Misha Sulpovar- Global Strategy’ is a shorter term that includes three areas: global, multinational and international techniques. Effectively, these three areas refer to those techniques designed to enable an group to achieve its objective of worldwide expansion.
The scope and challenge of international marketingluispachon
The document discusses the scope and challenges of international marketing. It identifies four trends driving global commerce: trading blocs, free market economies, technology, and environmental awareness. The challenge for marketers is developing strategic plans that are competitive in intensifying global markets. International marketing involves performing business activities like planning, pricing, promotion, and distribution across national borders for profit. It differs from domestic marketing in areas like foreign currency, multiple political/tax environments, long distances, and various languages. Marketers must adapt to different environments and be globally aware to avoid ethnocentrism.
This document discusses the framework of global marketing management. It begins by explaining how international marketing has become important for business schools to develop global strategies. It then outlines the aims and importance of the course on global marketing management. The document provides details on key topics that will be covered in the course, including frameworks for global marketing, research, decision making, market entry strategies, and more. It emphasizes that global marketing management provides skills for operating in today's expanded and competitive global business environment.
This document discusses key concepts in international marketing. It begins by defining international marketing as business activities designed to plan, price, promote, and direct goods and services to consumers in more than one country for profit. Global marketing focuses on global opportunities and threats while considering universal marketing fundamentals. The document then outlines different levels of international involvement from no direct foreign marketing to global marketing. It also discusses international marketing concepts ranging from domestic market extension to global marketing.
The document discusses the scope and challenges of international marketing. It provides an overview of key topics such as the benefits of international markets, the changing face of US business, and the importance of developing global awareness. It also outlines the progression from no direct foreign marketing to global marketing. International marketing requires understanding how culture influences the marketing task and avoiding ethnocentrism.
Ch 1 2 ppt introduction to international marketingAlain DELZONGLE
This document provides an overview of key concepts in international marketing. It discusses the differences between domestic and international marketing, and strategic orientations like domestic, multidomestic, and global. Environmental forces that marketing managers must consider are explored, including factors that are controllable versus uncontrollable. Global governance institutions that impact international trade are outlined. The document also examines topics like protectionism, trade barriers, and balance of payments accounts.
Global marketing - international marketing definedRECONNECT
This is the lecture of course "Global Marketing"
This slideshare network of RECONNECT will provide all the presentation related to case studies, project presentations, educational, motivational slides & much more.
Follow Reconnect on slide share.
Official fb page: facebook.com/reconnectt
Official fb group: facebook.com/groups/reconnecting.tech/
Rights are reserved for this presentation. Please inbox 1st to get permission to use this
The document discusses several major international marketing decisions including deciding whether to go international, which markets to enter, and how to enter those markets. It also covers looking at the global marketing environment, factors in different country's economic and cultural environments, and options for a company's global marketing program such as standardized versus adapted marketing mixes. Standardized mixes use the same strategies globally while adapted mixes adjust elements to each target market.
This document discusses international marketing research. It begins by explaining that international marketing research aims to reduce uncertainty in decision making by providing precise information. It then outlines the key steps in international marketing research: defining objectives, determining required information, selecting methodologies, collecting information, analyzing data, and preparing a report. The document also describes some common techniques for international marketing research, including desk research of secondary sources and survey research to collect primary data. It emphasizes that the goals are to plan research effectively and objectively analyze results to inform business decisions.
The scope and challenge of international marketingluispachon
The document discusses the scope and challenges of international marketing. It identifies four trends driving global commerce: trading blocs, free market economies, technology, and environmental awareness. The challenge for marketers is developing strategic plans that are competitive in intensifying global markets. International marketing involves performing business activities like planning, pricing, promotion, and distribution across national borders for profit. It differs from domestic marketing in areas like foreign currency, multiple political/tax environments, long distances, and various languages. Marketers must adapt to different environments and be globally aware to avoid ethnocentrism.
This document discusses the framework of global marketing management. It begins by explaining how international marketing has become important for business schools to develop global strategies. It then outlines the aims and importance of the course on global marketing management. The document provides details on key topics that will be covered in the course, including frameworks for global marketing, research, decision making, market entry strategies, and more. It emphasizes that global marketing management provides skills for operating in today's expanded and competitive global business environment.
This document discusses key concepts in international marketing. It begins by defining international marketing as business activities designed to plan, price, promote, and direct goods and services to consumers in more than one country for profit. Global marketing focuses on global opportunities and threats while considering universal marketing fundamentals. The document then outlines different levels of international involvement from no direct foreign marketing to global marketing. It also discusses international marketing concepts ranging from domestic market extension to global marketing.
The document discusses the scope and challenges of international marketing. It provides an overview of key topics such as the benefits of international markets, the changing face of US business, and the importance of developing global awareness. It also outlines the progression from no direct foreign marketing to global marketing. International marketing requires understanding how culture influences the marketing task and avoiding ethnocentrism.
Ch 1 2 ppt introduction to international marketingAlain DELZONGLE
This document provides an overview of key concepts in international marketing. It discusses the differences between domestic and international marketing, and strategic orientations like domestic, multidomestic, and global. Environmental forces that marketing managers must consider are explored, including factors that are controllable versus uncontrollable. Global governance institutions that impact international trade are outlined. The document also examines topics like protectionism, trade barriers, and balance of payments accounts.
Global marketing - international marketing definedRECONNECT
This is the lecture of course "Global Marketing"
This slideshare network of RECONNECT will provide all the presentation related to case studies, project presentations, educational, motivational slides & much more.
Follow Reconnect on slide share.
Official fb page: facebook.com/reconnectt
Official fb group: facebook.com/groups/reconnecting.tech/
Rights are reserved for this presentation. Please inbox 1st to get permission to use this
The document discusses several major international marketing decisions including deciding whether to go international, which markets to enter, and how to enter those markets. It also covers looking at the global marketing environment, factors in different country's economic and cultural environments, and options for a company's global marketing program such as standardized versus adapted marketing mixes. Standardized mixes use the same strategies globally while adapted mixes adjust elements to each target market.
This document discusses international marketing research. It begins by explaining that international marketing research aims to reduce uncertainty in decision making by providing precise information. It then outlines the key steps in international marketing research: defining objectives, determining required information, selecting methodologies, collecting information, analyzing data, and preparing a report. The document also describes some common techniques for international marketing research, including desk research of secondary sources and survey research to collect primary data. It emphasizes that the goals are to plan research effectively and objectively analyze results to inform business decisions.
Global marketing - Success, Failures and StrategyOrly Ballesteros
Global marketing - Success, Failures and Strategy. Global Marketing is the ultimate game plan a company aspire to but to navigate it successfully you need to study the landscape of your market.
