Please enable JavaScript.

Coggle requires JavaScript to display documents.

Global marketing - Coggle Diagram

- - - - Thomas Friedman - The World is Flat vs Pankaj Ghemawat - World 3.0 -- the global market is a level-playing field vs not eliminating cultural differences but understanding them
    - - global marketing plan - creating a sustainable competitive advantage in the global market place
      - 5 decisions to global marketing plan: 1) the decision whether to internationalize 2) deciding which markets to enter 3) market entry strategies 4) designing the global marketing programme 5) implementing and coordinating the global marketing programme
    - - resources - 1) financial - SMEs have less access to financing due to limited equity base (entrepreneur has limited capital to invest) 2) business education/specialist expertise - managers of SMEs - generalist, not a specialist - does a lot, no formal specialization for certain aspect of the business;
      - formation of strategy & decision-making processes - LSEs - a) deliberate strategy formation - intended strategy ( formed based on preparation, analysis, and evaluation) used in the situation becomes a deliberate strategy that is depending on the circumstances adapted with emergent (not-planned) strategy to give realized strategy which is used to address the situation at hand. The aspects of the intended strategy not implemented in the given situation are called unrealized strategy. b) Logical incrementalism - continual adjustments in strategy are made depending on external conditions, allowing for more flexibility and less friction in the implementation of a given strategy because of constant environmental change. This incremental change can fail to keep up with the amount of environmental change, in which case strategic drift happens. SMEs - entrepreneurial decison-making model - more flexible and intuitive. since SMEs are always looking for growth opportunities, the growth is not / cannot be planned for and the decision-making is more sporadic and situation-dependent.
      - orgnaization
      - risk-taking LSEs - more risk-averse, because their decision-making model causes friction in big changes, but supports incremental changes in the direction of seizing long-term opportunities. SMEs - do things to survive on the market, but the confidence to take these risks is tied to the confidence of the entreprenuer
      - flexibiltiy shorter communication lines between the comapany and the customers allows the SMEs to be more flwxibel
      - Economies of scale - happen due to experience curve effect (better standardization of the processes, more efficient productions (less mistakes and more automatization)), reduction of unit costs, due to fixed costs spread over more units, gained purchasing power over suppliers. LSEs are able to take advantage of this, due to their large market share. SMEs usually operate in more niche, smaller market segments that are too insignificant for LSEs to target.
      - Economies of scope - lowering costs due to the spreading of costs across the range of products / industries / markets. The global marketer can make themselves more appealing to the customer in one market by offering many products in the marketing mix (providing greater consistency in quality and features, as opposed to customer choosing many different local suppliers).
        
        The economies of scope can be achieved by balancing between 2 conflicting needs: 1) need for central coordination for the marketing mix (In order to provide said consistency) and 2) need for local autonomy for delivery of value to the customer in one market (in order to provide better market responsivness)
        
        LSEs are often better at utilizing their economies of scope, due to bigger presence on the international market, but SMEs can achieve this too by partnering with another company to create a bigger and better marketing mix, that they otherwise wouldn't be able to offer.
        
        Example of utilizing economies of scale and scope in the car industry By using similar engines for a lot of different car models, car manufacturers are using economies of scale (producing more engines to being with, affecting the unit cost) and economies of scope (putting the same engines in different models, affecting the unit cost).
      - Use of information resources - LSEs - rely on commissioned market reports made by consultancy firms as a source of global marketing information. SMEs rely in informal, and often face-to-face methods of data collecting as a source of glbl mktg info; although as SMEs progress from production-oriented to marketing oriented, their need for more complex information grows, in order to be more market responsive.
    - - staying at home vs strengthening ones global position depends on
        
        industry globalism
        
        preparedness for intenrationalization
    - - EPRG framework (framework through which the startegiies on global amrketing are decided on, base don manager's beliefs/experience)
        
        Ethnocentric (home country>other countries, centralized control, copy pasting existing domestic strategy)
        
        Polycentric - each country = unique, everyone doing their own thing, decentralized, less communication
        
        Regiocentric (multidomestic) - coordinating marketing programs within reagions but not across them
        
