...Chapter 1: Global marketing in the firm I. Introduction to globalization Globalization: reflects the trend of firms buying, developing producing and selling products and service in most countries and regions of the world. Benefits for the firm which do an international expansion: * New and potentially more profitable markets * Increase the firm’s competitiveness * Facilitates access to new product ideas, manufacturing innovations and the latest technology Internalization: doing business in many country of the world, but often limited to a certain region (ex: Europe). A. Industry globalism The strategic behaviour of firms depends on the international competitive structure within in industry. In the case of high degree of industry globalism, there are many interdependencies between markets, customers and suppliers, and the industry is dominated by a few large powerful players (global). Example of global industries: PCs, IT, records, movies and aircrafts. The other land (local) represents a multidomestic market environment, where markets exist independently from one other. Example of local industries: hairdressing, foods and dairies. B. Preparedness for internationalization The degree of preparedness is dependent on the firm’s ability to carry out strategies in the international marketplace and the actual skills in international business operations. The well-prepared company has a good basis for dominating the international markets and consequently...
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...Title of the article selected is “Entrepreneurial Orientation, Strategy, and Marketing Capabilities in the Performance of Born Global Firms” which published in International Business Research Teaching and Practice- The Journal of the AIB-SE Volume 2 Number 1 in year 2008, from page 12 to page 38. Samantha Hartsfield, Douglas Johansen and Gary Knight are the authors of this article. The primary objective of the article is to investigate the antecedents that affect the international performance of born global firms, companies that export 25% or more within the first three to six year of their foundation. From the framework of the study, it reveals that organizational culture, business strategy and business tactics are the three main factors contributing to the international performance of those born global firms. By looking in depth at these three main factors, it actually is a process on how a born global firm can gain competitive position in this intense business environment and thus succeed in the market. In the article, the authors do argue that born global internationalized rapidly as compared to traditional companies due to its smaller size, flexibility, proactive, innovative and risk taking characteristic. Besides, it has better development and management of knowledge in the early stage compared to traditional firm. As for traditional company, it needs to unlearn the routine and operation and learn new process for the new market. It is costly and time consuming and...
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...Fernandes, Marcelle ID: 2775353 Marketing Mini- Project Principals of Marketing Chapter 5 pag.166 1- Choose one of the following companies. What colors does it use predominantly in its logo or packaging? How do these colors affect the perception of its products? Answer 1: I choose Wendy’s. Anwer 2: It uses the red color of predominantly color in logo or packaging. Answer 3: The perception of red color scheme subliminally encourages consumers to order and eat their food quickly, it is a whole idea of fast food. Scientists know that color literally affects the body and mind. Colors are associated with certain qualities or emotions, and red means excitement, strength, sex, passion, peed, danger. 2- Should a global firm like McDonald’s or General Mills change the colors of its logo or packaging depending on the country in which it is marketing? Why or why not ? How might this affect consumer attitudes toward the company and its products? Answer 1: I do not think that global firms like McDonald’s or General Mills should change the colors of the logo. Colors for global firms represent unique enterprise culture and brand. Although firms invest a lot of money to marketing do a great deal of research to determine greater color. Answer 2: Unified logo is necessary because it not only protects the brand, but prevents counterfeits. Also it helps company build their unified brand image in order to improve the popularity of an enterprise in costumer. As...
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...Broad Conceptualization of Global Marketing Strategy and Its Effect on Firm Performance Shoaming Zou & S. Tamer Cavusgil Introduction The authors in this article develop a broad conceptualization of global marketing strategy, the GMS, that integrates three major perspectives. (1) The standardization, (2) configuration-coordination, and (3) integration perspectives of global marketing strategy. A fundamental proposition of international marketing is that a firm’s global marketing strategy has a positive effect on its global market performance. The purpose of the present research is twofold: First, the authors develop a broad conceptualization of global marketing strategy, named the GMS, to integrate the three major existing perspectives of global marketing strategy. Second, they attempt to substantiate the fundamental relationship between global marketing strategy and a firm’s performance by developing and testing a conceptual model that links the proposed GMS to a firm’s global market performance. They two questions the authors ask in this paper are: 1. What is global marketing strategy? 2. Does it matter whether a firm pursues a global marketing strategy? A brief review of the global marketing strategy literature Many researchers argue that global marketing strategy plays a critical role in determining a firm’s performance in the global market. In the current literature, there exist three major perspectives of global marketing strategy. These perspectives...
