The document provides an overview of international marketing and international human resource management. It discusses key concepts in international marketing including the nature and significance of international marketing, international marketing orientations, international segmentation, and the international product life cycle. It also covers important aspects of international HRM such as international staffing approaches, expatriate management, and international labor relations.

1. Unit III

2. Unit III
• International Marketing: Nature &
significance, International Marketing
Orientations, International Segmentation,
International Product Life Cycle.
• International HRM: International Staffing
Approaches, Expatriate Management,
International Labor Relations.
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3. International Marketing
• International marketing is simply the
application of marketing principles to more
than one country. However, there is a
crossover between what is commonly
expressed as international marketing
and global marketing, which is a similar term.
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4. International Marketing
• "At its simplest level, international marketing
involves the firm in making one or more
marketing mix decisions across national
boundaries. At its most complex level, it involves
the firm in establishing manufacturing facilities
overseas and coordinating marketing strategies
across the globe.”
• According to Kotler, "Global marketing is
concerned with integrating and standardizing
marketing actions across a number of
geographic markets."
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5. Nature of International Marketing
• Broader market is available
• Involves at least two set of uncontrollable
variables
• Requires broader competence
• Competition is intense.
• Involve high risk and challenges.
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6. Scope of International Marketing
• Export
• Import
• Re-export
• Management of international operations
• Regulation on marketing activities
• Formalities and procedures of marketing
• Trade block and their impact
• International marketing research
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7. International Marketing Orientations
• Ethnocentric Orientation
• Regiocentric Orientation
• Geocentric Orientation
• Polycentric Orientation
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9. International Segmentation
• Market segmentation is a marketing strategy which
involves separating a wide target market into subsets
of customers, enterprises, or nations who have, or are
perceived to have, common requirements, choices, and
priorities, and then designing and executing
approaches to target them.
• Geographic Segmentation
• Demographic Segmentation
• Behavioral Segmentation
• Psychographic Segmentation
• Occasional Segmentation
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10. Geographic Segmentation
• nations,
• states,
• regions,
• countries,
• cities,
• neighborhoods,
• or postal codes.
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11. Demographic Segmentation
• age,
• gender,
• occupation
• education level
• Income
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12. Behavioral Segmentation
• knowledge,
• attitudes,
• uses and
• responses to the product
• Learning
• Perception
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13. Psychographic Segmentation
• traits,
• values,
• attitudes,
• Interests
• lifestyles of consumers.
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14. Occasional Segmentation
• Occasion segmentation is dividing the market
into segments on the basis of the different
occasions when the buyers plan to buy the
product or actually buy the product or use the
product
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15. International Marketing Planning
• Phase 1 − Identifies the target market and builds
relative priorities for resource allocation.
• Phase 2 − Fixes the positioning approach for each
target market. The aim is to match the requirements
with the needs based on the analysis.
• Phase 3 − Includes the preparation of the marketing
plan. It consists of examining the situation, aim,
objectives, approach and tactics, budgets and
forecasts, and action programs.
• Phase 4 − The plan is executed and managed. Results
are checked and strategies adjusted when required to
improve results.
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16. The International Product Life Cycle
MNC Manufactures
Product in Developed
Countries; Exports to
Developing Countries
MNC Moves
Production to
Developing
Country; Begins
Importing to
Home Country
Developing
Country
Competitor
Exports Product
To MNC Home
Country;
Competes
with MNC
Imports
Developing Country
Markets Remain Viable
Target Markets for
MNC; MNC Home
Country Market Is
Diminishing
Sales
Introduction
and Growth
Stages:
Early
Maturity:
Late
Maturity
Decline
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17. International Product Life Cycle,
continued
• The Product Introduction Stage
 Products are developed and marketed in developed countries
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18. International Product Life Cycle,
continued
• The Growth Stage
 Increasing competition and rapid product adoption
 Marketed primarily in developed countries
 Product is exported to developing countries
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19. International Product Life Cycle,
continued
• The Maturity Stage
 Product is adopted by most target consumers
 Sales are leveling off
 Profits decline due to intense competition
 Manufacturing operations move to developing countries to take
advantage of cheap labor
 New competitors: firms from developing countries
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20. International Product Life Cycle,
continued
• The Decline Stage
 Products are rapidly losing ground to new technologies and product
alternatives
 Decrease in sales and profits
 Product lifecycle is extended through sales to consumers in developing
countries
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21. International HRM
• International Business must procure, motivate, retain
and effectively utilize services of people both at the
corporate office and at the foreign plant. The process
of procuring, allocation, effectively utilizing human
resources in an international business is called
International Human Resources Management.
• IHRM can be defined as set of activities aimed
managing organizational human resources at
international level to achieve organizational objectives
and achieve competitive advantage over competitors
at national and international level.