The document discusses various strategies that multinational companies use to organize their global marketing operations. It describes how companies have moved from standardization to localization approaches over the decades. Common strategies discussed include decentralization, adapting to local tastes, and focusing on long term planning. The planning process for global markets is outlined in four phases: preliminary analysis, adapting the marketing mix, developing a marketing plan, and implementation. Alternative market entry strategies like exporting, contractual agreements, direct foreign investment are also summarized.
Haribo will export its original gummy bear product to China and introduce it to the Chinese market in an adapted form. It will target China's growing middle and upper classes with a premium product emphasizing German quality. Haribo plans to use aggressive advertising and partnerships with other brands. It expects to break even by the end of 2016 and sees potential for high profits in China's growing confectionery industry.
Describes in important points how to enter in the market.
Six indicators of market potential.
Trends in international marketing.
Marketing environment.
Identifying marketing opportunities and threats.
How to master the 8 challenges of international marketingDuffy Agency
For even the most accomplished U.S. marketers, the international arena can be a blind spot. Not surprising when you realize just how few US companies actually venture abroad.
Although international marketing operates off the same core marketing principles as domestic marketing, it is fundamentally different in practice. The eight areas outlined here reflect 24 years of dealing exclusively with international marketing. They summarize the most common pitfalls that snare marketers as they venture outside of their home markets or to foreign markets.
Read more: http://bit.ly/IntlMarketingChallenges
This document provides an overview of international marketing management and marketing research. It discusses key concepts such as the definition of international marketing, differences between domestic and international marketing environments, factors that drive international expansion, and levels of international marketing involvement. It also covers topics like the balance of payments, trade barriers, and the scope and process of conducting international marketing research. The document is intended to provide a framework for understanding international marketing management and how marketing research supports decision making in foreign markets.
International Marketing explores the history of trade and marketing between countries. In the year 1970, with the onset of progressive trade liberalization there was a tremendous expansion of the world trade. An organization’s way of marketing in a given country is termed “International marketing”. This comes into play when an organization is part of or associated with an enterprise which also operates in other countries and there is some degree of influence or control of the organization’s marketing activities from outside the country in which it sells and or produces.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit:
http://www.welingkaronline.org/distance-learning/online-mba.html
This Slideshare is the sole Property of the Welingkar School of Distance Learning – Reproduction of this material , without prior consent, either wholly or partially will be treated as a violation of copyright.
The document provides an introduction to international marketing, including definitions of key terms, differences between international and domestic marketing, and challenges in international marketing. It discusses the international marketing concept, environmental forces companies must consider, and stages of international marketing involvement ranging from no direct foreign marketing to global marketing. Language barriers, standardization-customization issues, and ethnocentrism are highlighted as major obstacles international marketers face.
This chapter introduces the key concepts of global marketing and the different strategic orientations firms can take when expanding internationally. It discusses the development of global marketing from domestic to export to international and multinational strategies. Finally, it addresses the biggest challenge in global marketing as designing marketing strategies that work across multiple country markets while allowing for local adaptation, and the importance of focus, value creation and competitive advantage for global success.
The document provides an introduction to global marketing, outlining several key concepts:
1. It discusses the evolution of firms from domestic to global orientations and the factors driving globalization, such as increasing economic interdependence between countries.
2. Several theories related to international trade and global marketing are described, including comparative advantage and the product life cycle theory.
3. The challenges of planning for global marketing are examined, highlighting the need to account for differences in national environments, languages, cultures, and business practices across countries.
This document provides an overview of global marketing. It begins with definitions of global marketing and discusses reasons for internationalization such as accessing new markets and increasing competitiveness. It then covers factors that determine entry mode decisions and various entry mode strategies. The document also discusses deciding on the global marketing program and organization. Key topics covered include scanning the global marketing environment, reactive and proactive motives for internationalization, and conducting marketing research in global markets.
This document discusses global marketing management and regional market characteristics. It covers different regions around the world like Western Europe, Eastern and Central Europe, North America, Asia-Pacific, Japan, China, India, Latin America, Africa, the Middle East, and transitional/less developed countries. For each region it provides key statistics and insights into their economic profiles, marketing environments, challenges, and opportunities. It also discusses Rogers' diffusion of innovation theory and factors that affect the rate of adoption of new products.
International Marketing Management PowerPoint Presentation Slides SlideTeam
Every organization needs to adapt to the ever-changing business environment. Sensing this need, we have come up with these content-ready change management PowerPoint presentation slides. These change management PPT templates will help you deal with any kind of an organizational change. Be it with people, goals or processes. The business solutions incorporated here will help you identify the organizational structure, create vision for change, implement strategies, identify resistance and risk, manage cost of change, get feedback and evaluation, and much more. With the help of various change management tools and techniques illustrated in this presentation design, you can achieve the desired business outcomes. This business transition PowerPoint design also covers certain related topics such as change model, transformation strategy, change readiness, change control, project management and business process. By implementing the change control methods mentioned in the presentation, you will be able to have a smooth transition in an organization. So, without waiting much, download our extensively researched change management framework presentation. With our Change Management Presentation slides, understand the need for change and plan to go through it without any hassles.
This document discusses the evolution and meaning of sales management. It describes four periods in the evolution: pre-industrial revolution, production oriented, sales oriented, and customer oriented. It then defines sales management as planning, directing, and controlling personal selling activities according to the American Marketing Association. The document outlines the nature and importance of sales management, including setting goals, planning sales programs, implementing programs, and controlling/evaluating results. It concludes by stating the three main objectives of sales management are sales volume, contribution to profits, and continuous growth.
Global marketing involves promoting and advertising a company's products internationally to increase sales in foreign markets. There are several benefits to global marketing such as increased profits, broader customer reach, longer product lifecycles, and improved brand reputation. However, companies must take precautions like understanding local customs, laws, currency risks, and competitors when entering new global markets. Common strategies for entering markets include standardized or adapted marketing approaches, extending existing products or developing new customized products, and using methods like direct exports, indirect exports, licensing, joint ventures, or mergers.
Global marketing involves developing marketing strategies on a worldwide scale to take advantage of opportunities across borders. There are several major decisions in international marketing, including: deciding whether to go abroad by evaluating risks; deciding which markets to enter based on factors like costs and trade zones; deciding how to enter markets through various modes of entry; deciding on marketing program elements like standardized vs adapted approaches; deciding on pricing strategies; deciding on distribution channels; and deciding on marketing organization structures. International marketing requires customizing the marketing mix to different country conditions while maintaining a coordinated global strategy.
