The concept of a multi-domestic market.

Companies use this concept when working in foreign markets is of great importance and it is necessary to modify foreign business in terms of organization. They develop separate individual programs for each market.

The products (goods) of these firms adapt to each individual market, regardless of the branches of their organization in other foreign countries. Each branch develops its own marketing program corresponding to the market data, i.e. it seeks to adapt to the local market of a foreign country.

Global marketing concept.

Marketing activities - global marketing covering the entire world. This type of enterprise develops high quality standard products that will be sold at a reasonable price in the global market. With this approach, the global market is equated in consideration with the domestic market of the country, but works all over the world. The main postulate of the global marketing concept involves the orientation of the world market to the people to the buyer to meet their needs and desires. Many companies try to standardize most of their approaches. The global organization views the world as a whole as a single market and creates a global marketing strategy.

Groups of prospective customers with identical needs form global market segments. Therefore, the global marketing plan provides a standardized product for the global market, but with differences in advertising, taking into account the characteristics of the country.

Although the world is not a homogeneous market, there is evidence of a real existing groups international consumers (segments) with identical needs, desires, behavior.

Significant changes occur in the international orientation of companies when they seek to enter foreign markets in order to realize there permanent industrial surpluses. By betting on foreign markets, organizations become dependent on foreign income. Companies, as a rule, gradually move through the phases of international marketing participation, it is impossible to skip or skip any, but sometimes you can speed up the process with a good resource base and advanced technology. As an enterprise moves from one phase to another, the international marketing activities of the organization become more complex, the degree of its internationalization increases, which necessitates adjustments in the international strategies and decisions of the firm.

The international operations of companies are adjusting to changing competitiveness associated with the globalization of markets, the interconnectedness of the world economy and the growing number of competing enterprises of developed and developing countries operating in world markets. Global markets are developing for certain types of goods and services, but not for all types of products.

Let's analyze the features of the transition to international marketing. This transition consists of several stages:

regular foreign marketing;

international marketing;

global marketing.

If a company decides to enter the international market, then it must choose which way to enter the external environment, and outline the appropriate stages of marketing tasks. The organization needs to do some preparatory work. The decisions made should be the result of research and analysis of the market potential and capabilities of the enterprise. Entering the international market does not happen immediately, firms gradually change their strategy and tactics, thereby increasing their participation in the foreign market.

Indirect foreign marketing. In this phase, there are still no active contacts with customers or consumers outside national borders. Sales can be made through trading companies.

Irregular foreign marketing. Temporary production surpluses or demand may be the cause of irregular foreign marketing. In this phase, there is little to no organizational change in the organization or product mix.

Regular foreign marketing. In this phase, the firm has a constant production capacity, which allows it to produce goods for sale in foreign markets over a long period of time. The company may engage foreign intermediaries or form subsidiaries of trading companies in foreign markets. The company is increasingly dependent on profits in foreign markets.

International Marketing. In this phase, the enterprises are fully involved in the international marketing work. These companies are looking for markets around the world. Products are manufactured for sale abroad. From this point on, the organization becomes an international marketing firm.

Global Marketing. At the global marketing level, the world is no longer seen as a collection of markets of various countries, but becomes a single system for which marketing strategies.

So, the term "international marketing" is usually referred to international firms whose scope of business activity goes beyond national borders. It is usually the opposite of national or domestic marketing. International marketing is defined as the expression of the business activity of companies operating in markets with the aim of generating income in more than one country.

In modern conditions, the area of ​​human knowledge, focused to the greatest extent on the study of the real and potential competitive advantages of enterprises in order to meet the needs of consumers of goods in foreign markets, is international marketing.

Turning to the foreign market, occupying free niches, enterprises feel the need to understand the specifics of international economic activity as best as possible. This understanding leads them to the need to adapt their actions to the principles of international marketing, to strive to use it for their own purposes.

International marketing is defined as the expression of the business activity of companies operating in markets with the aim of generating income in more than one country.

The use of marketing by domestic enterprises in foreign markets is associated with the need to find and apply effective means to determine: business areas, components of the marketing complex, types of international marketing and organization of work for marketing activities in foreign markets.

In the domestic market, in the face of falling demand and the availability of competitive goods for firms, international marketing helps to stabilize the sale of goods, and is also one of the means of protection against foreign competing goods.

The transition of an organization to international marketing usually consists of several stages:

indirect foreign marketing;

regular foreign marketing;

international marketing;

global marketing.

A necessary condition for the successful operation of the company in international markets at all stages of its activities and life cycle products is to conduct market research. This is due to the fact that the international market is similar to the regional one, but has its own characteristics. It consists of buyers, each of whom is the bearer of distinctive features, depending on which the company operating in the world market chooses the method of splitting into segments.

Segmenting is based on the fact that all consumers in a particular segment have the same wants and needs, although there are some differences.

4. Practical task

According to table No. 1, determine the total amount of demand, market supply and build a demand curve, a market supply curve.

Determine the equilibrium price of the good and the quantity of the good that can be sold at that price.

Susan P. Douglas K. Samuel Craig

Introduction

Parameters of the global strategy

Determination of the direction of the global strategic offensive

Development of marketing mix elements

Building a global business portfolio

In most industries, both manufacturing and services, business is no longer limited to the national market. Thanks to improved communication systems and new technologies, a worldwide market has emerged. The consequences of this fact are significant and cover the areas of finance, production, personnel, logistics and marketing. Now there are global brands, global services, an international consumer profile and global company images and, of course, global marketing strategies. Firms must decide whether to enter the global market, how to do it, what elements of the firm's activities to standardize for the global market. Companies must also consider the consequences of these decisions for their growth and prosperity in the future.

1. Introduction

The globalization of markets is one of the most important characteristics of today's business. This trend has serious and far-reaching implications for the development of a firm's strategy, as well as for setting its policies in all areas of business activity, including marketing, production, finance, and personnel. This trend is evident in the growing number of global products and brands, in the increasingly complex production logistics systems being developed in the automotive, electronics and computer industries, and in the growing number of partnerships and joint ventures created by firms in different countries (see also STRATEGIC ALLIANCES AND SUPPLIER COOPERATION).

The development of communications and the mutual exchange of personnel, ideas and experience between different countries contributes to the fact that companies can offer their products to global market segments. In various countries, consumer groups such as wealthy consumers, teenagers, environmentalists are identified, and certain products, services or brands are offered to these segments around the world. For example, Rolex and Cartier watches, Hermes scarves and leather goods, and Waterman pens are offered to wealthy customers around the world, while Body Shop products are aimed at those who are concerned about the environment. McDonald's, Coca-Cola and Levi-Strauss have managed to create successful global brands that represent the Western lifestyle in markets around the world (see also MARKET SEGMENTATION, POSITIONING).

Parallel to this trend, global sourcing and production logistics are evolving, fueled by increasing awareness of differences in labor, production, and raw material costs across countries, as well as the growing efficiency of international transport and communications networks (see LOGISTICS AND VALUE CREATION; MARKETING COMMUNICATIONS). Adidas and Nike manufacture many of their products, including athletic shoes, in Asia. Similarly, Ford launched the Year 2000 initiative to consolidate operations in Europe and North America to reduce costs and streamline production. The Ford Mondeo for the European market and the Contour and Mystique* for the US market share the same platform. This eliminates the need for additional engineering and significantly reduces the number of suppliers of spare parts.

Such trends lead to the fact that in many industries, competition takes place not on the national or even regional market, but on an international scale. As a result, in order to compete effectively, companies must develop global marketing strategies. In this article, we propose a scheme for creating such strategies. The first step is to identify the key parameters of the strategy: defining the business, identifying the company's driving force, defining its global strategic offensive.

In order to clearly formulate a global marketing strategy, several mandatory steps must be followed. First, you need to choose the territory in which the company will compete. Thus, we will determine not only the geographical scope of activities, but we will also be able to identify potential competitors. You can then begin to select the underlying strategy (such as price leadership, differentiation, or a combination of several strategies) that is seen as the most appropriate for the firm and industry.

The next step after defining the strategy is to create a marketing mix that would allow you to implement the strategy most effectively (see MARKETING MIX). One of the most important questions is whether the firm will standardize the entire marketing mix or only part of it in foreign markets. To do this, it is necessary to consider all the obstacles to standardization and weigh the benefits arising from the condition of adapting the elements of the marketing mix. Finally, as the global market evolves, becomes more complex, and more interconnected, the firm must decide how to allocate resources across geographic markets and businesses to determine the direction for future growth (see DEVELOPING AND IMPLEMENTING A MARKETING PLAN).

2. Parameters of the global strategy

The first step in developing a global marketing strategy is to define the business, or in other words, the market arena in which the company will compete. For the domestic market, it is sufficient to define the market for the goods or services produced by the company; for the international market, it is also necessary to determine the geographic scope of the business (see Fig. 1 illustrating this process).

Rice. 1. Development of a global marketing strategy

Business Definition

Determining the market for a product or service

The first step is to identify the market or markets for a particular product in which the company will compete in order to identify the basis and scope of the company. It often involves multiple markets and businesses. For example, the General Electric Company (GE) continues its steady global expansion in a number of industries, from aircraft engines, generators and medical equipment to full-scale services.

There are four main aspects to consider when defining a business: the utility function of the product being offered, the technology, the customer segments, and the steps in the value chain. The utility function is the benefits provided. For example, a fast food business provides not only food, but also speed of delivery and consistent quality standards. The technologies used determine the way in which benefits are provided. For example, cars can be powered by internal combustion engines, electric motors, or a combination of both. The segment defines the specific customers to whom the product is offered. Ryobi and Ma-kita, for example, offer small, hand-operated tools for DIY shoppers as well as professionals such as home improvement companies, plumbers, and carpenters. The stages of the value chain show the degree of vertical integration within a business. For example, Vgaip sells expensive, stylish home appliances that are manufactured by other companies based on detailed descriptions of developed specifications.

When applying each of these parameters to the international market, it is important to keep in mind that they may differ from country to country. First, a product or service may be used for different purposes in different countries or geographies. For example, while in the US bicycles are primarily used for recreation, in China and the Netherlands they are the main means of transportation. It follows from this that different countries expect different benefits from the product. While style and design may be the main factors in the US, in China and the Netherlands economy and durability will be more important.

The range and availability of different product varieties can also vary considerably by country. A wide variety of household detergents can be found in the US, such as high or low foaming powders, fabric softeners with or without bluing effect, ordinary bleaches, or bleaches for colored fabrics. In other countries, detergents can be much simpler and consist of soap shavings or bars of soap, with laundry being washed on a washboard or on rocks in a river. And, therefore, the desired benefits are not in the degree of foaming or softness, but in the efficiency of removing dirt.

Differences in the relative cost of labor, energy and other resources lead to the fact that in different countries there are different technologies and this also affects the definition of the business. For example, in rural areas of developing countries where there is no electricity, manual or battery-powered appliances may be required.

It follows from all these differences that it may be better to first determine the geographic area in which the business will be carried out. Then you can identify similarities in different countries. This may be followed by a redefinition of the business, depending on the company's desire to offer a product to a single segment in different countries or to accommodate national differences.

Determination of the geographical coverage of the market

In addition to defining its business, a firm must also define the geographical scope of its activities. In this way, it will define the geographical boundaries of competition, as well as establish the main geographical parameters for resource allocation and strategy development. Depending on the degree of integration of markets across countries, four main categories of business can be distinguished: national business, international business, regional business and global business.

A national business is a business covering one country. Within a country, demand is homogeneous, and there are barriers between countries. Food establishments are often national enterprises, although there is a tendency to internationalize some segments such as fast food, soft drinks. Culinary preferences, with the exception of individual exceptional cases, usually do not go beyond one locality.

International business is carried out by enterprises that make minor changes to their products and sell them in other countries. Many household appliances such as toasters, irons, and mixers are cross-national products because they require only minor changes in voltage and plug configuration.

A regional business is one that covers geographic regions such as Europe, Latin America, and North America. The automotive market is usually regional in scope, as models are developed primarily for regional markets. In the past, Ford, for example, has developed models such as the Fiesta, Granada and Sierra specifically for the European market. Recently, due to the increased integration of markets, economic pressures are leading to an orientation towards global markets. The 2000 Initiative shows that Ford, like Honda, is moving towards a world car.

A global business is a business for which the market is the same all over the world. For example, markets for tires, telecommunications, computers, drugs. These markets are homogeneous throughout the world, and therefore the enterprises serving them operate on a global scale. Vigo pens are an example of a global consumer market.

