Posted by Caitlin on .
As a novice in global marketing, which alternative for global market-entry strategy would you be likely to start with? Why? What other alternatives do you have for a global market entry?
(Marketing: The Core, 2nd ed.)
It appears as though the choices from the book are the following:
-multinational firm (with a multidomestic marketing strategy)
-transnational firm (with a global marketing strategy)
"The types of companies compete in the global marketplace: (1) international firms, (2) multinational firms, and (3) transnational firms. All three employ people in different countries, and many have administrative, marketing, and manufacturing operations (often called divisions or subsidaries) around the world. However, a firm's strategy for global markets and marketing defines the type of company it is.
An international firm markets its existing products and services in other countries the same way it does at home. Avon, for example, successfully distributes its product line through direct selling in Asia, Europe, and South America, using nearly the same marketing strategy used in the United States.
A multinational firm views the world as consisting of unique parts and markets to each part differently. Multinationals use a multidomestic marketing strategy, which means that they have as many different product variations, brand names, and advertising programs as countries in which they do business. For example, Unilever markets its fabric softener known as Snuggle in the United States in 10 different European countries under seven brand names, including Kuschelweich in Germany, Coccolino in Italy, and Mimosin in France. These products have different packages, different advertising programs, and occasionally different formulas. Proctor and Gamble markets Mr. Clean, its multipurpose cleaner, in North America and Asia. But you won't find Mr. Clean in other parts of the world. In Latin America, Mr. Clean is Mastro Limpio. Mr. Clean is Mr. Proper in Europe, Africa, and the Middle East.
A transnational firm views the world as one market and emphasizes universal consumer needs and wants more than differences among cultures. Transnational marketers employ a global marketing strategy-the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ."