Internationalization process
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This document discusses the stages of internationalization that companies go through as they expand globally. It begins by outlining several drivers of corporate internationalization including cost drivers, government drivers, competitive drivers, and market drivers. It then describes 5 stages of internationalization that companies typically progress through: 1) Domestic Company, 2) International Company, 3) Multinational Company, 4) Global Company, and 5) Transnational Company. For each stage, it provides details on the company's strategy, view of world markets, orientation, key assets, and the role of country units. It concludes by summarizing the differences between each stage in a chart.
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3. While international trade provides benefits like increased specialization and access to cheaper goods, it also faces challenges such as political risks, trade barriers, and cultural differences between countries.
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This document provides an overview of key concepts in international marketing. It discusses the definition and evolution of international marketing from domestic marketing to global marketing. It also covers international marketing orientations including ethnocentric, polycentric and geocentric approaches. Additionally, it discusses the concepts of globalization and glocalization, and how companies pursue international marketing opportunities while also facing various driving and restraining forces. The document concludes with sections on ethical issues in international marketing and 10 commandments for an effective global marketing strategy.
International Business-Introduction
This document provides an overview of international business. It defines international business as transactions that cross national boundaries and includes product presence in different markets, global production bases, diverse human resources, international investments and intellectual property transactions. It discusses why international business is important to study and how understanding global business helps managers operate effectively. It also outlines factors that have encouraged the growth of international business like regional trade blocs and declining trade barriers.
Eprg model
This document discusses different orientations that companies can take when conducting international marketing. It describes the ethnocentric, polycentric, regiocentric, and geocentric orientations. The ethnocentric orientation involves applying the home country approach abroad without adaptation. The polycentric orientation adapts marketing to each host country. The regiocentric orientation groups countries with similar characteristics and adapts regionally. Finally, the geocentric orientation aims to integrate global and local needs through standardization and adaptation. Examples are provided for each orientation to illustrate how companies have successfully localized their strategies in different markets.
Management of International business
International business involves commercial transactions that cross national borders, including trade, investments, and transportation of goods, services, and economic resources between two or more countries. It has grown due to factors like advancing technology, reducing trade barriers, improving global institutions and infrastructure, expanding consumer markets and tastes, intensifying global competition, improving political relations among countries, and increasing cross-national cooperation. Understanding international business is important as most companies now operate or compete globally, and different cultures and policies must be considered to do business successfully in various countries. Firms choose between ethnocentric, polycentric, and geocentric orientations based on whether they focus on the home country, host countries, or a global perspective when conducting international operations.
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Class slides module 1-introduction to international marketing
Class slides module 1-introduction to international marketing
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Marketing philosophies or Orientation
Marketing orientation ort philosophies depict the various thought processes related to marketing or its evolution
Pricing decision
Price is the sum of all the values that customers give up to gain the benefits of having or using a product or service
Retail image mix
Retail Image refers to how a retailer is perceived by customers and others.To succeed, a retailer must communicate a distinctive, clear, and consistent image.
Store Layout Design
Store layout is an arrangement of the store that include space management, product display, network of passages, arrangement for amenities and customer convenience and other facilities required.
Hypothesis
Hypothesis is a formal statement that represents the expected relationship between an independent and dependent variable.
It is an assumption about the relationship between two or more variables and is predictive in nature
Retail strategy
The long term plan the retailers make in order to achieve their objective is called retail strategy.
EPRG Orientation
Douglas Wind and Pelmutter advocated four approaches to international business: the ethnocentric approach, polycentric approach, regiocentric approach, and geocentric approach. The ethnocentric approach involves exporting the same products designed for the domestic market to foreign countries. The polycentric approach decentralizes decision-making to foreign executives. The regiocentric approach markets similar products designed for a region to neighboring countries. The geocentric approach operates subsidiaries globally as independent companies coordinated by the headquarters.
International Business Environment- Domestic, Foreign & Global Environment
The document discusses the influence of domestic, foreign, and global environments on international business. It identifies controllable variables such as finance, production, human resources, and marketing. It also identifies uncontrollable variables including the domestic environment, foreign environment, and global environment. The global environment encompasses factors like the international economic environment, regional economic groups and agreements, and international financial institutions. Understanding the business environments is important for businesses to determine market potential, how to enter foreign markets, production scale, labor deployment, financing operations, marketing strategies, and compensation.
Market Environment Analysis
This document provides an overview of tools for analyzing a company's marketing environment, including SWOT analysis and Porter's Five Forces model. SWOT analysis involves examining a company's strengths, weaknesses, opportunities, and threats. Porter's Five Forces model analyzes the bargaining power of buyers and suppliers, threat of substitutes, threat of new entrants, and rivalry among existing competitors. The document was created by an assistant professor to provide guidance on marketing environment analysis.
Retail strategy
The overall the retailing plan needed to operate the store efficiently and effectively is called Retail Strategy.
Retail formats
This document discusses various retail formats categorized by ownership. It identifies the main ownership models as independent stores, chain stores, franchising, leased department stores, vertical marketing systems, and consumer cooperatives. Independent stores are owned and operated by a single retailer, while chain stores have two or more outlets owned under joint control. Franchising involves a contractual agreement where a franchisee pays fees to a franchiser in exchange for using their brand name and operating format. Leased department stores involve renting space within a larger store. Vertical marketing systems integrate manufacturers, wholesalers, and retailers to facilitate product flow. Consumer cooperatives are owned by their customers.
Retail formats part 3
This document discusses different types of retail formats, dividing them into store-based retailing and non-store-based retailing. Some examples of non-store-based retailing discussed are direct marketing, which involves exposing customers to goods through non-personal media and allowing them to order by mail, phone or online; direct selling, which involves personal contact with customers in their homes; and vending machines, which allow 24-hour automated sales without sales personnel. The document also briefly outlines other non-traditional retail formats such as electronic retailing (e-commerce), mobile van retailing, video kiosks, event retailing, trade parks, and forecourt retailing at gas stations.
Retail formats part 2
This document discusses different store-based retail formats. It identifies convenience stores, supermarkets, food-based superstores, and limited-line stores as food-based retailers. For general merchandise retailers it outlines specialty stores, full-line discount stores, factory outlets, membership clubs, flea markets, off-price chains, and traditional department stores. The document provides brief descriptions of each retail format's characteristics including store size, product assortments, pricing, and target customers.
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The document discusses various retail formats categorized by ownership. Independent stores are owned by a single retailer, while chain stores have two or more outlets owned under joint control. Franchising involves a contractual agreement where a franchisee pays fees to the franchiser in exchange for using their brand name and operating format. Leased department stores section off areas of a larger store to outside retailers paying monthly rent. Vertical marketing systems integrate manufacturers, wholesalers, and retailers to different degrees to facilitate product flow from creation to consumer. Formats provide options for retailers based on their resources and target markets.
Rural Consumer Behaviour
This document discusses rural consumers in India. It provides information on the profile of rural consumers, including their low literacy and income levels, scattered population across many villages, and principal occupations in farming and trades. It describes the types of rural consumers as household consumers, rural industrial users, and rural resellers. It also outlines different groups of rural consumers based on their buying behavior, such as habitual, cognitive, emotional, and impulsive groups. Finally, it briefly discusses factors that influence rural consumer behavior, including stimuli, perception, attitudes, needs, demographics, culture, and social influences.
Rural vs. urban marketing
The document compares rural and urban marketing in India, noting key differences in their philosophies, buyer motivations, marketing objectives, mix, research methods, technologies used, and development strategies. Rural marketing focuses on inclusive growth and uses simple research methods, while urban marketing emphasizes fashion, lifestyle, and sophisticated research. The marketing mix also differs, with rural using the basic 4 P's and urban utilizing an expanded 7 P's approach.
The Rural Environment
The document discusses the rural environment and is divided into several sections. It covers the demographic environment including changes in rural population, family structures, age, education, and occupation. The physical environment discusses rural settlements and housing patterns. The socio-cultural environment examines socio-cultural regions, village communities, and the caste system. The political environment analyzes panchayati raj institutions and gram sabhas. The technological environment addresses rapid mechanization and the growth of information and communication technology. Finally, the rural economic environment describes the transitioning rural economy, economic structure, rural enterprises, income disparity, and spending.
Evolution of Rural marketing
This document outlines the evolution of rural marketing in India through four phases:
Phase I (prior to 1960) consisted of agricultural marketing and exchanges of crafts and utensils; Phase II (1960-1980) saw the entry of consumer goods companies and changes in rural demand due to the Green Revolution; Phase III (1990-2000) included new service sectors, pro-rural government initiatives, and companies launching rural-focused products; Phase IV (after 2000) featured financial inclusion, media expansion, hiring of rural staff, and improved standards of living through various government programs.
Introduction to Rural marketing
This document provides an overview of rural marketing in India. It defines rural marketing as developing, pricing, promoting, and distributing rural-specific goods and services to satisfy consumer demand in rural areas. Some key points:
- Rural markets have consumers located in rural areas with different behaviors than urban consumers. Transactions can be rural-to-urban or urban-to-rural.
