Read the summary and the most important questions on Global Marketing Management

• Introduction

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• What are the 3 main marketing orientations ?

  Domestic market extension approach = extends the products and marketing program developed for the  domestic market to foreign market (exemple : la Cure Gourmande)
  
  Multi-domestic approach = most products and marketing program differ to respond to local specificities even if some products or components of the marketing mix remain the same (exemple : McDonalds)
  
  Global marketing approach = same marketing program in all countries, products and marketing program developed to meet universal needs (exemple : Apple)

• What is the difference between market-driven and market-driving strategies ?

  Market-driven = firms collect information about customers and take them into account to adapt their offer -> adaptation strategy
  
  Market-driving = firms develop a unique value proposition for customers and they adapt their habits to this model -> strandardization strategy

• According to Schmid and Kotulla (2011), when is it more relevant to standardize its products ? (6 ideas)

  It is more relevant to standardize its products when there is :
  
  - a high cross-national homogeneity of demand,
  - a high potential for cross-national economies of scale,
  - a high cost of product modification,
  - a high foreign price elasticity of demand,
  - a small perceptual error of the managers,
  - a high quality of strategy execution

• Explain the 3 layers of controllable and uncontrollable elements

  Marketing controllables = area under the control of the marketing manager (product, price, place, promotion)
  
  Domestic uncontrollables = home-country elements that are outside the control of the manager and that can have a direct effect on the marketing objectives (political forces, legal structure and economic climate)
  
  Foreign uncontrollables = a significant source of uncertainty is the number of uncontrollable foreign business environments, the environment within which the marketer must implement marketing plans can change from country to country (political/legal forces, economic forces, competitive forces, level of technology, structure of distribution, geography and infrastructure and cultural forces)

• The international environment

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• Geography and international markets (4 ideas) 

  Importance and impact of 
  - Topography : generate a stronger/lower demand for some categories of product (ex: air transportation in Indonesia where 17.000 islands and 70% territory is water)
  - Spatial distribution of the population : being able to reach all the population not only urban, impact the distribution channels
  - Climate : development of specific products responding  to the local needs (ex: heated seats in Sweden)
  - Infrastructures : quality impacts the possibility for firms to offer perishable products

• Impact of history on contemporary behavior (2 ideas) 

  - Common history between countries can explain specific organizational structures (SAS airline), immigration flows between countries (colonies) and can create common cultural references among a group of countries (Cricket world cup)
  -  But the past of a country can also generate tensions for foreign firms (boycotts or tensions)

• Political environment and its risks (3 ideas)

  - Political climate : stability of government / government policies / international relationships
  - Nationalism : confiscation (=taking away from the firm's assets) / expropriation (=confiscation + transfer of ownership to the state) / domestication (=expropriation of foreign firms)
  - Political tensions at the industry level : unfair competition (=government increases entry barriers)

• The legal context : 3 levels

  1) Home-country factors : reciprocal agreements / legal restrictions / sanctions / disputes
  2) International factors : WTO / sanctions
  3) Host-country factors : political stability / legal restrictions / infrastructures ...

• How to reduce political vulnerability of a foreign firm ?

  - avoid political sensitive products (weapons)
  - forecast political risks with experts
  - behave as a good corporate citizen
  - use joint ventures or licensing to share risks and have local support
  etc...

• What are the four legal systems ?

  - Code law = system of written rules (codes)
  - Common law = tradition, past practices and legal precedents
  - Islamic law (Shariah) = interpretation of the Koran
  - Socialist law =  Marxist-Socialist approach