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Global Marketing

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In some countries, consumer attitudes toward foreign products reflect their desire to protect the company's competitiveness in the home market. Even governmental entities tend to protect the company's competitiveness in the home market. To counter this protectionism, some organizations operate their foreign subsidiaries as independent units with minimum interference from headquarters and allow their foreign subsidiaries to take more responsibility, such as adapting designs and manufacturing product to meet local needs. Conversely, other organizations operate their entire international operations as a single, global-market segment and market the same product worldwide maximizing economies of scale both in production and research and development (R&D).

Discuss the three primary models of international marketing that address the marketing mix:

ethnocentric
geocentric
polycentric

Your discussion should include the following:

Discuss the three models and how they differ.
Describe whether a company markets a product or service influences the choice of one model over another.
Discuss how cultural differences may affect the choice of model.

If you use sources to support your discussion, please cite your sources.

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The response addresses the queries posted in 2353 words with references.

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The response addresses the queries posted in 2353 words with references.

//This portion of the text deals with the ethnocentric international marketing approach. It is a centralized approach in which whole efforts are directed towards domestic industry. Domestic market is constant and international market is variable in this phenomenon//.

Abstract: The entire study is all about the Ethnocentric, polycentric, and geocentric approach. Different approach is adopted by the company as per its individual objectives, market situation, and conditions. National and international cultural differences play an important role in the substantial movement of the firm. International marketing orientation serves as a guide in formulating and implementing marketing strategies. Competitiveness in the global market is influenced by the degree of international involvement.

Introduction:

Internationalization of the current business operations is one of the growing trends in the business operations. Many companies operating on national or regional level are now operating on global scale. The task of international marketing becomes more complicated due to the sophisticated management approaches. The goals and the philosophies of the company are reflected through the international marketing approach adopted for international operations.

This marketing approach is focused on home country orientation. In this approach, top management assumes that the domestic techniques will be more superior and effective in dealing with the overseas markets. Domestic operations technique assumes the primary importance and overseas operations assume secondary importance. Strategies for the international market operations are developed in the domestic or home office. Focus is on domestic production instead of international operations. Policies and procedures that are employed in the international markets are identical to those employed in the domestic market. For operating in international market, an export department or international division is created. This division or department administers all the tasks and operations of international market. In order to cope up with the new strategies and new scope of operations, some changes are required in the orientation towards internationalization. This orientation is also reflected by the company in its recruitment process. Marketing officials are usually comprised of home country nationals. No major product modifications are applied in the context of international market (Roche, 2005).

Research is also focused on domestic market framework. Prices of the product are also decided on the basis of pricing strategy prevailing in the domestic market. Distribution costs are added in product pricing. This new paradigm requires rethinking of the organization strategies and planning procedures. Promotion strategy applied in the domestic market is also applied in the international promotion strategies. Sales officials are hired from the home country for looking after the marketing and distributing task. Boeing aircraft adopts ethnocentric approach. It sells the same commercial aircraft across worldwide with same promotional and pricing strategies.

//This section deals with Geocentric international marketing approach. This approach rests on the philosophy of treating the whole world as a single market. Both regional and global market attitudes are taken into consideration in this approach.//

In geocentric approach, entire world is treated as one market thereby, ignoring national boundaries. Policies and marketing activities are designed on a worldwide basis. Some people from the home country nationals are included and some sales officials are recruited on the regional level. Product is designed in a standardized form for the regional and worldwide markets. Pricing and promotional strategy is also developed in such a way, so as to project a uniform image of the company. Distribution channels are developed for both regional and global market. This approach cross the national boundaries and also develop standardized policies (Morschett, Schramn-Klein, & Zentes, 2010).

The main drawback of this approach is that it entails high costs on administration task. More time is spent on ...

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  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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