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    EPRG Mukul Mishra

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    SanjivSIngh
    The document discusses international marketing and the evolution of global marketing strategies. It defines key terms like globalization and international marketing. It then outlines five stages in the evolution of global marketing: 1) Domestic Marketing 2) Export Marketing 3) International Marketing 4) Multinational Marketing and 5) Global Marketing. The final stage of Global Marketing involves standardizing marketing programs and coordinating efforts across countries. The document also discusses challenges like ethnocentrism and the self-reference criterion that companies must overcome to be successful in international markets.

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    EPRG Mukul Mishra

    Uploaded by

    SanjivSIngh
    88 views30 pages
    The document discusses international marketing and the evolution of global marketing strategies. It defines key terms like globalization and international marketing. It then outlines five stages in the evolution of global marketing: 1) Domestic Marketing 2) Export Marketing 3) International Marketing 4) Multinational Marketing and 5) Global Marketing. The final stage of Global Marketing involves standardizing marketing programs and coordinating efforts across countries. The document also discusses challenges like ethnocentrism and the self-reference criterion that companies must overcome to be successful in international markets.

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    The document discusses international marketing and the evolution of global marketing strategies. It defines key terms like globalization and international marketing. It then outlines five stages in the evolution of global marketing: 1) Domestic Marketing 2) Export Marketing 3) International Marketing 4) Multinational Marketing and 5) Global Marketing. The final stage of Global Marketing involves standardizing marketing programs and coordinating efforts across countries. The document also discusses challenges like ethnocentrism and the self-reference criterion that companies must overcome to be successful in international markets.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    88 views30 pages

    EPRG Mukul Mishra

    Uploaded by

    SanjivSIngh
    The document discusses international marketing and the evolution of global marketing strategies. It defines key terms like globalization and international marketing. It then outlines five stages in the evolution of global marketing: 1) Domestic Marketing 2) Export Marketing 3) International Marketing 4) Multinational Marketing and 5) Global Marketing. The final stage of Global Marketing involves standardizing marketing programs and coordinating efforts across countries. The document also discusses challenges like ethnocentrism and the self-reference criterion that companies must overcome to be successful in international markets.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 30

    International Marketing

    Mukul Mishra

    Globalization
    Defined as process of economic integration of
    the entire world
    removal of trade barriers
    capital mobility and
    diffusion of knowledge and information.

    Mukul Mishra

    Globalization
    Globalization of Production evaluating various locations
    worldwide so as to take advantage of local resources and
    optimize manufacturing competitiveness.
    Ford has established a major manufacturing base in
    South India.
    Globalization of Markets emergence of a borderless
    world with advances in telecom, transportation, internet
    standardized products from global brands like SONY
    bought by customers all over the world.
    Mukul Mishra

    Lets Define Marketing


    Kotler The human activity directed at satisfying
    the wants and needs through exchange
    process.
    AMA Process of planning and executing the
    conception , pricing, promotion and distribution
    of ideas, goods and services to exchanges that
    satisfy individual and organizational goals.

    Mukul Mishra

    International Marketing Defined


    Cateora performance of business activities
    designed to plan, price, promote and direct the flow
    of companys goods and services to consumers or
    users in more than one nation for profit.
    Keegan Global Marketing is the process of
    focusing the resources and objectives of an
    organization on global marketing opportunities and
    needs.
    Mukul Mishra

    International Marketing ?
    Thus International Marketing involves:
    Identify needs/wants of international customers
    Modify Marketing Mix(4Ps) (consumer behaviors/
    companys objectives)
    Using various modes of entry to penetrate international
    markets.
    Evaluate dynamic international marketing environment and
    take appropriate decisions.

    Mukul Mishra

    The International Marketing Task

    Mukul Mishra

    The Self-Reference Criterion and


    Ethnocentrism
    The key to successful international marketing is
    adaptation to the environmental differences from
    one market to another.
    Primary obstacles to success in international
    marketing:
    SRC
    Associated ethnocentrism
    Mukul Mishra

    The Self-Reference Criterion and


    Ethnocentrism (continued)
    SRC is an unconscious reference to ones
    own cultural values, experiences, and
    knowledge as a basis for decisions.

    Ethnocentrism is the notion that ones own


    culture or company knows best how to do
    things.
    Mukul Mishra

    Dangers of the SRC:


    Failing to recognize the need to take action
    Discounting the cultural differences that exist among
    countries
    Reacting to a situation in a way offensive to your hosts

    Mukul Mishra

    The Self-Reference Criterion and


    Ethnocentrism (continued)
    Ethnocentrism and the SRC can influence an
    evaluation of the appropriateness of a domestically
    designed marketing mix for a foreign market.
    The most effective way to control the influence of
    ethnocentrism and the SRC is to recognize their
    effects on our behavior.

    Mukul Mishra

    Framework for Cross-cultural Analysis


    (Adaptation)
    1.

    Define the business problem or goal in home-country


    cultural traits, habits, or norms.

    2.

    Define the business problem or goal in foreign-country


    cultural traits, habits, or norms through consultation with
    natives of the target country. Make no value judgments.

    3.

    Isolate the SRC influence in the problem and examine it


    carefully to see how it complicates the problem.

    4.

    Redefine the problem without the SRC influence and solve


    for the optimum business goal situation.

