CHAPTER 1 (NB)
International marketing - Defined
•Performance of business activities designed to plan, price, promote and direct the flow of a company’s goods and services to consumer or users in more than one nation for a profit. •The only difference between domestic marketing and international marketing is that in International marketing, marketing activities take place in more than one country – needs to account for diversity and complexity found in international marketing operations. •The answer is not with different concepts of marketing but with the environment in which marketing plans must be implemented •There are a lot of unfamiliar problems and therefore a variety of strategies necessary to cope with different levels in foreign markets.
Write an essay on the “Global Market Orientation” concept using examples to illustrate your discussion (10) (May 2009) •A company guided by global market orientation / philosophy is referred to as a global company. •Its marketing activity is global and its market coverage is the world. A company employing a global marketing strategy strives for efficiencies of scale by developing a standardised marketing mix which is applicable across national borders. •Global marketing concept views and entire set of country markets, and develop a marketing plan that strives for standardisation whether it is cost and culturally effective. i.e. marketing planning and marketing mix are approached from a global perspective and efficiencies of standardisation are sought, •The markets however are still segmented and the world as a whole is viewed as a market and the firm develops a global marketing strategy. Coca Cola, Ford, Intel and Microsoft are all global companies. Coca Cola had to view and entire set of country markets including the home market, they had to identify prospective buyers with similar needs and develop a marketing plan that strives for standardisation. No matter where it is it must be culturally effective. •This could mean that the company’s marketing plan has a standardised product but their advertising could or would have to be country or cultural specific which would appeal to the unique market characteristics or they would have a standardised theme or brand image, but would have to adopt their product to meet the specific countries wants or needs. In the case of McDonalds which is also a global company, their brand, logo, decor etc remain the same globally but they vary in different countries to accommodate local tastes and customs. For example they will sell beer in South Africa and Germany, wine in France and pork bangers in Thailand but and no alcohol or beef burgers in India.
KFC will, in countries where Pepsi is the preferred drink, use Pepsi with their products specials and Coke in countries where Pepsi is not the preferred drink, India will be Pepsi and South Africa will be Coke.
Being global is a mind-set, a way of looking at the market for commonalities that can be standardised across regions or country market groups. A global market orientation does not mean a forced adherence to one strategic orientation. Depending on the product and market other orientations may make more marketing sense. Procter and Gamble may assume a global strategy for disposable diapers but a multi domestic strategy in the Asian market for detergents.
Differentiate between a global company and a Multi National company (15) (May 2007) •A global company us guided by global marketing orientation, its marketing activity is global and its market coverage is the world. A global company develops a standardized marketing mix which is applicable across national boundaries. It is the transition from international marketing, with half its sales revenues coming from abroad. (see global market orientation). – eg Coca-Cola •Multi National Company is firms that buy companies and make direct investments in several countries and run their...