lecture 3 p2- decision to internationalise

Question 1

standardization in international marketing

standardization

Answer 1

in marketing means using uniform marketing practices, strategies and marketing mix across different countires or regions without any modification

Question 2

standadization ]key point, benefits, challenges

Answer 2

key points
- its a counter approach to adaptation, where companies modify their practices to fit the local market

benefits
- economies of scale
- uniform global image
- simplified decision making and faster time to market

challenges
- local resistance - products might not meet specefic or cultural nuances
- regulatory issues- diff countires verying regulations might not meet
- lack of flexibility - a one sie fits all approach might make it challegning to address market specefic crisis or opps
- potential backlash - perceived neglect of local traditions or needs

Question 3

localization in international marketing

localization

Answer 3

customizing products and marketing strategies to fit local market conditions and consumer preferecnes

Question 4

localization key elements

Answer 4

• product; adjusting features, design, and functions local needs and taste
• price; considering local purchasing power, competitors and market demand
• place; local distribution strategies, retail environments and supply chain
• promotion; tailored advertising and sales promotions that resonate with local culture

Question 5

localization
benefits and challenges

Answer 5

benefits
- enhancd customerappeal and satisfaction
- competitiv adv in local markets
- reduced risks of cultural insensitivity

chall
- increased costs and complexities in desing and production
- need for extensive market research
- balancing global brand consistency with local relevance

Question 6

glocalisation in international marketing

glocalisation

Answer 6

a combination of globalisation and localisation it refers to the adaption of internationally marketed products and services to fit the specificities of local culture

Question 7

glocalisation
key principle

Answer 7

• global strategy; create universally resonante better with local consumers
• local adaption ; modifiy aspects to cater to local needs, preferences and cultural nuances

Question 8

glocalisation
adv
challengees

Answer 8

adv
- relevance - locally adapted products reesonate better with local consumers
- effeicicny - maintains a global brand image while also being locally accepted
- competitive edge- sets the company apart from those who only implement either a global or local strategy

challenges
- complexity - balancing global strategies and local adjustments
- costs; local adaptions might increase production and costs

Question 9

forces for standardisation

Answer 9

• worldwide markets
• global customers
• removal of trade barriers

cont’d
- standardised technology and communication
- managing relationships with local partners
- global cost drivers- economies of scale/scope

Question 10

forces for stand

worldwide markets - universal aspirations

Answer 10

cultural convergence
the concept of a global village where shared culutral values and products become present
eg coca - cola, nike

Question 11

forces for stand

global customers

Answer 11

-customers around the world expect consistent product/serivces delivery, features and pricing irrespective of the region
eg amazon

Question 12

forces for stand

removal of trade barriers

Answer 12

deregulation allows for smoother, more consisteent international trade, facilittating standardised product service offering

Question 13

forces for stand

standardised tech and communication

Answer 13

a globally connected world through tech - shared standards and platforms, simpliying global operations

Question 14

forces for stand

managing relationships with local partners

Answer 14

ensuring consistent, high quality interactions with local subsidiaries, suppliers and partners to maintain a uniform brand opresence and operational efficacy

Question 15

foprces for standar

global cost drivers - economies of scale/ scope

Answer 15

centralised production or operations can lead to cost saving when products/services are standardised

Question 16

forces for localisation

Answer 16

• cultural difference
• regionalism/ protectionism
• de globalisation

Question 17

forces for local

cultural differences

Answer 17

markets are people not products
‘there may be global products but not global people’
- lanuage, values, behaviours and customs vary across regions
- consumer preferences are influenced by local culture

Question 18

forces for local

regionalism/ protectionism

Answer 18

regional clusters forming regional trading blocs, potentially hindering global expansion
eg european union

Question 19

forces for local

de globalisation

Answer 19

resistance tto forign influences rooted in the beleif of native customes superirorty
‘everyone beleives their native customs are best’ Herodotus 2500 years ago
eg resistance to US culutral imperialism, mcdonalidastion, coco - colonisation