The document summarizes the international product life cycle theory, which describes how industries and companies evolve their marketing strategies over time and across borders. It outlines the four primary elements of the theory - demand, manufacturing, competition/marketing strategies, and the innovating company's strategy - and how they change through a product's introduction, growth, maturity, and decline stages in different markets. The introduction stage involves building awareness and a niche market with high costs, risk, and promotion expenses. Growth sees rising sales and profits as production scales up, allowing more promotion. Maturity is the most competitive as companies focus on market share while considering innovations. Eventually decline begins as the market becomes saturated or consumers switch to newer products.
Global marketing involves coordinating marketing activities across different country markets to create exchanges that satisfy individual, organizational, and societal goals. As companies internationalize and globalize their strategies, they must make major decisions about which countries to enter and how using various options like exporting, licensing, franchising, strategic alliances, global or multi-country strategies. When entering new international markets, companies consider factors like political/regulatory environment, financial/economic environment, socio-cultural issues, local competition, and infrastructure. Channel management is developing and aligning customer interfaces like distribution channels across marketing, sales, and services to reach the widest customer base and drive growth and profits.
The marketing environment consists of external social, demographic, economic, technological, political, legal, and competitive factors that influence marketing decisions. Marketers must understand how these factors are changing and their impact on target customers. This allows them to create an effective marketing mix. Some key trends include the increasing diversity of lifestyles, changing gender and family roles, an aging population, and growing ethnic markets. The state of the economy also influences pricing strategies during times of inflation and recession. Advances in technology require continuous innovation to stay competitive.
This document provides an overview of international marketing. It begins by defining international marketing as marketing across national boundaries to satisfy human needs and wants. It discusses reasons why companies become involved in international markets, including to increase profits through economies of scale. It then describes major actors in international marketing, such as multinational corporations, exporters, and importers. The document outlines how the scope of international marketing has broadened to include industries like retail, services, and advertising. Finally, it discusses challenges in international marketing, including differences in market characteristics, cultural factors, political conditions, and industry conditions between countries. Adaptation may be needed to address these differences.
This PPT is designed with the objective of giving insights into marketing elements (Product, Price, Place & Promotion) in International Marketing, entry modes, and other related topics.
The other major topics discussed are mentioned below. This PPT is designed with simple words for the benefit of UG and PG students
International Marketing-Motives, Characteristic and advantages, Transitional stages in international Marketing,Management orientation in International Marketing
Global Marketing Information System, International Marketing research, International Marketing Entry Stages
Product Decisions, New Product Development, Geographic Expansions, Strategic Alternatives
International pricing Objectives and strategies, Transfer pricing, International Marketing Channel, Channel Terminology, Physical Distribution and Logistics, Global Advertising and Branding, Public Relation, Personel Selling, Sales Promotion , Direct Marketing, Trade Shows and Exhibitions
This document provides an overview of key topics in international business management including:
1. It introduces drivers of international business and goals of international firms.
2. It discusses the international business environment and factors companies consider when operating globally.
3. It examines multinational corporations and reasons for their growth, organizational structures, and role in developing countries.
4. It covers international marketing strategies like market entry, global branding, pricing approaches, and the product lifecycle.
5. It concludes with a brief section on conflict management and ethics in international business.
Global marketing - Success, Failures and StrategyOrly Ballesteros
Global marketing - Success, Failures and Strategy. Global Marketing is the ultimate game plan a company aspire to but to navigate it successfully you need to study the landscape of your market.
The document discusses various strategies that multinational companies use to organize their global marketing operations. It describes how companies have moved from standardization to localization approaches over the decades. Common strategies discussed include decentralization, adapting to local tastes, and focusing on long term planning. The planning process for global markets is outlined in four phases: preliminary analysis, adapting the marketing mix, developing a marketing plan, and implementation. Alternative market entry strategies like exporting, contractual agreements, direct foreign investment are also summarized.
Haribo will export its original gummy bear product to China and introduce it to the Chinese market in an adapted form. It will target China's growing middle and upper classes with a premium product emphasizing German quality. Haribo plans to use aggressive advertising and partnerships with other brands. It expects to break even by the end of 2016 and sees potential for high profits in China's growing confectionery industry.
Describes in important points how to enter in the market.
Six indicators of market potential.
Trends in international marketing.
Marketing environment.
Identifying marketing opportunities and threats.
How to master the 8 challenges of international marketingDuffy Agency
For even the most accomplished U.S. marketers, the international arena can be a blind spot. Not surprising when you realize just how few US companies actually venture abroad.
Although international marketing operates off the same core marketing principles as domestic marketing, it is fundamentally different in practice. The eight areas outlined here reflect 24 years of dealing exclusively with international marketing. They summarize the most common pitfalls that snare marketers as they venture outside of their home markets or to foreign markets.
Read more: http://bit.ly/IntlMarketingChallenges
This document provides an overview of international marketing management and marketing research. It discusses key concepts such as the definition of international marketing, differences between domestic and international marketing environments, factors that drive international expansion, and levels of international marketing involvement. It also covers topics like the balance of payments, trade barriers, and the scope and process of conducting international marketing research. The document is intended to provide a framework for understanding international marketing management and how marketing research supports decision making in foreign markets.
International Marketing explores the history of trade and marketing between countries. In the year 1970, with the onset of progressive trade liberalization there was a tremendous expansion of the world trade. An organization’s way of marketing in a given country is termed “International marketing”. This comes into play when an organization is part of or associated with an enterprise which also operates in other countries and there is some degree of influence or control of the organization’s marketing activities from outside the country in which it sells and or produces.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit:
http://www.welingkaronline.org/distance-learning/online-mba.html
This Slideshare is the sole Property of the Welingkar School of Distance Learning – Reproduction of this material , without prior consent, either wholly or partially will be treated as a violation of copyright.
The document provides an introduction to international marketing, including definitions of key terms, differences between international and domestic marketing, and challenges in international marketing. It discusses the international marketing concept, environmental forces companies must consider, and stages of international marketing involvement ranging from no direct foreign marketing to global marketing. Language barriers, standardization-customization issues, and ethnocentrism are highlighted as major obstacles international marketers face.
This chapter introduces the key concepts of global marketing and the different strategic orientations firms can take when expanding internationally. It discusses the development of global marketing from domestic to export to international and multinational strategies. Finally, it addresses the biggest challenge in global marketing as designing marketing strategies that work across multiple country markets while allowing for local adaptation, and the importance of focus, value creation and competitive advantage for global success.
The document provides an introduction to global marketing, outlining several key concepts:
1. It discusses the evolution of firms from domestic to global orientations and the factors driving globalization, such as increasing economic interdependence between countries.
2. Several theories related to international trade and global marketing are described, including comparative advantage and the product life cycle theory.
