...An Over View On Avon And Foreign Markets Marketing Essay II. Avon’s Market Orientation Approach Avon’s international marketing strategies made the company successful entering the global markets, because they managed the different marketing orientation strategies succesfully in each country. Product Orientation Even though Avon’s main strategy for product orientation was efficient in the U.S.(Avon’s headquarter), company started manufacturing high quality in Canada. The main reason for changing company’s strategy was due to their passive sales in home country. They thought they could be more efficient and create global image through standardization. This helped the quality image while saving cost by using uniform ingredients and packaging. Sales Orientation Decision to enter international operation from Canada was made to help solve their passive promoting sales and the drop of competitive advantage they had over U.S. market. Selling domestically through their sales orientation strategy was very successful in Canada, because customers’ customs, traditions and characteristics were similar to the U.S. In addition, Avon was able to be notified by many customers in Canada without investing heavily on promotion because of continental connection between two countries. The product information was spilled over from U.S. to Canada. With the successful international operation in their second country, Avon now runs a new campaign abroad every four weeks with different special offers...
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...International Marketing 14th Edition P h i l i p R. C a t e o r a M a r y C. G i l l y John L. Graham The Scope and Challenge of International Marketing Chapter 1 McGraw-Hill/Irwin International Marketing 14/e Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. What Should You Learn? • The changing face of U.S. business • The scope of the international marketing task • The importance of the self-reference criterion (SRC) in international marketing • The progression of becoming a global marketer • The increasing importance of global awareness 1-2 Global Perspective: Global Commerce Causes Peace • Global commerce during peace time – Commercial aircraft and space vehicle industries – Mobile phone industry – Individuals and small companies • International markets are ultimately unpredictable – Flexibility means survival 1-3 Events and Trends Affecting Global Business • • The rapid growth of the World Trade Organization and regional free trade areas The trend toward the acceptance of the free market system among developing countries in Latin America, Asia, and Eastern Europe The burgeoning impact of the Internet, mobile phones, and other global media on the dissolution of national borders The mandate to properly manage the resources and global environment for the generations to come 1-4 • • The Internationalization of U.S. Business • Increasing globalization of markets • Increasing number of U.S. companies are foreign controlled ...
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...International Marketing The Scope and Challenge of International Marketing Chapter 1 1 Thursday, 27 February 14 What Should You Learn? • LO1: The benefits of international markets • LO2: The changing face of U.S. business • LO3: The scope of the international marketing task • LO4: The importance of the self-reference criterion (SRC) in international marketing • LO5: The increasing importance of global awareness • LO6: The progression of becoming a global marketer 2 Thursday, 27 February 14 LO1 Global Perspective: Global Commerce Causes Peace • Global commerce during peace time – Commercial aircraft and space vehicle industries – Mobile phone industry – Individuals and small companies • International markets are ultimately unpredictable – Flexibility means survival 3 Thursday, 27 February 14 LO1 Global Perspective: Global Commerce Causes Peace Basil pesto from Israel + raw materials and glass jars from Arab partner = Moshe & Ali’s Gourmet Foods http://www.peaceworks.com/press/libraryArticleMakingPeaceByMakingPastaSauces.html COOPERATION NEVER TASTED SO GOOD!™ 4 Thursday, 27 February 14 LO1 Events and Trends Affecting Global Business • The rapid growth of the World Trade Organisation and regional free trade areas • The trend toward the acceptance of the free market system among developing countries in Latin America, Asia, and Eastern Europe • The burgeoning impact of the Internet, mobile phones, and other global media on the dissolution of national borders • The...
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...The Scope and Challenge of International Marketing True / False Questions 1. (p. 3) Global commerce thrives during peacetime. TRUE Difficulty: Easy Type: Knowledge 2. (p. 4) To date, the lesson for international commerce in the 21st century is "expect the unexpected." TRUE Difficulty: Easy Type: Knowledge 3. (p. 5) Today, every American business is international. TRUE Difficulty: Moderate Type: Comprehension 4. (p. 5) One event that will influence the shape of international business as the future unfolds is the rapid growth of the World Trade Organization, NAFTA, and the European Union. TRUE Difficulty: Moderate Type: Comprehension 5. (p. 5) One event that will influence the shape of international business as the future unfolds is the unprecedented acceptance of communism and socialism in Latin America. FALSE Difficulty: Moderate Type: Comprehension 6. (p. 5) A trend that will impact international business in the future is a mandate to properly manage the resources and global environment. TRUE Difficulty: Moderate Type: Comprehension 7. (p. 5) Today, most business activities are local or regional in scope. FALSE Difficulty: Moderate Type: Knowledge 8. (p. 6, Crossing Borders 1.1) What do French farmers, Chinese fishermen, and Russian hackers have in common--they can all receive subsidy payments from the U.S. government. FALSE Difficulty: Moderate Type: Knowledge 9. (p. 6) Foreign-made products remain a small portion of all...
