DEVELOPMENTS IN

INTERNATIONAL MARKETING
UNIT 4
By:
Dr. ANSHU MALA GAUTAM
 EXAMINING INTERNATIONAL
ORGANISATIONAL DESIGN
• International Organisational Design refers to the structure of a global
organisation.
• An organisation has different structures based on its strategies and
priorities.
TYPES OF INTERNATIONAL ORGANISATIONAL DESIGN
1. International Division Structure:
• It includes organisations that have two main divisions – Domestic Division
and International Division.
• When organisations involve in the export of products, the responsibility
of handling international operations is assigned to the export
departments, which includes agents.
 EXAMINING INTERNATIONAL
ORGANISATIONAL DESIGN
• As the involvement of organisations in international operations
increases, it will most likely form an international division.
• This division handles the responsibility of all the international
operations.
2. Worldwide Regional Division Structure:
• It refers to an organisational structure where the operations are
organised as per the region or country.
• The subsidiaries report to a single division that is responsible for
operations in a country or region.
 EXAMINING INTERNATIONAL
ORGANISATIONAL DESIGN
3. The Product Division Structure:
• It refers to a structure where the subsidiaries report to product
divisions called as Strategic Business Units.
• This structure was common for organisations that have diversified
product portfolios.
4. The Matrix Structure:
• It refers to a global structure in which functional and product
expertise are integrated into teams so that the teams are able to
respond quickly to the requirements in the global market.
 CONTROLLING INTERNATIONAL MARKETING
OPERATIONS
• Control is important for checking whether the operations of
international organisations are in line with the set plans or not.
• It can be defined as an effort by an organisation to compare the
actual standards with the set standards, determine the deviations
and take corrective actions.
OBJECTIVES OF CONTROL
1. Comparing the performance against the pre-determined standards.
2. Comparing and checking whether the strategy is implemented in a
accordance with the specified plans and policies.
 CONTROLLING INTERNATIONAL MARKETING
OPERATIONS
3. Taking corrective actions for the deviated performance.
4. Minimising the cost and maximising the profits.
5. Improving the efficiency.
TYPES OF CONTROL
1. Feedforward Control:
• It refers to a control that is exercised before a strategy is implemented in
an organisation.
• It aims to control the inputs such as human, material and financial
resources, required to implement a strategy.
• It is also called ‘Pre-control’, ‘Preventive Control’, ‘Preliminary Control’ or
‘Steering Control.’
 CONTROLLING INTERNATIONAL MARKETING
OPERATIONS
• This helps in checking the availability of resources for the
implementation of a strategy.
2. Concurrent Control:
• It implies a control that is exercised when a strategy is being
implemented in an organisation.
• This control is also called as ‘Screening Control’.
• It aims at controlling and supervising the ongoing process of
implementation.
3. Feedback Control:
 CONTROLLING INTERNATIONAL MARKETING
OPERATIONS
• It exercises control when a strategy as already been implemented in
an organisation.
• It is also called ‘Post Action Control’.
• It analyses the output to identify the gaps between the pre-defined
standards and actual performance and thus, takes corrective
actions.
 INTERNATIONAL STRATEGIES
• International Strategies are designed and implemented when an
organisation plans to sell the products outside the domestic
marketplace.
• An International Business can be defined as the business that takes
place between two nations.
TYPES OF INTERNATIONAL STRATEGIES
1. International Business Level Strategy:
• It focuses on the operations of the home country.
• This helps in gaining competitive advantage in the foreign countries
 INTERNATIONAL STRATEGIES
because the resources and capabilities that are developed in the
home countries allow organisations to expand globally.
a. International Cost Leadership Strategy:
• It includes exports to the international markets at a low cost.
• This strategy is followed by organisations in their home country only.
b. International Differentiation Strategy:
• It includes the unique competencies and strengths of organisations.
• Organisations that follow the differentiation strategies belong to the
technically advanced countries.
 INTERNATIONAL STRATEGIES
c. International Focus Strategy:
• It focuses on either leadership or differentiation strategy.
• Technologically advanced organisations follow the cost leadership
strategy whereas; organisations with unique competencies follow
the differentiation strategy.
d. Integrated Low Cost or Differentiation:
• It helps in dealing with diverse markets.
• This type of strategy relies upon flexible manufacturing and strong
communication networks.
 INTERNATIONAL STRATEGIES
2. International Corporate Level Strategies:
• The international corporate-level strategies are required when an
organisation operates in multiple countries.
• These strategies impact the international business-level strategies.
• The headquarters of an organisation prepares the strategy for all of its
businesses in different-different countries.
TYPES OF INTERNATIONAL CORPORATE-LEVEL STRATEGIES
• There are 3 types of international corporate-level strategies:
 INTERNATIONAL STRATEGIES
1. Multi-Domestic Strategy:
• It implies a strategy that is focused on customizing products and
marketing strategies as per the business environment of different
countries.
