INTERNATIONAL MARKETING MANAGEMENT

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INTERNATIONAL MARKETING MANAGEMENT
SESSION 2 THE EVOLUTION OF GLOBAL MARKETING
STRATEGY
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2
PHASES IN EVOLUTION OF INTERNATIONAL MARKETING
STRATEGY
PHASE 1 INITIAL ENTRY PHASE 2 LOCAL MARKET
EXPANSION PHASE 3 GLOBAL RATIONALIZATION
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3
PHASE 1 INITIAL ENTRY
What are the triggers?
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PHASE 1 KEY DECISIONS

• Choice of Country
• Mode of Entry/Operation
• Timing and Sequencing of Entry

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LEVERAGING ECONOMIES OF SCALE

• Tangible Assets
• Production, RD, Advertising
• Intangible Assets
• Image, Experience, Ideas

LEARNING
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TYPICAL FIRMS IN ENTRY PHASE
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PHASE 2 LOCAL MARKET EXPANSION
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PHASE 2 KEY DECISIONS

• Standardization vs. Adaptation
• Product Line Extension
• New Product Development

BUILDING
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LEVERAGING ECONOMIES OF SCOPE

• Shared Physical Assets
• Production, Warehousing
• Shared External Relations
• Suppliers, Distributors
• Shared Experience
• RD, Country Knowledge

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TYPICAL FIRMS IN EXPANSION PHASE
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PHASE 3 GLOBAL RATIONALIZATION
world markets
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PHASE 3 KEY DECISIONS

• Establish Global Portfolio of Countries,
  Products, Market Segments
• Develop Global Marketing Strategy (Broad-based,
  Focused, Hybrid)
• Improve Efficiency of Production and Logistics

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LEVERAGING

• Scale Efficiencies (Tangible and Intangible)
• Synergies
• Transfer of Ideas, Products, Programs, Experience
  and Know-how (Best Practices)

LEADING
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TYPICAL FIRMS IN INTEGRATION PHASE
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