Question 20

definition of mcdonaldisation

Answer 20

refers to the process by which principles of the fast food industry are dominating more sectors of society

Question 21

4 key principles of mcdonaldisation

Answer 21

1. efficiency - optimal method to accomplish a task
2. calculability - focus on quantitative aspects eg big macs uniform size and big is better
3. predictability - uniform services eg similar taste worldwide
4. control - automation, replacement of human by non human technologies

Question 22

mcdonaldisation extends beyond food

Answer 22

its principles ar seen in retail, healthcare, education etc
leading to homogenization of societal experinces

Question 23

deglobalisation

Answer 23

• refers to the reduction of interdependence and connectivity between nations
• factors; economic shifts, politcal changes, cultural resistance and tech

Question 24

how mcdonalisation contributes to de globalisation

Answer 24

• homogeenization of culture; over standardization can overshadow local tastes, cultures and practices
• economic dependencies; centralized control may lead to economic challenges for local producers
• resistance to culutral imperialism; backlash against perceived westernization oor americanization can spur movements to reclaim local indentity
• loss of authenticity; as local flavours are overshadowed,m theres a push for a return to local customs, traditions and cuisines

Question 25

fundamental reasons for exporting for firms

Answer 25

is to make money

Question 26

what initation of internationalisation driven by

Answer 26

proactive or reactive motives proactive are usually related to internal and reactive to external triggers

Question 27

# internationalisation initiation and motives proactive motives

Answer 27

related to need for strategic change, exploiting unique competences of a company or making use of market opps

Question 28

# internationalisation initiation and motives reactive motives

Answer 28

are related to passive adjustments to treats from the global economic environment or external pressures

Question 29

proactivee motives eg

Answer 29

- profit and growth goal; drive to increase organisational profitability and expand business operations - managerial urge; intrinsic motivation of the motivation of the managment to internationalie driven by ambition and personal objectives eg vimto - unique product/ competence; capitalize on distinct products or competeencies that have a compeititve adv in foreign markets eg k beauty - foreign market opportuntis; proactivitly seeeking and capitalizing on opps in ovrseas markets to expand reacg eg yellow tail -US expansion to BRICS - cost efficiency ; eco of scale acheive higher production levels to lower per unit costs - taxation ; taking adv of tax incentives, reductions or breaks in forign markets

Question 30

reactive motives eg

Answer 30

- competitive pressurses; racting to global rival defending market sharee or preempting competitors eg cola - small/ saturated home market ; limited growth potential locally, seeking new growth aveneues abroad - overproductive/ excess capacity; exploitating surplus production spreading fixed costs eg cars, white goods in US - extending seasonal products sale - capitalizing on diff seasonal demands globally eg ipanema - proximity of international consumers (physical/ psycholical); catering to nearby foriegn markets eg SAS - orders from forieng markets; capitalizing on unexpected global opps eg yellow tail

Question 31

# barriers to initiatiom of internationalisation lack of commitment (inward focus)

Answer 31

implication - avidance of global expansion potential solutions- develop a global mindset and strategic international vision

Question 32

# barriers to initiatiom of internationalisation insufficient knowledge and experinces

Answer 32

implications - limitd ability to gauge foriegn market potential potential solutions - invest in market research and international training

Question 33

# barriers to initiatiom of internationalisation insuffient finances and capital

Answer 33

implications - inability to bear international entry costs solutions - explore joint ventures, partnerships and fincial support

Question 34

# barriers to initiatiom of internationalisation insufficient capacity

Answer 34

implications - cant meet potential international demand solutions - scale operations or partner with entities in target market

Question 35

# barriers to initiatiom of internationalisation lack of forgien market connections

Answer 35

implications - dofficutlies in naivgating local networks solutions - build alliances, attend trade fairs and network events

Question 36

# barriers to initiatiom of internationalisation lack of foriegn market distribution channels

Answer 36

implications - trouble reaching customers effectively solutions - collaborate with local distribution or establish own channels