chapter 2 marketing management 📚

Corporate social responsibility (CSR)

• refers to a firms behaviors and strategies that have a positive impact on the world

• Affirm that value operates in ways that enhance global society in the environment instead of diminishing them

• Also referred to as corporate citizenship

Described as doing well by doing good

The global experience learning curve stages:

1. No direct foreign marketing

2. Foreign market

3. International marketing

4. Global marketing

Companies with no foreign marketing

May still do business with international customers through intermediaries or limited direct contact

• They may fulfill unsolicited orders, but these are incidental

• Usually small with a limited range of products

• Small companies now move into international markets, faster due to better domestic distributor, relationship, relationships, customers with global operations, and effective websites

Companies with foreign marketing

Company follows existing customers into_____

Involves developing local distribution and service representation:

• By using local intermediaries

• Or by establishing its own direct salesforce

Key activities are done in the home country, but products are modified for international markets

International marketing

When a firm begins to manufacturer products outside the home market

Global marketing

Company views the world as a single market with many different segments

More than half of his revenue comes from international markets

See market segments that may not align with country boundaries

Define markets a along traditional political boundaries

Depends on research critical for decision makers

Developed economies

United States, Europe, Japan

Emerging markets

China India Brazil

Regional market zones

Consist of a group of countries that create formal relationships for mutual economic benefits through lower tariffs and reduce trait barriers

• Economic factors

• Geographic proximity

• Political factors

• Cultural similarities

Strategic alliances

Spread risk of foreign investment among partners

For example, they dominate the airline industry with one world, alliance, sky team in star alliance

International joint ventures

Allow companies to enter markets that will be closed because of legal restrictions or cultural barriers. They are foreign by two or more companies that share management duties in a defined structure and also hold equity positions.

Direct for an investment

Is the risky a strategy but it offers potential for long-term growth

Factors to consider:

• Timing

• Legal issues

• Transaction costs

• Technology transfer

• Product differentiation

• Marketing communication barriers

Global product lines

Worked well for firms with a broad diverse range of products allows companies to target similar products to customers around the world

Geographic regions

Divides market by geography building anonymous regional organizations that work well when local government relationships are critical for success

Matrix structure

Is a hybrid of the first two global product lines and geographic regions and is used by most global firms. Encourages regional autonomy as it builds product competence.

Direct product extension

Introduce a product produced in the companies Home market to an international market with no product changes

Product adaptation

Alter an existing product to fit local needs and legal requirements

Product invention

Create a new product specifically for an international market

Personal selling

Companies need sensitivity and selecting hiring and training their global salesforce to accommodate local business cultures

Sales promotion

The need to stimulate consumer trial and purchase can be greater outside the US

Public relations

The expansion of global communications has greatly increased the importance of international public relations

Three principle approaches to global pricing

One global price

Local market conditions price

Cost based price

• No single pricing strategy accommodates every foreign market

• Most companies follow a combination of cost based and market conditions based pricing in setting a final price to market

dumping

refers to the practice of charging less than actual cost or less than product price in the companies home markets

gray market

involves the unauthorized diversion of brand products into global markets

marketing ethics

encompasses a societal and professional standard of right in fair practices that are expected of marketing managers in their oversight of strategy, formulation, implementation, and control

Triple bottom line (TBL)

Metric for evaluating not only the financial results of the company, but the broader social equity, economic, and environmental considerations as well

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