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23. Characteristics of IHRM
• More HR activities.
• Need for a broader perspective.
• More involvement In employee personal
lives.
• Changes in emphasis as the work force mix of
expatriates and locals vary.
• Risk exposure.
• More external influences.
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24. Reasons for growing interest in
IHRM
• Globalization of business leading to mobilization of
resources.
• Effective management of human resources.
• To minimize the risk of underperformance or failure in
overseas assignments.
• Implementation of international strategies by
competent managerial personnel to man overseas
assignments.
• Movement from traditional hierarchical organizational
structures towards the network organization.
• Plays significant role in implementing and control of
strategies in an international business.
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25. Steps in IHRM
HRP
Recruitment and Selection
Training and Development
Performance Management
Remuneration
Repatriation
Employee Relations
Multi Cultural Management
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26. Cultural Differences in IHRM
• Language (e.g. spoken, written, body)
• Different labour laws
• Different political climate
• Different stage(s) of technological advancement
• Different values and attitudes e.g. time, achievement,
risk taking
• Roles of religion e.g. sacred objects, prayer, taboos,
holidays, etc
• Educational level attained
• Social organizations e.g. social institutions, authority
structures, interest groups, status systems
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27. Multicultural Management
• Multiculturalism means that people from many
cultures interact regularly . Global firms are the
repositories of multiculturalism.
• Multicultural management offers the following
benefits:
– Greater creativity and innovation.
– Awareness about the need to maintain sensitivity in
dealing with foreign customers.
– Possibilities of hiring the best talent.
– Creating a “superorganisational culture”, using the best of
all cultures.
– Evolving universally acceptable HR policies and practices.
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Approaches to Staffing
• Factors affecting approaches to staffing
– General staffing policy on key positions at
headquarters and subsidiaries
– Constraints placed by host government
– Staff availability
Ethnocentric
Polycentric
Geocentric
Regiocentric
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Ethnocentric
• Strategic decisions are made at
headquarters;
• Limited subsidiary autonomy;
• Key positions in domestic and foreign
operations are held by headquarters’
personnel;
• PCNs manage subsidiaries.
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Polycentric
• Each subsidiary is a distinct national entity
with some decision-making autonomy;
• HCNs manage subsidiaries who are seldom
promoted to HQ positions;
• PCNs rarely transferred to subsidiary
positions.
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Geocentric
• A global approach - worldwide integration;
• View that each part of the organization makes
a unique contribution;
• Nationality is ignored in favor of ability:
– Best person for the job;
– Color of passport does not matter when it
comes to rewards, promotion and
development.
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Geocentric Staffing Requirements
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Regiocentric
• Reflects a regional strategy and structure;
• Regional autonomy in decision making;
• Staff move within the designated region,
rather than globally;
• Staff transfers between regions are rare.
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Ethnocentric Approach
Advantages:
 To ensure new subsidiary
complies with overall
corporate objectives and
policies.
 Has the required level of
competence.
 Assignments as control
Disadvantages:
Limits the promotion opportunities
of HCNs, leading to reduced
productivity and increased turnover
among the HCNs
Longer time for PCNs to adapt to host
countries, leading to errors and poor
decisions being made
High cost
Considerable income gap, high
authority, and increased standard of
living may relate to lack of sensitivity
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Polycentric Approach
Advantages:
Employment of HCNs eliminates language barriers,
avoids adaptation of PCNs, reduces the need for
cultural awareness training programs
Employment of HCNs allows a multinational
company to take a lower profile in sensitive
political situations
Employment of HCNs is less expensive
Employment of HCNs gives continuity to the
management of foreign subsidiaries (lower
turnover of key managers)
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Polycentric Approach
Disadvantages:
Difficult to bridge the gap between HCN
subsidiary managers and PCN managers at
headquarters ( language barriers, conflicting
national loyalties, cultural differences)
HCN managers have limited opportunities to gain
experience outside their own country
PCN managers have limited opportunities to gain
international experience
Resource allocation and strategic decision
making will be constrained when headquarter is
filled only by PCNs who have limited exposure to
international assignment
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Geocentric Approach
Advantages:
 Ability of the firm to
develop an international
executive team
 Overcomes the
federation drawback of
the polycentric approach
 Support cooperation and
resource sharing across
units
Disadvantage:
Host government may use
immigration controls in order
to increase HCNs
employment
Expensive to implement due
to increased training and
relocation costs
Large numbers of PCNs,
HCNs, and TCNs need to be
sent across borders
Reduced independence of
subsidiary management
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Regiocentric Approach
• Advantages:
Allow interaction between
executives transferred to
regional headquarters from
subsidiaries in the region and
PCNs posted to the regional
headquarters
Provide some sensitivity to
local conditions
Help the firm to move from a
purely ethnocentric or
polycentric approach to a
geocentric approach
• Disadvantages:
Produce federalism at a
regional rather than a
country basis and
constrain the firm from
taking a global stance
Staff’s career
advancement still limited
to regional headquarters,
not the parent country
headquarters
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39. Expatriate Management
• Definition of expatriate. An employee who is
sent to live abroad for a defined time period.
