Reviewer marketing

• Globalization


  Global economic integration of many formerly national economies into one global economy, mainly by free trade and free capital mobility, but also by easy or uncontrolled migration
• Internationalization


  Increasing importance of international trade, international relations, treaties, alliances, etc.
• Globalization (in business)


  Trend of firms buying, developing, producing, and selling products and services in most countries and regions in the world
• Internationalization (in business)


  Doing business in many countries in the world, but often limited to a certain region
• Regional and bilateral trade agreements have become popular
• The World Trade Organization was created to help its members use trade as a means to raise living standards, create jobs and improve people's lives
• Companies will compete with each other in all markets for customers, resources, talent, and intellectual capital
• Products will flow from many locations to many destinations
• Companies in emerging and developing countries provide human-based subsupplies for multinational companies and are becoming integral parts of complex global supply chains for large multinational companies
• Types of "distances"


  • Geographic
  • Cultural
  • Administrative/Political
  • Economic
• A company's global strategy must be based not on the elimination of differences and distances among people, cultures and places, but on an understanding of them
• EPRG Framework - firm's business activities can be described according to four orientations


  • Ethnocentric
  • Polycentric
  • Regiocentric
  • Geocentric
• Ethnocentric


  The home country is superior and the needs of the home country are most relevant. Essentially the headquarters extends its ways of doing business to its foreign affiliates. Controls are highly centralized and the organization and technology implemented in foreign locations will be largely the same as in the home country
• Polycentric (Multidomestic)


  Each country is unique and should therefore be targeted in a different way. The polycentric enterprise recognizes that there are different conditions for production and marketing in different locations and tries to adapt to those different conditions in order to maximize profits in each location. The control is highly decentralized among affiliates, and communication between headquarters and affiliates is limited
• Regiocentric


  The world consists of regions (e.g. Europe, Asia, the Middle East). The firm tries to integrate and coordinate its marketing program within regions, but not across them
• Geocentric


  The world is getting smaller and smaller. The firm may offer global product concepts but with local adaptation ('think global, act local')
• Global marketing


  The firm's commitment to coordinate its marketing activities across national boundaries in order to find and satisfy global customer needs better than the competition. The firm is able to: develop a global marketing strategy, exploit the knowledge of the headquarters through world-wide diffusion and adaptations, and transfer knowledge and 'best practices' from any of its markets and use them in other international markets
• Glocalization


  The development and selling of products or services intended for the global market, but adapted to suit local culture and behavior. Think globally, act locally
• Deglobalization


  Moving away from the globalization trends and regarding each market as special, with its own economy, culture and religion
• Initiation of Internationalization - LSE Internationalization Behavior


  • Expand research and development (R&D)
  • Expand production
  • Expand selling and other business activities into international markets
  • Expand strategically in incremental steps over time
• Internationalization of SMEs


  • Often a relatively discrete process
  • Thinks about each internationalization venture as distinct and individual

  
• Internationalization Motives (According to John H. Dunning)


  • Market-seeking
  • Efficiency-seeking
  • Resource-seeking
  • Strategic asset-seeking
• Market-seeking


  Companies go abroad to find new customers
• Efficiency-seeking


  Companies go abroad to lower the costs associated with performing economic activities and/or with the aim of rationalizing their already existing operations in various locations
• Resource-seeking


  Companies venture abroad to access resources that are not readily available at home or that can be obtained at a lower cost abroad
• Strategic asset-seeking


  Companies go abroad to obtain strategic assets (tangible or intangible), which may be critical to their long-term strategy but that are not available at home
• Internationalization Motives: Proactive & Reactive

  • Proactive motives - Represent stimuli to attempt strategy change based on the firm's interest in exploiting unique competencies or market possibilities
  • Reactive motives - Indicate that the firm reacts to pressures or threats in its home market or in foreign markets and adjusts passively to them by changing its activities over time
• Managerial urge


  A motivation that reflects the desire, drive and enthusiasm of management towards global marketing activities. Can exist simply because managers like to be part of a firm that operates internationally. A reflection of general entrepreneurial motivation – of a desire for continuous growth and market expansion
• Internationalization triggers


  • Management's interest in internationalization
  • Foreign enquiries about the company's products/services
  • Inadequate demand in the home market
• Inward/Outward Internationalization


  • Inward internationalization – Importing
  • Outward internationalization – International market entry and marketing activities
• Trade Associations and Other Outside Experts


  • Export agents
  • Governments
  • Chambers of commerce
  • Banks
• Barriers Hindering Internationalization Initiation

  • Insufficient finances
  • Insufficient market knowledge
  • Lack of foreign market connections
  • Lack of export commitment
  • Lack of capital to finance expansion into foreign markets
  • Lack of productive capacity to dedicate to foreign markets
  • Lack of foreign channels of distribution
  • Management emphasis on developing domestic markets
  • Cost escalation due to high export manufacturing, distribution and financing expenditures
• De-Internationalization


  A process, determined by internal and external factors, where the multinational company shifts to a strategic configuration that has a lower international presence
• Cultural orientations


  • Individualist culture
  • Collectivist culture
• Subcategories of cultural orientations

  • Horizontal - valuing equality
  • Vertical - emphasizing hierarchy

  
• Vertical individualist society


  Concerned with self-enhancement values of power and achievement, distinguish themselves from others via competition, achievement, and power
• Horizontal individualist society


  People prefer to view themselves as equal to others in status and avoid status differentiation, rather than standing out, the focus is on openness values of stimulation and self-direction, prefer expressing one's uniqueness and establishing one's capability to be successfully self-reliant
• Vertical collectivist society


  People are concerned with conservation values of tradition, conformity, and security, believes in importance of existing hierarchies, emphasizes subordination of personal goals to those of their in-groups, endorse traditional family values
• Horizontal collectivist society


  Individuals endorse self-transcendence values that promote the welfare of others, focus is on sociability and interdependence with others within an egalitarian framework (i.e., advocating the removal of inequalities among people)
• The Cultural Audit


  A type of brand audit focused on identifying brand image elements with cultural significance, the starting point of acquiring a cultural understanding of the brand and a measure of its potential cultural relevance in a new market, aims to identify the extent to which the brand has (or can credibly develop) cultural equity in the new market, should be conducted in the cultural context of the new market and consider how consumers in the new market perceive the brand and its associated meanings