    Mukul Mishra

    Reasons for Entering Foreign Markets

    Growth
    Profitability
    Achieving economies of scale
    Risk spread
    Access to imported inputs
    Uniqueness of product or services
    Marketing opportunities due to life cycle
    Spreading R&D cost
    Mukul Mishra

    Evolutionary Process of Global Marketing

    There are five identifiable stages in the evolution of marketing


    across national boundaries :
    ( Ref. Global Marketing Management by Kotabe & Helsen)
    1.

    Domestic Marketing:

    Before entry into foreign markets

    Marketing Focus-Domestic

    Mukul Mishra
    Marketing Mix Decisions-Focused
    on Domestic Customers.

    Strategy- based on information about needs/wants of domestic


    consumers, industry trends, economical, technological, political
    climate at home.
    Competition-look at domestic competition
    Orientation-Ethnocentric (pay little attention to changes in global
    marketplace e.g. changing lifestyles, market segments, emerging
    competition & better products yet to arrive in domestic market)
    Firm vulnerable to sudden changes forced upon it by competition.
    E.g. U.S automobile & consumer electronics industry suffered from its
    ethnocentrism in 1960s & 1970s ( neglected imminent competition
    from Japanese low cost manufacturers)

    Mukul Mishra

    2.

    Export Marketing :

    Begins with unsolicited orders from foreign customers.

    Reluctant at first, gradually learns the benefits of overseas


    marketing.

    Motivators-additional marketing outlets, risk spread, more


    profitability

    Early export marketing stage indirect exporting ( trading


    house services)

    Later stage as firm gains know how & experience


    exports directly.
    Mukul Mishra

    Marketing Focus - overseas (targeting and entering


    foreign markets)
    Orientation-Ethnocentric
    Marketing Mix Decisions focussed mainly on domestic customers
    overseas marketing-generally an extension of domestic
    marketing
    decisions made at headquarters
    Mukul Mishra

    3.

    International Marketing:

    Firm caters to specific needs or few overseas markets


    ( noticeable market share)

    Orientation-Polycentric ( product/promotional adaptation):


    firm realizing that there exists considerable cultural
    difference across markets

    Operation in each market viewed independently.

    Mukul Mishra

    Competition- fiercely competitive marketing strategies by


    competition.

    Firm may : allocate a potion of manufacturing for exports/set


    up manufacturing abroad to utilize inexpensive resources &
    be closer to consumers.

    Marketing Focus-Differentiation in country markets by way


    of developing or acquiring new brands.

    Marketing Mix Decisions Developing local products depending upon country needs.
    Decisions by Individual subsidiaries.
    Mukul Mishra

    Multi Domestic Marketing :


    Extreme form of International Marketing
    Independent foreign subsidiary in each and every foreign
    market.
    Subsidiaries operate independently without headquarter
    control.
    Product development, manufacturing ,marketing all
    executed for local market by subsidiary.
    Few economies of scale benefits.
    Useful only if consumers differ across national markets
    Mukul Mishra

    4.

    Multinational Marketing:

    Firm realizes benefits of economy of scale in product


    development, manufacturing & marketing by
    consolidation on regional basis.

    Orientation-Regiocentric ( product planning may be


    standardized within a region but not across)

    Marketing Mix Decisions-Product standardization within


    regions but not across
    Mukul Mishra

    5.

    Global Marketing:

    International/Multinational Orientation results in market


    fragmentation worldwide (higher costs)

    Global Marketing refers to:


    1. Standardization efforts- marketing programs across
    different countries ( product offering, promotional mix,
    price & channel structure)
    2. Coordination across Markets-reducing cost inefficiencies
    & duplication of efforts among national and regional
    subsidiaries)
    3. Global Integration-gain competitive leverage and effective
    integration of firms competitive campaigns across these
    Mukul Mishra
    markets.

    Marketing Focus-Consolidating firms


    operations on a global basis
    Orientation-Geocentric
    Marketing Mix Decisions Globalization of Marketing Mix Decisions with local
    variations.
    Joint Decision making across the firms global
    operations.
    Mukul Mishra

    EPRG Concept
    The orientation of firms personnel affects the ability of a company to
    adapt to a foreign marketing environment
    Behavioral attributes-EPRG Framework

    Degree of Internationalization

    Management commitment
    Influences International strategies of firm
    Mukul Mishra

    1. Ethnocentric Orientation:

    Belief that ones own culture is superior to others

    Managers believe that domestic marketing strategy will


    work in foreign markets too

    Ignore environmental differences between markets

    Firms generally do domestic marketing/export


    marketing as an extension of domestic marketing

    Mukul Mishra

    Ethnocentric companies market their products in countries


    where demand is similar to home markets

    Generally used to dispose surplus production in overseas


    markets

    Goods manufactured domestically/decisions taken at


    headquarters.

    Difficult to sustain once sizeable market share attained.


    Mukul Mishra

    2. Polycentric Orientation :
    . Highly market oriented
    . Belief-substantial difference exists among various markets.
    . Marketing mix decisions/pricing strategies/ product
    development strategies involve local experts from different
    countries.
    . Little coordination between affiliates
    . Duplication of activities
    . Economies of scale in international operations cant be
    achieved.
    Mukul Mishra

    3. Regiocentric Orientation:
    . Firm treats a region as a uniform market segments
    similar marketing strategy for the region
    . E.g., McDonaldss doesnt serves pork and slaughters
    animals through Halal Process in Middle East.

    Mukul Mishra

    4. Geocentric Orientation:
    . Firm considers entire world as a single market and
    formulates integrated marketing strategies.
    . Similarities identified between markets for uniform
    marketing strategy formulation.

    Mukul Mishra

    THANK YOU!!

    Mukul Mishra

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