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24 Cards in this Set
- Front
- Back
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Create value for customers by: |
Improving benefits or reducing price -Improve the product -Create better communications -Cut monetary and non monetary costs and prices |
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An industry is global to the extent that... |
A company's industry position in one country is interdependent with its industry position in another country
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Indicators of globalization |
-Ratio of cross border trade to total worldwide production -Ratio of cross border investment to total capital investment -Proportion of industry revenue generated by companies that compete in key world regions |
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Single country marketing strategy |
-Target market strategy -Marketing Mix -Product, price, promotion, place
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Global markting strategy |
-global market participation -marketing mix development -concentration of marketing activities -coordination of marketing activities -integration of competitive moves |
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Globalization (standardization) |
Developing standardized products marketed worldwide with a standardized marketing mix,
Essence of mass marketing |
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Global Localization (adaptation) |
-Mixing standardization and customization in a way that minimizes costs while maximizing satisfaction -Essence of segmentation -Think globally, act locally |
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Importance of going global |
-For US companies 75% of total world market for goods and services is outside the country -For Japanese companies, 85% of world market is outside the country -94% of market potential is outside of Germany for its companies |
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Ethnocentric Orientation |
-Home country is superior to others -Sees only similarities in other countries -Assumes products and practices that succeed at home will be successful everywhere -Leads to a standardized or extension approach |
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Polycentric Orientation |
-Each country is unique -Each subsidiary develops its own unique business and marketing strategies -Often referred to as multinational -Leads to a localized or adaptation approach that assumes products must be adapted to local market conditions * Companies that adapt a lot |
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Regiocentric Orientation |
-A region is the relevant geographic unit -Some companies serve markets throughout the world but on a regional basis * Think of GE- they structure their companies in a way that they have a VP of America, VP of Africa and so on |
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Geocentric Orientation |
-Entire world is a potential market -Strives for integrated global strategies -Also known as a global or transitional company -Retains an association with the headquarters -Pursues serving the world markets from a single country or sources globally to focus on select country markets -Leads to a combination of extension and adaptation elements * Think of Apple- doesn’t change anywhere they go |
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Driving forces affecting global integration and global marketing |
-multilateral trade agreements -converging market needs and wants and the information revolution -transportation and communication improvements -product development costs -Quality- R&D as a percent of sales -World economic trends -Leverage- expierence transfers, scale economies, resource utlization, global strategy * Food has low imports and exports, it is local and everyone has different tastes |
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Restraining forces affecting global integration and global marketing |
-management myopia -organizational culture -national controls -opposition to globalization |
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* Advertised the same all over the world
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Globalization |
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Competitive Advantage |
CA is measured relative to rivals in an industry |
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Concentration of Marketing Activities |
Is the extent to which marketing mix activities are performed in one or a few country locations.
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Coordination of Marketing Activies |
Refers to the extent to which marketing mix activities are planned and executed interdependently around the globe. |
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Integration of competitive Moves |
Is the extent to which a firm’s competitive marketing tactics are interdependent in different parts of the world. |
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BEM |
B ig (greater than 20 million are considered big E merging (GDP $Gross Domestic Product growth rate is higher than the world average=2.5% M arket |
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International Marketing |
Marketing with more than 200 countries |
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Emerged |
The country has already developed and is matured |
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Political Trade Groups - first level |
BRICS * S south africa (joined 2010) 40 million |
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Political Trade Groups - second level |
CIVITS * S south africa (but moved to BRICS because they moved up in rank) |