3. The challenges of planning for global marketing are examined, highlighting the need to account for differences in national environments, languages, cultures, and business practices across countries.
This document provides an overview of global marketing. It begins with definitions of global marketing and discusses reasons for internationalization such as accessing new markets and increasing competitiveness. It then covers factors that determine entry mode decisions and various entry mode strategies. The document also discusses deciding on the global marketing program and organization. Key topics covered include scanning the global marketing environment, reactive and proactive motives for internationalization, and conducting marketing research in global markets.
This document discusses global marketing management and regional market characteristics. It covers different regions around the world like Western Europe, Eastern and Central Europe, North America, Asia-Pacific, Japan, China, India, Latin America, Africa, the Middle East, and transitional/less developed countries. For each region it provides key statistics and insights into their economic profiles, marketing environments, challenges, and opportunities. It also discusses Rogers' diffusion of innovation theory and factors that affect the rate of adoption of new products.
International Marketing Management PowerPoint Presentation Slides SlideTeam
Every organization needs to adapt to the ever-changing business environment. Sensing this need, we have come up with these content-ready change management PowerPoint presentation slides. These change management PPT templates will help you deal with any kind of an organizational change. Be it with people, goals or processes. The business solutions incorporated here will help you identify the organizational structure, create vision for change, implement strategies, identify resistance and risk, manage cost of change, get feedback and evaluation, and much more. With the help of various change management tools and techniques illustrated in this presentation design, you can achieve the desired business outcomes. This business transition PowerPoint design also covers certain related topics such as change model, transformation strategy, change readiness, change control, project management and business process. By implementing the change control methods mentioned in the presentation, you will be able to have a smooth transition in an organization. So, without waiting much, download our extensively researched change management framework presentation. With our Change Management Presentation slides, understand the need for change and plan to go through it without any hassles.
This document discusses the evolution and meaning of sales management. It describes four periods in the evolution: pre-industrial revolution, production oriented, sales oriented, and customer oriented. It then defines sales management as planning, directing, and controlling personal selling activities according to the American Marketing Association. The document outlines the nature and importance of sales management, including setting goals, planning sales programs, implementing programs, and controlling/evaluating results. It concludes by stating the three main objectives of sales management are sales volume, contribution to profits, and continuous growth.
Global marketing involves promoting and advertising a company's products internationally to increase sales in foreign markets. There are several benefits to global marketing such as increased profits, broader customer reach, longer product lifecycles, and improved brand reputation. However, companies must take precautions like understanding local customs, laws, currency risks, and competitors when entering new global markets. Common strategies for entering markets include standardized or adapted marketing approaches, extending existing products or developing new customized products, and using methods like direct exports, indirect exports, licensing, joint ventures, or mergers.
Global marketing involves developing marketing strategies on a worldwide scale to take advantage of opportunities across borders. There are several major decisions in international marketing, including: deciding whether to go abroad by evaluating risks; deciding which markets to enter based on factors like costs and trade zones; deciding how to enter markets through various modes of entry; deciding on marketing program elements like standardized vs adapted approaches; deciding on pricing strategies; deciding on distribution channels; and deciding on marketing organization structures. International marketing requires customizing the marketing mix to different country conditions while maintaining a coordinated global strategy.
The document summarizes the international product life cycle theory, which describes how industries and companies evolve their marketing strategies over time and across borders. It outlines the four primary elements of the theory - demand, manufacturing, competition/marketing strategies, and the innovating company's strategy - and how they change through a product's introduction, growth, maturity, and decline stages in different markets. The introduction stage involves building awareness and a niche market with high costs, risk, and promotion expenses. Growth sees rising sales and profits as production scales up, allowing more promotion. Maturity is the most competitive as companies focus on market share while considering innovations. Eventually decline begins as the market becomes saturated or consumers switch to newer products.
Global marketing involves coordinating marketing activities across different country markets to create exchanges that satisfy individual, organizational, and societal goals. As companies internationalize and globalize their strategies, they must make major decisions about which countries to enter and how using various options like exporting, licensing, franchising, strategic alliances, global or multi-country strategies. When entering new international markets, companies consider factors like political/regulatory environment, financial/economic environment, socio-cultural issues, local competition, and infrastructure. Channel management is developing and aligning customer interfaces like distribution channels across marketing, sales, and services to reach the widest customer base and drive growth and profits.
The marketing environment consists of external social, demographic, economic, technological, political, legal, and competitive factors that influence marketing decisions. Marketers must understand how these factors are changing and their impact on target customers. This allows them to create an effective marketing mix. Some key trends include the increasing diversity of lifestyles, changing gender and family roles, an aging population, and growing ethnic markets. The state of the economy also influences pricing strategies during times of inflation and recession. Advances in technology require continuous innovation to stay competitive.
This document provides an overview of international marketing. It begins by defining international marketing as marketing across national boundaries to satisfy human needs and wants. It discusses reasons why companies become involved in international markets, including to increase profits through economies of scale. It then describes major actors in international marketing, such as multinational corporations, exporters, and importers. The document outlines how the scope of international marketing has broadened to include industries like retail, services, and advertising. Finally, it discusses challenges in international marketing, including differences in market characteristics, cultural factors, political conditions, and industry conditions between countries. Adaptation may be needed to address these differences.
This PPT is designed with the objective of giving insights into marketing elements (Product, Price, Place & Promotion) in International Marketing, entry modes, and other related topics.
The other major topics discussed are mentioned below. This PPT is designed with simple words for the benefit of UG and PG students
International Marketing-Motives, Characteristic and advantages, Transitional stages in international Marketing,Management orientation in International Marketing
Global Marketing Information System, International Marketing research, International Marketing Entry Stages
Product Decisions, New Product Development, Geographic Expansions, Strategic Alternatives
International pricing Objectives and strategies, Transfer pricing, International Marketing Channel, Channel Terminology, Physical Distribution and Logistics, Global Advertising and Branding, Public Relation, Personel Selling, Sales Promotion , Direct Marketing, Trade Shows and Exhibitions
This document provides an overview of key topics in international business management including:
1. It introduces drivers of international business and goals of international firms.
2. It discusses the international business environment and factors companies consider when operating globally.
3. It examines multinational corporations and reasons for their growth, organizational structures, and role in developing countries.
4. It covers international marketing strategies like market entry, global branding, pricing approaches, and the product lifecycle.
5. It concludes with a brief section on conflict management and ethics in international business.
The document provides an overview of the scope and challenges of international marketing. It discusses key trends driving globalization like growth of free trade areas and acceptance of free markets. Firms now face global competition and many US companies have foreign ownership. International marketing requires adapting to different country environments and avoiding the self-reference criterion of judging other cultures through one's own lens. Companies typically progress through stages from infrequent to regular foreign marketing and eventually global marketing. Strategic orientations range from ethnocentric to polycentric to regiocentric/geocentric approaches.
