OVERVIEW OF CHANGE
-
Upload
babitasaini6402 -
Category
Documents
-
view
218 -
download
0
Transcript of OVERVIEW OF CHANGE
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 1/37
INTERNATIONALINTERNATIONAL
MARKETINGMARKETINGP.K. TALAPATRAP.K. TALAPATRA
WLC WLC
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 2/37
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 3/37
TOPICS TOPICS From an International mark et to a Global Mark etFrom an International mark et to a Global Mark et
The scope of International and Global Mark eting The scope of International and Global Mark eting
Localization v/s StandardizationLocalization v/s Standardization
Why are companies Why are companies g oing globalg oing global
P.K. TALAPATRA - WLC - INTL MKTNG 3
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 4/37
P.K. TALAPATRA - WLC - INTL MKTNG 4
Marketing: A UniversalMarketing: A Universal
DisciplineDiscipline Mark eting Mark eting (1)(1): The process of focusing resources and: The process of focusing resources and
objectives of an organization on environmentalobjectives of an organization on environmental
opportunities and needsopportunities and needs Mark eting Mark eting (2)(2): A set of concepts, tools, theories,: A set of concepts, tools, theories,
practices, procedures, and experiencespractices, procedures, and experiences
Although it is a universal discipline, mark eting practice Although it is a universal discipline, mark eting practice varies from country to country varies from country to country
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 5/37
P.K. TALAPATRA - WLC - INTL MKTNG 5
The Marketing Concept The Marketing Concept (1)(1)
Concept has changed dramatically Concept has changed dramatically
1950·s:1950·s:
² ² Focus on productsFocus on products
1960·s:1960·s:
² ² Focus on customer orientationFocus on customer orientation
² ² Development of mark eting mix: product, price, promotion,Development of mark eting mix: product, price, promotion,
placeplace (4P·s)(4P·s)
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 6/37
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 7/37
P.K. TALAPATRA - WLC - INTL MKTNG 7
The Marketing Concept The Marketing Concept (3)(3)
Contemporary:Contemporary: ² ² Tw o k ey task s of mark eting Tw o k ey task s of mark eting
Focus on customer and his/her environmentFocus on customer and his/her environment
Create value for consumers and stak eholderCreate value for consumers and stak eholder
² ² Shif t to wa
rdsShi
f t to wa
rds
Focus on managing strategic partnershipsFocus on managing strategic partnerships
Positioning of f irm in value chain to optimize valuePositioning of f irm in value chain to optimize valuecreationcreation
² ² Prof it as a measure of success, not an end in itself Prof it as a measure of success, not an end in itself
Jack Welch, former GE, Chairman termed this Jack Welch, former GE, Chairman termed thisstrategic concept as ´Boundary less Mark etingµstrategic concept as ´Boundary less Mark etingµ
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 8/37
P.K. TALAPATRA - WLC - INTL MKTNG 8
KEYS TO GLOBAL SUCCESSKEYS TO GLOBAL SUCCESS
i)i) Value creation Value creationii)ii) Competitive edgeCompetitive edge
iii)iii) FocusFocus
Value Creation Value Creation Create customer value that is g reater than theCreate customer value that is g reater than the
value created by competitors value created by competitors
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 9/37
P.K. TALAPATRA - WLC - INTL MKTNG 9
Value equation is: Value equation is:
Value = Perceived benef its /price Value = Perceived benef its /price V = V = BB
PP
B = Perceived benef itsB = Perceived benef its ² ² Perceived costsPerceived costsBenef it results from product, distributionBenef it results from product, distribution
P = Price is a f unction of money, time, effortP = Price is a f unction of money, time, effort
Value can be created by impro ved benef its and Value can be created by impro ved benef its and
lo wer pricelo wer price
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 10/37
P.K. TALAPATRA - WLC - INTL MKTNG 10
Competitive AdvantageCompetitive Advantage
Competitive advantage is a total off er visCompetitive advantage is a total off er vis--àà--vis vis
the relevant competition, which should be morethe relevant competition, which should be moreattractive to the customerattractive to the customer
Advantages can be leveraged by integ rating the Advantages can be leveraged by integ rating theelements of mark eting mix.elements of mark eting mix.
