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Global marketing

Week 4, September 27, 2017


Chapter 6
Strategic Planning

Ic.gc.ca
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- Find Canadian companies
- Search company listing

Globalization
- Globalization reflects a business orientation based on the belief that the
world is becoming more homogeneous and that distinctions between
national markets are not only fading but, for some products, will eventually
disappear
- Companies need to globalize their international strategy b formulating it
across markets to take advantage of underling market, cost, environment,
and competitive factors

Issues in internationalization strategy


- In general, internationalization can be seen as part of the ongoing strategy
process
- Two main differences
o Need for the firm to choose the country with whom transactions will
take place
o Need for the firm to choose a market entry strategy

Five key questions


1. When should the firm internationalize?
2. What markets should be chosen to entre?
3. Should developing country markets be chosen?
4. What competitive strategy should be adopted
5. How should the firm entre the market?

When to internationalize?
Following conditions should exist:
- Management commitment
- In-depth experience with product or service
- Adequate cash flow
- Capacity and capability to produce international products

What markets to enter?


- Planning processes that focus simultaneously across a broad range of
markets provide global marketers with tools to help balance risks, resource
requirements, competitive economies of scale, and profitability
Country- Market Choice
- A general approach to foreign market selection:
o Preliminary screening
Typical criteria include market size, market growth rate, fit between
customer preferences and the product, and competitive intensity
o Identification/in-depth screening
Assessment of industry attractiveness and forecasts of costs and
revenues for short-listed countries
o Final selection
Choice of country market that best matches the company’s objectives
and available resource leverages

Portfolio Analysis
- Most portfolio models involve two measures – internal strength and external
attractiveness
o Internal Strength
Relative market share, product fit, contribution margin, market
presence
o Country (External) Attractiveness
Market size, market growth rate, number and type of competitors,
government regulation, economic and political stability

Market Control and Value


- Attempts to balance strategy group models and the resource-based view of
the firm
- Five key anchors:
1. Emphasis on value
2. Emphasis on market control
3. Moderate market control and value emphasis
4. Strong market control and value emphasis
5. Lack of emphasis on either value or market control

Market Segmentation
- Effective use of segmentation – that is, the recognition that groups within
markets differ enough to warrant individual marketing mixes – allows global
marketers to take advantage of the benefits of standardization while
addressing the unique needs and expectations of a specific target group
- Despite convergence, global marketers still must adjust some marketing mix
elements for maximum impact

Issues
1. Degree of standardization in the product offering
2. Marketing program beyond the product variable
3. Location and extent of value-adding activities
4. Competitive moves
Issues and Challenges
- Globalization
Uniformity in elements that are strategic and localization of necessary
tactical elements
- Not-Invented-here (NIH) Syndrome
Subsidiary resistance