مارکتینگ بین المللی جلسه سوم 88/12/17 جلسه سوم 88/12/17 مارکتینگ بین المللی پژمان جعفری, دانشکده مدیریت و اقتصاد , واحد علوم و تحقیقات تهران, دانشگاه آزاد اسلامی

Introduction What is Global Marketing? How is it different from regular marketing?

Forces Affecting Global Integration and Global Marketing Restraining Forces Management myopia Organizational culture National controls Driving Forces Regional economic agreements Market needs and wants Technology Transportation and communication improvements Product development costs Quality World economic trends Leverage The next slide will show the interplay between the driving and restraining forces. This slide outlines what these forces include. Regional economic agreements, converging market needs and wants, technology advances, pressure to cut costs, pressure to improve quality, improvements in communication and transportation technology, global economic growth, and opportunities for leverage all represent important driving forces; any industry subject to these forces is a candidate for globalization. Despite the impact of the driving forces identified previously, several restraining forces may slow a company’s efforts to engage in global marketing. In addition to the market differences discussed earlier, important restraining forces include management myopia, organizational culture, national controls, and opposition to globalization. As

Forces Affecting Global Integration and Global Marketing Driving Forces Restraining Forces

Globalization of Markets Definition of International Marketing: “The performance of business activities designed to plan, price, promote and direct the company’s flow of goods and services to consumers or users in more than one nation for a profit” (4 P’s). What is the difference between marketing domestically and internationally Difference is that in international marketing ALL environments have to be taken into consideration when the marketing plan is developed and executed Must consider the legal environment, governmental controls, climate & weather, cultural beliefs, buyer behavior… (uncontrollable elements)

The Importance of Global Marketing For US-based companies, 75% of sales potential is outside the US. About 90% of Coca-Cola’s operating income is generated outside the US. For Japanese companies, 85% of potential is outside Japan. For German and EU companies, 94% of potential is outside Germany.

Top 10 U.S. Players in the Global Game Foreign Revenues ($ Mil) Foreign Revenues (% of Total) Foreign Profits (% of Total) Foreign Assets (% of Total) Company ExxonMobil IBM Ford Motor General Motors General Electric Texaco Citigroup Hewlett-Packard Wal-Mart Stores Compaq Computer 115,464 50,377 50,138 46,485 35,350 32,700 28,749 23,398 22,728 21,174 71.8 57.5 30.8 26.3 31.7 77.1 35.1 55.2 13.8 55.0 62.7 49.6 N/A 55.3 22.8 54.1 58.0 8.2 101.4 63.9 43.7 44.2 38.0 47.4 45.2 41.0 51.5 36.0 28.2 SOURCE: Adapted from Brian Zajac, “Global Giants”. Forbes, July 24, 2000

Reasons for Global Marketing Growth Access to new markets Access to resources Survival Against competitors with lower costs (due to increased access to resources)

Global Marketing: What it is and What it isn’t Global marketing does not mean doing business in all of the 200-plus country markets Global marketing does mean widening business horizons to encompass the world in scanning for opportunity and threat

International Marketing Task The International Marketing Task Marketing Plan (controllable) Price, Promotion, Product, Place (distribution) Domestic Environment (uncontrollable) Political/legal, competition, economy Foreign Environment (uncontrollable) Structure of distribution, geography and infrastructure, culture, political/legal, economy, competition, level of technology…

Developing Global Awareness To be globally aware, a company must have the following Objectivity Tolerance of cultural differences Knowledge of cultures, history, world market potential, and global economic, social, and political trends

Standardization versus Adaptation Globalization (Standardization) Developing standardized products marketed worldwide with a standardized marketing mix Essence of mass marketing Global localization (Adaptation) Mixing standardization and customization in a way that minimizes costs while maximizing satisfaction Essence of segmentation Think globally, act locally

Stages of International Marketing Involvement 1. No Direct Foreign Marketing Company does not actively pursue customers in foreign markets, but receives them thru unintended channels Products are bought abroad through domestic wholesalers/distributors, website on the internet 2. Infrequent Foreign Marketing Company sells to foreign markets only when a temporary surplus of product exists Once surplus is gone, foreign activity is gone Few companies fit this model because of the need to develop long term relationships in foreign countries

Stages of International Marketing Involvement 3. Regular Foreign Marketing Companies produce their products and services to primarily sell domestically, but also internationally Through domestic/foreign middlemen, sales force in foreign countries 4. International Marketing Companies are fully engaged in international marketing strategies Companies are now international or multi-national

Stages of International Marketing Involvement 5. Global Marketing Change from its marketing activities to all activities focused in a global perspective In most cases companies sales revenues are more than ½ of its total revenues Treat the world as one market Market segment is no longer focused on national borders, rather such things as income levels, usage patterns, or other factors are looked across borders

Management Orientations Ethnocentric: Home country is Superior, sees Similarities in foreign Countries Polycentric: Each host country Is Unique, sees differences In foreign countries Geocentric: World view, sees Similarities and Differences in home And host countries Ethnocentrism is sometimes associated with attitudes of national arrogance or assumptions of national superiority. Company personnel with an ethnocentric orientation see only similarities in markets, and assume that products and practices that succeed in the home country will be successful anywhere. The term polycentric describes management’s belief or assumption that each country in which a company does business is unique. This assumption lays the groundwork for each subsidiary to develop its own unique business and marketing strategies in order to succeed; the term multinational company is often used to describe such a structure. In a company with a regiocentric orientation, a region becomes the relevant geographic unit; management’s goal is to develop an integrated regional strategy. A company with a geocentric orientation views the entire world as a potential market and strives to develop integrated world market strategies. Regiocentric: Sees similarities and differences in a world Region; is ethnocentric or polycentric in its view of the rest of the world