Marketing in an International Business Context

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Marketing in an International Business Context

• Timothy Devinney

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Marketing Standardisation vs Specialisation
Range of Product Standardization
Global Integration
Range of Process Standardization
National Responsiveness
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StandardizationLocalization Dichotomy

• Homogeneity of consumer demand
• Economies of scale and scope
• Presentation of a consistent image (global
  branding)
• Managerial / operational efficiencies
• Infrastructure demands
• Media availability
• Distribution differences
• Legal restrictions
• Physical environment
• Transport and communication

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Is Customer Demand Truly Global?

• Are tastes homogenous?
• Are individuals willing to concede product
  differentiation for price?
• Are marketing skills transferable across borders?
• Are there real benefits to the firm from
• EOS and EOScope?
• Global branding (Consistency in image)?
• Managerial marketing efficiencies?

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Three Roles of Marketing
Marketing, Production, RD, ....
Linkage
Configuration
Coordination
COUNTRY CULTURE
Marketing Mix (Advertising, Price, Promotion,
etc.) Product Offerings Distribution
Degree and Structure of Marketing
Standardization
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The Degree Of Globalization
Complete
Partial
Product Design Branding Positioning Advertising
Theme Advertising Copy
Packaging Pricing
Coca Cola
Product Design Branding Packaging
Nestlé
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The Degree of Local Responsiveness
Complete
Partial
Distribution Sales Service
Coca Cola
Advertising Copy Distribution Sales Service
Positioning Advertising Theme Pricing
Nestlé
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General Rules on Local vs Global Marketing

• The greater the cultural grounding, the more
  likely local responsiveness is better
• Unique utility benefits versus performance and
  money
• Marketing mix (pricing, advertising themes,
  promotions) is more difficult to standardize than
  positioning elements (product attributes)
• Country size makes large economies resistant to
  globalization
• Economies of scale and scope increase the
  likelihood of marketing globalization

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Coordination of Marketing Activities

• Coordination of marketing activities
• does not imply standardization of product
• but standardization of process
• Benefits of using similar methods of performing
• activities
• EOS in training activities
• Easier quality and performance evaluation
• Transparent movement of personnel
• More rapid transference and implementation of
  strategy
• Easier transfer of knowledge
• Sharing of entry and competitive strategies
• Sharing of marketing information
• Secondary effects on the size of company
  operations

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How Information Affects the Scale of a Company
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Coordination of Marketing Activities

• Sequencing of marketing programs
• Ability to allow marketing strategy to evolve
  with the market
• Ability to diffuse new products across markets
• Integration of marketing efforts
• Relations with multinational customers
• Marketing research and RD coordination

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Linking Marketing with Other Functions

• Supporting the development of global products
• Universal productsproduct the same everywhere
• Modified productsproduct contains a fundamental
  core but is different in locally important ways
• Country-tailored productsproduct can differ
  dramatically from market to market
• Creating and fostering demand for new global
  products
• Segmentation and physical product design
• Identifying segments present in most countries
• Targeting different segments in different
  countries
• Identifying customer/country groups
• Tailoring the product(s) with service and
  accessories

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Global Product
Country B Product
CountryA Product
CORE PRODUCT
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Country-Tailored Products
Country A Product
CORE PRODUCT
Country B Product
Country C Product
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An Example of Different Linkage Structures
Finance Control
Coca Cola Nestlè
Marketing
R D
Finance Control
Procurement
Marketing
R D
Manufacturing
Procurement
Manufacturing
Complete Localization
Full Linkage
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Overall Marketing Matrix Approach
Target
Segmentation
Country
Diverse Diffuse
Universal
Country-Centered
Modified
Region
Product
Universal
World