An expatriate is expected to relocate abroad,
with or without family, for as short a period as
six months to a year;
typical expat assignments, however, are from
two to five years long.
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40. Expatriate Management
• Expatriate Selection
• Expatriate Training &Development
• Expatriate Compensation
• Repatriates retention
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41. Expatriate Selection
• With the expanding global competition and
the growing number of international
assignees, managing expatriates has been a
major problem that relates to the success or
failure of an organization’s implementation of
international strategies.
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42. Six important factors of expatriated
managers:
• Cultural intelligence (CQ) : ability to adapt across cultures through
sensing the different cues regarding appropriate behavior across
cultural settings or in multicultural settings
• Family situation: ability to keep in touch with families
collaboratively and continuously
• Flexibility and adaptability: ability to fit changed circumstance
• Job knowledge and motivation: ability to transfer knowledge
smoothly and transfer international assignment into career
advancement
• Relational skills: ability to build up relationships more actively
• Extra cultural openness: ability to communicate with others more
openly
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43. “Big Five” – the predictors of
expatriate selection
a. Reliability: the consistency of a performance measure; the degree
to which a performance measure is free from random error
b. Validity: the extent to which a performance measure assesses all
relevant-and only the relevant-aspects if job performance
c. Generalizability: the degree to which the validity of a selection
method established in one context extends to other contexts d.
d. Utility: the degree to which the information provided by selection
methods enhances the effectiveness of selecting personnel in real
organizations.
e. Legality: describe the government’s role in personnel selection
decisions, particularly in the areas of constitutional law, federal
laws, executive orders, and judicial precedent
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44. Expatriate Training and Development
• Cross-Cultural Training (CCT) :
• Cross-cultural adjustment is found to be the
most significant factor determining the
success of international assignments
• Training facilitates effective cross-cultural
interactions
• Training was found to be effective for reducing
uncertainty and increasing self-efficacy ->
cross-cultural adjustment.
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45. Expatriate Training and Development
• Types of CCT
• Most common: language training & overview
of cultural differences
• Two main categories: didactic & experiential
learning
• Additional categories: attribution, cultural
awareness, cognitive-behavior modification
and interaction training.
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46. Expatriate Compensation
Base Salary Allowances Benefits Retirement
Benefits
Base Salary Cost of Living Housing Allowances Gratuity
Bonus Tax Equalization Educational Allowances Pension
Stock Point International Market Medical Allowances Social Security
Measure
Relocation Insurance Allowances
Hardhship and Danger
Exchange Rate Protection
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47. Compensation Challenges
• Further Corporate interests abroad
• Minimize workers’ financial risks
• Encourage employee expatriation
• Repatriation issues
• Enhance overseas experiences
• Promoting lowest - cost strategies
• Promoting differentiation strategies
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48. Repatriate Retention
• Up to 25 percent of repatriates wish to leave the company
after their return to a “normal post”.
• When it occurs and why it is a problem:
• An expatriate of a multinational corporation returns to the
country of his/her origin from an overseas assignment.
• Reasons:
• culture shock (changes happen in expatriation period).
• work-dissatisfaction: high-status position with high
autonomy – a less highly profiled role; career opportunities
diminished; ‘let-down’, no longer “special” or different.
• problems for all family members (lower income, housing,
schooling).
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49. International Labour Relations
• Industrial Relations (IR), alternatively known as
Labour Relations, occupies a place of importance
in International Human Resource Management
(IHRM).
• IR is a system by which workplace activities are
regulated; the arrangement by which the owners,
the managers and the staff of organizations come
together to engage in productive activity.
• It provides for setting standards and promoting
consensus
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50. Key Players:
1. Employees – Employees are represented by unions,
popularly called trade union, Union seek to protect the
interests of workers at work place
2. Employers - MNCs and their associations. The function of
the employer In IR is to set standards of Employee
management, attitudes Behavior and performance; To set
terms and conditions of employment. To act in a fair and
reasonable way towards all.
3. Government - Government of the land – act as an
employer and as a regulator. As a dominant employer, the
Govt. sets Standards of employment and IR practices that
others are expected to follow. As a regulator, the Govt.
enacts legislations, sets up tribunals and enforces them
for the sake of improving labour welfare.
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51. Labour Relations or IR is concerned with:
• Collective Bargaining
• Role management, unions and Government
• Machinery for resolution of industrial
disputes,
• Individual Grievances and disciplinary policy
and practices.
• Labour legislations and
• Industrial Relations training.
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52. •Thank You !
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