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International Marketing - Coggle Diagram
International Marketing
Environment
Conceptual Foundations of International Marketing
Foundations of International Trade
factor proportions trade theory - Heckscher/Ohlin
theory of absolute (cost) advantage - Smith
mercantilism
theory of comparative (cost) advantage- Ricardo
Motives for going international
risk reduction
realization of opportunities
revenue-related
price-related
cost-related
Characteristics of International Marketing
major differences (national vs. international)
higher risk
more need for information
coordination requirements
higher task complexity
managing differences and interdependencies between countries
choosing the degree of differentiation and autonomy
differentiation vs. standardization
autonomy vs. coordination
Understanding International Markets
Evaluating Countries
risk assesment
qualitative
quantitative
objective
statistical indicators
econometric models
subjective
multidimensional scoring models (BERI-Information, Hermes Risk Categories, BI-Country Ratings)
one dimensional scoring models (FDI Confidence Index, Corruption Perceptions Index)
assessing global competitiveness key indicators
flexible work arragements
digital skills
digital legal framework
Understanding emerging markets
Understanding Socio-Cultural Conditions
the onion model of culture
values
rituals
heroes
symbols
culture is a 5 level phenomenon
group level
organiation level
global level
national level
individual level
Cultural Typologies, cultural dimensions
Hofstede
power distance
individualism
masculinity
uncertainty avoidance
+long-term orientation
+indulgence
Trompenaars
universalism
individualism
affectivity
specifity
performance orientation
relations to time
internal control
Hall
high context vs. low context
Stereotyping
3 may reasons why culutral knowledge is important
consciousness of cultural differences
consumer behavior is influenced by culture
business partners have different cultural backgrounds
Understanding International Customers
International Buying Behavior of Individuals
Country of Origin
country-of-origin effect
ethnocentrism
its strength depend on 4 categories of antecedents (socio-psychological, economic, political, demographic)
cosmopolitanism
Riefler, Diamantopoulos and Siguaw
open mindedness towards foreign countries and cultures
diversity appreciation of the availability of products from different origins
consumption transcending borders, meaning a positive disposition towards consuming products from foreign countries
Cleveland and Laroche
measurement with the c-cosmo scale (open mindedness, diversity appreciation, consumption transcending borders)
International Buying Behavior of Organizations
Reasons for the increasing complexity of dealing with organizational buyers
internationalization of the market activities of the customers
internationalization of the purchasing process
"global sourcing"
complexity of dealing with organizational buyer
many individuals involved in the purchase decision
highly formalized decision making process
decision making process involves intensive interaction between supplier and buyer organization
customer relationships between organizations are often long-term
quantity and nature of organizational demand depend on requirements of the customers' customer
products are often highly individualized
beside the product, logistics and often services are an important part of the offer
rendering the service often requires the coordination and skills of multiple people in the own organization, sometimes even of external suppliers
International Market Research
Foundations of International Market Research
general market research process
defining research problem
defining research design
defining responsibilities
defining the method of data collection
selecting the sample
designing the survey instrument
collecting the data
editing and coding the data
analyzing and interpreting the results
presenting the results
primary vs secondary data
characteristics
general challenges of multi-country studies in marketing
emic vs etic dilemma
emic
highly relativist perspective
for external observers it's not possible to understand accurately the behavior of individuals in other cultures
etic
if appropriate methodological care is taken, cross-cultural market research is possible
mainstream perspective in business practice
Selected Topics in Primary Data Research
choosing appropriate survey methods
data collection methods
Email queationnaire
telephone survey
face-to-face interview
online survey
nonverbal survey techniques
Ensuring the equivalence data
construct equivalence (functional, conceptual, categorical)
measurement equivalence (translation, configural-metric-scalar)
sampling equivalence (sampling frame, data collection procedure, sampling comparability)
analysis equivalence
sources of the lack of comparability
different cultural response to the form of data collection
lack of linguistic similarity of questions and response scales
different cultural response styles
Testing for measurement equivalence before and after conducting the study
confiramtory factor analysis
Selected Topics in Secondary Data Research
basic sources and challenges of secondary data research
external sources
national - non-commercial
national - commercial
international - non-commercial
international - commercial
internal sources
challenges of dealing with secondary data
International Marketing Strategy
defining an international marketing strategy
the classic STP-Approach
segmenting
targeting
positioning
market segmentation strategy
6 key requirements for segments
identifiable
sizeable
accessible
stable
responsive
actionable
goal: to break down the market for a product or a service into different groups of consumers who differ in their response to the firm's marketing program
basic segmentation approaches
segments = several country markets/regions
segments do not differ across countries
country-specific market segmentation
2 stage approach (macro and micro segmentation)
criteria for country segmentation
demographics
socioeconomic variables
bahavior-based segmentation
lifestyle and values
international positioning strategy
defining the strategy in 6 steps
uniform vs. localized
universal positioning
global, foreign and local consumer culture positioning
global consumer culture positioning
