Global Marketing (IMM)

HVHL Global Marketing lectures

Globalization

Globalization

The process of integrating businesses, economies, and cultures on a global scale.

Ethical

Considerations related to moral principles and values in the context of globalization.

Practical

Considerations related to the feasibility and implementation of globalization strategies.

Entrepreneurial

Considerations related to innovation, creativity, and risk-taking in the context of globalization.

Political

Considerations related to government policies, regulations, and international relations in the context of globalization.

Economical

Considerations related to financial factors, such as market opportunities, costs, and profitability, in the context of globalization.

Decision whether to internationalize

The process of evaluating the benefits and risks of expanding business operations to international markets.

Global marketing concept

An approach to marketing that combines global integration and local flexibility to meet the needs of diverse markets.

Strategic windows

Nine stages of internationalization, ranging from staying in the local market to strengthening global position.

Industry globalism

The level of interdependencies between markets, customers, and suppliers within an industry, ranging from highly global to multidomestic.

Preparedness for internationalization

The ability of a firm to carry out strategies in the international marketplace, influenced by factors such as language skills, cultural sensitivity, and financial resources.

Motivation to go international

Factors that drive companies to expand into international markets, including profit and growth goals, competitive pressures, and managerial urge.

Internationalization triggers

Factors or events that initiate and facilitate the internationalization process, such as market demand, network partners, or competing firms entering a market.

Internationalization barriers

Obstacles or challenges that companies may face when expanding into foreign markets, such as insufficient finances, knowledge, or export commitment.

Market risks

Potential risks associated with entering foreign markets, including competition, language and cultural differences, difficulties in finding the right distributor, exchange rate fluctuations, delays or damage in export shipments, and political risks.

Born global

Companies that start operating internationally from their inception, challenging traditional theories of internationalization.

Political/legal environment

Factors related to political risks, trade barriers, and legal regulations that can impact international business operations.

Economic environment

Factors related to economic development, exchange rates, income levels, unions, and consumption patterns that can influence market opportunities.

Cultural environment

Factors related to visible daily behavior, values, social morals, and basic cultural assumptions that can impact business practices in different countries.

International selection process

The process of selecting the most suitable country or market for expansion, considering characteristics of the firm and the market/country environment.

Parameters

Factors or criteria used to evaluate and compare different options for international expansion, such as location, competition, market size, cultural differences, currency, and political risks.

Weight

The relative importance or significance assigned to each parameter in the decision-making process.

Market size

The size of the market in a particular country, which may be more relevant than the political situation in determining the viability of entering that market.

Political situation

The political environment of a country, which may be considered as a parameter in the decision-making process but given a lower percentage compared to market size.

Scores

The numerical scores assigned to each option and parameter to evaluate their importance and impact on the decision-making process.

Scoring range

The range of values used for scoring, such as -2 to +2 or 0 to 10, which should be transparent and clearly defined.

Total score

The sum of the weighted scores for each parameter, which determines the overall score for each option and helps identify the preferred choice.

Knock-off criteria

Criteria that eliminate certain options from consideration, such as avoiding countries with corruption or those located more than 4 hours away by flight.

Internalized - hierarchical roles

One of the three main ways to enter a market, involving internal company structures and hierarchies.

In between - intermediate modes

Another way to enter a market, which includes intermediate modes such as contract manufacturing, licensing, joint ventures, and franchising.

Externalized - export modes

The third way to enter a market, which involves export modes such as using distributors, agents, or resident sales representatives.

Export modes

Modes of market entry that focus on exporting products, including direct distribution through distributors or agents, or intermediate modes like contract manufacturing, licensing, joint ventures, and franchising.

Hierarchical modes

Modes of market entry that involve the use of domestic or resident sales representatives to sell products in other countries.

Designing the global marketing program

The process of developing marketing strategies and tactics for international markets.

The general approach

The overall strategy and perspective taken when designing a global marketing program, such as using the 4P Marketing Mix or the 4+3 Marketing Mix.

International perspective

Considering the unique characteristics and requirements of international markets when designing the marketing program.

Adaptation vs standardization

The decision-making process of choosing whether to adapt or standardize marketing strategies and tactics for international markets.

Factors favoring standardization

Reasons or factors that support the use of standardized marketing strategies across different markets, such as economies of scale, global competition, and convergence of consumer preferences.

Factors favoring adaptation

Reasons or factors that support the adaptation of marketing strategies to local market conditions, such as cultural differences, local competition, and variation in consumer needs.

Product

The offering, which can be either a tangible product or a service, and is an important component of the marketing program.

Pricing

The process of determining the prices for products or services in international markets, considering factors such as pricing strategies, currency issues, and terms of sales and delivery.

Place

The distribution channels and locations where products or services are made available to customers, which is an important aspect of the marketing program.

Promotion

The communication activities and tools used to promote products or services to target customers, including advertising, personal selling, sales promotions, and direct marketing.

Communication tools

The various methods and channels used to communicate with customers, such as advertising, personal selling, exhibitions, sales promotions, publicity, and direct marketing.

International advertising strategies

Strategies and approaches used in advertising campaigns for international markets, considering cultural differences and the use of local or global messages.

Implications of the Internet

The impact and considerations of using the Internet as a communication tool in international marketing, including challenges of standing out among competitors and the importance of traditional channels.

Social media marketing

The use of social media platforms for marketing purposes, which provides new opportunities for communication and engagement with global audiences.

Implementation

The process of putting the marketing plan into action, which involves coordination, control, evaluation, and budgeting.

Coordination options

Different options for coordinating marketing activities, such as functional structure, product structure, and geographical structure.

Control and evaluation process

The methods and processes used to monitor, control, and evaluate the implementation of the marketing plan.

Marketing budget

The allocation of resources and funds for implementing the marketing plan, which helps determine the feasibility and worthiness of executing the plan.

International challenges

The potential difficulties and obstacles faced when entering new international markets, particularly related to cultural differences and the need for cultural adaptation.