Determining the driving force of the company

The next step is to determine the company's driving force. This is a key determinant in the development of strategy, both in determining the direction of the allocation of resources in various functional areas, and in determining the characteristic competitive advantage of the company. There are six different areas in which a company's driving force can lie (Day, 1984): the nature of the product offering, marketing skills, technology, production capacity, methods of distribution and sales control over resources.

The nature of the product offering: if a company can offer a unique product or a product that is superior to all other products, or a product that has some advantages over other products, then it can try to use this internationally and expand its activities in new markets in other countries. Anita Roddick, the owner of the Body Shop, has developed a line of environmentally friendly cosmetics that are not tested on animals. Following the success in the UK, franchise businesses have been set up in many environmentally concerned countries around the world.

Marketing skills: in this case driving force of the company are its experience and know-how in the field of marketing. Procter & Gamble's success in international markets is due in large part to the company's mastery of the art of consumer goods marketing, which is the combination of large-scale media advertising and heavy distribution.

Technology: In this case, superior technology allows the product to be developed and offered to target markets. Lucent and Siemens, for example, are at the forefront of new technological developments in telecommunications and digital switching systems.

Production capacity: Manufacturing-driven enterprises focus on production efficiency and production processes Japan's competition in the automotive market is largely based on superior production efficiency.

Methods of distribution and sales, in this case, the unique characteristics of the company are its methods of distribution and sales. For example, Avon has successfully employed a system of hiring housewives as its sales agents in many countries around the world.

Resource control: And the last category consists of companies that focus their efforts on resource control. This is usually the driving force behind oil companies such as BP, Exxon and Shell, as well as diamond miners such as DeBeers. When operating in a foreign market, the main concern of such companies is to maintain control over key resources and manage conflicts with the government of the host country.

In essence, determining the driving force of a company means identifying the key aspects of the strategy that will be focused on. However, this does not necessarily lead to neglect of other aspects. Focusing on technology or product offerings does not mean that we can ignore the ability to meet market needs or identify key target segments. Rather, it allows for the prioritization of management efforts and resources and the evaluation of new projects.

3. Determining the direction of the global strategic offensive

Once a company has identified its business and its driving force, the next step is to determine the direction of the strategic offensive and formulate a strategy for the global market. In this way, the company will determine, firstly, its competitive strategy and, therefore, create the basis for the company's distinctive advantage over competitors, and, secondly, the strategy for capturing the market, its configuration or target segments.

Competitive strategy

To create a competitive strategy in international markets, it is necessary to determine, firstly, the territory or geographical area in which the company will compete; and, secondly, the strategy that will be used in the competition in this territory. These decisions will mark the boundaries or limits in which the efforts of the company will be concentrated, and indicate the directions for the distribution of these efforts.

Territory selection

When entering international markets, an important point is the choice of the geographical territory in which the company is going to compete. To do this, it is necessary to determine the number and type of countries in which it will compete, as well as the geographical scope of activities. An important element influencing the last decision is the level of competition: global, regional, transnational or national. However, it should be noted that even though the main competitors are global or regional, companies do not necessarily compete with them on the same level. For example, Green Kao competes regionally in the detergent market in Germany and Japan, respectively, with international giants such as P&G, Colgate and Unilever.

In determining in which countries and at what level to compete, the main factor is the company's resources and skills compared to the resources and skills of its competitors. Competing in a global market with a wide range of products is likely to require significant resources and capacity. Therefore, a small company entering international markets may prefer to concentrate its resources and operate on a more limited scale, focusing on a limited number of countries or regional markets. However, thanks to the reduction of distances around the world through the development of communication technologies, an increasing number of small and medium-sized companies are able to find target segments in the form of market niches around the world, such as in the production of medical equipment and peripheral computer equipment. Thus, the geographical scope of activities is wide, although the range of goods is limited.

Also, when choosing a territory of competition, it is necessary to decide whether the company will compete in the competitor's home market or in a neutral territory, and consider the degree of concentration or diversification when choosing markets. In its home market, a competitor may benefit from a strong position through customer loyalty, an established distribution network, or the patronage of its government. However, it may be more vulnerable in its domestic market, as the domestic market may account for a significant portion of the profits. In the US, for example, Kodak benefits from significant customer loyalty and represents a major obstacle to Fuji's expansion into the market. In neutral territory, where there is no major domestic competitor, competition can take place more on an equal footing.

Another factor in a firm entering the international market with an innovative product or product line is the threat of a competitor launching a similar product. If such a threat is large, you should release such a product to as many markets as possible as soon as possible in order to get ahead of competitors.

Choosing a Competitive Strategy

The choice of territory determines the geographic area in which the company will operate. Next, the company must choose a strategy by which it will compete in this territory. Three types of possible strategies are usually distinguished: price leadership, product differentiation, and a hybrid strategy, which is a combination of the first and second.

Price leadership is usually based on manufacturing efficiency, which allows a company to offer a product of equivalent quality at a price lower than its competitors. This strategy is often pursued by Japanese companies such as Casio in calculators, Seiko in watches, and more recently Korean companies in color TVs, VCRs, etc. have followed suit. able to withstand competition in international markets from firms from countries with cheap resources, it must be based on real production efficiency. Otherwise, price cuts can lead to price wars that can hurt profits.

The differentiation strategy is based on the product, and its goal is to create an idea of ​​the uniqueness of the product and its advantageous difference from the products of competing firms. The company can offer a product that is superior in quality to the products of all other firms. Examples of such products are Bang & Olufsen audio equipment and Leica optics. Either the company may be considered the best in terms of product reliability, service or delivery. For example, IBM has a strong worldwide reputation for delivering superior product and service.

Innovating is another way to differentiate a product. A company can also create a strong or unique brand image for its product. The Nike brand name, for example, has an air of mystery that largely explains its worldwide success. Similarly, Philippe Patek watches and Rolls Royce cars create images of prestige and luxury. 3. You can use a hybrid strategy that combines a price leadership strategy and a differentiation strategy. If executed effectively, such a strategy can enable the firm to establish a strong position in global markets. Heinz, for example, has spent heavily on advertising to build strong brands in many markets, while maintaining cost leadership by tailoring its purchasing activities and technologies to local conditions.

So, based on the main competitive advantage of the company and its competitive strategy, a strategic offensive is carried out in global markets. At the same time, the competitive strategy determines the main parameters for developing a firm's strategy in international markets, its investment strategy in relation to various areas of the firm's activities and geographical areas.

Market coverage and segmentation

The second component of a firm's strategic offensive in global markets concerns the geographic coverage of the market and the configuration of target segments. There are two issues to consider here: the degree of integration across geographic markets and the breadth of the target market (Figure 2). Both issues are closely intertwined with the choice of territory and competitive strategy.

Degree of integration

When deciding whether to offer its products to the same customer segments around the world, or to focus on specific target segments in each country, company management must examine the similarities in customer behavior and response patterns in different geographic markets, as well as the significance of linkages between markets. The interests and behavior patterns of some consumers, such as senior administrative staff, mature young people, children, are very similar and do not depend on nationality. Therefore, certain products and marketing strategies will be effective when working with similar customer segments around the world. Similarly, in some manufacturers' markets, such as those for polymers, large computers, and medical equipment, consumer requirements are essentially the same throughout the world. In some cases, special product lines are developed for specific market segments around the world. For example, cosmetics manufacturers offer products for problem skin to teenagers, anti-wrinkle collagen creams to middle-aged people, and environmentally friendly cosmetics to consumers concerned about the environment. This strategy is based on the assumption that the similarity

The skin care needs of these segments in different countries outweigh national differences.

On the other hand, if the consumer benefits sought or the nature of the product market vary widely across countries, products and marketing strategies will need to be tailored to specific geographic areas or markets. Then the differences between countries are more significant than the differences within the country. Such a strategy may be suitable for companies operating in the food industry. Findus - division Nestle specializing in frozen foods, produces various types of goods in different countries, adapted to local food preferences. Products such as fish fingers and fish cakes are sold in the UK, "coq au vin" and "bceuf bourguignon" in France, and "dim sum" in Singapore.

Increasingly, companies are pursuing hybrid strategies, offering some products and brands globally and tailoring other product options to the needs of specific regions or local markets. For example, Coca-Cola sells its Classic Juice worldwide and a diet cola, most commonly Light Juice, in many markets around the world. It also sells regional brands of soft drinks such as Sarru fruit drink in Turkey, Germany, Hungary, Poland and Romania; cola without sugar called "Tab Extra" - in the Scandinavian countries. In addition, it sells non-alcoholic beverages that cater to specific national preferences, such as pineapple-grapefruit flavored soda or a combination of mango and passionflower flavors called "Lilt" in the UK and Georgia; a series of coffee drinks in jars - in Japan, where they are very popular.

Degree of coverage of the target market

It is also necessary to determine the breadth, or degree of coverage, of the target market. Management may, for example, decide to pursue a strategy of wide coverage, offering a product to all segments or potential buyers in a given market, or, conversely, to focus their efforts on a single segment.

In the automotive industry, companies such as GM, Ford and Toyota offer a wide range of products worldwide, while Ferrari and Lamborghini offer merchandise for the luxury sports car segment. A broad coverage strategy implies that efforts are directed to the entire market. In some cases, this can lead to mass production, where there is little differentiation or adaptation of the product to individual market segments. In other cases, a company may produce a wide range of products to meet individual needs while still enjoying economies of scale and efficient distribution. A concentrated outreach strategy, on the other hand, is targeted at a specific market segment and is likely to be most appropriate for a company with relatively limited resources or where special skills are needed to meet the needs of individual segments, such as fashion design or software development. security. With the exception of globally integrated industries such as aerospace or chemicals, outreach strategies usually require some adaptation to specific geographic markets or regions, while concentrated outreach strategies are more easily transferable anywhere in the world.

Thus, competitive strategy determines the parameters of the company's activities and its driving force in the global market, while segmentation determines the configuration of its activities. This, in turn, provides directions for developing tactics that the company will use in international markets in relation to each of the elements of the marketing mix. These aspects are discussed in more detail below.

4. Development of marketing mix elements

When determining tactics in relation to the elements of the marketing mix, it is necessary to answer main question: to what extent these elements will be standardized in different countries. The answer depends on the scope of the market chosen: whether it is global, regional, transnational or national; on what basis the company will compete: on the basis of price leadership or differentiation; and on the segmentation strategy being implemented. Even where the market for a product is global, there may be barriers to a fully standardized strategy, such as the nature of the marketing infrastructure or government regulations (see Buzzel, 1968). Often obstacles affect the choice of territory. These relationships are shown in Fig. 3.

Although the overall positioning of a product or brand may be global or regional, individual marketing tools-mix or

Territory

Marketing mix

Competitive strategy

Strategy Options

Price leadership

Differentiation

Hybrid strategy

Product positioning

Promotion policy

>Distribution strategy

" Pricing

Rice. 3. Global competitive strategy

their implementation may require changes. For example, a product or service may remain the same, but its positioning may vary to some extent in different countries, or different advertising themes or distribution strategies may be used. Also, even when using the same main advertising theme, it may be necessary to adapt the content of promotional materials to specific national or cultural contexts. Thus, the degree of uniformity or adaptation may vary from complete uniformity of all marketing tools, or uniformity in individual elements of the marketing mix and adaptation of others, to some adaptation of all marketing tools. Next, we consider this question in relation to the main elements of the marketing mix: product, promotion, distribution, and pricing.

Product positioning

Product positioning is the cornerstone of the marketing mix. Positioning defines the product's market boundaries and the corresponding set of competing products, the special benefits or features of the product to be emphasized, and the segment whose needs and interests the company seeks to satisfy. As a result, positioning provides a mechanism for the practical implementation of the firm's competitive strategy.

When formulating a positioning strategy, the main question is whether or not to apply the same positioning around the world. The global positioning strategy provides a number of benefits. First, it creates the same image all over the world. Secondly, cost savings can be achieved as there is no need to tailor products or develop separate promotional materials for different markets. Benetton, for example, uses the same commercials all over the world, thus not only saving on production costs, but also strengthening its global image. Good ideas and technologies, whether in terms of product, advertising or distribution, can be transferred from one country to another and used internationally.

On the other hand, even if the needs and interests of buyers are uniform across the world, there may be a number of barriers to adopting a global positioning strategy. First, government regulations may set certain product standards (for example, regarding safety or environmental pollution) or restrict the use of comparative advertising. Second, differences in marketing infrastructure, such as limited access to the media, lack of supermarkets or discount stores, may prevent the same positioning strategy from being used or change the way it is implemented. Finally, different competition in different markets can limit the effectiveness of a single positioning strategy. For example, Perrier's use of the idea of ​​"health" in positioning in international markets prevented Evian from using the same tactics when entering the global market, although it successfully used it in its national market.

