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Global Marketing Notes

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This is an extract of our Global Marketing document, which we sell as part of our International Marketing Notes collection written by the top tier of London School Of Economics students.

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Lecture 10: Global Marketing o Recap of Lecture and Class Slides Ansoff's matrix: Product Growth and Market Growth dimensions Hofstede's 5 Cultural Dimensions: o Power Distance Index - hierarchy accepted by lower units o Individualism - as opposed to collectivism o Masculinity - gap between male and female values o Uncertainty Avoidance Index - acceptance of uncertainty, ability to take risk o Long Term Orientation - respect for thrift and perseverance Waterfall Approach: move gradually from home to global markets Shower Approach: approach all markets simultaneously Developed markets provide higher profits due to customer retention; Developing markets provide higher profits due to customer acquisition Can marketing be standardised?
o Standardisation versus Adaptation approaches o Should standardise when:
? Product not culture-specific
? Competition abroad weak
? Management lacks global experience

o Usunier and Lee (Intercultural Marketing Strategy) Globalisation of an industry depends on: o Influence of national regulations and trade barriers o Existence of possible experience effects (reducing costs by increasing quantity)
? Learning by doing, scale effects, technological advances, economies of scope o Differing degrees of international transportability o Degree to which the offering is culture-bound Perspectives on globalisation o Ethnocentric: international operations are second to home operations o Geocentric: all markets are the same o Regiocentric: regional marketing strategies are needed for success o Polycentric: each country is diff. and accepted as an ethnocentric node Why globalise?
o Global markets work as a set of coherent opportunities because each market is at a different stage in the PLC o Global markets are full of learning opportunities (e.g. experience effects) o Global markets offer partnerships with local consumers, suppliers etc. Globalisation of international marketing: o Standardization - Adaptation of market offerings:
? Companies believe that standardization will yield higher profits and often combine this with an ethnocentric perspective o Geographical concentration-dispersion of structure
? How centralized/ decentralized organisational structure is w.r.t. foreign subunits o Financial integration/ independence
? Are subunits individual profit centres or are they subsidised?

o Lee and Carter (Product and Brand Management) Standardisation may be the best approach for an initial entry by small-medium firms However, later the need for local customization increases Product Trade Cycle

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