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...International Marketing. Submitted by: Fredrick Malingu Student ID: 12500 Submission Date: 24-11-2014 Contents Introduction 2 Part 1: international marketing mix strategies: standardization and Adaptation 2 Second part: Internationalization process theory 3 Conclusion 3 Introduction Many companies operation internationally today with elimination of many trade barrier in many countries in the world. These firms need to come up with international marketing strategies that will enable them complete favourably in these new markets. International marketing strategies mean that international subsidiaries act and formulate marketing ways independently as if they were local companies with minimal coordination or supervision from the parent company. This aims at meeting the local consumer needs in the market but at the same time not lowering the international standards of a brand. This paper discusses the two main marketing strategies that international firms like Coca cola use. These are standardization and adaptation. In standardization, a multinational company uses a uniform approach to marketing her brand so as to minimize costs and promote a global corporate image. On the other hand adaptation means that a firm uses unique marketing dimension that are adaptable to fit each of her local markets (Mathew & Zander, 2007).This paper looks at how practical a brand like Coca cola has used adaptation and standardization in international...
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...Manag Int Rev (2011) 51:179–192 DOI 10.1007/s11575-011-0071-6 R e s e a R c h a Rt i c l e Effective Global Strategy Implementation Structural and Process Choices Facilitating Global Integration and Coordination Attila Yaprak · Shichun Xu · Erin Cavusgil Abstract: 0 0 this article offers a contingency framework of global strategy implementation effectiveness on firm performance. The research question we seek to address is what the structural and process requirements are for MNEs to successfully implement global strategy through increased efficiency and effectiveness of integration and coordination across world markets. Our central premise is that MNEs’ capabilities in establishing supporting structural and process mechanisms will enhance the effectiveness and efficiency of implementing their global strategies which would, in turn, lead to better firm performance. Keywords: Integration and coordination · Global strategy · Firm performance · contingency framework Received: 25.12.2009 / Revised: 15.08.2010 / Accepted: 11.10.2010 / Published online: 02.04.2011 © Gabler-Verlag 2011 Prof. A. Yaprak () Department of Marketing, Wayne State University, Detroit, USA e-mail: Attila.yaprak@wayne.edu Asst. Prof. S. Xu Department of Marketing and Logistics, University of Tennessee, Knoxville, USA Asst. Prof. E. Cavusgil Department of Marketing, University of Michigan-Flint, Flint, USA 180 A. Yaprak et al. Introduction The globalization of the world economy...
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...International Marketing 14th Edition P h i l i p R. C a t e o r a M a r y C. G i l l y John L. Graham The Scope and Challenge of International Marketing Chapter 1 McGraw-Hill/Irwin International Marketing 14/e Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. What Should You Learn? • The changing face of U.S. business • The scope of the international marketing task • The importance of the self-reference criterion (SRC) in international marketing • The progression of becoming a global marketer • The increasing importance of global awareness 1-2 Global Perspective: Global Commerce Causes Peace • Global commerce during peace time – Commercial aircraft and space vehicle industries – Mobile phone industry – Individuals and small companies • International markets are ultimately unpredictable – Flexibility means survival 1-3 Events and Trends Affecting Global Business • • The rapid growth of the World Trade Organization and regional free trade areas The trend toward the acceptance of the free market system among developing countries in Latin America, Asia, and Eastern Europe The burgeoning impact of the Internet, mobile phones, and other global media on the dissolution of national borders The mandate to properly manage the resources and global environment for the generations to come 1-4 • • The Internationalization of U.S. Business • Increasing globalization of markets • Increasing number of U.S. companies are foreign...
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...Companies globalize in order to target a larger market. With a larger market, companies can increase their profit from the services and products that that would be accessible to a higher number of consumers. To go global, companies must begin with a strategic plan and then move on to full implementation. They must also develop a knowledge base through marketing research to ensure that that the right choices are being made. Companies must also concentrate on market entry through exporting and other low-cost, low-risk international expansions alternatives. With globalization comes great opportunity for growth but also the many challenges of entering brand new markets. CEO’s and marketing executives face marketing decisions that can affect the future of the company for many years to come. They must employ strategic planning to match new markets with products and corporate resources more effectively and efficiently to strengthen the company’s long term competitive advantage (Czinkota & Ronkainen, 2010). Daily decisions then fit into the company’s overall strategic marketing goals. Companies that implement a formal strategic planning process will increase profitability as well as improve various nonfinancial objectives. The first step of the strategic planning process is assessment and adjustment of core strategy. This begins by defining the business that the strategy is being developed for. Companies must understand exactly the business that is being conducted before...
