How do you characterize Fike Europe’s overall approach to marketing its products and services in the European markets? Also, critically evaluate Fike Europe’s marketing philosophies, strategies, and tactics.

Question

What will be an ideal response?

Answer 1

From the key characteristics of Fike’s European operations as articulated by Mr. Gronlund, the Senior Vice-President, International Operations, one might conclude that the management practice is characterized by a polycentric philosophy as opposed to a regiocentric or geocentric philosophy. The international marketing literature clearly points out many disadvantages of a polycentric approach (under which a firm allows each of its country’s management to function autonomously). Such a polycentric management approach will restrict the company from taking advantage of the various leverages inherent in international operations. In contrast, the literature argues for a regiocentric and/or geocentric approach to international marketing. In this case, a strong argument can be made for a regiocentric management approach in the European context. The industrial marketing and the fully integrated West European market contexts in the case call for a regiocentric management style rather than a polycentric management approach, which the Fike Corporation is currently practicing. Fike may be missing many leverages in the form of standardization of marketing mix strategies and practices and projecting a uniform corporate image in all the European markets. Successful development and implementation of a regiocentric management approach in the West European context could provide the necessary experience base for eventually developing and implementing a geocentric approach covering Fike’s worldwide operations. But, as is evident from the case, Fike management currently opts for a polycentic management style with the argument that each West European market is different and unique, requiring autonomous managerial functioning in each country. With greater economic integration, technological harmonization, and uniform standards in the post-1992 European Common Market, a strong case can be made for a more integrated regiocentric management approach. The polycentric approach of Fike’s European operations may be due to the company’s size, resulting in Fike’s inability to conceptualize, plan, and implement a more integrated regiocentric management approach.
This case also illustrates the digression between theory and practice in international marketing with regard to the strategic issue of standardization versus customization of marketing operations in overseas marketing. In international marketing, standardization of marketing operations is typically suggested due to the economies on the supply side and the so-called “globalization” of markets on the demand side. The argument for standardization of marketing strategy and tactics becomes all the more forceful in the context of industrial marketing and in the fully integrated post-1992 European Common Market. However, currently Fike Corporation practices customized marketing strategies in each of the West European countries.