INTERNATIONAL MARKETING MANAGEMENT SESSION 2 THE EVOLUTION OF

INTERNATIONAL MARKETING MANAGEMENT SESSION 2: THE EVOLUTION OF GLOBAL MARKETING STRATEGY 1

PHASES IN EVOLUTION OF INTERNATIONAL MARKETING STRATEGY PHASE 1: INITIAL ENTRY PHASE 2: LOCAL MARKET EXPANSION PHASE 3: GLOBAL RATIONALIZATION 2

PHASE 1: INITIAL ENTRY home country other markets What are the triggers? 3

PHASE 1: KEY DECISIONS l Choice l Mode of Country of Entry/Operation l Timing and Sequencing of Entry 4

LEVERAGING: ECONOMIES OF SCALE l Tangible Assets 0 Production, R&D, Advertising l Intangible Assets 0 Image, Experience, Ideas LEARNING 5

TYPICAL FIRMS IN ENTRY PHASE 6

PHASE 2: LOCAL MARKET EXPANSION home country other markets 7

PHASE 2: KEY DECISIONS l Standardization vs. Adaptation l Product Line Extension l New Product Development BUILDING 8

LEVERAGING: ECONOMIES OF SCOPE l Shared Physical Assets 0 Production, Warehousing l Shared External Relations 0 Suppliers, Distributors l Shared Experience 0 R&D, Country Knowledge 9

TYPICAL FIRMS IN EXPANSION PHASE 10

PHASE 3: GLOBAL RATIONALIZATION world markets 11

PHASE 3: KEY DECISIONS l Establish Global Portfolio of Countries, Products, Market Segments l Develop Global Marketing Strategy (Broad-based, Focused, Hybrid) l Improve Efficiency of Production and Logistics 12

LEVERAGING l Scale Efficiencies (Tangible and Intangible) l Synergies l Transfer of Ideas, Products, Programs, Experience and Knowhow (Best Practices) LEADING 13

TYPICAL FIRMS IN INTEGRATION PHASE 14