- Rural marketing focuses more on development than transactions, customer satisfaction, and increasing living standards through a mutually beneficial process.
- Rural markets are large and diverse but scattered, with low incomes mainly from agriculture. They face challenges like high distribution costs, seasonal demand, and lack of infrastructure.
Advertsing budget
The document discusses advertising budgets, which estimate the financial requirements to achieve advertising objectives within a given time period. The budget is a guideline for allocating funds to advertising functions and activities. Key factors that influence the budget include available finances, sales percentages, competitors' spending, and return on investment. The budget specifies income, expenses, and how funds will be allocated. It must be constructed within the company's financial capabilities. The budget process involves estimating total advertising costs based on market information, then appropriating funds and specifying expenditures for each advertising function. The budget is presented to management for review and modification before execution and control to ensure actual spending matches estimates. Various methods can be used to allocate the budget, such as percentages of sales or objectives
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Internationalization process
- 2. Corporate Internationalization and Globalization Drivers 2 Corporate Internationalization and Globalization Drivers Globalization Facilitator: Information Technologies COST DRIVERS - Economies of Scale - Steep Experience Curves - Low-Cost Production - Favorable Logistics - New Product Development Costs GOVERNMENT DRIVERS - Trade and Investment Barriers Reduced by UN Agencies and by Individual Governments COMPETITIVE DRIVERS - Rival Domestic and International Firms - Imported Goods MARKET DRIVERS - Common Customer Needs - Global Channels - Marketing Transfers and Global Branding - Lead Countries
- 3. STEPS IN INTERNATIONALISATION /GLOBALISATION 3 1 3 5 4 2 DOMESTIC COMPANY MULTINATIONAL COMPANY TRANSNATIONAL COMPANY INTERNATIONAL COMPANY GLOBAL COMPANY
- 4. 1. Domestic Company “if it is not happening in the home country, it is not happening” ◈Limits its operations, mission and vision to the national political boundaries. ◈Focuses its view on the domestic market opportunities, domestic suppliers, domestic financial companies, domestic customers etc ◈Never thinks of growing globally ◈If it grows, beyond its present capacity, the company selects the diversification strategy of entering into new domestic markets, new products, technology 4
- 5. 2. International Company ◈The focus of these companies is domestic but extends the wings to the foreign countries. ◈Go for international trade either forced by domestic or foreign forces ◈Most of the companies follow this strategy due to limited resources and also to learn from the foreign markets gradually before becoming a global company without much risk. ◈Extends the domestic country marketing mix and business model and practices to foreign countries ◈Believe that the practices adopted in domestic business the people and products of domestic business are superior to those of other countries. 5
- 6. 3. Multinational Company ◈Multinational company is also referred to as multi-domestic. ◈Multi-domestic company formulates different strategies for different markets ◈The orientation shifts from ethnocentric to polycentric. ◈Under polycentric orientation the offices/branches/subsidiaries of a multinational company work like domestic company in each country where they operate with distinct policies and strategies suitable to the country concerned. 6
- 7. 4. Global Company ◈Global company either produces in home country or in a single country and focuses on marketing these products globally, or produces the products globally and focuses on marketing these products domestically. Example - Harley designs and produces super heavy weight motorcycles in the USA and markets in the global market. 7
- 8. 5. Transnational Company ◈Transnational company produces, markets, invests and operates across the world. ◈ It is an integrated global enterprise that links global resources with global markets at profit. ◈A transnational company is geocentric in its orientation. ◈This company thinks globally and acts locally. ◈This company allows adaptation to add value to its global offer ◈The assets of a transnational company are distributed throughout the world, independent and specialised 8
- 9. Chart : Different scenerio of internationalisation of companies 9 Stage of company 1. Domestic Company 2.International Company 3.Multinational Company 4.Global Company 5.Transnational Company Strategy Domestic International Multi Domestic Global Global Model N.A Co-oriented Federation Decentralise Federation Centralised Hub Integrated Network View of World Markets Home country Market Extension of Resources National and resources Global Markets Global Markets Orientation Ethnocentric Ethnocentric Polycentric Mixed Geocentric Key Assets Located in home country Core Centralised and other dispersed Decentralised and self sufficient All in home country except marketing or sourcing Dispersed, independent and specialized Role of country units Single country Adapting and leveraging competencies Exploiting local opportunities Marketing or sourcing Contribution to company worldwide Knowledge Home centred Created at centre and transferred Retained within operating units Marketing developed jointly and shared All functions developed jointly and shared
- 10. Write to me at vijyata.rwc@gmail.com or comment in the comment box THANK YOU !!! 10