Such factors may lead to the need to modify or adapt the positioning strategy for most or only some countries or markets in the world. For example, the Renault 5's positioning strategy was modified in Germany, where Volkswagen competes, to emphasize engine performance and safety, and in Italy, excellent road handling characteristics were emphasized to compete with Fiat. In some cases, even when the core product remains the same, positioning strategies may change significantly to emphasize other benefits or offer the product to other segments.

Promotion policy

In the area of ​​product promotion policy, significant benefits can be gained from standardization in the form of cost savings, a uniform image, good ideas, and so on. interpreting and translating advertising texts all present barriers to standardization. For example, all types of comparative advertising and the mention of competing brands are prohibited in Germany.

Because of these obstacles, compromise decisions are often made. A prototype advertising campaign is being developed, in which key themes and ideas are identified. Then the practical implementation of the advertising campaign is adapted to the specific cultural contexts and infrastructure of each country. For example, Unilever's ice cream division uses similar product positioning around the world that emphasizes friendliness. An advertisement for her signature product shows an ice cream vendor with a cart being swarmed by a group of children. However, the specific implementation is adapted to local conditions. In the US, the commercial features a benevolent salesman selling ice cream from a van to lively music. In the Czech Republic, a handcart vendor sells ice cream on the streets of Prague, while in China, a similar scenario is played out by an Asian vendor and children.

Distribution strategy

With regard to the distribution strategy, the benefits of the standard strategy are perhaps the least obvious. There are significant differences in the nature of distribution channels, as well as the presence of certain types of retail outlets. This situation often precludes the development of a standardized strategy. key factor in this area is the role played by small independent firms and other retailers such as kiosks, open markets, sales agents, representing an alternative to large-scale organized distribution. In many developing countries, the former form a significant part of the distribution system.

Retail fragmentation usually means that wholesalers play leading role in the distribution system. In Japan, for example, wholesalers usually not only perform shipping and storage functions, but also finance retailers by offering them goods on credit or by selling goods on consignment terms.

Such differences in the distribution system often lead to the need to adapt the distribution strategy to the specific characteristics of the local system in order to provide the desired level of coverage and control, as well as customer service.

Pricing

The final component of the marketing mix is ​​pricing. Again, especially in consumer markets, many factors prevent the establishment of a unified pricing strategy. These include, for example, differences in cost structures across countries, in the nature of demand, in competitor prices, and in government or market price regulation.

Differences in the final cost of a product can be caused by fluctuations in labor costs, lack of resource management experience, or differences in other operating costs in different countries, as well as transportation costs, tariffs, customs duties, etc. Sharp price escalation often occurs when exporting at the expense of the costs associated with transportation, customs duties and payment of duties and services of agents. Local retail, wholesale and dealer margins vary, as do local taxes, resulting in significant price differences. Differences in the nature of demand and prices of competitors in different countries also lead to the idea that, in order to increase its competitiveness, it is better to use a differentiated approach in setting prices. In the automotive market, for example, prices vary from country to country, not only because of taxes and markups, but also because of differences in positioning.

Government and trade price controls, wholesale margins, sales taxes and VAT are the final factors preventing uniform pricing. They represent the basic parameters for the pricing policy. Although the company's management can control other factors, such as costs, the above factors are usually "givens" in which the company is forced to work.

It is necessary to weigh the benefits of standardization or uniformity, on the one hand, and adaptation, on the other, for each element of the marketing mix. Even if the overall positioning is global, this does not necessarily mean that each element of the marketing mix will or can be uniform or its practical implementation will be the same in each case. However, it is important that in each area the tactics are consistent with the overall positioning strategy. For example, a positioning strategy based on the idea of ​​product reliability and service must be supported by reliable service, whether it is provided by a distributor, manufacturer, or reseller. Similarly, positioning based on the quality of the product must be supported by a high price so that an appropriate image of the product emerges.

5. Building a global business portfolio

Defining a global strategy is an important and decisive first step. However main characteristic The global marketing strategy is the fact that it is carried out in relation to the markets of many countries and in relation to the various activities of the company. This is not a single strategy, but a set of strategies that must act in a coordinated and purposeful manner. The firm must create a business portfolio that takes into account the degree of interconnectedness of the markets and activities of the company around the world. Going forward, the firm's portfolio structure must be constantly restructured to ensure optimal growth and maximum profitability.

The firm needs to consider how it can compose its business portfolio of countries, company activities and market opportunities, taking into account current trends and changing situations. In this way, it receives directions for investment and determines which activities and geographic areas to develop and which to abandon. At the same time, the company's management can assess whether the existing portfolio provides the direction and pace of future growth and whether the risks associated with the company's activities in different markets are sufficiently balanced. Once the portfolio structure has been restructured to provide the desired growth direction, management may consider whether and how to consolidate and integrate activities across geographies and business sectors to avoid duplication of effort and streamline operations.

Development of business portfolio structure

As in the case of working in the domestic market, business portfolios can be analyzed from the point of view of various levels of activity of the organization: at the level of the corporation as a whole, at the level of separate species activities of a company or product line and at the level of different units, i.e. products, market segments or departments of a company. The inclusion of the appropriate levels usually depends on the diversity of the firm's activities, its product range and target markets, as well as its position in the market. various levels value chains.

The most common level of analysis is the global corporate business portfolio. For example, a diversified company with three core businesses and operations around the world might explore its position in the global market, in regional markets, or in key countries. The next level is the type of activity or group of goods. Here the company can examine the position of a particular division or group of products in more detail. The analysis is most often carried out at this level.

The creation of a global business portfolio must begin at the planning level, which is essential to the implementation of a marketing strategy. For example, the components of a portfolio's strategic business units (SBUs) may be defined as separate activities in a particular geographic area. While in some cases this corresponds to the national market for a given activity, geographic units may be larger or smaller in scope. Some countries are large enough and diverse enough to be divided into several NEPs. For example, in China, Beijing, Shanghai and Guangzhou may be separate SEPs.

Once the components have been identified, the next step is to assess the interconnectedness of this activity across geographic units. Then it is necessary to consider the interrelationships between the activities.

Interconnectivity of geographic markets and activities

With the growth of communications and connections between countries, the assessment of the interconnectedness of geographic markets is of particular importance. It is crucial in assessing the possibility of market expansion or curtailment of activities, as well as in deciding whether to consolidate the firm's operations around the world or in certain regions.

When evaluating the interconnectedness of geographic markets, two important aspects need to be considered: (1) the degree of market connectivity and (2) the degree of similarity. Markets are connected when they have common customers or competitors, when they have a high volume of trade with each other, can be accessed through the same distributors or media networks, or when actions taken in one market affect operations in another. . Markets are similar when consumers in them have the same tastes, interests or purchasing behavior and when they have a similar market environment, such as similar trade or advertising regulations or similar media infrastructures or distribution systems.

In cases where markets are closely related, it is advisable to consider them as one unit. Even in cases where management cannot achieve cost savings or synergies by integrating operations or pursuing a common strategy, direct actions by the firm or its competitors may affect operations in another market. For example, an attack on a competitor in one market may cause a reaction in another. Where markets are similar, actions in one market do not necessarily affect results in another, but company management can increase profits by using a common strategy or coordinating operations.

Interconnectedness of Geographic Markets

Geographic markets can be linked in various ways. Markets that are next to each other are often connected. Firms, including customers, suppliers, distributors, and service organizations, can expand into neighboring markets, thus linking them. Neighboring markets may share the same media, or media from one market may have access to another. Trade flows and other movements of people, as well as communications, are usually highly developed between neighboring markets, and they are further developed by the trend towards integration of regional markets. In some cases, though not always, consumers in neighboring countries exhibit the same purchasing patterns.

Similarity of geographic markets

In addition to analyzing the interconnectedness of geographic markets, management should also examine the similarity of markets. The similarity of markets provides opportunities for consolidation of operations, especially in relation to marketing strategy. For example, management may decide to launch a single range of products or brands in similar markets and use common positioning strategies in them, thus making it easier to use a common promotion strategy, create promotional materials, etc. At the same time, this approach may free up opportunities for consolidation of production and logistics.

Interconnection of activities

In addition to assessing the interconnectedness of geographic markets, company management must also assess the interconnectedness of activities. Activities can be interrelated in various ways. For example, they may serve the needs of the same target market, share production facilities or distribution mechanisms, or use the same R&D programs, the same information technology or marketing knowledge and experience. Businesses or product lines may benefit from an established corporate image, use a family brand strategy, different businesses may use the same vendors, or share marketing costs with other businesses. Thus, activities can be interconnected at different levels of the value chain, both within the same geographic market and across markets. Activities with strong and broad links at different stages of the value chain should be treated as a single SEP for more efficient planning, and not as different SEPs.

Business Portfolio Reconfiguration

After the firm has analyzed all of its business portfolios and their interconnectedness, management can move on to portfolio reconfiguration. First of all, management must determine whether the current business portfolio of countries, activities, market segments and departments of the company can achieve corporate goals. In particular, it is important to determine whether the existing business portfolio provides the desired direction for future expansion, while at the same time providing the necessary balance between emerging and established markets, as well as the desired level of risk diversification. In addition, management should evaluate the need to restructure strategic business portfolio units (SEPs) and consolidate and integrate operations to increase global knowledge and efficiency.

Business Portfolio Expansion

In charting directions for future growth, management must determine whether the firm will expand its geographic reach into new national or regional markets, or whether it will expand into new activities or market segments within its existing geographic area of ​​operations. Management may enter new geographic markets with existing or modified product lines, or expand its operations to serve the same or similar target segments in other countries. On the other hand, management may focus on new market segments, new activities, or other steps in the value chain within existing geographies.

Expansion into new geographic markets is a major issue faced by companies around the world. As more new markets open up in different parts of the world, such as those in Eastern Europe, China or India, and communication channels between markets develop, expansion into them presents an increasingly attractive opportunity for growth. Management therefore needs to review its business portfolio to understand how it fits into these markets. If such analysis reveals a concentration in those countries and regions of the world that do not have or few high-growth markets, management should consider moving investments to new high-growth markets in order to ensure continued growth in the future.

The advantages and disadvantages of geographic expansion opportunities need to be weighed against adding or acquiring new high-growth activities in existing markets. As noted above, a facility that is related to the firm's core business and based on the same technology, or a facility that can be sold through the same distribution channels, provides an attractive opportunity for expansion. This expansion allows the firm to achieve economies of scale. At the same time, if the geographical boundaries of such an activity coincide with the current boundaries of other activities, the new addition does not increase either the level of macroeconomic risk or the geographical diversification of the firm.

Reducing the business portfolio

A business portfolio review may lead management to decide not to produce a particular product line, a particular business, or operations in a particular country, region, or world. Those units of the business portfolio that are weakly competitive are prime candidates for divestment, freeing up resources for expansion plans. In some cases, abandonment of an activity may be due to hostile conditions, such as increased political or financial risk, or foreign government regulations. In other cases, such refusal is due to low profitability due to aggressive competition, price controls, or simply due to a drop in demand.

When deciding to downsize a business portfolio, it is important to consider the interconnectedness of the various SEPs and therefore the impact that the withdrawal of one SEP may have on other SEPs in the same geographic area or other parts of the world. The abandonment of one activity in a particular country may affect the profitability of other activities through general marketing costs, general production capacity or distribution mechanisms. On the other hand, exiting one country or region may result in loss of economies of scale or adversely affect the image of the company's brand or product in other countries.

Consolidation

In addition to aggressively expanding its international presence, the firm should consider consolidating its global operations. These opportunities can be identified by analyzing the degree of interconnectedness of geographic markets and activities, which may reveal opportunities for standardizing a product or product line across countries, or for consolidating research and development or manufacturing activities in a region or globally. For example, individual geographic units for a given activity within a particular region or around the world may be grouped into one SEP. On the other hand, assortment groups of goods or activities within the same geographic units can be combined into one SEP.

Synergies can be achieved not only through economies of scale or improved coordination and integration of activities, but also through the transfer of ideas, know-how and experience from one activity to another or from one national or regional market to another. Connectivity analysis provides opportunities for transferring research and development expertise or innovative ideas for new products, advertising, or other marketing tactics tailored to the conditions in one country or region to other countries or regions. Similarly, skills in production, management and marketing acquired in a given activity or setting can be transferred to other activities or similar settings.

