PRESENTATION

ON

EPRG

Dinker Vaid

UNDER

INTERNATIONAL BUSINESS

By

What is International Marketing

Marketing concepts, processes, and principles are universally applicable all over the world

2

It is an approach of a company with truly global outlook, seeking its profit impartially around the world, on a planned and systematic basis.

International marketing is defined as the

performance of business activities designed to plan,

price, promote, and direct the flow of a company’s

goods and services to consumers or users in more

than one nation for a profit.

Domestic v/s International

Similarities

Understanding buyers

needs

Building Goodwill

Research Development

Differences

• Political Entities

• Legal systems

• Cultural differences

• Different monetary systems

• Marketing infrastructure

• Trade Restrictions

• Procedures and documentations

• Highly unpredictable

Factors Influencing Global

Business

Rapid growth of world trade organization

Trend towards acceptance of free

market system among developing countries

Impact of Internet, Mobile phones and other global media

• North American free trade area

• European Union

• Asia

• Europe

• Global channels

• Global customers

Reff: International Marketing by Cateora and Graham

EPRG FRAMEWORK

Ethnocentric

- Home country

orientation

Polycentrism

- Host country orientation

Regiocentrism

- A regional orientation

Geocentrism

- A world orientation

Management orientation – Home country orientation

Perception about market –

Domestic market is superior..

Focuses on similarities between home and

foreign market.

Considers foreign market secondary to an

extension of domestic market.

Marketing strategy – Extension of domestic strategy to foreign market.

Ethnocentric

Companies basic objective – Profitability

Culture - Home country

Technology - Mass production

HRM practices – Overseas operations are managed by people from home country

Managerial predisposition - Manager/MNC rely n values &interests of parent company in formulating and implementing strategic plan

Merits –No cost & efforts needed for adaptation/localization It easy route to internationalization when foreign market exists with similar domestic characteristics

Demerits – No full exploitation of IB opportunities worldwide Main focus on domestic market

Examples Nissan in 1st years exported cars in US markets, sold cars without change then sold car in Japan

Surf – Super washout in Japan

Unilever enters Japan Detergent Market

• It releases Surf Super concentrate

washing powder in Japan.

• Measured sachets for Convenience.

• Fresh Smell.

WHAT WENT WRONG??

Washing powder did not dissolve completely

due to weather conditions.

Low agitation washing machines were more

popular in Japan, in which the super

concentrate surf washing powder did not wash

completely.

Fresh smell was not very significant.

POLYCENTRIC

Management orientation – Host country orientation

Perception about market –Each national market is distinctive Focuses on differences between home country & foreign country

Marketing strategy – Localization / adaptation

Companies basic objective – Public acceptance

POLYCENTRIC

Type of governance – Each local unit sets objectives (bottom up)

Culture-Host country

Technology - Batch production

HRM practices – Local nationals are used in key management positions

Managerial predisposition - MNC tailor strategic plan to meet the need of local culture

Characteristics –

Recognize importance of inherent differences in overseas markets

Subsidiaries are established in overseas market & each is independent with own marketing objectives & plans

Local techniques & personnel best suited to deal with local market conditions

International marketing organized on country to country basis with separate marketing strategy for all

Merits –Adaptation to market characteristics help in better understanding of local needs which will lead to better exploitation of market potentials

Demerits –High cost of national responsive marketing mix for each country Delay in localization

Examples McD (no beef burgers in India)

EPRG FRAMEWORK

Regiocentrism

- A regional orientation

17

Recognizes

regional

commonaliti

es and leads

to the design

of regional

strategies

Management orientation – Regional orientation

Perception about market – Markets can be differentiated on the basis of common regional characteristics

Marketing strategy – Trade- off between standardization & localization

Companies basic objective – Both profitability & public acceptance

Type of governance – Mutually negotiated between region & its subsidiaries

Culture-Regional

Technology - Flexible manufacturing

HRM practices – Regional people are developed for key managerial positions anywhere in region

Managerial predisposition - MNC use a strategy that addresses both local & regional needs

Characteristics –Treat different regions as different market Regions with similarity of marketing characteristics treated as separate market

Merits - Advantages of both localization &standardization

Demerits – Lack of attention to inter regional differences

Examples Punjab (paneer products more)Gujarat (sugar more)

Management orientation – Global orientation

Perception about market – Entire world is a single market that can be effectively tapped by standardized marketing strategy

Marketing strategy – Global standardization

Companies basic objective – Both profitability & public acceptance

Type of governance – Mutually negotiated at all level of organization

Culture- Global

Technology - Flexible manufacturing

HRM practices – Best people anywhere in the world are developed for key managerial positions everywhere in the world

Managerial predisposition - MNC constructs its strategic plan with a global view of operations

Characteristics –Entire world is treated as single market Standardized marketing mix, to give uniform image of product &company for global market Worldwide approach to marketing & its operations

Merits –Economies of large scale production Lower costs advantage of pace

Demerits –

Not successful in many cases Uniform /standard marketing mix not guarantees for sure success in every situation

Examples Microsoft & Nokia standardized products world wide