Global Marketing

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Global Marketing

• 04/25/05

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Key points

• Why are global markets important?
• Marketing strategies for global markets
• Implications of globalization for marketing mix

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Why are global markets important?

• Faster communication, transportation and
  financial flows
• Booming international trade
• World trade accounts for 10 of US GDP
• Increasing global competition
• Decline of economic protectionism (tariffs,
  quotas, GATT)

Huge market potential
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Global companies and marketing strategies
Type of Marketing Strategy
Type of Global Company
Extension of its home country marketing strategy
International Firm
Multi-domestic marketing strategy
Multinational Firm
Global marketing strategy
Transnational Firm
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Global consumers

• customer groups living in many countries or
  regions of the world who have similar needs or
  seek similar features and benefits from products
  and services.

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Cultural diversity

• Values
• Why doesnt McDonalds sell hamburgers in India?
• Customs
• Why were 3M executives perplexed concerning
  lukewarm sales of Scotch-Brite floor cleaner in
  the Philippines?
• Gifts vs. bribes

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Cultural diversity

• Cultural symbols
• Numbers
• Semiotics
• Language

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Cultural ethnocentricity

• The tendency to view ones own values, customs,
  symbols and language as superior to anothers
• Consumer ethnocentrism holds that it is
  inappropriate to buy other countries products
  and services

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Economic considerations

• Stage of development
• Infrastructure
• Consumer purchasing power
• Political-regulatory climate

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Alternative global market entry strategies
High
Amount of a firms financial commitment, risk,
marketing control, and profit potential
Low
Joint Venture
Direct Ownership
Exporting
Licensing
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Product and Promotion

• Same Product Adapt
  Product Create New Product
• Same
• Promotion
• Adapt
• Promotion

Product Extension Strategy
Product Adaptation Strategy
Product Invention Strategy
Communication adaptation strategy
Dual Adaptation Strategy
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Channels of distribution
Channels Within Foreign Nations
Sellers International Marketing Headquarters
Channels Between Nations
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Pricing strategy

• competitive, political, and legal constraints
• economic factors
• dumping product sold in a foreign country below
  domestic price or below cost
• gray marketing (parallel importing) products
  sold through unauthorized channels of distribution

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Conclusions

• Global markets are growing increasingly important
  due to advances in communication and technology
• Some products can have global consumers
• Decisions to take while entering markets in other
  countries
• Be very careful while developing your
  communication and branding strategies!