Global Business Portfolio Valuation

The final step is to evaluate the new business portfolio as a means to ensure continued growth. To do this, two aspects need to be considered: the balance between emerging and mature markets and the degree of interconnectedness between markets. As on a national scale, striking a balance between emerging and established markets is essential to ensure that the company is well positioned for future development. At the same time, it is necessary to consider the degree of interconnectedness between these markets, as it affects the company's ability to diversify risks when operating in independent markets, or, on the other hand, to achieve economies in operating in highly interconnected markets by gaining a strong competitive position.

Striking a balance between emerging and mature markets

As with the analysis of a business portfolio for the domestic market, it is necessary to consider the balance between presence in high-growth and established markets. For international markets, this issue is even more complex, as management must consider this balance both in terms of geographic areas and in terms of activities. Not only participation in advanced industries must be balanced with the production of new goods, but also activities in developed countries and regions of the world such as the United States and Western Europe must be balanced with activities in rapidly developing areas such as China and Southeast Asia.

While developing countries typically provide very attractive growth opportunities, their markets are often characterized by high levels of economic and financial volatility. The risks associated with transactions in such markets are usually significantly higher than in mature markets. In addition, the costs associated with entering and operating in such markets are usually higher because these markets lack an efficient distribution structure and require significant advertising costs to create company or brand awareness. Therefore, an appropriate balance needs to be struck between emerging and mature markets and between the different types of risks associated with market conditions and operations.

Concentration and interconnectedness of markets

In addition to considering the balance between emerging and established markets, management must consider the degree to which markets are interconnected. As in the previous case, this should be done for both geographic units and activities. Focusing on highly interconnected markets (such as markets within the same geographic region) that have similar demand patterns and similar market infrastructures allows a firm to realize significant savings. Companies with limited resources compared to their competitors may also opt for a similar strategy in order to focus their efforts. However, it is important to be aware that such a strategy may be vulnerable to changes in the economy and downturns in the markets, as well as in the event of increased attack from competitors.

On the other hand, operating in a number of markets with a low degree of interconnectedness allows management to spread the exposure to macroeconomic and competitive risks across more markets and a variety of economic conditions. By operating in different markets, companies can balance the risks associated with fluctuations in the economy, market, foreign exchange rates, as well as competitive risks. Diversifying operations across independent markets or regions also limits exposure to competitive threat. In the event of an attack in one market or in one region, you can redirect resources from another market in order to strengthen your position and repel the attack. At the same time, management should not scatter resources too much, as this can lead to a weakening of the firm's competitive position.

Thus, the analysis of the global business portfolio is an important tool that allows management to identify directions for development in global markets. It can be used to select target markets for future expansion and growth, to determine which resources to redirect, which operations to terminate, and to identify opportunities for efficiency gains through improved coordination and integration of operations across countries.

As markets around the world become more interconnected and more competitive, firms that are going to succeed in the competition must approach business from a global perspective and plan their marketing strategies on a global scale. To do this, it is necessary to consider a number of issues that go beyond the development of a strategy on a national scale. In this chapter, we have tried to highlight some of the key components of a global marketing strategy. Due to the limited scope of our article, these issues have not been considered in all details and with all the necessary depth. Those readers who are faced with the task of developing a strategy for entering the international arena may refer to the works (Douglas and Craig, 1995; Bradley, 1997; Yip, 1995), in which they will find a deeper consideration of the problem.

Susan P. Douglas, New York University C. Samuel Craig, Stern School of Busines

Literature

Bradley, Frank (1997) International Marketing Strategy, London: Prentice-Hall International. Buzzell, Robert D. (1968) "Can you standardize multinational marketing?", Harvard Business Review

November-December: 102-13. Day, George S. (1984) Strategic Market Planning: The Pursuit of Competitive Advantage, St. Paul, MN:

West Publishing Co.

Douglas, Susan P. and Craig, C. Samuel (1995) Global Marketing Strategy, New York: McGraw-Hill. Yip, George S. (1995) Total Global Strategy, Englewood Cliffs, NJ. Prentice Hall.

1.1. The concept and essence of international marketing

Definition of international marketing

International Marketing is a market concept for managing the company's international activities, focused on the needs of end-users in various countries and the formation of their preferences in accordance with the strategic goals of optimizing and expanding business on a global scale.

International marketing determines the marketing activities of the company, primarily when moving capital, goods, services across the borders of states, that is, it acts primarily as export marketing, marketing in the markets of foreign countries. At the same time, international marketing cannot be understood only as export, foreign trade marketing or as a simple form of effective organization of sales of goods abroad. This is a broader and more capacious concept.

International marketing involves marketing activities both outside the country and within it, if:

• the firm is part of an organization or company operating abroad (if it is its branch or subsidiary, etc.);
• the firm is influenced and / or controlled by its activities from abroad, including if the company is affiliated.

In addition, international marketing includes issues of effective organization of import purchases.

International Marketing is a way of thinking, philosophy, the company's approach to entrepreneurship from international, global positions. It assumes the possibility of searching and optimizing on a planned and systematic basis for profit on a scale of the entire the globe and not just in the national market territory.

In connection with the development of the processes of internationalization and globalization of business, it is now fairer to consider international marketing as a representative and typical marketing of the modern world of a market economy.

International activities that are the object of international marketing can be carried out in various forms, the main of which are listed below.

Main types of international activities

By scale and geography of coverage of market operations There are four types of activities:

• export;
• import;
• foreign trade;
• foreign economic.

The form and content of the operations carried out

• ordinary international sale of goods and services;
• construction of facilities abroad (complete deliveries);
• international engineering and consulting services;
• international transactions based on tolling raw materials;
• international scientific and technical cooperation;
• international production and marketing cooperation;
• participation in international consortiums and strategic alliances;
• the export of capital abroad for the acquisition of industrial and other property in order to obtain entrepreneurial profits (direct foreign investment);
• attraction of direct foreign investment in Russia;
• participation in operations on foreign stock and currency markets;
• acquisition of blocks of shares for the purpose of equity participation in profits;
• creation of joint ventures in Russia and abroad;
• acquisition of rights to own, dispose or manage resources abroad;
• granting concessions in Russia with the division of extracted or industrial products, etc.;
• international competitive forms of organized trade (exchanges, auctions and trades);
• international economic activity, which involves the organization of business abroad in the form of opening branches, own enterprises and the development of economic contacts not only between Russia and a foreign country or countries, but also between third countries, etc.

By type of connectedness of foreign trade operations there are two types of activities:

• unrelated transactions;
• counter deals:
• barter or barter;
• offsetting;
• offset transactions.

By spheres (objects) of foreign trade and foreign economic operations there are the following activities:

• export/import of commodities;
• export/import of engineering goods;
• export/import of consumer goods;
• export/import of services;
• export/import of labor force;
• export/import of capital (direct and portfolio investment).

To ensure the efficiency and high competitiveness of their work, firms are forced to resort to international marketing technologies. Moreover, when organizing international marketing, each individual type of goods and services has its own specifics and requires the possession of special skills and competent information, including information on the relevant countries.

The development of internationalization and globalization of production, the growth of international trade and direct investment contributed to the increasing importance of international marketing in the management of companies. So, in the 90s. 20th century the growth rate of international trade was approximately 5 times higher than the growth rate of world production, and by 1996 the volume of world merchandise trade had grown 16 times compared to 1950, while GDP increased 5.5 times over this period. Such a rapid growth of world trade has led to a qualitative change in the role of international marketing and an increase in its assessment as the main type of marketing in the modern period.

The present time is characterized by significant changes in the nature and forms of international trade, which also contributes to the increase in the value, development and improvement of the forms and methods of international marketing. It's connected:

• with the strengthening of the role of TNCs and global companies and, along with this, the globalization of international trade;
• higher growth rates of international trade compared to the growth rates of GDP and industrial production;
• the complication of international trade objects: the growth of trade in high-tech, science-intensive goods, the growth in the share of services and intellectual property, the supply of complete equipment, the purchase and sale of companies.

International marketing as one of the global strategies for expanding the firm's business

Any company is interested in the development and expansion of its business activities. Accordingly, it is faced with the task of defining global strategies, the implementation of which can expand the scope of business. This is primarily due to the choice of strategic business zones, strategic business units, which are extremely important to determine in order to ensure the effectiveness of the development of entrepreneurial activity.

In marketing, three global strategies have been developed to ensure the expansion and development of business and involve:

• diversification of business activities;
• geographic expansion entrepreneurial activity, including through the internationalization and globalization of business;
• expanding business activities through market segmentation.

Diversification means the development of unrelated areas of entrepreneurial activity.

The strategy of geographic expansion of business involves entering new geographic markets. In this case, the company expands its business through the development of new, including foreign, markets. The strategy of internationalization and globalization is directly related to international marketing activities, international marketing.

The segmentation strategy involves the division of consumers into groups with a homogeneous nature of demand and the same type of response to marketing impact. This strategy allows you to select and cover the smallest shades of demand, which makes it possible to expand sales within this market. In the segmentation strategy, the marketing approach is most traceable - meeting the needs of various consumer groups. It is also used in international marketing, since different countries have their own national and other characteristics that determine the specifics of consumer demand, external marketing environment, negotiation rules, etc.

General and specific in international and national marketing

There are no fundamental, fundamental differences between domestic marketing - when working on the national market - and international - export - does not exist. Any type of marketing uses the same principles of marketing activities.

Management of international marketing activities at the firm level includes the implementation of a number of specific, or specific, functions.

Analytic function– study of the international market and marketing environment of individual foreign countries and markets, the needs of consumers of foreign market segments.

Commodity-production function– improvement and adaptation of goods to the conditions of foreign markets, as well as the development of global products for the universal international segment of consumers living in different countries, and the implementation of a global marketing strategy.

Sales function– organization of a sales network in one's own country and abroad to promote export goods, purchase and distribute imported goods, implement pricing policy, carry out advertising work in foreign markets, etc.

In table. 1.1 shows the arguments of supporters and opponents of entering the international market.

Table 1.1

Arguments for and against entering the international market

The main reasons (motives) and goals for entering the international market

Finding higher business returns

Promotion of goods to the markets of other countries, expansion of sales

Development of international specialization and cooperation in order to increase business efficiency

Solving the problem of declining demand in the domestic market

Smoothing out sharp fluctuations in demand

Product life cycle extension

Reduction of risks due to their dispersal and geographic diversification of operations

Obtaining recognition abroad and gaining international prestige for the company and its products

Certification by going abroad of the effectiveness of their entrepreneurial activity

Compliance with the requirements and preferences of customers

Improving the liquidity of the company's assets through the use of foreign sources of obtaining foreign exchange funds

Obtaining additional commercial effect by using the advantages of national factors of production resource potential foreign countries

Use of scientific and technical, raw materials, fuel and energy, investment and labor potential of other countries with a high degree of efficiency

More profitable use of free capital of your company abroad

The desire to recoup the costs of market research faster and more efficiently than it can be provided in the domestic market

Mastering the best practices of conducting international business, training and improving the competence of the company's personnel

Difficulties and dangers of entering foreign markets

Additional costs for marketing research business environment of foreign countries, geo- and demographic, political and legal, economic, scientific and technical, cultural, social and other features of the demand of local consumers and business organization

Complication of management and general work of the company. The need to have and / or train qualified specialists with knowledge of the characteristics of the markets of the respective countries and regions, owning foreign languages who are familiar with the specifics of business culture, negotiation, requests and preferences of foreign consumers

The need to modify and adapt the components of the marketing mix: product, pricing, marketing policy and promotion policy to the requirements of foreign markets

Main types of international marketing

International Marketing - a collective concept that includes a wide and diverse range of its species and subspecies.

By number of participating countries

• bilateral, when two countries are involved in international marketing relations, united by unilateral or counter operations;
• multilateral, when three or more countries are involved in international marketing relations, united by successive operations.

By objects, implementation operations There are seven types of marketing:

By using an adaptation strategy or strategies to standardize marketing efforts There are two types of marketing:

• multinational, associated with the need for flexible adaptation of marketing technologies in accordance with the requirements of each individual foreign market;
• global, involving the development of a standard marketing program of work in all or most foreign markets and dealing with a single product, a single brand, a standardized advertising campaign, etc.

On the use of technical means of communication allocate:

• Internet marketing, including e-commerce;
• TV marketing via satellite communication channels.

