international marketing9 international marketing strategy.doc

A9 International Marketing Strategy Right Mind Set and Knowledge Economic knowledge Political knowledge Cultural knowledge Historic knowledge Geographic knowledge Key market knowledge Managerial Orientations Ethnocentric Home country is superior, sees similarities in foreign countries and overlook or ignore important cultural differences “What worked at home should work abroad”. Polycentric Each host country is unique, sees differences in foreign countries Such differences should be taken into account in decision making. Regiocentric Sees similarities and differences in a world region; is ethnocentric or polycentric in its view of the rest of the world Geocentric World view, sees similarities and differences in home and host countries THE EPRG FRAMEWORK Ethnocentric Polycentric Regiocentric Geocentric Belief Home country is superior Each market is unique Note similarities and differences Seek opportunities worldwide Predisposition Rely on the values and interests of parent company Tailor its strategy to meet the need of local requirement To address both local and regional needs Strategic planning with a global view Organisation Domestic Multi-domestic, “local” Geographical, Multinational Transnational, global Marketing Strategy Domestic -extension Standardisation Localisation Adaptation Regional Think global -Act local, Glocal Planning Control Centralised from HQ Decentralised, Autonomy Regional coordination and integration Global coordination and integration Psychic or psychological distance v geographic distance Geographic closeness to a foreign market may not necessarily translate into real or perceived closeness to the foreign consumer. Sometimes cultural variables, legal factors, and other societal norms make a foreign market that is geographically close seem psychologically distant. For example, research has shown that England and Australia are perceived by many U.S. firms to be much closer than Mexico or other Latin American countries, d