The document provides an overview of the scope and challenges of international marketing. It discusses key trends driving globalization like growth of free trade areas and acceptance of free markets. Firms now face global competition and many US companies have foreign ownership. International marketing requires adapting to different country environments and avoiding the self-reference criterion of judging other cultures through one's own lens. Companies typically progress through stages from infrequent to regular foreign marketing and eventually global marketing. Strategic orientations range from ethnocentric to polycentric to regiocentric/geocentric approaches.
Internationalisation is about companies expanding beyond their home country in various ways to achieve goals of global efficiency, multinational flexibility, and worldwide learning. Companies pursue one of four strategies - global, multidomestic, transnational, or international. A transnational strategy aims to balance standardization and customization by having multidimensional perspectives, distributed interdependent capabilities, and flexible integrative processes. It pursues both global efficiency and local responsiveness through some centralized and some decentralized functions.
This document discusses various aspects of international marketing, including differences from domestic marketing. It covers reasons for firms to engage in international business, such as market saturation or trade deficits domestically. Multinational corporations play a key role through foreign direct investment and operations in other countries. Common entry strategies include exporting, contractual agreements, joint ventures, and manufacturing subsidiaries abroad.
The document discusses key concepts in international marketing. It begins by outlining learning objectives, including the changing nature of global business and importance of cultural awareness. Recent global events are then reviewed, followed by trends like growth of free trade areas and acceptance of free markets. Internationalization of U.S. firms and competition on the global stage is also covered. The document defines international marketing and outlines the complex foreign environment factors companies must adapt to. It emphasizes avoiding ethnocentrism and the self-reference criterion to properly understand foreign markets. Finally, it reviews stages of international involvement and strategic orientations like multi-domestic, regional and global approaches.
Kotabe global competitive marketing strategy ch08jcpham
This document discusses global marketing strategies. It begins by explaining how information technology has reduced the relevance of political borders and increased global competition. It then covers developing a global strategy by assessing industry drivers of globalization and competitive structure. Next, it discusses developing a global marketing strategy that balances standardization vs. adaptation and global integration vs. local responsiveness. It also addresses regionalization of marketing strategies. Finally, it discusses using SWOT analysis to evaluate strengths, weaknesses, opportunities, and threats when developing a competitive strategy.
The document provides an overview of the topics covered in four units of an International Marketing course. Unit 1 discusses definitions, theories, reasons for internationalization, and market entry strategies. Unit 2 covers political, legal, and economic factors of the international environment. Unit 3 focuses on India's export and import policies and procedures. Unit 4 addresses international product, pricing, distribution, communication policies and case studies. Reference books are also provided. The document outlines the key concepts and issues to be addressed in each unit of an International Marketing course.
The document discusses various concepts related to global marketing, including different approaches to entering international markets, adapting marketing mixes for other countries, and the three major forms of international marketing organization. It also provides examples of how companies like Coca-Cola have successfully expanded globally by balancing standardization with local adaptation. The overall roadmap previews how international trade systems, economic, political-legal, and cultural factors influence global marketing decisions.
The document discusses various strategies for international marketing operations and foreign market selection. It outlines four broad orientations - ethnocentric, regiocentric, geocentric, and polycentric - that determine a firm's level of involvement and control over foreign marketing activities. When selecting foreign markets, firms determine objectives, collect market information, analyze data, create shortlists, conduct in-depth research, and select markets that offer the best long-term potential. Positioning involves strategically developing a unique and advantageous position for a brand in the minds of consumers.
The real battle for global market leadership will and must be fought in the world’s growth markets. To win it, smart market-driven positioning is key. At globeone we help our clients to find their ideal market-driven positioning, to become and stay highly relevant in their target markets.
Our discussion paper gives food for thought and interesting insights into branding and marketing success in key growth markets. It is meant to inspire leaders to see the world in all its differences and address these differences right.
The document discusses several key aspects of global marketing:
1) As globalization increases, firms face competition from around the world and many seek foreign markets to boost profits.
2) There are differences in uncontrollable environmental factors between country markets that require firms to adapt their marketing mix.
3) The self-reference criterion and ethnocentrism can impede assessing foreign markets accurately, relying too heavily on domestic norms. Adaptation to other cultures is important for global awareness and success.
1. As organizations pursue more global strategies, marketing research is needed to understand consumers in international markets. However, international marketing research presents unique challenges compared to domestic research.
2. This document discusses a framework for conducting effective international marketing research projects from a global project management perspective. It focuses on the nuances of questionnaire construction and primary data collection across borders.
3. Factors like political, legal, economic, social, and cultural differences between countries can impact the comparability of international marketing research results. Proper consideration of these challenges is needed for meaningful research projects.
1. As organizations pursue more global strategies, marketing research is needed to understand consumers in international markets. However, international marketing research presents unique challenges compared to domestic research.
2. This document discusses a framework for conducting effective international marketing research projects from a global project management perspective. It focuses on the nuances of questionnaire construction and primary data collection across borders.
3. Factors like political, legal, economic, social, and cultural differences between countries can impact the comparability of international marketing research results. Proper consideration of these challenges is needed for meaningful research projects.
This document discusses factors to consider for international advertising and promotion. It provides an overview of reasons for international importance including stagnating domestic markets, growth opportunities, and economic necessity. It also outlines various environmental factors like economic, demographic, cultural, and political/legal that influence international marketing and promotional decisions. Finally, it discusses considerations for decisions areas in international advertising such as organization style, creative strategy, agency selection, research, and media strategy.
Dear students get fully solved assignments
call us at : 08263069601 , or
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
This document discusses various aspects of international marketing, including reasons for companies to engage in international business, differences between domestic and international marketing, and strategies for entering foreign markets. It notes that as more economies and competitors become global, US firms are increasingly engaging in international marketing through methods like foreign manufacturing, joint ventures, licensing, and imports. Competing globally allows companies to tap new markets and enhance long-term profits, but also adds complexity from dealing with different cultures, governments, and economic conditions.
This document discusses international marketing research. It begins by explaining that marketing research is needed to reduce uncertainty when expanding globally due to lack of country-specific information. The scope of international marketing research covers socioeconomic, political, market size/trends, and competitive factors. Conducting research across different world regions poses various issues related to factors like technology access and cultural differences.
This document discusses strategic management concepts including vision, mission, business definition, and other strategic intents. It provides examples of good vision and mission statements and explains how they should be formulated. A vision is described as the future aspirations that inspire an organization, while a mission reflects the organization's purpose and reason for existence in working to achieve the vision. Together, vision and mission provide strategic direction and motivate stakeholders. The document also discusses related concepts like stretch, leverage, and fit in strategic positioning.