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...International Marketing 1 The Scope and Challenge of International Marketing Objectives What you should learn from Module 1 What is meant by international marketing. To understand the scope of the international marketing task To comprehend the importance of the self-reference criterion (SRC) in international marketing. To be able to identify and manage the factors influencing internationalisation of companies. To evaluate the progression of becoming an international marketer. To see how international marketing concepts influence international marketers. To appreciate the increasing importance of global awareness. 1.1 The Internationalisation of Business 1.2 International Marketing Defined 1.3 The International Marketing Task 1.4 Environmental Adjustment Needed 1.5 Self-reference Criterion: An Obstacle 1.6 Becoming International 1.7 International Marketing Orientations 1.8 Globalisation of Markets 1.9 Developing a Global Awareness 1.10 Orientation of International Marketing Summary The first section of International Marketing offers an overview of international marketing and a discussion of the global business, political and legal environments confronting the marketer. International Marketing is defined as Performance of Business activities beyond national borders. The task of international marketer is explained. Key obstacles to international marketing are not just foreign environments but also our won self reverence criteria (SRC) and ethnocentrism. This...
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...customisation-standardisation debate in international marketing strategy and how might this influence the market entry strategy adopted by a firm seeking to enter overseas markets? Use relevant and recent examples to illustrate your report. Your response should be in the form of a written report of between 1500 - 2000 words. Name: Jamie Allen Module: International Marketing Strategy Tutor: Paul Matthews Submission Date: 29th April 2013 Confidentiality: I have read, understand and adhere to the KOL Confidentiality Policy. Click here to access the KOL Confidentiality Policy. Academic Integrity Statement: I have read and understood the Academic Integrity guidelines for Kaplan Open Learning and the University Of Essex, and declare that this assignment conforms to all of the rules and regulations contained therein. Please note: the guidelines can be found in the Student Handbook (see section 6.4). Assignment Checklist Please make sure you have completed the below points before submitting your assignment: • Spelling and grammar check • Referencing completed • Word count fulfilled • Proof read completed • All parts of the question answered Introduction The purpose of this report is to discuss the relevance of customisation and standardisation within international marketing, and how that will have a bearing upon a market entry strategy by a firm who wishes to enter a foreign market. Firstly the definition of the customisation-standardisation...
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...Run Forest Marketing Plan MKTG 2000, Julia Cooper Gabby Angelico, Maggie McMahan, John Haselden, Jacob DeVore 16 October 2012 Executive Summary Run Forest is an eco-friendly athletic footwear company that strives to be the first in quality innovations in sustainable athletic shoes. The company’s strategy focuses on total quality management through all aspects of production in order to create a successful brand image and word-of-mouth advertising campaign. In order to offer the product at a reasonable price, Run Forest will be effective in managing costs down and allocating resources efficiently and effectively. Table of Contents Situation Analysis………………………………………………………………………..3 Marketing Objectives and Goals…………………………………………………...3 Target Market……………………………………………………………………………..4 Marketing Strategy……………………………………………………………………...4 Marketing Tactics………………………………………………………………………..4 Organization Evaluation and Control……………………………………………5 Summary…………………………………………………………………………………….5 Appendices…………………………………………………………………………………6 Situation Analysis Run Forest, an eco-friendly athletic shoe company, has brought in a new marketing team responsible for bringing the company back to profitability. The athletic shoe industry is booming, but Run Forest has not managed to remain competitive. As a group of young professionals, we will be able to keep up with changing trends and fads consistent of the dynamic athletic industry while also expertly managing finances. The target market for Run Forest consists...
