• Created by: diabianca
  • Created on: 05-05-14 10:31
Stimuli to internationalize-2:
• Proactive stimuli: strategic change; Profit advantages, unique products, technology, exclusive information, economies of scale, market size • Reactive Stimuli: Competitive pressures, Overproduction, declining domestic sales, excess capacity, satura
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Change agents in the internationalization process: -2
• Internal: Enlightened management, new management, significant internal event • External: Foreign demand, competition, intermediaries, partners, govt
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Export intermediaries –2:
EMCs, trading companies
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define distributors & agents
• Distributors purchase products + complete marketing services • Agents operate on a commission basis; don’t physically handle the goods.
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3 market entries (define the 3rd)
Direct & indirect exporting & integrated distribution (requires investing into the foreign market to sell products )
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define direct & indirect exporting
• Indirect exporting involves selling goods to a domestic firm that in turn sells them abroad. • Direct exporting is where the marketer takes direct responsibility for goods sent abroad.
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4 globalisation drivers
MCEC: Market, Cost, Environmental, Competitive Factors
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Cultural considerations-4
context culture (high/low), language, values& attitudes, manners&customs
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3 factors determining country-market selection
synergies offered by the market, strategic importance,attractiveness of the market
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3 dimensions considered in strategic planning
-benefits (short/long term), costs (mgt time, process realignment), management resources kaya?
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global strategy formulation-4
1-assess & adjust core strategy (internal/market analysis), 2) form global strategy (competitive strategy, target market, market segmentation), 3-develop marketing program, 4) implement (org structure,control)
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differentiation pros & cons-4 each
PROS: charge a premium,pass along supplier costs to customers,stabilize company's revenue,consumer loyalty. CONS: costly, copying,may take years to achieve a strong brand image, has to have enough demand
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global strategic marketing
leverage domestic capabilities (economies of scale), expand foreign market presence (economies of scope), coordinate global operations (exploit synergies throughout network)
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global strategy formulation downsides-4
time-consuming, group-think/biased, expensive, not responsive enough
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global marketing program development-4
-standardisation degree -marketing approach (glocalisation), value-adding activitieslocation & extent, competitive moves
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pros and cons of cost leadership-2 each
pro: charge low price, makret share CONS: easy to lose sight of consumer taste, competitors may beat u on your own game
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focus strategy pros and cons-2 each
PRO: serve a narrow segment's needs more effectively, less competition CONS: costly, needs enough demand, risk competing against better-resouced broad market companies' offerings
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steps in dealing with an international client-6
• Translator • learn the language • software options • no assumptions • research client/industry • invest in cultural/language programs
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primary & secondary data (discuss 5 points each)
P: obtained form knowledgeable individuals, sampling problems, costly, bias/subjective, very specific to a problem• S: Pblications/3rd party collected, free/low cost, widely available, indirect value/not updated, data limitations
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primary research considerations
ability to communicate/willingness to respond, language&comprehension, bias (respondent, non-response, interaction)
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secondary research macro & micro level requirements-2 & 3
MACRO: tariff/non-tariff info, govt trade policy • MICRO: Local laws, distribution systems, competitive analysis
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problems with secondary research-4
quality of data source & actual data, accuracy/reliable/recent?, compatibility&comparability, relevance to the issue
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6-part strategy for success
1) customise 2) develop approaches to overcome obstacles 3)tech 4)scale up operations 5) exploit low cost labor 6) invest in talent for sustained operations
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international research
function linking the consumer/public to the marketer through info
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3-avoid NIH syndrome
local managers participate in deci-making & control budgets, maintain a product portfolio including local
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intl vrs. domestic research
similar tools/techniques but differing market envts; new parameters (duties, foreign currencies, etc)
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intl research new dimensions-3
new envt (different assumptions, learn), # of factors involved (+complexity), broader definition of competition (cheap manual labor)
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intl research difficulties-5
design complexity, secondary data availability, comparability,coordination of info, relying on 1 set of data, overspending, not knowing what u want
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research mistakes-4
ignoring/inadequate/misdirected research,cross-cultural issues ignored
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research objectives determined by-4
mgt views, corporate mission, marketing situation, firm's intl expertise level
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going international: exporting-4
Foreign market opportunity analysis: broad-brush approach in narrowing down possibilities, general market variables (GNP,Mortality,Population data), market data/trends/rstrxns, product data, govt restrictions
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going international: importing-3
analyse trade rules see if trade can go ahead, focus on sourcing, evaluate partners (competitive, reliable, quality, timing)
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market research stages-5
identify problem, research design, collect data/info, analyse&interpret, disseminate results for decision
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formulating problem-4
who decision-makers, research objectives, action to obtain info, alternative actions assess
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self-reference criterion
cultural norms and values
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info requirements-4
market potential, consumption, price, sensitivity to marketing mix
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4 research techniques
interview, focus groups, observation, survey
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design survey questionnaire-3
format, content, wording
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environmental scanning
obtain inputs, analyse variables, look at changes in the business envt, tends to focus on the breath if info
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scenario building
looks at differnt configurations of key variables, trends, develop contingency plans
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stages involved in gradual internationalisation-4
• Aware of international market opportunities • Gradual interest in international activities • Explore international markets & feasibility of exports • Evaluate export efforts, export adaptation.
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Other cards in this set

Card 2


Change agents in the internationalization process: -2


• Internal: Enlightened management, new management, significant internal event • External: Foreign demand, competition, intermediaries, partners, govt

Card 3


Export intermediaries –2:


Preview of the front of card 3

Card 4


define distributors & agents


Preview of the front of card 4

Card 5


3 market entries (define the 3rd)


Preview of the front of card 5
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