Similar to Misha Sulpovar-Bases for Global Market Segmentation (20)
Misha Sulpovar- How Arts Groups Can Best Use CRMADP
This document discusses customer relationship management (CRM) for arts groups. It defines CRM as integrating sales, marketing, service, and support strategies to maximize customer value, relationships, retention and loyalty. The document outlines CRM strategies, components, best practices, and metrics. It argues that CRM is necessary for arts groups to adapt to competitive pressures and the "new consumer" who expects personalized, relevant experiences and problem-solving. CRM aims to increase customer retention and organizational performance through integrated customer data and relationships.
Misha Sulpovar- Awesome Things You Can Learn From Leadership ADP
Misha Sulpovar- several types of leadership styles that exist in work circumstances and advantages and disadvantages exist in each leadership style. Its only the traditions and goals of an organization that determines which type of leadership suits to the firm.
Misha Sulpovar-When you are talking for more than 50 percent of the time, you are actually talking 10 times excess. Your job is not to blurt out everything, but understand and realize the client’s viewpoint, his problems, issues, type of work done, time taken etc. Be an active listener if you really want to develop your business. You will always be a favorite source in a competing economy if you hone your listening skills.
2. 09/06/1709/06/17 Misha SulpovarMisha Sulpovar PagePage 22
Global MarketingGlobal Marketing
“…“…the world is becoming more homogenous…”the world is becoming more homogenous…”
““...distinctions between national markets are...distinctions between national markets are
fading and may disappear…”fading and may disappear…”
3. 09/06/1709/06/17 Misha SulpovarMisha Sulpovar PagePage 33
Global Marketing EvolutionGlobal Marketing Evolution
Core Business StrategyCore Business Strategy
Country
A
Country
B
Country
C
Country
D
Develop Core
Business Strategy
Internationalize
the Strategy
Globalize
the Strategy
Source: Reprinted from “Global Strategy… In a World of Nations?” by George S. Yip, Sloan
Management Review 31 (Fall 1989): 30, by permission of the publisher. Copyright 1989 by Sloan
Management Review Association. All rights reserved.
4. 09/06/1709/06/17 Misha SulpovarMisha Sulpovar PagePage 44
Globalization DriversGlobalization Drivers
Market FactorsMarket Factors
• new consumer groups, developed infrastructures,new consumer groups, developed infrastructures,
globalization of distribution channels, cross-borderglobalization of distribution channels, cross-border
retail alliancesretail alliances
Cost FactorsCost Factors
• avoiding cost inefficienciesavoiding cost inefficiencies
and duplicated effortsand duplicated efforts
Environmental FactorsEnvironmental Factors
• reduced governmental barriers,reduced governmental barriers,
rapid technological evolutionrapid technological evolution
Competitive FactorsCompetitive Factors
• rapid product innovation, introduction, distributionrapid product innovation, introduction, distribution
5. 09/06/1709/06/17 Misha SulpovarMisha Sulpovar PagePage 55
The Strategic Planning ProcessThe Strategic Planning Process
Understanding and adjusting the core strategy beginsUnderstanding and adjusting the core strategy begins
with a clear definition of the business for which thewith a clear definition of the business for which the
strategy is to be developed.strategy is to be developed.
The Strategic Business UnitThe Strategic Business Unit
• Based on product market similaritiesBased on product market similarities
Similar needs or wants to be metSimilar needs or wants to be met
Similar end user customers to be targetedSimilar end user customers to be targeted
Similar products or services used to meet needsSimilar products or services used to meet needs
of specific customersof specific customers
6. 09/06/1709/06/17 Misha SulpovarMisha Sulpovar PagePage 66
The Strategic Planning ProcessThe Strategic Planning Process
Assessment and Adjustment of Core Strategy
Market/Competitive Analysis - Internal Analysis
Assessment and Adjustment of Core Strategy
Market/Competitive Analysis - Internal Analysis
Formulation of Global Strategy
Choice of Target Countries, Segments, and Competitive Strategy
Formulation of Global Strategy
Choice of Target Countries, Segments, and Competitive Strategy
Development of Global Marketing ProgramDevelopment of Global Marketing Program
Implementation
Organizational Structure - Control
Implementation
Organizational Structure - Control
Global Strategy Formulation
7. 09/06/1709/06/17 Misha SulpovarMisha Sulpovar PagePage 77
Market and Competitive AnalysisMarket and Competitive Analysis
First, understand the structure of the globalFirst, understand the structure of the global
market industry; the common features ofmarket industry; the common features of
customer requirements and choice factors.customer requirements and choice factors.
Internal analysisInternal analysis
• Examine the readiness and capability ofExamine the readiness and capability of
the firm tothe firm to
undertake strategic moves with itsundertake strategic moves with its
current resources.current resources.
8. 09/06/1709/06/17 Misha SulpovarMisha Sulpovar PagePage 88
Formulating Global Marketing StrategyFormulating Global Marketing Strategy
Formulation begins with a series of strategic decisionsFormulation begins with a series of strategic decisions
Choice of Competitive StrategyChoice of Competitive Strategy
• Cost leadershipCost leadership
• DifferentiationDifferentiation
• FocusFocus
Country-Market ChoiceCountry-Market Choice
• Concentration or diversificationConcentration or diversification
• Factors in country markets selectionFactors in country markets selection
The stand-alone attractiveness of the marketThe stand-alone attractiveness of the market
Global strategic importance of the marketGlobal strategic importance of the market
Possible synergies offered by the marketPossible synergies offered by the market
9. 09/06/1709/06/17 Misha SulpovarMisha Sulpovar PagePage 99
Competitive StrategiesCompetitive Strategies
Cost
Leadership
Broad
Differentiation
Broad
Differentiation
Source of Competitive Advantage
Low Cost Differentiation
Industry-wide
Single
Segment
Competitive
Scope
Focus
SOURCE: Michael Porter, Competitive Advantage: Creating and Sustaining Superior Performance (New York: Free Press, 1998), chapter 1.
10. 09/06/1709/06/17 Misha SulpovarMisha Sulpovar PagePage 1010
Bases for Global Market SegmentationBases for Global Market Segmentation
Environmental
Variables
Environmental
Variables
Marketing
Management
Variables
Marketing
Management
Variables
Geographic
Variables
Geographic
Variables
Political
Variables
Political
Variables
Economic
Variables
Economic
Variables
Cultural
Variables
Cultural
Variables
Promotion
Variables
Promotion
Variables
Product
Variables
Product
Variables
Price
Variables
Price
Variables
Distribution
Variables
Distribution
Variables
Bases for International
Market Segmentation
Bases for International
Market Segmentation
11. 09/06/1709/06/17 Misha SulpovarMisha Sulpovar PagePage 1111
Global Marketing Program DevelopmentGlobal Marketing Program Development
Development DecisionsDevelopment Decisions
• Product offeringProduct offering
The degree of standardization and adaptation in theThe degree of standardization and adaptation in the
product offering.product offering.
