Class-6-International Marketing | Marketing | Economies

International Marketing (Class-6

)

Arun Bhattacharyya
Faculty Member JIM, Noida

Can a firm be born global?.
* A fast move overseas can be taxing even for successful domestic cos., since each market has significant start-up costs.
* E.g. Starbucks; Expanded in 1996 but first profit came only in 2004. In 2003, its 1650 overseas stores contributed only 7% of the co’s revenue

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Even if not born global, some firms are internationalizing earlier & faster than that in the past Some newer firms are jumping into the global markets
* Recognize from the onset that that customers & competition are international * Particularly true for high-tech start-up companies * E.g. Logitech- the mfr. of computer input devices; offices in China, Taiwan, US, Switzerland and Ireland. A global market share of 50% in PC mouse.

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The local company in the global environment
Source: HBR 77, March-April, 1999

Competitive assets
Customised to home market High Dodger
Sells out to a global player or becomes part of an alliance

Transferable abroad Contender
Upgrades capabilities to match globals in niches

Pressures to globalise in the economy

Defender
Leverages local assets in segments where globals are weak

Extender
Expands into markets similar to home base

Low

Making Culture Work for Marketing Success

Satisfied with

Function of

NEEDS and WANTS

CONSUMPTIO N

CULTURE
Deals with

Society’s design of living Asian PaintsCoca ColaNokiaDomino’s PizzaAPCO in Australia “No Alcohol” in Gulf Hindi SMS Tandoori Pizzas

eBay: Successful in US but not in Japan Reasons: Japanese are embarrassed to sell used goods to strangers

Viewing Culture as an opportunity- The 3M Way
Total sales: $22.93 billion; International Sales: $14.07 billion (61% of total)
Embrace Local Culture A Buddhist shrine in the plant at Bangkok Started preparations for entry in China since 1972. Entertained Chinese officials for 10 years. Allowed to enter in 1984 as a wholly owned venture. 7500 Asian employees, less than 10 are Americans. Total 34000 employees, Less than 1% are expatriates. Locals are made equals with their US counterparts At any point > 30 of 3M’s Asian technicians are in US to learn about techniques and processes. Distributors are allowed to share views with 3M. Global, regional & local offerings. Scotchbrite cleaning pads change to brown & shaped like a foot. Similarly for a composite to fill tooth cavities. Encouraged product managers in Asia to meet regularly & share insights. The idea is to ‘Asianize’ & the globalise a product more quickly.

Build Relationships Employ locals to gain cultural knowledge Help employees understand you Adapt products to local markets Coordinate by region

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