By the nature of the subject of marketing actions There are two types of marketing:

• international TNC, which is the most advanced and technologically advanced;
• international small and medium firms.

International marketing also differs by types of goods and services.

In table. 1.2 shows the features of the development of Russian international marketing.

Table 1.2

Features of the development of international marketing in Russia

Period	Stage	Characteristic
Late 1960s - mid 1970s	Scientific formation of international marketing	Monopoly on foreign trade: international marketing is carried out by VEOs, it is strictly limited and formalized at a scientific, intuitive and proactive level
Mid 1970s – 1987	Organizational design of international marketing	Monopoly on foreign trade: international marketing is carried out by VEOs; it is limited and begins to develop at the organizational level. February 17, 1976 constituent Assembly marketing section at the Chamber of Commerce and Industry (CCI) of the USSR. This day can be considered the birthday of marketing in Russia
1987 - 1992	Training in international marketing and its practical development	In 1987, the monopoly on foreign trade in the USSR was eliminated; the number of participants in foreign economic activity is growing, and there is a practical development of international marketing. In the same year, the Russian Marketing Association was established.
2002 to present	The period of improvement of domestic and international marketing	Russia has developed an internal market, it is recognized as a country with a market economy. Competition is getting tougher. In order to maintain and improve competitive positions, Russian companies are switching to the use of the most complex and advanced international marketing technologies.

1.2. Global and multinational marketing

The evolution of the main international marketing strategies

The choice of a strategic direction involves the definition of the company's business areas, its strategic priorities, and the search for the optimal arena of competition. Each company, both in the domestic and international markets, first of all solves the issues of implementing a business expansion strategy, ensuring sales and profit growth, identifying and conquering optimal target markets, developing new products and well-known brands, creating an effective sales system, planning effective promotions, improving the pricing policy and, in general, optimizing the management of marketing activities. However, international activity brings to the work of the company such important differences as country and regional on a global scale. In international markets great importance has a definition of the geographical operating space and directions for expanding the company's activities, depending on the stage of business internationalization.

In the last decade of the XX century. the development of internationalization processes that increase the need for and attractiveness of international business activities for companies is determined by centripetal trends in a number of regions of the world: integration within the European Union, the North American Free Trade Agreement - NAFTA, the destruction of trade barriers in a number of countries, the gradual liberalization of the Japanese market, the creation market economy of the countries of the post-Soviet space, etc., as well as the fact that the markets of most developed countries have reached the stage of maturity and saturation.

Over the past period, international marketing has been characterized by the development and improvement of the main strategy for its development (Table 1.3).

Table 1.3

International Marketing Development Strategies

The internationalization strategy in international marketing is observed when the number of countries involved in the production and marketing of a particular product increases significantly and the product loses its national identity. The associativity of the product and the country of origin is lost. The product appears to be international, since it is produced not in one, but in several countries or includes scientific and technical solutions, parts, assemblies from a number of countries. The brand is associated more with the company, and not with the "nationality" of the product. For example, an IBM computer cannot be called American, because it is manufactured in the countries of Southeast Asia, Eastern Europe, and therefore the definition of yellow assembly, white assembly, etc. is in circulation. A TV made by Sony is no longer Japanese, as it was assembled in Southeast Asia or Western European countries.

The process of internationalization of the company's activities consists of a number of stages, each of which is characterized by its own strategic objectives and priorities in decision-making.

Historically, companies have solved the problem of developing an optimal strategy for working abroad in the following way through the use of a number of options, the main of which are a multinational (multilocal, adaptive) strategy and a global (standard) strategy. In principle, a company may not change the strategy used in the domestic market in the foreign market, or, in order to increase its competitive position, adapt marketing activities to the requirements of a specific foreign market (multinational strategy) or create a strategic symbiosis: apply the strategy of standard adaptation or adaptable (differentiated) standardization and, finally, use the strategy of standardizing marketing efforts in the markets of different countries (Fig. 1.1).

Rice. 1.1. Development of the main international marketing strategy

The expansion of market participation and the transition from the strategy of adaptation to the global strategy of the company, integrated and standardized on a global scale, occurs as a result of the development of foreign economic and international activities and the complication of the mechanism and methods of international marketing.

The stage of the so-called pre-internationalization is characterized by a situation where all the efforts of the company are concentrated on the implementation of a marketing strategy in the domestic market in order to prepare and develop active marketing activities in foreign markets.

However, in some cases, the company limits its activities within the geographic boundaries of its country. Such a strategy is characteristic either of rather weak competitive companies, or of “sluggish”, sluggish manufacturers and suppliers, who are characterized by some complacency and complacency, allowing them to be content with the framework of the traditionally served domestic market. A protracted pre-internationalization strategy is particularly vulnerable to heavy marketing by foreign competitors. An example of this is the loss of competition in the national market of American color television manufacturers to the onslaught of Japanese competitors (1960-1970), as a result of which only the American manufacturer Zenith managed to stay in the industry (12% of the US market). The loss of many market segments by Russian manufacturers in their market in the 1990s can also serve as an example.

On the first stage development of the main strategy of international marketing, the company enters the international market, learns to work on it and improves in developing the main strategic directions of its development and ensuring high competitive positions, initially in the domestic and then in the foreign market (there are less cases when the company immediately starts working on external market or first in the external market and then in the domestic market). In this case, if the firm takes certain steps to develop foreign markets, then this happens by analogy with strategic marketing actions in the domestic market, that is, without adaptive or any other changes, according to the same strategy for developing and expanding the market share, as well as in the domestic market. Due to the lack of experience and knowledge about foreign markets and international marketing, the company seeks to use in the foreign market those competitive advantages that have developed in the domestic market, which allows it to receive an additional effect from the geographical increase in the scale of activities.

Savings from cost savings can be reinforced high quality products or their technological advantages, experience in organizing mass trade, high company image or brand awareness. The firm aims to expand its overseas footprint and ultimately consolidate market experience in both domestic and international markets.

Copying the strategy of domestic marketing in foreign markets is also very dangerous, since a company entering the international market for the first time offers its own product that meets the requirements of the domestic market to a foreign consumer without any adaptation, which entails Negative consequences, primarily related to the fact that the consumer does not accept a product alien to him. It is mainly characteristic of unskilled and inexperienced companies starting international activities, including, unfortunately, a large number of Russian ones.

The first steps of a firm in a new foreign market are usually not systematic and are random or empirical in nature (trial and error). As a rule, foreign trade operations are carried out in this case as a result of an order from a foreign buyer in relation to the goods of this company or from a domestic buyer in relation to foreign goods, or in connection with the appearance of a potential importer, etc. Gradually, the task of systematic management and marketing organization of an international activities, in connection with which there is an increasing need to determine the level of involvement of the company in world trade and the degree of the corresponding risk in order to optimally realize the most attractive opportunities for the company.

At the first stage, when a company enters the international market, the main goal for it is the geographical expansion of activities, the problem of geographical space, in connection with which it has to determine which foreign markets are primarily suitable for its products and which services are able to provide optimal profits. Thus, the problem of gaining a foothold in the international market is being solved.

At the second stage the company develops a strategy for expanding business abroad through internationalization in the form of, as a rule, multinationalization of its international activities using a system of measures to adapt the components of the marketing mix in the foreign market for individual countries and regions in order to individualize actions in each of them and ensure high competitiveness benefits. At this stage, the company solves the problem of developing the potential of the foreign local market and taking advantage of cost savings through increased production and sales. This is done by modifying products, expanding the product line and developing new products adapted to local needs.

Geographic consolidation comes to the fore, when a center for the expansion of product lines is created in each foreign country, as a result of which the placement of product lines is rationalized and the ideas of new products and the product lines themselves are transmitted.

At the third stage there is a standardization of the adaptive strategies of foreign marketing activities of the company or the developed single standard marketing strategy for expanding foreign markets is undergoing some, as a rule, insignificant adaptation to the specific requirements of the markets of individual countries or regions. Thus, the firm seeks to reduce the degree of necessary adaptation in each foreign local market by developing standardized marketing mix strategies that target unified consumer needs, regardless of their country of residence. This approach creates opportunities for significant cost savings and increased profitability of international business.

At the fourth stage the mechanisms for coordinating and integrating the company's strategy at the international level are being improved, the transfer and exchange of knowledge and experience in business between the company's divisions located in different countries is being activated, which leads to the development of a strategy focused on global and regional markets, and not on every local market of foreign countries . At this stage of improving the international marketing strategy, the company has the opportunity to develop and implement a single integrated standard globalization strategy for the product served in all countries and regions, regardless of the specifics of the nature of their local demand. At the same time, if there is some adaptation in terms of the components of the marketing mix, then it is very insignificant and does not play a primary role. At the same time, a serious mistake would be to understand this strategy as a distribution of a marketing strategy for a given product used in the domestic market to promote it to all markets abroad, i.e. this strategy should not be confused with a strategic approach in international marketing at the first stage of its development. .

In this case, the firm's attention is focused on the issues of consolidation and integration of international marketing activities, which determines the benefits due to the synergy of multinational operations. As a result, the need for the concept of the internal market disappears, and corporate, including marketing, planning is carried out on a global basis.

At each stage of its development, the company faces the need to choose the optimal strategy for the development of international marketing, which can vary not only in time, but also for a specific product.

The key tasks and strategic priorities for choosing an international marketing strategy depend on the experience of the company, its competitive strength, the nature of its operations, etc. In addition, one can trace the general trend in the development of the main international marketing strategies over time (which is typical for the most advanced companies ), i.e. the transition from the strategy of international adaptation to the strategy of globalization and standardization of international marketing.

Multinational Marketing

The adaptation strategy is the most pronounced manifestation of the marketing approach to the organization of the international activities of the company and takes into account differences in the needs and preferences of consumers, customs, beliefs and culture, rules for organizing trade, distribution networks, economic, political, legal, geographical, demographic and other conditions, and also the competitive situation in each country. It is this strategy that most companies adhere to in relation to a large number of goods they offer on the world market, since it is optimal or due to the inaccessibility of technologies for the development and promotion of global goods and global marketing programs to promote them.

For example, Procter & Gamble is pursuing a strategy of adaptation, or multinationalization. The smell of Camay products, the taste of Crest products, and the formula of Head & Shoulders products vary by region, tailored to the specifics of consumer preferences. Such a strategy implies an interest in further penetration into foreign markets and, as a result, the expansion of the product range of manufactured products, which, to a certain extent, creates economies of scale in production and marketing due to the expansion of markets in foreign countries.

However, it must be taken into account that international markets are very complex and the promotion of new products adapted to the specific local needs of consumers requires additional costs, which make it rather problematic to gain from economies of scale in production and distribution. In addition, the adaptation strategy implies the need to engage in competition in local foreign markets and respond to the initiatives of local competitors.

During the implementation of the adaptation strategy, a serious task is set to develop local foreign markets. Measures are being taken to stimulate and encourage the initiative and motivation of local managers who develop separate marketing programs for relevant markets and products. Much attention is paid to the organization of local sales, development of distribution infrastructure, sales network in foreign markets.

This strategy, if we analyze the general trend of its development, erodes over time and increasingly gives way to the strategy of globalization (see more about it below). However, there are also reverse phenomena. For example, in the European production of household electrical appliances in the early 70s. 20th century the main manufacturing firms focused on the standardization of the regional marketing strategy, but in the 1980s. adaptive national strategies for international market action have come to the fore.

Adapted, differentiated standardization strategy

A compromise between standardized and adaptive strategy is the strategy of adaptive, or differentiated, standardization, seen as a transitional strategy from adaptation to globalization in international marketing. Another situation is also possible, when a firm moves to a strategy of adapted, differentiated standardization from a global strategy, seeking to optimize it through certain measures to adapt to local conditions in each particular country.

In this case, the parent company develops a global strategy for international marketing, trusting the management of foreign affiliates, who own the specifics of national, local characteristics and customs, to vary the implementation of this global strategy. In this regard, the slogan "Be global, act local" has become widespread in international marketing.

Supporters of such a strategy are T. Brignall, Vice Chairman of Collet Dickenson Peers & Partners, and B. Tragos, Chairman of Ted Beits, who noted the contradiction in the term “single global marketing” and emphasized that there is no single global consumer. .

A typical example of using a differentiated standardization strategy is McDonald's. This company offers standard single system service in any of its restaurants in any country, but the menu is diversified taking into account the specific tastes of consumers in a particular country. McDonald's varies the proportions of meat in hamburgers and changes the standard menu of restaurants depending on the preferences of customers of different nationalities, in particular in France and Germany, salads are included in the menu. McDonald's offers beer in Germany, wine in France, lamb pie in Australia and signature spaghetti in the Philippines to compete with local fast food restaurants.

