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9 Cards in this Set
- Front
- Back
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The vulnerability of less developed countries |
Less regulations, legal framework less policed Consumers less educated - fall for western brands = better Slower economic development - people want to speed up to improve growth in a shorter time - creates desparation |
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Services in the global marketplace |
Services fastest growing sector in international trade - issue that there are no international standards for services Profitability of services is low in terms of capital - sometimes prevents launch Go global quickly but subject to more protectionism e.g. IP E.g. Hilton - used franchising to quickly launch services |
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Globalisation |
The crystalisation of the entire world as a single place (Paliwode & Slater) Harmonising a sense of consumption - homogenisation of global population |
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Post-globalisation |
Antiglobalisation - cultures being bullied into submission to the point local products becoming less relevant Protectionism rising at both tariff/mobility level Decline of FTA e.g. NAFTA threatened Patriotism and country of origin effect (e.g. Fiji water) E.g. GE - reducing franchises overseas - effectively domesticating |
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Why go global? |
Most trade happening outside of your country Competition - less overseas, too competitive in domestic market to survive (e.g. M&S) Product lifecycle differences - provides new opportunities for products at the end of their life cycle in domestic markets due to time lags/cultural differences (e.g. airlines) Excess capacity - enables new products to be made for international markets Comparative advantage (e.g. Dyson moving to Malaysia and building competitive advantage from that base) Financial - investment opportunities/venture capital available/growth in overseas investors (e.g. Agility Global - London company making electric bikes - all finance comes from China principally - investment coming back) Organisational issues - mergers/acquisitions may force international issue (e.g. Trivago bought by Expedia) |
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Globalisation's impact on marketing |
Levitt: global firm replacing MNC firm - sees world as a single place - convergence of consumers through modernity - standardisation, EoS, reduced world prices (e.g. Oil industry) Migration/technology/media/diffusion/communication/acculturation = Advocacy - transparency is the norm, reputation is king - need to be careful what the brand stands for Hyper-personalisation - era of bespoke marketing - social media platforms providing personalisation e.g. Rio 2016 - the personalised games Commitment - acts of commitment replace words - brands creating central narratives surrounding 'moments of truth' that resonate |
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The Internationalisation Process |
Export marketing - domestic market remains primary so exposrt is biggest market in world - low risk - paves way to next stages (e.g. Ben & Jerry's - from Vermont, built factory there, then Haagen Dasz arrived, demand fell and excess capacity - looked overseas) International marketing - greater direct involvement in local marketing environment Multinational marketing - multi-domestic strategy - local firms tailored to local markets Pan-regional marketing - strategies for larger regions e.g. EU/NAFTA Global marketing - international coordination/integration - standardisation Incremental or 'born global' (Chetty & Cambell-Hunt) - ebayization - many companies going international without even thinking about it |
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Exporting Domestic Success |
Marketing = about value/exchange of value Value = relationship between price/quality - investment/rewards Can be huge psychological risks E.g. Levi's - domestic market in US then went to Japan where consumers prepared to pay double the price E.g. Honda sell cars in Japan - successful in US because of quality/safe/practical/economical |
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Standardisation vs. Adaptation |
Standardisation (globalisation) - developing standardised products marketed worldwide with a standardised marketing mix - mass marketing Adaptation (customisation) - adjustment to environmental conditions - segmenting global market |