FocusFocus
It is the concentration of attention on coreIt is the concentration of attention on corebusiness and competencebusiness and competence
The focus should be on customer needs and The focus should be on customer needs and wants and efforts required to deliver a product wants and efforts required to deliver a productthat meets the need.that meets the need.
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 11/37
P.K. TALAPATRA - WLC - INTL MKTNG 11
FocusFocus
Concentration and attention on coreConcentration and attention on core
business and competencebusiness and competence
² ² Nestle is focused: We are food and beverages. We are Nestle is focused: We are food and beverages. We are
not running bicycle shops. Even in food we are not in not running bicycle shops. Even in food we are not in
all fields. There are certain areas we do not all fields. There are certain areas we do not
touch«..We have no soft drinks because I have said touch«..We have no soft drinks because I have said
we will either buy Coca we will either buy Coca- -Cola or we leave it alone. This Cola or we leave it alone. This
is focus.is focus. Helmut MaucherHelmut Maucher
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 12/37
P.K. TALAPATRA - WLC - INTL MKTNG 12
Scope and Boundaries of GlobalScope and Boundaries of Global
MarketingMarketing Mark eting discipline is universal but mark ets andMark eting discipline is universal but mark ets and
customers are quite diff erentcustomers are quite diff erent
Three domains of k no wledge relevant to international Three domains of k no wledge relevant to internationalmanagersmanagers
² ² CrossCross--Cultural Kno wledgeCultural Kno wledge
² ² Country/ Regional Kno wledgeCountry/ Regional Kno wledge
² ² CrossCross--Border Transactions Kno wledgeBorder Transactions Kno wledge
Need for ´Global Localizationµ: Adjustment of globalNeed for ´Global Localizationµ: Adjustment of globalmark eting strategies to local requirementsmark eting strategies to local requirements
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 13/37
P.K. TALAPATRA - WLC - INTL MKTNG 13
Global IndustriesGlobal Industries An industry is global to the extent that a company·s industry position An industry is global to the extent that a company·s industry position
in one country is interdependent with its industry position in another in one country is interdependent with its industry position in another country country
Indicators of globalizationIndicators of globalization
² ² Ratio of crossRatio of cross--border trade to total w orldwide productionborder trade to total w orldwide production
² ² Ratio of crossRatio of cross--border investment to total capital investmentborder investment to total capital investment ² ² Proportion of industry revenue generated by companies thatProportion of industry revenue generated by companies that
compete in k ey w orld regionscompete in k ey w orld regions
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 14/37
P.K. TALAPATRA - WLC - INTL MKTNG 14
Why Go Global? Why Go Global?
For USFor US--based companies, 75% of salesbased companies, 75% of sales
potential is outside the US.potential is outside the US.
² ² About 90% of Coca About 90% of Coca--Cola·s operating incomeCola·s operating income
is generated outside the US.is generated outside the US.
For Japanese companies, 85% of potentialFor Japanese companies, 85% of potential
is outside Japan.is outside Japan.
For German and EU companies,For German and EU companies,94% of potential is outside Germany.94% of potential is outside Germany.