Even in the case of a pronounced strategy of globalization and standardization, there is some, albeit minor, adaptation. In particular, the Coca-Cola drink has different degrees of sweetness and carbonation in different countries (in Greece it is sold less sweet, and in Eastern Europe low gas level). In addition, depending on the country, the packaging and artificial sweetener used for such a variety of drink as Light Coke (formerly Diet) have changed.

Levi Strauss uses different advertising campaign strategies in the UK and overseas markets. Dan Chow, advertising manager for Levi's Americas, commented that in the United States Levi's products are positioned as both highly functional and fashionable, in England they are perceived as trendy clothing, and in Japan they embody a romantic spirit. This circumstance does not allow the use of an identical advertising strategy in these markets.

High-tech electronic products must comply with national technical standards, and in the markets of different countries may occupy various positions. Thus, computer systems and software in Japan differ in their technical characteristics from their counterparts in the US and Europe.

Or, for example, when the question arose of expanding the world market for the Boeing-737 airliner, it turned out that it did not correspond to the specifics of the market in developing countries. The technical characteristics of the aircraft did not allow landing on short, especially unpaved, runways, which required modification of the aircraft (wing configuration, landing gear mechanism, etc.). The timely successful adaptation of the standardized core product made the Boeing 737 the world's best-selling airliner.

An interesting example is the Unilever company, which has been very successful in promoting a number of its products on the world market using unified positioning principles, an advertising theme and its own symbol (teddy bear), but at the same time using different brand names depending on the specifics of local markets for abroad.

Global marketing (standardization strategy)

For international marketing at the end of the 20th century. there was a trend of increasing globalization and standardization of goods promoted on the world market. The standardization strategy is a single global strategy applied in various foreign markets. We can say that it represents the highest level of optimization of marketing activities on an international scale, its most economical type. The use of the globalization (standardization) strategy assumes that certain goods have universal, not only basic, but also specific properties that are attractive to consumers regardless of their country of residence. The strategy of globalization lies in the fact that a single range of products is sold according to a single standard marketing program. For example, the president of Coca-Cola calls this strategy "One look, one sound, one sale."

The theoretical development of the idea of ​​global marketing belongs to T. Levitt, professor of marketing at Harvard University, who predicts the complete standardization of the product and its marketing and advertising strategy on a global scale as the optimal strategy for the development of modern international marketing. In his work “Marketing Imagination”, T. Levitt emphasizes that due to the development of means of transport and communication technologies, the modern world is turning into a single common market in which people have the same tastes and preferences, want to have the same goods and lead the same image. life regardless of the country of residence. This contributes to the standardization of goods with a minimum of costs and the organization of sales according to a single unified marketing program throughout the world market. Therefore, companies that fail to implement a global strategy for international marketing will inevitably fail in the global competition in the new global reality.

Non-alcoholic beverages and fast foods are clear examples of the effectiveness of the global strategy. So, the soft drink "Coca-Cola" not only quenches thirst, but also meets the taste preferences of the population of almost all countries of the globe that have their own national soft drinks (for example, in Russia - kvass, in Mongolia - koumiss, in tropical countries - coconut milk, etc.). Global strategy and global recognition strengthen consumer preferences and increase consumer loyalty to a given product, its image and turn the product into a global brand.

Good examples of standardized global brands and a standardized strategy for promoting a company in the world market are products such as Coca-Cola soft drink, toothpaste Colgate, Marlboro cigarettes, McDonald's sandwiches, Levi Strauss jeans, Black & Decker power tools, and other world-leading products. The elements of the marketing mix of these companies are identical, with minor differences across countries. Coca-Cola is the same whether you buy it in Moscow, Seoul or New York. This is a drink that enjoys worldwide recognition.

Black & Decker takes a global approach to international marketing in 50 country markets, providing a high degree standardizing power tools and making minor modifications to them due to differences in electrical systems and industry safety and regulatory requirements. This strategy was prompted by competition from cheap products of Japanese firms in the 70s. 20th century

The benefits of a standardization strategy are so compelling that, for example, Mars has changed the name of the Marathon chocolate bar, under which it was sold in the UK, to the widely used brand name Snickers. The Japanese company Canon, developing the first copier for the global market, abandoned the traditional Japanese paper format.

The global strategy has helped US-based Becton Dickinson, a manufacturer of disposable syringes, to successfully attack competitors, in particular Japan, in three key markets at once: Hong Kong, Singapore and the Philippines.

global focus - one of the reasons for the success of Japanese automobile companies in the world market. The model (parametric) product range of Toyota is much shorter than the number of modifications of General Motors, and is focused on the preferences of motorists, in whatever country they live. This allowed the Japanese company to generate overseas sales that exceeded that of its American competitor.

Many successful financial institutions also attribute this to the fact that they have global, standardized offices serving business and leisure travelers with internationally standardized preferences.

Currently, there are a number of factors that contribute to or make it necessary to use the globalization strategy for modern large companies, primarily TNCs.

Factors for using the globalization strategy

Market factors

Modern market development, as well as the development of distribution networks in most countries, create conditions for the active implementation of the globalization strategy. First of all, it is a certain homogeneity, homogeneity of consumers and their preferences regardless of state borders and an increasing similarity of consumer needs in different countries.

It is when consumers in different countries need goods and services with the same properties (or can be convinced of this) that the possibility of successfully introducing a standardized single product to the market is created. In this case, the main task is to competently determine the properties to be standardized. Homogeneity, homogeneity of needs and preferences justifies the preference for a narrow product range, that is, the development and maintenance of a limited number of product offerings, which facilitates the service of a large number of markets.

Also, a market factor is the presence on the market of so-called global consumers who purchase products in large quantities on a centralized and coordinated basis, and then use them decentralized (for example, the ministries of defense of individual countries, the World Health Organization, etc.). In turn, global consumers are divided into national and multinational. The former search for suppliers all over the world, but consume goods only within their own country, the latter search for suppliers all over the world and consume goods also in many countries. The presence of such global consumers in today's market makes it possible to use a global marketing strategy and global marketing programs.

Global distribution channels are also a market factor that encourages companies to use a global strategy in international marketing, although this is still quite rare. An example is the European food distribution and retail system. Global members of distribution channels may purchase goods on a global or regional basis. Such intermediaries are preferable given the difference in prices between countries.

The increase in markets and the growth in their number make the task of leveling market differences depending on countries and regions relevant.

Cost Factors

This is primarily an effect of scale from expanding the scope of activities through entering international markets, which primarily involves the concentration of production and capital with the optimization of business cost indicators as a result of the implementation of global unified marketing programs in the main markets of most foreign countries.

Wide international economic activity allows the company to accelerate the process of mastering advanced business knowledge and management technologies, accumulate world experience in this area, which gives great benefits in terms of reducing total costs when using advanced business knowledge and experience on a global scale.

High sourcing efficiency and low costs are achieved by being able to use the most cost-effective raw materials and energy sources around the globe, as well as providing global sources of supply.

Optimal transportation conditions (the number of homogeneous cargoes), based on sales volumes, the possibility of long-term storage of goods, the absence of strict delivery times, the absence of the need to locate production near consumers and other conditions, create a good basis for optimizing logistics issues with a global, unified approach to organizing international activities .

Sectoral skill levels and wages vary widely from country to country, so employing high-skilled nationals or low-wage labor (or sometimes both) provides a highly favorable environment for increasing productivity and reducing costs.

The development of a limited range of unified, standardized goods also reduces production and distribution costs. The elimination of duplication of product development simultaneously in several countries occurs due to the concentration of developments in one center using the world experience of specialists from different countries.

Low costs and low prices create a high competitive advantage for companies pursuing a globalization strategy.

Environmental conditions

The modern external macro-environment of international business is characterized by the globalization of the world economy, industries and business. For example, civil aviation has long been a global industry. In an increasing number of industries, global potential is emerging; even the European restaurant business is becoming attractive for the globalization strategy of the main industry multinational companies.

Accelerated scientific and technological progress and the growth of technology investments create positive prerequisites for the active implementation of the globalization strategy by the largest companies in the world.

The international information environment and the possibility of using the information scattered in the world with the help of the latest means of communication, the possibility of using the benefits associated with its novelty, also testify in favor of a global strategy for international marketing.

Of particular importance for the development of international, especially global, activities is the interstate and state policy in the respective countries, on the markets of which the company directs its efforts. The trade policy of the government, the system of import quotas, tariffs, non-tariff barriers, technical and sanitary control, export promotion, regulation of foreign investment, taxation, restrictions on financial and foreign exchange flows, the policy of local authorities, prohibitions of certain forms of advertising, etc. In many ways, they are able to influence positively or negatively the success of a company seeking to work in the market of a given country. In particular, the reduction of tariff and non-tariff barriers in most countries contributes to the development of a globalization strategy.

The globalization of culture, and above all the culture of consumption, can also contribute to the globalization of the international strategy of companies. At present, we can talk about the integration of cultures on a global scale, that as a result of the active communication policy of the largest TNCs, in most countries a standardized and unified consumer (from the point of view of consumer culture - an average person) has been created, who eats McDonalds sandwiches, drinks soft drinks. Coca-Cola drinks, chews Stimorol gum, brushes teeth with Colgate toothpaste, watches Japanese Sony TV, talks on a Motorola cell phone, etc.

Competitive Factors

The conditions of international competition can significantly influence the processes of globalization of marketing strategies. There may be a competitive interdependence between countries, which is associated with the mechanism of separation of activities and due to this reduction in costs. The market share of competitors in a particular country affects the size and overall competitive position of a company in all countries. In response to competitors' moves, a company can focus its efforts on expanding market participation, pursuing a unified, unified marketing strategy, and an integrated global competitive strategy. In this case, the definition and positioning of global competitors is of great importance.

Management conditions

Marketing management technologies in companies have reached a high level of development, which makes it possible to use not only and not so much passive levers of marketing influence on the company's competitive position in world markets, but also active methods that construct the market and consumer demands in accordance with the developed global marketing strategies. It also enhances the company's ability to implement its global strategy.

Temporary conditions

Each of the above factors is transformed over time, in connection with which the global strategy also changes: it can become more adaptive or rigidly standardized.

So, when using the globalization (standardization) strategy, the company receives a number of benefits, which are primarily associated with lower costs for promoting their products on the world market. One of the biggest benefits of a globalization strategy is cost savings, and this happens in several ways.

Firstly, economies of scale when combining the production capacity or other resources of two or more countries. A good example is Sony's concentration of CD production in Terre Howth (Indiana, USA) and Salzburg (Austria).

Secondly, reducing costs by locating production or other activities in countries with cheap raw materials and labor. In particular, the southern territories of the United States, neighboring Mexico, are teeming with American enterprises that use low-paid Mexican labor.

Thirdly, cost savings are achieved through the effect of flexibility, since, by locating production in different countries, the company is able to flexibly respond to ongoing changes and move it from country to country in order to realize the benefits of minimizing costs in a given period.

Global multinational companies are familiar with macroeconomic technology and, using linear programming models and others, take into account differences in exchange rates, tax rates, transportation costs, wages, etc. in different countries in order to identify the optimal ones in terms of profits at scale. the globe and minimal in terms of costs of the sphere of application of their capital and efforts.

Fourth, the integrated global strategy provides cost savings through the effect of increasing market power. Companies that do business on a global scale and follow a global, standardized strategy gain additional market and competitive advantages that allow them to dictate their terms to suppliers, workers and, in a sense, governments of these countries.

The main advantages of using a globalization (standardization) strategy in a company's international marketing are given below.

Benefits of a globalization (standardization) strategy

• Cost reduction:
• significant savings due to the absence of the need to expand the product, parametric range;
• significant cost savings due to the scale of production and sales, including all elements of the marketing mix (commodity, sales, pricing and promotion policies);
• savings on the use of a single marketing program.
• Improving the quality of products and marketing programs.
• The ability to conduct a single advertising campaign on a global scale.
• Advantages of standardized logistics (in case of insufficient quantity of goods in one country, stocks are moved from another region).
• Improving the international image of the company and its products.
• Strengthening consumer preferences.
• Strengthening competitive influences.
• Win in international competition.

Limitations of the globalization strategy

However, it is very difficult to achieve complete standardization in international marketing, which is determined by the following limitations associated with the development of standardized trademarks.