        Geocentric (global) - global product concept with local adaptations (think global, act local)
      - global marketing ( coordinating marketing activities across the national bourders in order to satisfy the global custoemr better than the competition, implies the following
        
        firm is able to develop a global mktg strategy, base don differences and similarities of the markets
        
        firm is able to use the knowledge of HQ in the domestic country through worldwide diffusion (learning) and adaptation
        
        firm is able totransfer knowledge and ebst practices from certain markets and use them in other markets
      - glocalization . development and selling of products or services intended for the global market, but adapted to suit local culture and behavior
    - - LSEs and SMEs traditionally ahd differnet strenghts (in terms of global cooridnation vs market reponsivness), but thats changing, as these companies are learning from each other
      - forces for global coordinarion / integration
        
        deregulation (removal of trade barriers)
        
        relationship management / network organiyation
        
        global accounts/customers
        
        standardized wordlwide technology
        
        Worldwide markets
        
        global village
        
        Worldwide communication
        
        global cost drivers
      - forces for market responsiveness
        
        cultural differences
        
        regionalism/protectionism
        
        deglobalization trend
    - - value chain - categorisation of company’s activities into primary and supporting ones, which create value for the customer and profit for the company .
        
        at each stage there is an opportunity to provide a competetive edge for the company
        
        if the change in the processes id sustainable, defensible, profitable and valued by the market, the company may earn high rates of return
        
        cosists both of cost and profit drivers / by analyzing both, company can better its market position
        
        Primary activities
        
        inbound logistics
        
        operations
        
        outboud logistics
        
        marketing and sales
        
        service
        
        suppoert activities
        
        procurement
        
        Technology development
        
        human resource management
        
        infrastructure
      - linkages - need to be analyzed inside and outside of the existing value chain when analyzing cost and profit drivers
        
        internal lingakges (same value chain)
        
        are connected to company’s decison and activity levels
        
        strategic level
        
        managerial level
        
        operational level
        
        external linkages
        
        suppliers and distributors
      - internationalizing the value chain
        
        moving companys activiities where there is highest comeptence or biggest cost effectiveness
        
        usually upstream functions are centralised and downstream functions decentralised, unless the foreign market is psychologically close to the HQ OR it depends on the industry focus (is it more up or downstream to begin with / where is competitive advantage created within the value chain
    - - 2 new mdoels of value creation to better illustarte service industries
        
        Types
        
        value networks / meidating exchanges between customers
        
        value shops / solving customer probelms in service environemnt
        
        Diffrences between product and service value models
        
        value creation: transformation of inputs to products vs customer problem/solving
        
        sequential v cyclical process
        
        primary and support activities vs 1( problem finding 2) problem solving 3) choice 4) execution 5) control and evaulation
      - combining the product and service value chains
    - - value co-creation
      - experiences
        
        involvement/participation
        
        intensity/connection
        
        types
        
        entertainment / low involvement, low intensity
        
        education / higher involvement, low intensity
        
        aesthetic / passive involvement , very high intensity
        
        Escapism is / high involvement, high intensity
    - - using information to create value (as illustrated in the virtual value chain, that can be used as an extension of the physical product value chain)
        
        managing risks
        
        reducing costs
        
        offering products and services
        
        inventing new products
  - - - Historical development of internationalization
        
        Traditional markeitng appraoch - Penrosian tradition - accent is on having to somehow compensate for cost of foreigness in order to be competetive on th emarket
        
        Life cycle concept of intl trade - Veron's product cycle hypothesis - prooizvodimo prvo ondje gdje se smisli proizvod, a kad se standardizira može ići gdje god
        
        Uppsala - Scandinavian satges model of entry suggests incrementan increasde of committemnt
        
        1) no regular export, independent representatives, foreign sales subsidiary, foreign production and sales subsidiary,
        
        criticism: deterministic, no leapfrogging, too individual
        
        Internationalizaion / TCA - consideres in which way should the comapny internationalize based on the rpinciple of minimizing the cost of doing so - a subsidiary or externalization
        
        ex ante ( search coszs+contracting costs) + ex post (monitoring + enforcement)
        
        critical - narrow assumptions of human nature, excluding internal transaction costs, relevance of intermediate forms for SMEs
        
        Dunnings eclectiv appraoch
        
        The network approach - the comapny is not singel adn independtent in the internationalization process and it depends on other actors and their resources in order to be able to achieve its goals
      - The differnece between cultural distance and psychic disctance
        
        cultural distance - refers to amcro cultural level in one country and is defined to the degree to which cultural values in one country are different from those in another cointry (distance)
        
        psychic distance - individual managers perception of the differneces between home and foerign market, which in their opinion causes disturbances in the flow of informaiton, goods and services, refers to eatiher coutnry and people characteristic
  - - - factor condidtions
      - demand conditions
      - related and supporting industries
      - firms taretgy, structure and rivlary
      - govenrment
      - chance
    - - poreters five forces
        
        entrants, suppliers, substiitutes, buyers, market comeptitors, strategic groups