• The marketing approachThe marketing approach
The marketing program beyond the product variable.The marketing program beyond the product variable.
• The location and extent of value-adding activitiesThe location and extent of value-adding activities
Pooling production.Pooling production.
Exploiting factor costs or capabilities.Exploiting factor costs or capabilities.
Strategic alliances.Strategic alliances.
Concurrent engineering.Concurrent engineering.
• Competitive moves to be madeCompetitive moves to be made
Cross-subsidization using resources accumulated in oneCross-subsidization using resources accumulated in one
market to wage a competitive battle in another.market to wage a competitive battle in another.
12. 09/06/1709/06/17 Misha SulpovarMisha Sulpovar PagePage 1212
Implementing Global MarketingImplementing Global Marketing
Success will come from a balance between localSuccess will come from a balance between local
and regional / global concerns.and regional / global concerns.
““Think globally, act locally” is the operativeThink globally, act locally” is the operative
phrase for global marketers competing in countryphrase for global marketers competing in country
markets.markets.
Product choices should consider individualProduct choices should consider individual
markets as well as transfer products from onemarkets as well as transfer products from one
region to another.region to another.
13. 09/06/1709/06/17 Misha SulpovarMisha Sulpovar PagePage 1313
Global Marketing Pitfalls to AvoidGlobal Marketing Pitfalls to Avoid
Insufficient local market research.Insufficient local market research.
The tendency to over standardize the product.The tendency to over standardize the product.
Inflexibility in planning and implementation.Inflexibility in planning and implementation.
The “Not-Invented-Here” syndrome (NIH).The “Not-Invented-Here” syndrome (NIH).
• How to avoid the NIH syndromeHow to avoid the NIH syndrome
Ensure that local managers participate inEnsure that local managers participate in
the development of global brandthe development of global brand
marketing strategies.marketing strategies.
Encourage local managers to developEncourage local managers to develop
ideas for regional or global use.ideas for regional or global use.
14. 09/06/1709/06/17 Misha SulpovarMisha Sulpovar PagePage 1414
Localizing Global MarketingLocalizing Global Marketing
Achieving a balance between in-countryAchieving a balance between in-country
managers and global product managers atmanagers and global product managers at
corporate headquarters will require action tocorporate headquarters will require action to
develop and implement a global strategy.develop and implement a global strategy.
15. 09/06/1709/06/17 Misha SulpovarMisha Sulpovar PagePage 1515
Localizing Global MarketingLocalizing Global Marketing
Management processesManagement processes
• Enhance the global transfer of communications.Enhance the global transfer of communications.
• Interchange personnel to gain experience abroad.Interchange personnel to gain experience abroad.
• Headquarters should coordinate and leverageHeadquarters should coordinate and leverage
resources.resources.
• Permit local managers to develop their ownPermit local managers to develop their own
programs within defined parameters Maintain aprograms within defined parameters Maintain a
product portfolio that includes local as well asproduct portfolio that includes local as well as
regional or global brands.regional or global brands.
• Allow local managers control over marketing budgetsAllow local managers control over marketing budgets
to respond to local customer needs and counterto respond to local customer needs and counter
global competition.global competition.
16. 09/06/1709/06/17 Misha SulpovarMisha Sulpovar PagePage 1616
Localizing Global MarketingLocalizing Global Marketing
Organization structuresOrganization structures
• The shift to global account management.The shift to global account management.
Corporate cultureCorporate culture
• The world is not one single market.The world is not one single market.
• Plan and execute programs on a worldwidePlan and execute programs on a worldwide
basis.basis.
• A global Identity favors no specific country.A global Identity favors no specific country.
17. 09/06/1709/06/17 Misha SulpovarMisha Sulpovar PagePage 1717
Foreign InvestmentsForeign Investments
Firms invest to enter markets or assure themselves of sourcesFirms invest to enter markets or assure themselves of sources
of supply.of supply.
Foreign direct investmentForeign direct investment
• An equity investment to create or expand aAn equity investment to create or expand a
permanent interest in a foreign enterprise.permanent interest in a foreign enterprise.
Portfolio investmentPortfolio investment
• The purchase of stocks and bonds internationally.The purchase of stocks and bonds internationally.
Major foreign investorsMajor foreign investors
• More than 45,000 multinational corporations withMore than 45,000 multinational corporations with
280,000 affiliates globally.280,000 affiliates globally.
• The terms “foreign” and “domestic” may no longerThe terms “foreign” and “domestic” may no longer
apply.apply.
18. 09/06/1709/06/17 Misha SulpovarMisha Sulpovar PagePage 1818
Reasons for Foreign Direct InvestmentReasons for Foreign Direct Investment
Marketing factorsMarketing factors
• Growth and profit motivations.Growth and profit motivations.
• Circumventing government-erected barriers toCircumventing government-erected barriers to
trade.trade.
• Access to low-cost resources and supply.Access to low-cost resources and supply.
• Local customers preference for domestic goodsLocal customers preference for domestic goods
and services.and services.
• Attempts to obtain low-cost resources andAttempts to obtain low-cost resources and
ensureensure
their supply.their supply.
19. 09/06/1709/06/17 Misha SulpovarMisha Sulpovar PagePage 1919
Categories of International FirmsCategories of International Firms
Resource seekersResource seekers
• are searching for natural and human resources.are searching for natural and human resources.
Market seekersMarket seekers
• are searching for better opportunitiesare searching for better opportunities
to enter or expand within markets.to enter or expand within markets.
Efficiency seekersEfficiency seekers
• are attempting to obtain theare attempting to obtain the
most economic sourcesmost economic sources
of production.of production.
20. 09/06/1709/06/17 Misha SulpovarMisha Sulpovar PagePage 2020
Reasons for Foreign Direct InvestmentReasons for Foreign Direct Investment
Derived demandDerived demand
• results when businesses move abroad andresults when businesses move abroad and
encourage their suppliers to follow them, creatingencourage their suppliers to follow them, creating
chain or pattern of direct investment in a market.chain or pattern of direct investment in a market.
Government incentivesGovernment incentives
• Fiscal incentivesFiscal incentives
tax holidays, allowances, credits and rebates.tax holidays, allowances, credits and rebates.