Cultural and consumer stereotypes

In different cultural conditions, a different demand for the same type of product is formed. So, butter in some countries is used for cooking and, as a rule, a salted version is preferred, while in other countries it is spread on bread. In Southeast Asia, they prefer to wash in cold water, and in Europe - in hot, and therefore the designs of washing machines differ.

Language

Quite often, the brand name of the product and advertising have to be changed due to language differences. Thus, the name of the French drink "Pschitt" in the UK is associated with a swear word, the advertising slogan for hair shampoo "Wash (louse) & Go" in its first word is unlikely to cause positive emotions among Russian-speaking consumers, etc.

Rules and technical standards

held in the world big job on the standardization of technical and technological norms and rules (within the UN and other international organizations), however, certain differences still exist. An example is the allowable norms of food additives and dyes in products in various countries, the norms of genetically modified products, etc.

Accessibility of the media and local preferences for ways to promote products

Differences in national legislation play an important role here. In Denmark, for example, advertising of wines is prohibited, while in the Netherlands it is allowed. In France, you can't advertise beer on TV, but in most other European countries, including Germany, you can. Sales promotion campaigns vary according to local consumer preferences; French shoppers benefit from premium coupons and 2-in-1 packages, while UK shoppers are offered percentage discounts.

Organizational structure and business culture

A standardization strategy proves difficult to implement in cases where the management of overseas affiliates has a high degree of independence and self-sufficiency, when local companies have been bought abroad and local management personnel are overly focused on the characteristics of the local market.

Disadvantages of a Globalization Strategy

1. Complicating the coordination and reporting of a firm pursuing a globalization strategy can cause a significant increase in management costs and staffing.
2. Over-centralization of power and management can adversely affect the motivation and business morale of the staff.
3. Global strategies are dangerous because of the global nature of possible errors. Premature entry into the foreign market, unreasonable expansion of the market, etc. are possible.
4. Standardization and unification of products can lead to the fact that it will no longer satisfy consumers, in whatever country they live. In addition, a global standard product is developed for a global (to a certain extent virtual) market, and it is not always able to satisfy the specific needs of consumers in all its countries.
5. The concentration, standardization and rationalization of activities deprives international marketing of its true essence - focusing on meeting the specific needs of specific consumers, i.e., to the loss of flexibility and slower response to market requirements with its variety of shades of requests and preferences. Unified marketing reduces the ability to adapt to the requirements and behavior of local consumers. For example, British Airline Headquarters rated the "Manhattan Landing" television commercial featuring the New York City Midtown, developed by renowned advertising agency Saachi & Saachi, as a global success and recommended that it be shown to advertise its services in all countries of the world, however in most of them, the view of New York did not evoke the proper emotions and moods
6. The risks of international activities are increasing, including currency risks associated with differences in costs and incomes received in different countries. Foreign exchange earnings in this case needs a special system of insurance.
7. Integrated competitive actions can lead to a decrease in revenues, profits, deterioration of competitive positions in local markets, including in a relatively long term. In this case, individual divisions of the company have to sacrifice themselves in the name of the interests of the company as a whole (expending significant efforts to fight a global competitor, and not a direct competitor in this local market).
8. The role of the communication policy of global marketing (especially for consumer goods) is excessively high, when not only is there an active influence on the consumer's purchasing decision around the world, but also influences his feelings, emotions, beliefs in order to impose appropriate motivations and ideas (which is proposed exactly what he wants). This cannot but cause consumer dissatisfaction in the end (as can be seen in the case of protest demonstrations against McDonald's in many countries of the world).

Making a decision on the choice of strategy. Dilemma: adaptation or standardization

Finding an answer to the question of the expediency of globalizing the company's activities and its methods is the main problem of managers around the world. In the organization of international activities, the company faces the need to solve a dilemma: adapt its market, and in particular marketing, strategy to the specifics of the respective country markets and consumers (multinational strategy, adaptation strategy) or use standard approaches in foreign expansion independently or with a small share of differences in requirements and requests of target groups in individual states (strategy of globalization, standardization). At the same time, in most cases, advanced companies adhere to the symbiosis of these two fundamental international marketing strategies and strive to effectively use both approaches simultaneously.

A specialist in practical marketing in a company engaged in international activities, for business optimization, decides on the choice of the main strategy for the implementation of foreign activities, including all aspects related to the overlap and interweaving of the advantages and disadvantages of each of them. The truth lies in the flexible use of the tools of a particular international marketing strategy in accordance with the conditions of the market environment and the capabilities of the company itself.

Companies and their managers determine the ratio of the degree of standardization and the degree of adaptation of the marketing complex of measures of market impact on the competitive position of the company and its promotion to foreign markets on a global scale, depending on the requirements and characteristics of a particular market (Table 1.4).

Table 1.4

Matrix of Basic Strategies in International Marketing

		Degree of coverage of international markets
		As many countries as possible	Several major countries
Strategic Approach to International Marketing	Standardized (global marketing)	Global Standardization Strategy (Global Brand Strategy)	Standardization strategy in major markets
	Adaptive (multinational marketing)	Global Adaptation Strategy	Adaptation strategy in key markets

The strategy of world standardization, or the strategy of a global brand (as, for example, in the company "Coca-Cola" in its main commodity items, including the drink "Diet Coke"), turns out to be beyond the power or is limited by a number of factors for many other companies that are forced to carry out partial market standardization on a more limited scale, or standardization only in the main, key markets, markets with the greatest opportunities, especially if consumer requirements for them are similar.

The global adaptation strategy, which most expresses the essence of international marketing, is the most costly strategy and is dictated by differences in the needs of consumers in different countries. Procter & Gamble is a prime example of such a strategy. The American version of the company's Ariel washing powder, which is in high demand in Europe and Latin America, is designed for lower water temperatures, produces more foam and guarantees faster washing. In Germany, changes have been made to the composition of this powder, taking into account the fact that there the laundry is soaked longer and at more high temperatures. In Japan, this product is designed for a shorter wash cycle and washing machines small sizes.

The adaptation strategy in key markets involves the concentration of resources for adaptation only in the main key markets selected by the company. Most often this happens due to insufficient resources of the company. An example of such a strategy is Domino's Pizza's marketing activities in the main markets of ten countries, using so-called cultural additives to change the taste of pizza: in the UK, pizza is added to sweet corn, in Japan - tuna meat, in Germany - salami, in Austria - shrimp.

1.3. TNCs are the main subject of international marketing

The concept of TNCs and the index of transnationality

Multinational companies and international monopolies

The importance of TNCs for international business is very high, and they are its main subjects. International trade is increasingly becoming a reflection, consequence and stimulus of relations between TNCs themselves, within TNCs - between the parent company and its subsidiaries and grandchildren, as well as between these and any other companies. For example, many American companies have opened their own branches and representative offices around the world and have established extensive production facilities there, which allows them to use cheap labor and other resources, as well as bypass complex trade barriers and maximize bottom line profits.

Transnational companies - an institutional form of internationalization and international marketing. The scope of their activities and "address" - the whole world. These are cosmopolitan companies with controlling capital of single national origin.

Foreign sales, which account for a significant share of TNCs, typically grow faster than domestic sales, with foreign sales typically accounting for more than 1/3 of total sales. Thus, the 25 largest multinational corporations in the United States receive 43% of total sales and 25% of the profits from the sale of their products abroad.

However, some caution should be exercised when classifying a company as a TNC, since not every company involved in international trade can be classified as a transnational corporation. A company can export all its products and receive 100% of its income from abroad, but this is not enough to be called transnational. Only a company that has its own production or other presence (representative office) abroad can be considered transnational.

At the same time, the international marketing activities of TNCs are distinguished by strict centralized control and coordination. To classify a company as a TNC, it is necessary to determine the transnationality index, which characterizes the degree of internationalization of the company's activities.

Transnationality Index (or international index ) is calculated based on the following indicators:

• the volume of production at foreign affiliates and its relation to domestic production (as the most important indicator);
• the volume of profits received in foreign branches in relation to the volume of profits of the company in the domestic market;
• employment in foreign affiliates and its relation to the number of employees in the domestic market;
• the share of foreign assets in the total assets of the company;
• foreign sales and its relation to domestic sales.

In appropriate cases, this index is also calculated in relation to the state, then the indicators are summarized for all major companies in the leading industries of a given country.

The processes of transnationalization also concern the service sector. For example, Agna, an American insurance company, has opened a claims processing center in Ireland, Texas Instruments has a branch office in India to develop software packages, and Lexis, a law firm, sends documents abroad by plane to be entered into computers there by local operators. Many firms do data processing in Barbados, where about 1,000 operators earn about $10 million from it. taxation.)

TNCs are not only large, but also medium-sized (with no more than 500 employees). For example, 50 medium-sized companies with no more than 500 employees belonging to TNCs had an average transnationality index of 27%, 13 had it exceeding 40%, and 6 had more than 50%.

A typical organizational structure of a TNC is a head parent company (holding) with headquarters, branches and branches, as well as subsidiaries and grandchildren both domestically and abroad. Of particular importance is the combination of the principles of centralization and decentralization in the management of TNCs, as well as conglomerate and synergistic forms of recruiting a portfolio of its business areas.

Well-known American TNCs are Warner-Lambert, ZM, Ford, IBM, H. J. Hinz, Gillette, Eastman Kodak, whose foreign sales account for more than 1/3 of the total sales.

It is also possible to distinguish multinational, multinational companies (MNCs), which are distinguished by their predominant attachment to the country of origin (in terms of volume of activity, relations with business and political circles, concentration of scientific and technical research) and the core of which forms the capital of two or three countries (for example, English - Dutch company "Royal Dutch Shell").

And, finally, we can talk about international monopolies (IM), which are characterized by the absence of a predominant attachment to the country of origin and are formed by the capital of several countries. However, to simplify the analysis in international marketing, all of the above companies are most often considered to be the same type - transnational companies.

Global Companies

The modern period is characterized by the active development of globalization processes, which is most clearly reflected in the transformation of the essence and nature of the activities of the largest companies in the world.

Recognizing the great role of transnational companies in the process of globalization, it should be borne in mind that a conventional TNC produces over 2/3 of all products in its own country, using 2/3 of its entire staff.

Global companies (GCs) have grown, as a rule, from TNCs and represent their variety, standing at the next stage of the “internationality” of their development. They lose their primary connection with the domestic market, focus on the requirements of the world market, globalize production and sales based on the strategy of standardizing marketing programs and technologies for the development of international, global business, which gives them an undeniable advantage in the competitive struggle in world markets, primarily by reducing costs. Examples include the American companies Coca-Cola, McDonald's, Nestle, Colgate, Marlboro, IBM, Procter & Gamble, Du Pont, Shell, Exxon, Mobil, Japanese and South Korean consumer electronics companies, the Japanese automaker Toyota, the automaker Daimler Chrysler, and others. GCs are also characterized by the use of global sources.

Global companies have significantly more high index transnationality compared to conventional TNCs, and their main work is aimed at standardizing product and marketing efforts to promote products in the world market, which allows them to gain significant benefits from economies of scale, global advertising and global branding. At the same time, scientific and technological progress creates high competitive advantages in terms of comparative costs.

Global companies not only act as a kind of government, but represent a special, global power on a global scale, the sphere of which knows no state borders. The greater the element of multinational participation in such a company, the more it seeks to free itself from the restrictive influence of the governments of the countries in which it operates.

The modern map of the world can be represented by the territories and spheres of influence of the Civil Code, the boundaries of which do not coincide with the boundaries of nation-states. The economic power of the Civil Code allows them to strengthen their political influence in the international arena. They have their own diplomats-employees to organize relations with the governments of various countries, protecting the interests of their shareholders, without distinguishing between their nationality.

To maintain high international competitiveness in the XXI century. leading large companies will become increasingly global.

conclusions

• International marketing is a market concept for managing the international activities of a company, focused on the needs of end consumers in various countries and the formation of their preferences in accordance with the strategic goals of optimizing and expanding business on a global scale.
• International marketing is primarily the marketing activity of transnational companies (TNCs) and international monopolies, which extends to foreign countries, but also includes work in foreign markets of small and medium-sized enterprises.
• The development of internationalization and globalization of production, the growth of international trade and direct investment contributed to the increasing importance of international marketing in the management of companies.
• Any company is interested in the development and expansion of its business activities. Accordingly, it is faced with the task of defining global strategies, the implementation of which can expand the scope of business.
• There are no fundamental, fundamental differences between domestic marketing (when working on the national market) and international (export) marketing. Any type of marketing uses the same principles of marketing activities.
• The specificity of international marketing is generated by the peculiarities of the functioning of foreign markets, the conditions for their development and work on them. Firms should take this specificity into account when entering foreign markets or expanding.
• International marketing is a collective concept that includes a wide and varied range of its types and subspecies.
• The importance of TNCs for international business is very high, and they are its main subjects. International trade is increasingly becoming a reflection, consequence and stimulus of relations between TNCs themselves, within TNCs - between the parent company and its subsidiaries and grandchildren, as well as between these and any other companies.

