International Business Study Guide
IBM 414 Study Guide
Ch:12 Global Marketing Management: Planning and Organization
Global Marketing -
•The trend back toward localization
–Caused by the new efficiencies of customization
–Made possible by the Internet
–Increasingly flexible manufacturing processes
•From the marketing perspective customization is always best
•Global markets continue to homogenize and diversify simultaneously
–Best companies will avoid trap of focusing on country as the primary segmentation variable
International Marketing- is 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.
•An entry strategy into international market should reflect on analysis
–Market characteristics
•Potential sales
•Strategic importance
•Strengths of local resources
•Cultural differences
•Country restrictions
–Company capabilities and characteristics
•Degree of near-market knowledge
•Marketing involvement
•Management commitment
Exporting
Indirect Exporting-requires no equity investment and thus has a low risk, low rate of return, and little control.
Licensing
–A means of establishing a foothold in foreign markets without large capital outlays
–A favorite strategy for small and medium-sized companies
–Legitimate means of capitalizing on intellectual property in a foreign market
Joint Venures-When two or more participating companies join forces to create a separate legal entity to facilitate doing business in the international arena
Direct Investment
•Factors that influence the structure and performance of direct investments
–Timing
–The growing complexity and contingencies of contracts
–Transaction cost structures
–Technology transfer
–Degree of product differentiation
–The previous experiences and cultural diversity of acquired firms
–Advertising and reputation barriers
Example:When a company sells to a customer in another country,
Ch:12 Global Marketing Management: Planning and Organization
Global Marketing -
•The trend back toward localization
–Caused by the new efficiencies of customization
–Made possible by the Internet
–Increasingly flexible manufacturing processes
•From the marketing perspective customization is always best
•Global markets continue to homogenize and diversify simultaneously
–Best companies will avoid trap of focusing on country as the primary segmentation variable
International Marketing- is 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.
•An entry strategy into international market should reflect on analysis
–Market characteristics
•Potential sales
•Strategic importance
•Strengths of local resources
•Cultural differences
•Country restrictions
–Company capabilities and characteristics
•Degree of near-market knowledge
•Marketing involvement
•Management commitment
Exporting
Indirect Exporting-requires no equity investment and thus has a low risk, low rate of return, and little control.
Licensing
–A means of establishing a foothold in foreign markets without large capital outlays
–A favorite strategy for small and medium-sized companies
–Legitimate means of capitalizing on intellectual property in a foreign market
Joint Venures-When two or more participating companies join forces to create a separate legal entity to facilitate doing business in the international arena
Direct Investment
•Factors that influence the structure and performance of direct investments
–Timing
–The growing complexity and contingencies of contracts
–Transaction cost structures
–Technology transfer
–Degree of product differentiation
–The previous experiences and cultural diversity of acquired firms
–Advertising and reputation barriers
Example:When a company sells to a customer in another country,