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...penetrate into a foreign market. It is the function of international trade where goods and services alike are sold beyond national borders. There are two types of exporting: 1. Direct Exporting 2. Indirect Exporting Direct Exporting Direct exporting refers to the act of an international firm involving itself directly to the exporting process of foreign market research, distributing the product to the foreign market, establishing market contact and setting up pricing/promotional strategies among other marketing activities. Usually such a firm sets up an exporting department within its organization to perform these tasks. Advantages of this type of export are: 1. Unified Control: As the firm is performing all the exporting tasks; all the authority in regards to exporting is centered in one organization and is not subject to any external pressure such as international marketing intermediaries. 2. Cost and Profit Control: Owing to the fact that there is an export department situated in the organization managing the cost of exports and the profits obtained as a result is easily achieved, this way an organization can increase its efficiency in terms of how it runs its internal affairs. 3. Customer Identification: The international firm is in direct contact with the foreign market that is buying its products, this way it is easier for the firm to identify what its market requires be it in terms of packaging, pricing or distribution among other marketing activities in...
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...trade and investment. International trade refers to an exchange of products and services across borders. Exchange can be through exporting, importing or countertrade. Exporting is an entry strategy involving the sale of products and services to customers located abroad from the home base or third country. Importing is the buying of products abroad and bringing them to the home market. Countertrade is a business transaction where all or partial payments are made in kind rather than cash. Both finished and intermediate goods, such as raw materials and components are subject to trade. While on the other hand international investment refers to the transfer of assets to another country, or acquisition of assets in that country through foreign direct investment and contractual agreements, Cavusgil (2008). Among the organizations arrangements for exporting are Indirect Exporting, Direct Exporting and the establishment of a Company- Owned Subsidiary. Direct exporting is accomplished by contracting with intermediaries located abroad, and involves using Manufacturing Representatives or Sales Agents, Foreign Distributor/Importer, Overseas Retailers, Central Trade Offices...
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...international marketing possible and important. At the same time, international marketing promotes the peace and prosperity of the world, satisfying the needs and wants of customers from all over the world. U.S. business is a good example of the internationalization. Many familiar U.S. companies are now foreign controlled or headed in that direction. Meanwhile, there are other foreign companies that entered the U.S. market through exporting their products into the U.S. realized sufficient market share to justify building and buying manufacturing plants in the U.S. , such as Honda and BMW. International marketing is the performance of business activities designed to plan, price, promote, and direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit. International marketing has complicated task in many aspects, such as the aspects of the domestic environment and of the foreign environment. International marketing needs appropriate environment to adapt to it. International marketers must adjust their marketing efforts to different cultures. Adaptation is a conscious effort on the part of the international marketer to anticipate the influences of both the foreign and domestic uncontrollable factors on a marketing mix and then to adjust the marketing mix to minimize the effects. The primary obstacles to success in international marketing are a person’s self-reference criterion. International marketing is developing...
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...MARKETING STRATEGIES AND INTERNATIONAL MARKETS Before talking about how transnational companies enter new markets and develop on the old ones, we should clearly understand the very concept of marketing in general, as well as have an idea of what kinds marketing strategies exist in the world today. THE CONCEPT OF MARKETING The situation with the definition of "marketing" is the same as with many modern terms. In the world literature there are so many definitions of the term "marketing", here are just few of them: «Marketing - a human activity aimed at meeting needs through the exchange»; «Marketing - social and managerial process by which individuals and communities by creating products and exchanging them get what they need»; «Marketing - is the process of planning and implementation of design, pricing, promotion and realization of ideas, goods and services through the exchange of satisfying goals of individuals and organizations»; «Marketing - social process aimed at meeting the needs and requirements of individuals and groups through the creation and suggestion of valuable goods and services and sharing with others ; As you can see, what all these definitions have in common is that marketing is directly connected with the exchange of goods and services to meet the needs. Consequently, it is impossible to give a truly complete and accurate definition of "marketing" because it covers absolutely all spheres of human life. Many people believe that marketing is just advertising...