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 15/37
P.K. TALAPATRA - WLC - INTL MKTNG 15
GLOBAL MARKETGLOBAL MARKET ´The global corporation sells the same thing in the´The global corporation sells the same thing in the
same way everywhereµsame way everywhereµ
Seg mentation is not cost eff ectiveSeg mentation is not cost eff ective
Global corporationGlobal corporation-- k no ws everything about onek no ws everything about one
g reat thing g reat thing³ ³the need to be competitive w orldwidethe need to be competitive w orldwide
and k eep prices do wn by standardizationand k eep prices do wn by standardization
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 16/37
P.K. TALAPATRA - WLC - INTL MKTNG 16
Examples of Global MarketersExamples of Global Marketers
CocaCoca--ColaCola
Philip MorrisPhilip Morris
DaimlerDaimler--ChryslerChrysler
McDonald·sMcDonald·s
Toy ota Toy ota
FordFord
UnileverUnilever
GilletteGillette
IBMIBM
USAUSA
USAUSA
Germany Germany
USAUSA
Japan Japan
USAUSA
UK/ NetherlandsUK/ Netherlands
USAUSA
USAUSA
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 17/37
P.K. TALAPATRA - WLC - INTL MKTNG 17
From Domestic to Global/TransnationalFrom Domestic to Global/Transnational
MarketingMarketing
Domestic Mark eting Domestic Mark eting
Export Mark eting Export Mark eting
International Mark eting International Mark eting Multinational Mark eting Multinational Mark eting
Transnational Mark eting Transnational Mark eting
Global Mark eting Global Mark eting
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 18/37
P.K. TALAPATRA - WLC - INTL MKTNG 18
When is each strategy appropriate? When is each strategy appropriate?
Need for
Global
Integration
Low
High
Need for Local Market Responsiveness
Low High
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 19/37
P.K. TALAPATRA - WLC - INTL MKTNG 19
Focus on competition in each market
Prominent strategy among European firms due to
broad variety of cultures & markets in Europe
Assumes markets differ by country or regions
Business units in each country are independent of
each other
Products & services are tailored to local markets
Strategy & operating decisions are decentralized to
strategic business units (SBU) in each country
MultiMulti ² ² Domestic StrategyDomestic Strategy
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 20/37
P.K. TALAPATRA - WLC - INTL MKTNG 20
Firm often lacks responsiveness to local markets
Requires resource sharing & coordination across
borders (which also makes it difficult to manage)
Emphasizes economies of scale
trategic business units ( s) are assumed to be
interdependent
Decisions regarding business-level strategies are
centralized in the home office
Products are standardized across national
markets
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 21/37
P.K. TALAPATRA - WLC - INTL MKTNG 21
Seeks to achieve both global efficiency and
local responsiveness
Difficult to achieve because of simultaneous need: for strong central control and
coordination to achieve efficiency as well as
local flexibility & decentralization to achieve local
market responsiveness
Must pursue organizational learning to achieve
competitive advantage
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 22/37
P.K. TALAPATRA - WLC - INTL MKTNG 22
Global Marketing Vs. MarketingGlobal Marketing Vs. Marketing
The diff erence lies in the scope and nature of The diff erence lies in the scope and nature of
activitiesactivities Global mark eting focuses its resources onGlobal mark eting focuses its resources on
global opportunities and threats and conductsglobal opportunities and threats and conductsimportant business activities outside the homeimportant business activities outside the homemark et.mark et.
Global mark eting inv olves an understanding of Global mark eting inv olves an understanding of strategies that must be used in conjunction withstrategies that must be used in conjunction with
universal mark eting concepts to gain success inuniversal mark eting concepts to gain success inglobal mark ets.global mark ets.
