International Marketing Orientations Quiz

International Business - CRM 500

• Course offered at Munich Business School
• Course focuses on International Marketing & Sales
• Course instructors are Prof. Dr. Hans H. Jung and Prof. Dr. Alexander K. Suhm
• Course content includes International Environment, Building Global Brands, and Global Sales
• Course materials include Keegan/Green - Part 1 & 2 and Hollensen - Part 1 & 2

Agenda

• Part A: Overview
  • International Environment
  • International Marketing – Reasons & Issues
    • Incentives for globalization: global market size > domestic market.
    • Economies of scale: larger markets reduce production costs.
    • Ease of globalization: internet allows trade across borders with lower cost.
  • Culture
  • Understanding new markets – Market Research (Basics)
• Part B: Building Global Brands
• Part C: Global Sales

International Environment

• Global trade (first quarter of 2022): reached a record $7.7 trillion
• Globalization is slowing despite large trade
• Trade risks: tightening policies and geopolitical frictions
• Economic powers: US, China, and Germany lead in global GDP
• Economies freedom degrees: varying, with some countries considered "not free" or "partly free"

Taking Stock of Globalization

• Largest economic powers by global GDP share (2020)

• Countries' degrees of freedom (2021)

• Most countries in notable economic power positions are either not free or "partially free" from a global perspective

• Countries' economic influence is inversely proportional to their freedom from oppression or lack of freedoms and rights

• Globalization's drivers: Larger markets lead to economies of scale, and moving production overseas reduces costs due to access to lower labor costs and circumvention of trade barriers.

• Globalization makes it easier for companies to trade internationally through the internet, eliminating the need for physical presence in a country to do business.

• Cultures are becoming more homogenized due to internet influences.

Becoming a Trusted Brand

• Gaining international market presence elevates brand prestige and trustworthiness in the market

Create an Economy of Scale

• Expanding internationally enables higher production volumes and lower unit costs
• Increased profit margins result from selling to more customers

World Trade Report 2022

• Global trade hits a record $7.7 trillion in first quarter 2022
• Positive trend for international trade might end due to tightening policies and geopolitical conflicts

World Trade Report 2023

• Re-globalization for a secure, inclusive, and sustainable future
• Addresses three major challenges facing the global economy: national/economic security, poverty alleviation, and environmental sustainability.
• Multilateral trading system over seven decades contributes to peace and prosperity, and international cooperation

Case Study: Henkel Persil

• International marketing case for laundry detergent in different regions
• The successful implementation of the product hinges on regional cultural sensitivity in marketing, and product differentiation
• Multi-tier brand strategy is recommended, with different product lines and pricing tiers to cater to a range of consumer segments
• In different markets, the product's communication strategy needs to align with local cultural norms.

Case Study: Harley-Davidson

• Case study about the American motorcycle manufacturer Harley-Davidson
• Analyzing factors in motorcycle sales within the European and Asian markets.
• Sales and production issues in different countries
• Analyzing global sales of Harley-Davidson motorcycles

Global Marketing Organization

• Decentralized downstream functions; centralized upstream functions
• Coordination and integration of various activities globally
• Understanding how each country's specific needs influence the success of companies globally
• Globalization means a global perspective for creating products and services while catering effectively to local market conditions

Global Marketing Strategies - The Glocalization Framework

• Combining global standardization with local adaptation to optimize market effectiveness
• Optimizing global marketing reach through standardization without ignoring local differences or uniqueness
• Balancing the pros and cons of standardized marketing vs. differentiated marketing is key

Management Orientations

• Ethnocentric Orientation: View home country as superior, assuming domestic practices will work elsewhere. Uniform approach

• Polycentric Orientation: Each country is unique, tailoring marketing strategy to each market. Localized approach

• Regiocentric Orientation: Regional perspective, creating marketing campaigns locally while maintaining standardized regions. Regional approach

• Geocentric Orientation: Entire world is a market, striving for unified global strategies with local adaptations. Global approach to a degree with local regional considerations

Internationalization of a firm, an incremental (organic) approach

• Gradual expansion: starts with sporadic exports and builds to foreign subsidiaries
• Gradual commitment to new markets

Internationalization barriers/risks

• Insufficient market knowledge, finances, foreign connections, and lack of export commitment
• Opposition to globalization
• National regulations and tariffs that impede global trade
• Cultural differences between countries creates challenges for international products/services and integration challenges

Driving forces (future of global integration)

• Leverages growth options when home-country market is saturated
• Changes in technological environment
• Changes in political environment
• Changes in economic environment
• Changes in consumer needs

Major motives for companies to start exporting

• Profit and growth goals
• Managerial urge
• Technological competence/ unique products or services
• Foreign market opportunity/ market information
• Economies of scale
• Tax benefits

Consumer Needs

• Consumers' needs are becoming more similar around the world despite cultural differences.
• Consumer necessities/ basic needs that differ globally

Major challenges for global acting car manufacturers

• VW diesel emission scandal
• Regulations affecting car manufacturing globally.
• Ethical and legal consideration from various stakeholders (e.g., environmental concerns)

Global Marketing Case Studies

• Google China: returning to China market despite censorship concerns.
• Henkel Persil: Global marketing strategies in various countries and how local cultural sensitivities impact marketing.
• Harley-Davidson: Analyzing global sales and production in different countries. Product issues

Test your knowledge on the key concepts of international marketing orientations, including geocentric, regiocentric, and standardized approaches. Dive into the characteristics, advantages, and challenges of these strategies in the context of global markets. This quiz will help reinforce your understanding of effective international marketing practices.