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...attitudes/orientation toward Internationalisation: o o o o E-Ethnocentric P-Polycentric R-Regio centric G-Geocentric Concept of EPRG orientation/approach can better be understood with the help of table of characteristics cum differences, which is given in the following pages. Have a look! Basis Management orientation Perception about market Ethnocentric Home-country orientation 1.Domestic market is superior Polycentric Host-country orientation Regiocentric Regional Orientation Geocentric Global Orientation Entire world is a single market that can be effectively tapped by standardised marketing strategy 1.Each national Markets can be market is differentiated distinctive on the basis of 2.Focuses on commom similarities 2.Focuses on regional between home differences characteristics country & foreign between home market country & foreign country 3.Considers foreign market secondary to and extension of domestic market Extension of Localisation/adap Trade-off domestic strategy tation( national between to foreign market responsiveness) standardisation & localisation Profitability Public acceptance(legiti macy) Marketing Strategy Global standardisation (global integration) Companies basic objective Both Both Profitability & Profitability & Public Public acceptance acceptance Mutually negotiated at all levels of organisation Type of Top-down governance Bottom up (each Mutually local unit sets negotiated objectives) between region & its subsidiaries...
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...5 Stages in the Evolution of Global Marketing: 1. Domestic Marketing: Ethnocentric orientation. 2 Export Marketing: Ethnocentric orientation. 3. International Marketing: Polycentric orientation 4. Multinational Marketing: Regiocentric orientation 5. Global Marketing: Geocentric orientation Domestic marketing: A company marketing only within its national boundaries only has to consider domestic competition. Even if that competition includes companies from foreign markets, it still only has to focus on the competition that exists in its home market. Export marketing: Generally, companies began exporting Indirect Entry means turning over international sales to a third party. Generally speaking, this third party does the exporting for you. Indirect entry can also include licensing deals as well. By utilizing indirect exporting, a company could use the services of an Export Management Company, distributors, or commissioned agents or brokers. Direct Entry you are dealing with a company in the foreign market, so it can be the end-user, retailer, distributor, or export management company in that market. Because the manufacturer is more involved, the manufacturer makes decisions about the entire export process - from market and distribution, sales fulfillment, and payment. International marketing: If the exporting departments are becoming successful but the costs of doing business from headquarters plus time differences, language barriers, and...
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...[pic] International Market Selection – Issues and Methodologies A Global Marketing Paper Conducted by Kai F. Mahnert, 03113060 Sarah McGauley, 00359157 Laura McGrath, 00453340 Liz McGrath, 03113094 Conducted for Dr Aidan Daly, Lecturer in Global Marketing, NUI Galway Date 22nd March 2004 TABLE OF CONTENTS Abstract 3 Introduction 3 Objectives 5 Limitations 5 Rationale for International Trade 6 Objectives of an organisation 6 The creation of stakeholder value 6 Internal factors in Foreign market selection 7 Personnel 7 Management 8 Customers 8 Capital requirements 8 Social assessment 9 Corporate social responsibility 9 Time and research 11 Methodologies 11 Preliminary screening 12 In-depth screening 12 Final selection 13 external factors in foreign market selection 14 Market potential 14 Market size 14 Market growth 15 Competitive intensity 15 Competitive entry 15 Entry barriers 16 Political environment 16 Political issues for consideration in market selection 17 Risk assessment 17 Legal environment 19 Legal systems 19 Economic environment 20 Economic development 20 Culture 22 Infrastructure 23 Conclusion 23 References 26 International Market Selection Issues and Methodologies Kai F. Mahnert, Sarah McGauley, Laura McGrath & Liz McGrath MBS in Marketing, NUI Galway Abstract International market selection is one of the...
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...services (Business, 2012). With this approach the domestic market sets the standard for pricing and marketing. With this concept a firm will not change how it prices or markets its products. A company does save resources by not studying the foreign market; however they may lose any competitive advantage that could have been gained through the knowledge of the foreign market (Keegan & Green, 2011). Often times a firm may seek identical verticals in foreign markets to help minimize this competitive disadvantage. The ethnocentric model captures the domestic market more so than foreign markets for firms. The geocentric model is what I would consider, the most open minded approach. The world is viewed as one large market place with many firms having a world headquarters that does not represent one culture or country (Keegan & Green, 2011). This model promotes diversity through global integration of capital resources (Perlmutter, 2009). Each foreign market it studied and the product or service prices are changed based on the local climate of the foreign market. Polycentrism is the belief that each country a firm has presence in operates independently from one another. This allows a company to have subsidiaries in foreign markets that can independently meet the needs of foreign consumers in each market. This method uses more capital resources then ethnocentrism but also could create more revenue for a firm since foreign consumers may consider the subsidiary part of their country...
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