Global Marketing

Chapter 1 :

Globalization:

The trend of firms buying, developing, producing and selling products and services in most countries and regions of the world.

Internationalization:

Doing business in many countries of the world buyt usually limited to a certain region e.g Europe.

LSE's:

Large Scale Enterprises; firms with over 250 employees.

SME's:

Small and Medium Scale Enterprices;

Small: firms with less then 50 employess.

Medium: Firms with less then 250 employees.

Characteristics of LSE's and SME's:

LSE SME

1. Resources * Many resources

*Internationalization of resources

* Coordination of:

- personnel

- financing

- marketing knowledge etc. * Limited resources

* Externalization of resources (outsourcing)

2. Formation of strategy/decision making process * Deliberate strategy formation

* Adaptive decision making model in small incremental steps * Emergent startegy formation

* The entreprenuerial decision making model

* The owner/manager is directly involved and will dominate the decision making through-out the enterprise.

3. Organization *Formal/hierarchical

* Independent of one person * Informal

* The owner/ entrepreneur usually has the power/ charisma to inspire/control a total organization

4. Risk-taking * Mainly risk-averse

* Focus on long term opportunities

* Sometimes risk-taking, sometimes risk- averse

* Focus on short term opportunities

5. Flexibility Low High

6. Take advantage of economies of scale & scope Yes Only limited

7. Use of info. sources Usedof advanced techniques:

- databases

- external consultancy

- Internet Info. gathering in an informal and inexpensive way:

- Internal sources

- Face-to-Face communication

Economies of scale:

Accumulated volume of production, resulting in lower cost price per unit.

Economies of scope:

Reusing a resource from one business/country in additional business/countries.

Glocalization:

The development and selling of products or services intended for the global market but adapted to suite the culture and behavior. 'Think globally, act locally.'

The nine strategic windows:

Chapter 2 :

Major motives for starting export:

Proactive:

* Profit and growth goals

* Managerial urge

* Technology competence

* Foreign market opportunities

* Economies of scale

* Tax benefits

Reactive:

* Competitive pressures

* Domestic market

* Overproduction

* Unsolicited foreign orders

* Extend sales of seasonal products

* Proximity to international customers

Barriers hindering internationalization:

* Insufficient finances

* Insufficient knowledge

* Lack of foreign market connections

* Lack of export commitment

* Lack of capital

* Lack of productive capacity

* Lack of foreign channels of distribution

* Management emphasis on developing domestic markets

Cost escalation

Chapter 4:

Porter's Diamond:

The characteristics of the home-base play a central role in explaining the international competitiveness of the firm. The explaining elements consist of factor conditions, demand conditions, related and supporting industries, and firm strategy- structure and rivalry, chance and government.

Factor conditions in Porter's diamond:

* Climate

* Physical infrastructure

* Natural resources

* Educational system

* Human resources

* Technological infrastructure

* Capital

Demand conditions in Porter's diamond:

* Nature of home demand

* Size of home demand

* Economies of scale

* Transportation costs

* Buyer sophistication

Porter's five-forcesmodel:

The