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...marketing chapter 1- introduction to global marketing principles of marketing a review The essence of marketing is to surpass the competition at the task of creating perceived value. Value equation = Benefits/Price (time, money, effort). Benefits are a combination of the product, promotion and distribution. A market = people or organization that are both able and willing to buy. When a company is able to create more value than the rest, he has a competitive advantage. A global industry – one in which competitive advantage van be achieved by operations on a worldwide scale. Global marketing: what it is and what it isnt Global marketing strategy, has 5 dimensions: 1. Global market participation: the extent to which a company had operations in major world markets. 2. Standardization vs. adaptation 3. Concentration of marketing activities: the extent to which activities related to the marketing mix are performed in one or a few countries. 4. Coordination of marketing activities: the extent to which marketing activities related to the marketing mix are planned and executed interdependently around the globe. 5. Integration of competitive moves: the extent to which a firm’s competitive marketing tactics in different parts of the world are interdependent. management orientations Ethnocentric orientation His/her home superior to the rest. Opportunities outside the home country are largely ignored domestic companies. Those who conduct business outside...
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...International Marketing The Scope and Challenge of International Marketing Chapter 1 1 Thursday, 27 February 14 What Should You Learn? • LO1: The benefits of international markets • LO2: The changing face of U.S. business • LO3: The scope of the international marketing task • LO4: The importance of the self-reference criterion (SRC) in international marketing • LO5: The increasing importance of global awareness • LO6: The progression of becoming a global marketer 2 Thursday, 27 February 14 LO1 Global Perspective: Global Commerce Causes Peace • Global commerce during peace time – Commercial aircraft and space vehicle industries – Mobile phone industry – Individuals and small companies • International markets are ultimately unpredictable – Flexibility means survival 3 Thursday, 27 February 14 LO1 Global Perspective: Global Commerce Causes Peace Basil pesto from Israel + raw materials and glass jars from Arab partner = Moshe & Ali’s Gourmet Foods http://www.peaceworks.com/press/libraryArticleMakingPeaceByMakingPastaSauces.html COOPERATION NEVER TASTED SO GOOD!™ 4 Thursday, 27 February 14 LO1 Events and Trends Affecting Global Business • The rapid growth of the World Trade Organisation and regional free trade areas • The trend toward the acceptance of the free market system among developing countries in Latin America, Asia, and Eastern Europe • The burgeoning impact of the Internet, mobile phones, and other global media on the dissolution of national borders • The...
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...Defending a Domestic Position against Global Entries Abstract The paper offers a systematic review of strategic options available to incumbents coping with threats and attacks by a global firm. The framework makes it possible to review and analyze action alternatives based on the entry stage, the attack focus and defense tactics. Even though the globalization process has exposed domestic incumbents to greater threats, incumbents’ options have also increased. The doors of trade liberalization swing both ways. Opportunities for collaboration increase while anti-globalization movements and national patriotism can be mobilized for effective defense.. The framework presented in this paper builds on existing strategic theories and concepts in addition to published case studies. It offers a flexible and dynamic approach for reviewing alternative strategies for implementation and research. Key words: Defensive strategies, Incumbents, Global threats, Global opportunities, Globalization trends. Defending a Domestic Position against Global Entries Yaron Timmor; Samuel Rabino; Jehiel Zif Introduction In the age of globalization, many domestic firms are threatened by the entry of global firms (Baker and Ballington 2002; Beardsley et al. 2002; Roberts Nelson and Morrison 2005; Thoumrungroje and Tansubaj 2004). Equipped with mega brands, know-how and economies of scales, global and multinational firms shove aside and even trample local players (Douglast, Quelch and Taylor 2004;...
