Marketing

• Globalization


  Refers to 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


  Refers to the increasing importance of international trade, international relations, treaties, alliances, etc.
• Globalization


  Reflects the trend of firms buying, developing, producing, and selling products and services in most countries and regions in the world
• Internationalization


  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
• Thomas Friedman: 'The world is a level playing field for commerce, where all players and competitors have an equal opportunity. 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.'
• Pankaj Ghemawat: 'When distances increase, cross-border trade tends to decrease. Examples 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.'
• Five-Stage Decision Model in Global Marketing

  1. Domestic marketing

  2. Export marketing

  3. International marketing

  4. Multinational marketing

  5. Global marketing
• Development of an International Marketing Plan

  1. Situation analysis

  2. Objectives

  3. Strategy

  4. Implementation

  5. Evaluation and control
• Characteristics of LSEs and SMEs

  • Domestic focus
  • Limited resources
  • Lack of international experience
  • Lack of economies of scale
  • Lack of bargaining power
  • Lack of international distribution channels
  • Lack of international brand recognition
• LEGO® is an example of a company that has successfully globalized its operations
• NineStrategicWindows


  A framework for analyzing a firm's global marketing strategy
• EPRG Framework


  A 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.
• Global Marketing


  • The firm is able to: develop a global marketing strategy, based on similarities and differences between markets; exploit the knowledge of the headquarters (home organization) through world-wide diffusion (learning) and adaptations; 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.