local consumer culture positioning
foreign consumer culture positioning
portfoio based selection of markets
growth share matrix (star, question mark, cash cow, pet/dog)
selection/priozitization of country markets
basic critera
criteria of market attractiveness
insitutional criteria
political stability
local infrastructure
access to resources
demand-based criteria
population growth
buying power per capita
market volume
market growth
competition-based criteria
competitive intensity
competitive advantages
market entry barriers
institutional critera
customs/import quotas
standards
minimum/maximum prices
demand-based criteria
demand patterns
language
customer loyalty towards competitors
consumers' switching costs
competition-based criteria
economies of scale
advantages of established competitors
positive image of established competitor
international market development
forms of international market entry
direct exporting
indirect exporting
franchising
licensing
sales representation
contract manufacturing
joint venture
subsidiary sales and service
subsidiary sales, service and manufacturing
timing of international market entry
waterfall strategy
sprinkler strategy
Cross-National Standardization of Marketing Activities
factors supporting standardization
cost-related considerations
customer-related considerations
environmental considerations
strategic considerations
standardization of products --> culture-free vs. culture bond
cost-benefit analysis (ábra)
global marketing mix strategy options
Global marketing operations
global organizational design
decision is influenced by 2 key factors
environmental factors
competitive environment
rate of environmental change
regional trading blocs
nature of customers
firm-specific factors
strategic importance of international business
product diversity
company heritage
quality of local managerial skills
key design options
international division
product-based structure
geographic structure
matrix ogranization
role of formal and informal control
formal --> behavior-based and outcome-based
informal --> clan-based and market-based cultures
Relationship between Head Office and Local Entities
general roles for country organizations (in the matrix of strategic importance of local market and competence of local organization)
strategic leader (high, high)
implementor (low, low)
back hole (high importance, low competence)
contributor (low impotance, high competence)
management of subsidiaries with marketing tasks
Global corporate citizenship and corporate social responsibility
scope of CSR
the UN Global Compact (human rights, labor, environment, anticorruption)
the ISO 2600 standard (human rughts, labor practices, environment, fair operating practices, consumer issues, community involvement and support)
important areas of CSR in a Global Context
corruption
supply chain accountability
International Product Management
Foundations of product management and communications
Defining products and brands
basic type of products
physical goods vs. services
consumer goods vs. industrial goods
functions of brands
from the perspective of the brand owner
from the perspective of the distributor
from the perspective of the customer
hierarchy of communication goals (AIDA)
Awareness
Interest
Action
Desire
International Product management
International Product policy strategies
basic strategies (ábra)
standardization
adaptation
ideal procedure of a global new product development
idea generation
screening of product ideas
profitability analysis
product development
testing
market launch
Product Launch
Classic Diffusion Model - Rogers
innovators
early adopters
early majority
late majority
followers
Empirical research on Time-to-Takeoff in different countries
economic factors --> shorter in wealthy countries, more open and more mobile economies, in countries with high educational level and high media density
cultural factors --> shorter in countries with lower uncertainty avoidance, with a higher need or success and diligence, the more countries have introduced the product category BUT longer in high uncertainty avoidance countries
Product standardization vs differentiation
product program (structural characteristics)
program breadth
program depth
program consistency
decisions to standardize/differentiate at each layer, brand developement and brand communication
brand promotion
brand name
brand logo and brand appearance
brand positioning
challenges of product differentiation
cost nightmare = differentiated product and manufacturing
mass customization = differentiated product, standardized manufacturing
waste of synergies = standardized product, differentiated manufacturing
focused approach = standardized product and manufacturing
manufacturing strategies to achieve economies of scale
postponement
common platform design
built-in flexibility
mass customization
International brand architecture
design dimensions
geographic scope
level in organization
product scope
strategies
single brand strategy (product brand) --> Magnum, Cornetto
umbrella brand (corporate brand) --> Unilever
family brand strategy (house brand) --> Langnese/Algida
Brand standardization vs. differentiation
globalization potential of brands
product globally fulfills functional needs
brand targets same lifestyle
luxury brand with identical target groups in the high-price segment
brands that profit of the COO effect
services brands
brand desgin strategies (brand name and logo)
standardization
adaptation
evaluation of brand design strategies
standardization options/change of brand names
fade-in/fade-out or dual branding
transparent forewarning
hard cut
brand globalness vs brand localness
perceived brand globalness (PBG)
perceived brand localness (PBL)
International Communications
relevance of global advertising (ad spending and happiness)
advertising standardization vs. differentiation
context-dependence of communication message
implications of socio-cultural aspects
Product piracy
brand piracy and brand piracy
reasons
high profit margin
Schengen Agreement
offshoring of production in the course of globalization
transfer of know-how
continous increase in the number of brands and branded products
consequences
instrument to enforce trademark law
activities against product piracy
lobbying activities
legal action
customs
product poilcy options
distribution
pricing
communication options
Conceptual Foundations of Pricing