International Marketing Its the same but different Terry
International Marketing It’s the same, but different Terry Hoffmann Adjunct Prof. MSOE
Introduction Ø International Concepts Marketing Key ØThe Market Entry Decision (Destination) Ø Why go international? Ø Where should we go? Ø Who should lead? ØHow to Enter (Vehicle) ØWhat to Market (Kit)
The Market Entry Decision Ø Why ØThe USA is getting smaller ØGrowth of population and GDP elsewhere ØMega-enterprises rule business Ø Where ØA market (significant investment in market research) ØA friendly business environment (US-DOC) Ø Who ØSelf-Reference Criteria
The Market Entry Decision – Cont. Ø The Four “D” test ØAre we Dedicated to this market for the long haul? ØDo we have Direction? ØIs the staff or business partner Disciplined? ØAre we Differentiated in the eyes of our customers? Dedication Direction Discipline Difference
How to Enter (Global Maturity) Ø Ethnocentric (Me) ØCasual exporting ØActive exporting (Agent/Distributor) ØTransfer (Licensing/Franchising) Ø Polycentric and Me) /Foreign Direct Investment (You ØJoint ventures (refer to the competitive triangle) ØLocal manufacturing ØIndividual country offices and management Ø Geocentric – We) (Treating the world as the market
The Competitive Marketing Triangle Customer Our Messages Company Their Messages Competition Differentiation Messages = The Marketing Mix
What do we want to market Ø Know your Customer Ø Know your Competition Ø Select Product Strategy ØWants, needs & desires ØCultural biases (but don’t go native) ØPropensity to change ØAh-Ha, Oh-Oh, Got-ya, Ghosts ØCommon product ØCommon plus tailor ØTailored/Targeted
The Competitive Advantage Customer Our Messages Their Messages Company Differentiation Competition
Vocabulary Ø Self Reference Criteria Ø A combination of culture and environment the serves as the basis of decision making Ø Ethnocentric Ø A business model that is derived primarily from the culture of the home country of the enterprise Ø Polycentric Ø A system of business that implements unique models for each individual country, or region. Ø Geocentric Ø A global approach to business with an awareness of the culture and uniqueness of all (selected & served) markets
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