• This strategy is based on the assumption that that markets in countries
differ from each other as the customers’ needs, environment conditions
and political structures differ in every country.
• It follows a decentralisation policy. (different business heads for different
countries)
• Eg. McDonald’s, HUL, Coca Cola.
 INTERNATIONAL STRATEGIES
2. Global Strategy:
• It focuses on offering standardised products across all the countries
and treating the whole world as a single market.
• It follows a centralisation policy in which the home office of an
organisation controls the strategies of its businesses in other
countries.
• Organisations practicing global strategies do not customise their
products according to the local conditions, as it leads to increase in
costs.
• Eg. Sony
 INTERNATIONAL STRATEGIES
3. Trans-National (operating across national boundaries) Strategy:
• It implies a mixture of multi-domestic and global strategy.
• This strategy tries to achieve local responsiveness and global
efficiency.
• An organisation practicing this strategy focuses on achieving low cost
and differentiation at the same time.
• Such organisations mostly enter into strategic alliances with other
organisations to save capital and time.
• This strategy is also called a ‘coordinated approach.’
• Eg. Google, Walmart, KFC
INTERNATIONAL SERVICE MARKETING
• An organisation that markets its services in more than one country,
practices Global Service Marketing.
• This type of organisation is called Multi-national Corporation (MNC)
and Trans-national Corporation (TNC).
• The country to which an MNC originally belongs is called the Home
Country.
• The country where an MNC operates is called the Host Country.
• Global Service Marketing involves practicing marketing activities
such as buying, selling, pricing, advertising, sales promotion and
warehousing in the markets of the foreign countries.
INTERNATIONAL SERVICE MARKETING
• Global Service Marketing is defined as the process of producing,
distributing, promoting and pricing services for international
markets.
• Its is a part of global or international marketing.
FEATURES OF INTERNATIONAL SERVICE MARKETING
1. Advanced Technology:
• It means that global service marketing involves the use of modern
technology.
• An organisation is able to gain a competitive advantage by promoting
good quality services at competitive prices.
INTERNATIONAL SERVICE MARKETING
2. Requires Vast Marketing Research:
• It means that global service marketing undertakes the process of
marketing research before marketing any service in a country.
• Marketing research helps in knowing the market size, market type,
customers’ tastes and behaviour.
3. Diversified Markets:
• It leads to stability of revenues.
4. Flexibility:
• It means that the plans adopted by MNCs are very flexible.
INTERNATIONAL SERVICE MARKETING
DRIVERS OF GLOBAL SERVICE MARKETING
1. New Service Development Cost:
• It involves huge research and development costs incurred in
inventing a new service.
2. Cheal Labour and Economies of Scale:
• It reduces the costs of an organisation.
• Organisations of developed countries take advantage of cheap labour
from the developing countries to achieve the economies of scale and
lower the cost of production.
INTERNATIONAL SERVICE MARKETING
3. Experience Transfers:
• It helps in developing new ideas.
• An organisation that moves from country to country learns different
ways of getting successful.
4. Service Life Cycle Considerations:
• It helps and organisation which is in the declining stage in one
country to enter into another country, which in the introductory or
growth stage.
INTERNATIONAL SERVICE MARKETING
ADVANTAGES OF GLOBAL SERVICE MARKETING
1. It helps in the development of a country by providing employment
opportunities and promoting exports.
2. It helps in producing those services that cannot be produced within
the home country, due to lack of resources.
3. It leads to better standard of living of citizens of countries by
providing them a variety of services.
4. It allows national allocation or resources at the global level.
5. It ensures cooperation at economic, political and cultural level.
6. 6. It increases output at the global level.
 SERVICE CULTURE
• Service Culture of every organisation differs from one another,
depending upon the policies and procedures of an organisation.
• Culture is different in every organisation and consists of its values,
beliefs, norms, rituals and practices.
• The employees of an organisation play a crucial role in
communicating the organisational culture to the customers.
• It is communicated through employee dress code, way of employee-
customer interaction and service provider’s knowledge, skill and
attitude.
 SERVICE CULTURE
BUILDING BLOCKS OF SERVICE CULTURE
1. Common Service Language:
• It refers to the language generally used by service managers in all
the parts of an organisation.
• A common service language enables an organisation to provide high
quality services.
2. Engaging Service Vision:
• It means encouraging the employees to make the best efforts for
providing high quality services to the customers.
 SERVICE CULTURE
3. Service Orientation:
• It means motivating the new employees of an organisation.
• It involves welcoming and inspiring the new employees to
contribute to the service culture.
4. Service Communication:
• It means informing and educating the employees of the entire
organisation.
5. Service Recognition and Reward:
• It means motivating the employees to celebrate their achievements.
 SERVICE CULTURE
• It is done through rewards, incentives, promotion, etc.
6. Service Improvement Process:
• It refers to continuous service improvement.
7. Service Recovery Management:
• It means taking action when a service delivered by an organisation
goes wrong.
8. Service Role Modelling:
• It means providing consistent superior services to the customers.