chapter 1- introduction to global marketing
principles of marketing a review
The essence of marketing is to surpass the competition at the task of creating perceived value. Value equation = Benefits/Price (time, money, effort). Benefits are a combination of the product, promotion and distribution. A market = people or organization that are both able and willing to buy.
When a company is able to create more value than the rest, he has a competitive advantage. A global industry – one in which competitive advantage van be achieved by operations on a worldwide scale.
Global marketing: what it is and what it isnt
Global marketing strategy, has 5 dimensions:
1. Global ...view middle of the document...
The entire world as a potential market, global or transnational company. It is a mixture of the standardized and the adaption approach. Integrated on a global scale.
forces affecting global integration and global marketing
1. Multilateral trade agreements: made trade easier
2. Converging markets need and wants and the information revolution: most global markets don’t exist in nature, marketing must create them.
3. Transportation and communication improvements: time and cost barriers associated with distance and with physical distribution have fallen tremendously over the past 100 years.
4. Product development costs: the pressure for globalization is intense when new products require major investments and long periods of development time.
5. Quality: global strategies can create greater revenue and greater margins, which support design and quality.
6. Leverage: some type of advantage that a company enjoys by virtue of the fact that is has experience in more than one country
a. Experience transfers
b. Scale economies
c. Resource utilization
d. Global strategy
e. Restraining forces
chapter 2 – inititation of internationalization
Proactive motives – stimuli to attempt strategy changes
1. Profit and growth goals
2. Managerial urge – motivation that reflects the desire, drive and enthusiasm of management towards global marketing activities.
3. Technological competence/unique product
4. Foreign market opportunities/market information
5. Economies of scale – learning curve
6. Tax benefits
Reactive motives – 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
1. Competitive pressure – losing share aan iemand die economies of scale heeft door global market strategy.
2. Domestic market: small and saturated – small home potential
3. Overproduction/ excess capacity
4. Unsolicited foreign orders
5. Extend sales of seasonal products
6. Proximity to international customers/psychological distance – shock effects (managers experience a shock when they realize that they do not know enough about a local market, especially when they perceive it as having a close physic distance). Geographic closeness betekent niet meteen psychological closeness.
The bigger the firm the more likely it had proactive stimuli.
triggers of export initiation (change agents)
Also known as internationalization triggers.
1. Perceptive management/personal networks – perceptive (sharp) managements gain early awareness of developing opportunities in overseas markets.
2. Specific internal event – managements interest, new employee
3. Inward/outward internationalization – inward internationalization (import) may influence outward internationalization (international market...