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...International marketing - is simply the application of marketing principles to more than one country. However, there is a crossover between what is commonly expressed as international marketing and global marketing, which is a similar term. For the purposes of this lesson on international marketing and those that follow it, international marketing and global marketing are interchangeable. - marketing involves the firm in making one or more marketing mix decisions across national boundaries. At its most complex level, it involves the firm in establishing manufacturing facilities overseas and coordinating marketing strategies across the globe. Controllable element - it clearly defines the meaning of a business environment, which is the foundation to begin with before answering the question. it defines a business environment as " encompasses all those factors that affect a company's operations, and includes customers, competitors, stakeholders, suppliers, industry trends, regulations, other government activities, social and economic factors, and technological developments" However, the definition given is very general, it does not distinguish or point out which elements are controllable and which are not. To my own understanding, controllable elements, also known as internal elements, are those which are within the organization which are eligible to controlling the operation of an organization, which includes the management, the hierarchy of the business, the personnel, the...
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...International Marketing International Marketing C-level, 15 ECTS Autumn Term 2014 Assignment number1 Group Number 5 Authors : XXX XXX XXX XXX Tutor : Desalegn Abraha Date of Submission : 24/09/2014 Date of Seminar : 26/09/2014 Table of contents Page Number 1. Discuss the impact of import restrictions on consumers. 3 2. What can be learned about a culture from reading and attending to factual materials? Given the tremendous increase in international marketing activities, where will companies in a relatively early stage of their internationalization process find the personnel to handle the new challenges? 4 3. Suggest ways in which the global marketer is better equipped to initiate and respond to global moves. 5 4. Discuss the possible shortcomings of secondary data. 8 5. Why might a firm choose to retreat to a domestic focus? 9 6. Propose scenarios in which export prices are higher/lower than domestic prices. 10 7. What specific advice would you give to an exporter who has used domestic direct marketing extensively and may wish to continue the practice abroad? 12 8. Discuss the impact of the Internet and e-commerce in making a firm global. 14 9. What are the implications of price escalation? 16 10. The Alliance for Gray Market and Counterfeit Abatement (http://www.antigraymarket .org) has as its primary purpose to “mitigate gray marketing and counterfeiting...
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...INTERNATIONAL MARKETING CHAPTER 1 – GLOBAL MARKETING IN THE FIRM Globalization – Reflects the trends of firms buying, developing, producing and selling products and services in most countries of the world Comparison of the Global Marketing and Management style between SMEs and LSEs * Resources (Financial, Business Education) * Formation of Strategy * Organization * Risk-taking * Flexibility * Economies of Scale and Scope * Use of information sources Economies of Scope – Reusing a resource from one business in additional businesses Should the company stay home or go abroad? * Industry Globalism. Mainly determined by the international marketing environment * Preparedness for Internationalization. Dependent on the firm`s ability to carry out strategies in the international marketplace, that is the actual skills in international business operations Development of the Global Marketing concept The form of the firm´s response to global market opportunities depends greatly on the management´s assumptions and beliefs about the nature of doing business around the world: * Ethnocentric - Home country is superior and their needs are the most relevant * Polycentric (Multidomestic)- Each country is unique and should be targeted in a different way * Geocentric- The firm may offer global products but with local adaptations * Regiocentric- The firm tries to integrate its marketing programme within regions Glocalization- Development...
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...International Marketing Strategy, 5th Edition Isobel Doole and Robin Lowe Publishing Director: John Yates Publisher: Jennifer Pegg Development Editor: Lucy Mills Production Editor: Leonora Dawson-Bowling Manufacturing Manager: Helen Mason Senior Production Controller: Maeve Healy Marketing Manager: Angela Lewis Typesetter: Newgen, India Cover design: Adam Renvoize Text design: Design Deluxe, Bath, UK For product information and technology assistance, contact emea.info@cengage.com. For permission to use material from this text or product, and for permission queries, email clsuk.permissions@cengage.com Products and services that are referred to in this book may be either trademarks and/or registered trademarks of their respective owners. The publishers and author/s make no claim to these trademarks. British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library. ISBN: 978-1-84480-763-5 Cengage Learning EMEA High Holborn House, 50-51 Bedford Row London WC1R 4LR Cengage Learning products are represented in Canada by Nelson Education Ltd. For your lifelong learning solutions, visit www.cengage.co.uk Purchase e-books or e-chapters at: http://estore.bized.co.uk CHAPTER 1 AN INTRODUCTION TO INTERNATIONAL MARKETING INTRODUCTION Managers around the globe are recognising the increasing necessity for their companies and organisations to develop the skills, aptitudes and knowledge to compete effectively in international markets...
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