Questions and tasks for self-examination

1. Define international marketing and show how it differs from national, domestic marketing.
2. List the benefits and risks associated with international activities.
3. What are the major strategic decisions firms face in international marketing?
4. What types of international marketing do you know? Which of them does the company you know use?
5. Give examples of restrictions on the development of the strategy of globalization, standardization.
6. Use the example of companies you know to illustrate the globalization strategy and multinationalization strategy in international marketing.
7. What is the difference between transnational and international companies?

Bibliography

1. Nozdreva, R.B. International Marketing: Textbook / R.B. Nozdryova. M.: Economist, 2005. 990 p.
Presentations

Title of the presentation	annotation

Differences in international orientation and approach to international markets in which international business companies operate can be described by one of three concepts of international marketing management:

1. the concept of expanding the domestic market,

2. the concept of a multi-domestic market,

3. the concept of global marketing.

The ideas expressed in each concept reflect a philosophical orientation that can further define the next stages in the evolution of the company's international operations.

Among the approaches that describe a different perspective on how companies go through the various phases of the evolution of participation in international marketing - from occasional exports to global marketing - is the oft-discussed EPRG (EPRG) scheme. The authors of this scheme believe that firms can be classified based on their orientation:

1) ethnocentric;

2) polycentric;

3) regional-centric;

4) geocentric.

The key assumption underlying the EPRG framework is the level of internationalization at which marketing management is exercised or to which the firm wishes to move by applying international marketing strategies and decisions. The EPRG scheme is reflected in the three concepts below.

The concept of expanding the domestic market. The orientation of the company to international marketing is observed when the company enters foreign markets in order to expand sales of its products. Under the concept of domestic expansion, the firm treats its international operations as secondary, designed to expand domestic operations in the domestic domestic market. The primary motive for expanding the domestic market is the sale of surplus products.

Business in the domestic market is a priority, and sales abroad are seen as a profitable expansion of operations in the domestic (domestic) market. The firm may actively seek to strengthen its position in foreign markets, however, focusing mainly on the domestic market. The attitude towards international sales is expressed by the following setting: to sell to foreign consumers (customers) goods intended for the domestic market, and do this in the same manner (similar manner) as it is commercially carried out in the domestic market. In this regard, companies are looking for markets where the demand for products is similar to the demand in the domestic market and products intended for the domestic market will also be acceptable. This market expansion strategy can prove to be very lucrative and many companies enter international marketing through this strategy. Firms that follow this marketing approach are classified as ethnocentric under the EPRG scheme.

The concept of a multi-domestic market. In the event that a company attaches importance to the differences in foreign markets and considers it necessary to modify foreign business in an organizational sense, then in international business this company adheres to the strategy of a multi-domestic market. The company, guided by this concept, is of the opinion that the markets of various foreign countries are very different, and that in order to achieve market success in each individual market, its own individual program is required. These firms are characterized by the fact that they form separate marketing strategies for each separate market of a foreign country.

The branches of the company operate independently of each other, each branch according to its own marketing goals and plans, and the domestic market and the market of each foreign country have separate marketing segments, perhaps with little interaction among them. Products (goods) are adapted for each individual market without coordination and connection with other markets of foreign countries. In this case, advertising campaigns are carried out individually for each individual market, and in the same way, pricing and distribution decisions are carried out individually for each market. A company adhering to such a concept does not look for similarities among the elements of marketing segments that could lead to standardization in its activities in the markets; on the contrary, it strives to adapt to each local market of a foreign country. Marketing management is naturally decentralized, and this fact reflects the belief that each market is unique and requires specific marketing management. Firms with this orientation should be classified as polycentric according to the EPRG scheme.

Global marketing concept. A company guided by this concept or philosophy is usually referred to as a global company, and its marketing activities are called global marketing, and the market of this company covers the whole world. A company that adopts a global marketing tactic strives for efficient scales of developing standardized products that are of reliable quality and that must be sold at an acceptable reasonable price in the global market. Thus, the global market is the same as the domestic market of a country, but established throughout the world. The main postulate of the global marketing concept involves the orientation of the world market to the people to the buyer to meet their needs and desires. Thus, buyers constitute significant market segments of buyers with similar demand for a particular product worldwide. With this orientation, the company is trying to standardize many of its methods (approaches), and give them a practical orientation around the world (on a global basis). Certain solutions become applied and applied in all countries, while other firms need to study and consider the local characteristics of the markets of each foreign country. A global company views the world as a whole as a single market and develops a global marketing strategy.

The global marketing company corresponds to the region-centric or geocentric according to the EPRG scheme.

Based on the concept of global marketing, a whole set of country markets (regardless of whether it is a domestic (domestic) market and only one foreign market, or domestic and 100 foreign ones) is considered as a single market. At the same time, groups of prospective buyers with similar needs define global market segments and the global company develops a marketing plan aimed at product standardization in a broad sense. This may mean that the global marketing plan provides for a standardized product for the global market, but specific advertising depending on the country, or products of a certain theme for all countries, using specific market distinguishing characteristics of the product, brand name or image of the product, so that it meets the needs of the country. In other words, marketing planning comes from the perspective of a global market for which a standardized product in in a certain sense found. At the same time, it is allowed to adapt the product for the markets of those countries whose ethnic and social characteristics require this adaptation.

What is suggestive about the orientation of firms to global markets is the analogy with the success of US companies in the domestic American market. The fact is that the US (all 50 states), or if the company's goals exclude some of the 50 states, only those states in which the company intends to trade, can be considered as a single market. The concept of global marketing assumes a standardized product for the whole market, except for regions whose characteristics require product adaptation.

For example, thick (heavy) fabric for men's winter suits is intended more for northern and northeastern markets than for southern and western markets.

A reason should be given that compels all companies, large and small, trading in one country or in the whole world, to be guided by a global marketing concept. As the competitive environment in which US businesses operate becomes more international - and this factor will no doubt increase - the most effective orientation for all firms trading in foreign markets will be a global orientation. This means that all markets of foreign countries (including also the domestic market) that are in the field of activity of the company are combined into a single market (approaching the global market), for which it is possible to standardize all marketing means and approaches (product standardization), when it is effective and feasible, taking into account the socio-cultural characteristics of countries.

We must recognize at least two sides in the question of global business: the first side concerns the orientation of firms, as discussed above, the other side asks whether there is a global market, as defined by Professor Theodore Levitt. (Theodore Levitt, "The Globalization of Markets. Harvard" Business Review, May-Jun 1983, pp. 92-102.)

In other words, are there segments formed from consumers from different countries with similar needs that can be satisfied with standardized products (goods).

Although the world has not become a homogeneous market, nevertheless, there is solid evidence of the existence of identified groups of international consumers (segments) with similar needs, desires, and behavior. These segments are formed from consumers from different countries and "permeate" in a certain sense the state borders.

The important thing is that regardless of the extent to which global markets exist, a company can benefit from the global orientation of its business and marketing.

It is possible to rank the elements of the marketing mix according to the degree of their globality, universality. On a scale from the point “most global” to “most local”, they are arranged as follows.

Variation of Marketing Mix Elements

Most Global/Standard

brand name

Price compared to the prices of the main competitors

Absolute price

Product promotion

Customer service

Most Local/Various

Personal Selling

In any company, the degree of standardization of marketing elements across national borders will vary, perhaps even from brand to brand. One thing is for sure, any form of global marketing requires leadership. When it comes to a single, worldwide brand, production and sales managers provide guidance. Companies operating with a large number of brands need to create a separate structure, although the term “matrices” as applied to it may be somewhat outdated. Shell, which developed and actively promoted this concept in the early 1960s, officially buried it long ago. If a company is interested in consistent, vigorous, and consistent brand management and equity growth, then somewhere, someone must be responsible for each individual brand. Shell focuses on one brand, while companies such as Grand Metropolitan (distillers) must care for at least dozens of brands.

Any form of global marketing requires leadership.

There needs to be a clear division of responsibilities or spheres of influence between regional, international and local leadership. Corporations operating all over the world need an international marketing department and local sales companies. For companies operating in several countries, an international brand coordinator is sufficient. Step into the position of a country-specific marketing manager who is challenged not only by local executives but also by regional and international brand managers.

However, to an outside observer, most likely, any decision of the leadership will seem strange, since it is necessary to regulate what is not subject to regulation: the autonomy of the decision-making process at each level of the hierarchy. It is not the structure of the corporation that determines how much separation of powers is compatible with the motivation of each manager, but its culture. It is the corporate culture that determines whether any global marketing formula will work. If a culture encourages partnerships and exchanges, it will help overcome language and ethnic barriers. The goals set will be achieved if the company adopts an authoritarian leadership style, although it is not known to what extent this approach applies when it comes to the subtleties and volatility of the global market.

Conversely, there are many objective difficulties that global marketing faces. Why share information if it will weaken our position? Is it worth doing something that is not aimed at increasing the profits of your own division? The classic point of contention is domestic transfer pricing; this also includes disputes about the investment component of the marketing budget, that is, about those funds that will pay off in a fairly distant future.

Signs of an organization that would solve the problem of corporate culture are developed international information systems and knowledge sharing. In order to achieve this, it may be necessary to set new goals for brand managers and regional managers, change performance evaluations and accounting systems in order to stimulate cooperation rather than competition. Not every CEO will dare to make radical changes. Many top managers believe that the best results come from healthy competition between the company's head office and its divisions.

To some extent this is true, but a much more significant success factor is cooperation.

The main purpose of management signals is to stimulate action. Who cares how correct the data is if it gets the right response? Attention to detail and accuracy, which are extremely important for an accountant, are much less useful for international managers who need to work out consistent decisions. From the outside, it might seem that the company's top management is machine-gunning out computer printouts and submitting them for approval to some marketing trendsetter. More than one international manager was buried under a pile of papers flying out of a laser printer. International companies need information (especially consumer information) that is instantly shared and easily processed to enable more effective marketing efforts than ever before.

The main principles of global marketing are culture, information and knowledge sharing.

The focus of this section has been on consumer goods, but the prospects for globalization of certain types of services, especially financial services and the production of capital goods, are much better. However, the basic principles of success remain the same: culture, information and knowledge sharing.

Three perspectives were used in the landscape metaphor: from a bird's eye view, at ground level, and from underground, when the market is explored by touch. The international marketer has the opportunity to see a real perspective that is not available to his other colleagues. When considering the positioning of the brand around the world, the main element of the brand, its essence, should be viewed. We are not discussing positioning, target audience, etc.; we are talking about the motivation for the existence of the brand, about the reasons why the appearance of the brand in one country means its distribution in other countries. However, the essence of the brand and its representation are completely different things. Throughout the world, Smirnoff defines its brand as "Simply a Sensation", but does not replicate this slogan around the world. Local marketers must transform the brand slogan in the context of their culture. The essence of the brand is something very simple, in order to describe it, five words should be enough.

When Cadbury's Wispa chocolate became a huge success in the UK, it was only natural that Cadbury wanted to repeat the success in the US. Wispa is Cadbury's leading confectionery brand featuring aerated chocolate - more flavor, fewer calories, less chocolate, lower production costs, more profit. Before the company's management realized that its expansion into the American market ended in failure, many millions of dollars were invested in production. What was the reason for the failure? The essence of Wispa chocolate was represented by the following motto: "Your favorite chocolate, but lighter and tastier" (okay, there are seven, not five words). And America's favorite chocolate is by no means Wispa. This place is already taken by Hershey. Maybe you should have taken Hershey and made it porous?

If you can convince corporate headquarters that:

Competition must be replaced by cooperation and partnership;

Leadership should encourage collaboration, one form of encouraging collaboration is double counting so that the brand team in the country and the international team see full profits;

Managers of an international brand in the country where it occupies a leading market position should guard the essence of the brand, especially its positioning, and local managers should be able to interpret the essence of the brand;

The system of bonuses and incentives should be based on the criteria of the overall profit of the company, and not on the profits earned by divisions;

Information databases should be accessible to everyone, then you can consider that global learning has begun in your company. Global marketing will soon follow.