Polycentric
Ethnocentric Each host country
Home country is is unique:
superior;
See differences in
see similarities in
foreign countries foreign countries
^eocentric
Regiocentric World viewǯ
Sees similarities & differences Sees similarities
In a world region; & differences in
Is ethnocentric or polycentric in home & host
its view of the rest of the world countries
V Polycentric world view predominates at a
multinational company where the marketing
mix is adapted by the country manager
operating autonomously.
[`echnology Culture
[Culture Market Differences
[Market needs Costs
[Cost National Controls
[Free markets Nationalism
[Economic integration War
[Peace Management Myopia
[Management vision Organisation History
[Strategic intent Domestic Focus
[^lobal strategy & action
V Political factors
V Social factors
V Economic aspects
V Exchange of Service
V Market size
V Business opportunities
V Flow of business activities
Physical Environment
Climate, topography, resources
Economic Environment
Population, industry structure, stage of development
Lack of wholesalers in developing countries
Political-Legal Environment
Advertising restrictions
`ariffs/non-tariff barriers
Patents/`rademark protection
Cultural Environment
Language
Attitudes
`ime Concepts
Space Concepts
How business is conducted
Friendship
What influences the decision to enter?
Stability of government
Stability of currency
`ariffs/non-tariff barriers
Crime/corruption
Protection of property rights/technology
How to enter:
Exporting
Export excess capacity
Simplest, most direct
Licensing/joint venture
Firm in foreign market produces, distributes
How to enter (cont.):
Subsidiaries
Partly own firm in foreign market
Multinational
As foreign investments grow, firm loses home country identity
$
"
V While 70% of U.S. foreign business
revenues are generated by large firms,
hundreds of thousands of small firms are
also involved.
V Worldǯs leading export countries include
United States, ^ermany, Japan, ^reat
Britain, and France.
V Capital goods are leading U.S. exports.
V `he Value of U.S. imports exceeds its
exports, creating a
.
V `he U.S. has a large service trade surplus,
the greatest of any nation.
`
$
Production
"
$
and measurement
Standards of behavior
systems Advances
Language
Lifestyles ^oals
$
$
$
ationalism
Standard of living ^DP ^overnment stability
Stage of economic Trade restrictions
development Trade agreements/
Stability of currency economic communities
A culture is a group of people sharing a
distinctive heritage.
Ȉ Inadequate information about foreign culture is a
common cause of marketing errors.
Ȉ Developing countries often have limited census data
information, poor communication tools, and limited
technological access.
Ȉ Language barriers often inhibit access to traditions
and customs that are key to customer desires.
V A
,
indicates
its present and potential capacity for
consuming goods and services.
V A
refers to the average
quality of goods and services that are owned
and consumed in a country.
V `he ^
+ (^+) is the
` -
*
total value of goods and services produced in
a country in a year.
V ^+ is the most frequently used measure of
a nationǯs wealth because it is regularly
# published and easy to calculate and compare
with other nations.
"
High literacy rate
Modern technology High
per-capita ^DP
"
Rising education Improving
technology Low per-capita
^DP