?
III. Global Marketing
(Headquarters Management)
Portfolio of Country Markets
Multi-domestic Markets
Local
Customers
Local
Competitors
Global Markets
Global
Global
Customers Competitors
Advantages for Coordination
Lower Cost
Scale/Scope
Local
Marketing
Local
Marketing
Country A
Competitive
Leverage
Improved
Quality
Customer
Preference
Core Global Marketing Strategy
Global
Products
Local
Marketing
Country B
Global
Pricing
Global
Adv/Promo
Local
Marketing
Country C
Local
Marketing
Country D
Global
Channels
Local
Marketing
Country E