International Marketing 4
4 International Marketing Strategies
4 International Marketing Strategies
Set of flashcards Details
| Flashcards | 23 |
|---|---|
| Language | English |
| Category | Marketing |
| Level | University |
| Created / Updated | 03.11.2014 / 19.01.2019 |
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Global strategy
The activities of a firm on a worldwide basis to capture the linkages among countries and to treat the entire world as a single borderless market.
Multi-domestic Strategy
In a multi domestic strategy, a firm manages its international activities like a portfolio
Industry globalization drivers
Four forces to determine the potential of industry globalization:
Cost Forces
Market Forces
Government Forces
Competitive Forces
Global Strategy 1 - Market Forces
Rich consumers in emerging markets
Organizations behaving as global customers
Growth of global and regional channels
Establishment of world brands
Revolution in communication technology
Global Strategy 2 -.Cost Forces
Global sourcing efficiencies
Global economies of scale and scope
Favorable logistics
Fast-changing technology
Steep experience curve
Shorter product life cycles
Global Strategy 3 - Government Forces
- Low labor cost/ High growth in LDCs
- Compatible technical standards
- Deregulation/privatization of industries
- Trade policies
- Trading regulations
Global Strategy 4 - Competetive Forces
- Interdependent countries
- Competitors from different continents and countries
- High exports and imports
- Globalized competitors
Global Strategy 5 - Competitive Structure
Cost leadership
Product differentiation
Niche strategy
Competitive industry structure 5 Forces:
- Competition level
- Threat of new entrants
- Threats of substitute products
- Bargaining power of suppliers
- Bargaining power of buyers
8 Market Entry Modes
Direct/ In direct Exporting
Licensing
Franchising
Contract Manufactoring
Joint Venture
Aquisitions
Greenfield
5 Drivers behind successful international joint ventures
- Pick the right partner
- Clear objectives
- Bridge cultural gaps
- Commitment and respect
- Step by step approach
TIMING OF MARKET ENTRY
2 Strategies
Waterfall strategy
Sprinkler strategy
Waterfall strategy
Global phased rollout where new products trickle down in a cascade-like manner (e.g. 22 years for McDonald's, and 20 years for Coca Cola)
Sprinkler strategy
Simultaneous worldwide entry (e.g. Apple, Sony)
STRATEGIC ALTERNATIVES IN GLOBAL MARKETING
There are three global strategies to penetrate foreign markets:
- Extension
- Adaptation
- Creation / Invention
Extension
Offering product virtually unchanged in markets outside of home country
Adaptation
Changing elements of design, function, and packaging according to needs of different country markets
Creation / Invention
Developing new products for the world market
STRATEGIC ALTERNATIVES IN GLOBAL MARKETING
Adapted standardization
- Modular approach
- Core-product (common platform) approach
Modular approach
The company offers standardized parts (modules) that can be assembled worldwide in different configurations, depending on market needs (e.g. Vaillant, Black & Decker)
Core-product (common platform) approach
Involves using a standardized strategy for the core product worldwide, but varying certain aspects of the offering (product ingredients, advertising, for example) from market to market (e.g. the car industry).
The adoption of new products/innovations is driven by two types of factors:
1. Product characteristics
- Relative advantage (comp. to existing alternatives)
- Compatibility (with existing values and attitudes)
- Complexity
- Triability
- Observability (of product benefits)
2. Individual (personal) characteristics (early vs. late adopters)
Country characteristics used to predict new product penetration patterns
- Homogeneous population
- Lead vs. lag countries
- Cosmopolitan population
- Mobility of the population
- Labor force profile (women)
- National innovativeness
MARKET EXIT
Reasons for a market exit
Sustained losses
Volatility
Premature entry
Ethical reasons
Intense competition
Resource reallocation
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