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 23/37
P.K. TALAPATRA - WLC - INTL MKTNG 23
The experience of home country cannot be The experience of home country cannot be
directly applied to another country and it may directly applied to another country and it may
be necessary to change the mark eting plan andbe necessary to change the mark eting plan andthe 4 Psthe 4 Ps
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 24/37
P.K. TALAPATRA - WLC - INTL MKTNG 24
Global Business TrendsGlobal Business Trends
1. The rapid growth of the
World Trade Organization
and regional free trade
areas, e.g., NAFTA and the
European Union
2. General acceptance of the
free market system among
developing countries in Latin
America, Asia, and Eastern
Europe
3. Impact of the Internet and
other global media on the
dissolution of national
borders, and
4. Managing global
environmental resources
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 25/37
P.K. TALAPATRA - WLC - INTL MKTNG 25
Developing a Global AwarenessDeveloping a Global Awareness To be globally aware is to have:
1. Tolerance of Cultural Differences, and
2. Knowledge of:(a) Culture, (b) History, (c) World Market Potential,
(d) Global Economic, Social and Political Trends
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 26/37
P.K. TALAPATRA - WLC - INTL MKTNG 26
InternationalInternational
MarketingMarketing
International marketing is defined as the
performance of business activities designed to plan,
price, promote, and direct the flow of a company¶s
goods and services to consumers or users in more
than one nation for a profit
Marketing concepts, processes, and principles are universallyapplicable all over the world
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 27/37
P.K. TALAPATRA - WLC - INTL MKTNG 27
Internationalization of Internationalization of BusinessBusiness
Increasing globalization of markets
Firms face competition onall fronts
Many companies arenow foreign controlled:Carnation (Swiss),
Daimler-Chrysler (German)
Firms seeking foreign
markets to increase profits
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 28/37
P.K. TALAPATRA - WLC - INTL MKTNG 28
InternationalInternational Marketing EnvironmentMarketing Environment
7
3. Economy
Environmental uncontrollablescountry market A
Environmental uncontrollablescountry market B
Environmental uncontrollablescountry market C
1. Competition
1. Competition
2. Technology Price Product
Promotion Place or
Distribution
6. Geography and Infrastructure
Foreign Environment (Uncontrollables )
7. Structure of Distribution
3. Economy
5. Political-Legal
Domestic environment (Uncontrollables)
(Controllables)
2 .Technology
4.Culture
5. Political-Legal
4. Culture
Target
Market
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 29/37
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 30/37
P.K. TALAPATRA - WLC - INTL MKTNG 30
WHY GO INTERNATIONAL WHY GO INTERNATIONAL
Reasons and Rationale:Reasons and Rationale:
² ² Saturation of home mark etsSaturation of home mark ets
² ² Seaso
nality in hom
em
ark
etSeaso
nality in hom
em
ark
et
² ² Fierce foreign competitionFierce foreign competition
² ² Emergence of new mark ets (Vietnam, Laos, SA)Emergence of new mark ets (Vietnam, Laos, SA)
² ² Large mark ets for economies of scale (India, China,Large mark ets for economies of scale (India, China,
Brazil)Brazil)
cont«.cont«.
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 31/37
P.K. TALAPATRA - WLC - INTL MKTNG 31
² ² Lo wer labor costs in o verseas mark ets enabling theLo wer labor costs in o verseas mark ets enabling the
establishment of export baseestablishment of export base
² ² Tax incentives to exporters and foreign businesses Tax incentives to exporters and foreign businesses
² ² Possibilities of lo wer competition in o verseas mark etsPossibilities of lo wer competition in o verseas mark ets
(African mark ets)(African mark ets) ² ² Access to advantages in technology, materials & capital Access to advantages in technology, materials & capital
² ² Possibilities of increased prof it in o verseas mark etsPossibilities of increased prof it in o verseas mark ets
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 32/37
P.K. TALAPATRA - WLC - INTL MKTNG 32
Standardization Vs. CustomizationStandardization Vs. Customization
Sony, McDonald, Nik e, IBM, Ford, Toy otaSony, McDonald, Nik e, IBM, Ford, Toy ota, , Marlboro are global brands with a high deg reeMarlboro are global brands with a high deg reeof similarities in terms of positioning,of similarities in terms of positioning,advertising product personality, look and f eel.advertising product personality, look and f eel.
These global brands are of ten not as identical These global brands are of ten not as identical w orld wide as one might assume. w orld wide as one might assume.
McDonald has diff erent menus, advertising andMcDonald has diff erent menus, advertising andretail architectures in various countries. They retail architectures in various countries. They
customized to local culture.customized to local culture.