• Financial incentivesFinancial incentives
special funding for land or buildings, loans andspecial funding for land or buildings, loans and
guarantees, wage subsidies.guarantees, wage subsidies.
• Non-financial incentivesNon-financial incentives
guaranteed purchases, protective tariffs, importguaranteed purchases, protective tariffs, import
quotas, local content requirements, infrastructure.quotas, local content requirements, infrastructure.
21. 09/06/1709/06/17 Misha SulpovarMisha Sulpovar PagePage 2121
Foreign Direct InvestorsForeign Direct Investors
Positive perspectivesPositive perspectives
• Bring in capital, economic activity, andBring in capital, economic activity, and
employment.employment.
• Transfer technology and managerial skills.Transfer technology and managerial skills.
• Competition, market choice, andCompetition, market choice, and
competitiveness are enhanced.competitiveness are enhanced.
Negative perspectivesNegative perspectives
• Drain resources from host countries.Drain resources from host countries.
• Starve smaller capital markets.Starve smaller capital markets.
• Discourage local technology development.Discourage local technology development.
• Bring in outmoded technology.Bring in outmoded technology.
• Create new competition for local firms.Create new competition for local firms.
22. 09/06/1709/06/17 Misha SulpovarMisha Sulpovar PagePage 2222
Types of OwnershipTypes of Ownership
Ownership patterns may be based on past experiences withOwnership patterns may be based on past experiences with
similar ownership models.similar ownership models.
Full ownershipFull ownership
• Full control, full assumption of all risks.Full control, full assumption of all risks.
• May be desirable, but is not necessary for successMay be desirable, but is not necessary for success
internationally.internationally.
Joint venturesJoint ventures
• Shared control, shared investment risks.Shared control, shared investment risks.
• Reasons for joint ventures:Reasons for joint ventures:
governmental pressure to join with local partners.governmental pressure to join with local partners.
mutually beneficial commercial considerations inmutually beneficial commercial considerations in
sharing markets, pooling resources, and local suppliers.sharing markets, pooling resources, and local suppliers.
23. 09/06/1709/06/17 Misha SulpovarMisha Sulpovar PagePage 2323
Joint VenturesJoint Ventures
ADVANTAGESADVANTAGES
Pooling of resourcesPooling of resources
Better relationships withBetter relationships with
local organizationslocal organizations
Knowledge the partnerKnowledge the partner
brings of the local marketbrings of the local market
Minimizing exposure risk ofMinimizing exposure risk of
long-term capitallong-term capital
Maximizing leverage ofMaximizing leverage of
invested capitalinvested capital
DISADVANTAGESDISADVANTAGES
Different levels of controlDifferent levels of control
are permitted or requiredare permitted or required
Difficulty in maintaining theDifficulty in maintaining the
relationshiprelationship
Disagreements overDisagreements over
business decisionsbusiness decisions
Disagreements over profitDisagreements over profit
accumulation, andaccumulation, and
distribution (profitdistribution (profit
repatriation)repatriation)
Recommendations for joint ventures
• Find the right partner.
• Negotiate the joint venture agreement carefully.
• Maintain flexibility to adjust to changing market conditions.
24. 09/06/1709/06/17 Misha SulpovarMisha Sulpovar PagePage 2424
Types of Ownership… continuedTypes of Ownership… continued
Strategic alliancesStrategic alliances
• “…“…more than the traditional customer-vendormore than the traditional customer-vendor
relationship, but less than an outrightrelationship, but less than an outright
acquisition.”acquisition.”
Government consortiaGovernment consortia
• Public-private relationship in a specific project.Public-private relationship in a specific project.
• Typically government supported or subsidized.Typically government supported or subsidized.
25. 09/06/1709/06/17 Misha SulpovarMisha Sulpovar PagePage 2525
Complementary Strengths Create ValueComplementary Strengths Create Value
SOURCES: “Portable Technology Takes the Next Step: Electronics You Can Wear,”The Wall Street Journal, August 22, 2000, B1, B4; Joel Bleeke and David Ernst, “Is Your
Strategic Alliance Really a Sale?” Harvard Business Review 73 (January-February 1995); 97-105; and Melanie Wells, “Coca-Cola Proclaims Nesta Time for CAA.” Advertising
Age, January 30, 1995, 2 See also http://www.pepsico.com; http://www.kfc.com;http://www.siecor.com;http:www.ericsson.com; and http://www.hp.com.
26. 09/06/1709/06/17 Misha SulpovarMisha Sulpovar PagePage 2626
Contractual ArrangementsContractual Arrangements
Cross marketingCross marketing
• The parties agree to carry out activitiesThe parties agree to carry out activities
which are complementary and non-which are complementary and non-
competitive.competitive.
Contract manufacturingContract manufacturing
• An arrangement that allows one part toAn arrangement that allows one part to
outsourcing product manufacturing tooutsourcing product manufacturing to
another party while retaining control overanother party while retaining control over
research and development.research and development.
Management contractingManagement contracting
• A supplier furnishes an integrated serviceA supplier furnishes an integrated service
(e.g., turnkey operation) internally to a(e.g., turnkey operation) internally to a
client that is functionally important to theclient that is functionally important to the
client.client.
27. 09/06/1709/06/17 Misha SulpovarMisha Sulpovar PagePage 2727
Management Contracting AdvantagesManagement Contracting Advantages
CLIENT ADVANTAGESCLIENT ADVANTAGES
Provide organizationalProvide organizational
skills not locallyskills not locally
available.available.
Immediate availability ofImmediate availability of
skills.skills.
Management assistanceManagement assistance
and support that is notand support that is not
available locally.available locally.
SUPPLIER ADVANTAGESSUPPLIER ADVANTAGES
Lower risk because noLower risk because no
equity capital is at stake.equity capital is at stake.
Exercise large amountsExercise large amounts
of operational control.of operational control.
The strategic advantageThe strategic advantage
of being on the “inside”.of being on the “inside”.
Opportunity toOpportunity to
commercialize “know-commercialize “know-
how”.how”.
Using experienced staffUsing experienced staff
to offset businessto offset business
fluctuations.fluctuations.
28. 09/06/1709/06/17 Misha SulpovarMisha Sulpovar PagePage 2828
Management Contracting RisksManagement Contracting Risks
Risks to the clientRisks to the client
• Over-dependence on the supplier.Over-dependence on the supplier.
• Loss of control to the supplier.Loss of control to the supplier.
Risks to the contractorRisks to the contractor
• Bidding without fully detailed insight intoBidding without fully detailed insight into
actual costs of delivering the service.actual costs of delivering the service.
• The effects of the loss or terminationThe effects of the loss or termination
of the contract and resultingof the contract and resulting
personnel problems.personnel problems.