Chapter 14 – Global Marketing Strategy

*Organizational Analysis
is used to identify internal issues that will impact the firm
Internal Situational Analysis
should include all departments and identify strengths and weaknesses for the firm as it grows internationally
Internal Assessment
is sometimes called the “organizational readiness to export”
*Situational Analysis
used to identify external issues that will impact the firm
Industry Analysis
include Porter’s 5 forces; identify competitors, barriers to entry, consumers, and trends; and Porter’s – low cost, differentiation, niche
Porter’s Five Forces
include supplier power; buyer power; substitute products; threat of new entrants; and rivalry (competition) from within the industry
*Competitive Advantage
in the context of firm-level strategy, this reflects the firm’s basis or ability to compete, generally by becoming the lowest cost producer, or providing a differentiated product or service, and/or focusing on a niche opportunity
*Value Chain
the sum of activities a firm performs to create value (profitability)
Country/Region-Specific Analysis
after organizational and situational analysis, a firm must consider individual markets (either countries or regions); what are the goals and corresponding strategies to meet the goals of each product line and each market?; the interaction between product-line goals and environmental analysis is recursive and leads to more integrated global marketing strategy; global marketing involves all of a firm’s foreign markets and understanding communities and synergies between them; and do market-specific differences cause the firm to change its marketing policies and activities?
Strategy Implementation
strategies must be correctly implemented; how well they are implemented depends on organizational structure and personnel assigned to a given country; feedback on results is critical for continued monitoring; the global environment changes over time, as do the company’s competitive advantage
*Market-Extension Perspective
products developed in home market extended to foreign markets
Market-Extension Perspective
a firm’s international expansion philosophy highlighted by unplanned and short-termed exploitation of foreign markets while the domestic market remains the focus of the company
*Multidomestic Perspective
each market treated as independent, not interdependent
Multidomestic Perspective
a firm’s international expansion philosophy highlighted by careful consideration of foreign markets and with a clearly separate orientation toward each country market
*Global Perspective
markets treated as interdependent
Global Perspective
a firm’s international expansion philosophy highlighted by formulating its strategic plans in order to direct special attention to the interdependence among national markets and competitors’ actions in those markets
Assessing Global Competition
sources of competition and likely responses to competition; review competition’s strength and weaknesses; national champions may require special treatment
*National Champions
firms that have dominant positions in their national markets and often receive government support
Where do global competitors originate?
from domestic markets to foreign markets; from other product markets to new product markets; forward or backward integration
Global Marketing Strategy
cannot be separated from overall corporate strategy
Standardization
no changes are made to product/service; fixed pricing in all international markets; uniform channel structures; same promotion is used in all international markets, and no changes are made
Adaptation
specific changes are made to the product/service to fit cultural characteristics; prices are determined by local competitive conditions; adjusting distribution; and specific changes are made to promotions to fit cultural contexts
Standardization or Adaptation (Market Differences)?
buyer profiles; marketing infrastructure; transportation and communications systems; different legal provisions; distribution systems; standardization reduces complexity but some local adaptations are usually necessary; the real question is how much to adapt?
Coordinating the global marketing system
using similar methods to carry out marketing activities across countries; transferring marketing know-how and experience from one country to another; sequencing marketing programs; and integrating efforts across countries