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 33/37
P.K. TALAPATRA - WLC - INTL MKTNG 33
A global brand can gain advantages by : A global brand can gain advantages by :
Signif icant economies of scale through globalSignif icant economies of scale through global
eff iciencies ( one Ad agency in place of severaleff iciencies ( one Ad agency in place of severalin diff erent countries, IBM replaced all with onein diff erent countries, IBM replaced all with oneO & M)O & M)
Cross mark et exposureCross mark et exposure
Easier brand management, as a global brand hasEasier brand management, as a global brand hasa clear identity (ex. Visa has w orld widea clear identity (ex. Visa has w orld wideacceptance)acceptance)
Easier brand positioning (Ex. Sprite, Mont BlancEasier brand positioning (Ex. Sprite, Mont Blanc
Mercedes) because of self expressive benef itsMercedes) because of self expressive benef its
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 34/37
P.K. TALAPATRA - WLC - INTL MKTNG 34
Standardization of a global brand can comeStandardization of a global brand can comefrom a centralised decision to create a globalfrom a centralised decision to create a global
product Ex.product Ex. ² ² Cannon copier, which had aCannon copier, which had acommon design throughout the w orld to common design throughout the w orld to maximize production eff icienciesmaximize production eff iciencies
The ri inherent in a truly global product is that The ri inherent in a truly global product is that
the result may be a compromise and thethe result may be a compromise and themark eting prog ram though successf ul in severalmark eting prog ram though successf ul in severalcountries may not be exactly right for somecountries may not be exactly right for someother countriesother countries
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 35/37
P.K. TALAPATRA - WLC - INTL MKTNG 35
Another strategy is to identif y a lead country Another strategy is to identif y a lead country
with large or g ro wing mark et size for the brand with large or g ro wing mark et size for the brand
and then export to other countries (with minor and then export to other countries (with minor modif ications) or have several lead countries,modif ications) or have several lead countries,
each with its o wn product and create a stable of each with its o wn product and create a stable of
global brandsglobal brands Ex. Nissan follo wed this in UK for a brand of Ex. Nissan follo wed this in UK for a brand of
corporate f leet car corporate f leet car
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 36/37
P.K. TALAPATRA - WLC - INTL MKTNG 36
Global Marketing: What It Is andGlobal Marketing: What It Is and
What It Isn·t What It Isn·t
S ingle Country Marketing S trategy S ingle Country Marketing S trategy
Target mark et strategy Target mark et strategy
Mark eting mixMark eting mix
² ² ProductProduct ² ² PricePrice
² ² PromotionPromotion
² ² PlacePlace
Global Marketing S trategy Global Marketing S trategy Global mark et participationGlobal mark et participation
Mark eting mix developmentMark eting mix development
² ² 4 P·s: adapt or standardize?4 P·s: adapt or standardize?
Concentration of mark eting activitiesConcentration of mark eting activities
Coordination of mark eting activitiesCoordination of mark eting activities
Integ ration of competitive mo vesInteg ration of competitive mo ves
8/7/2019 OVERVIEW OF CHANGE
http://slidepdf.com/reader/full/overview-of-change 37/37
P.K. TALAPATRA - WLC - INTL MKTNG 37
Standarization versus AdaptationStandarization versus Adaptation Globalization (standardization)Globalization (standardization)
² ² Developing standardized products mark eted w orldwide with aDeveloping standardized products mark eted w orldwide with astandardized mark eting mixstandardized mark eting mix
² ² Essence of mass mark eting Essence of mass mark eting
Global localization (adaptation)Global localization (adaptation)
² ² Mixing standardization and customization in a way that minimizesMixing standardization and customization in a way that minimizes
costs while maximizing satisf actioncosts while maximizing satisf action
² ² Essence of seg mentationEssence of seg mentation
² ² Think globally, act locally Think globally, act locally