Chapter 1 Introduction to Global Marketing

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Chapter 1 Introduction to Global Marketing
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Introduction

• What is Global Marketing?
• How is it different from regular marketing?

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Introduction

• Global Marketing
• Focuses resources on global market_______
• and _____ the main difference is the
  __________because global marketing occurs in
  markets
• __________________

• Marketing
• Process of planning and executing the conception
  pricing, ______and distribution of ideas, goods
  and ______ to create exchanges that
  ______individual and organization goals

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Reasons for Global Marketing

• _________
• Access to new markets
• Access to resources
• _________
• Against competitors with lower costs (due to
  increased access to resources)

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Overview of Marketing

• One of the functional areas of a business that is
  distinct from finance and operations
• Primary tools in marketing are ___________________
  _______________.
• Marketing is an activity that comprises the
  firms value chain
• Current trend is to involve marketers in all
  value-related decisions called boundaryless
  marketing

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Boundaryless Marketing

• Goal is to eliminate communication barriers
  between marketing and other business functional
  areas
• Properly implemented it ensures that a market
  orientation permeates all value creating
  activities

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Goal of Marketing

• Surpass the competition at the task of creating
  perceived value for customers
• The Guide line is the value equation
• Value Benefits/Price (Money, Time, Effort, Etc.)

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Value Chain and Boundaryless Marketing
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Competitive Advantage

• Success over competition in industry at value
  creation
• Achieved by integrating and leveraging operations
  on a worldwide scale

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Globalization

• Globalization is the inexorable integration of
  markets, nation-states, and technologies to a
  degree never witnessed before - in a way that is
  enabling individuals, corporations, and
  nation-states to reach around the world farther,
  faster, deeper and cheaper than ever before, and
  in a way that is enabling the world to reach into
  individuals, corporations, and nation-states
  farther, faster, deeper, and cheaper than ever
  before.
• Thomas Friedman

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Global Industries

• An industry is global to the extent that a
  companys industry position in one country is
  interdependent with its industry position in
  another country
• Indicators of globalization
• Ratio of cross-border trade to total worldwide
  production
• Ratio of cross-border investment to total capital
  investment
• Proportion of industry revenue generated by
  companies that compete in key world regions

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Competitive Advantage, Globalization and Global
Industries

• Focus
• Concentration and attention on core business and
  competence
• Nestle is focused We are food and beverages.
  We are not running bicycle shops. Even in food we
  are not in all fields. There are certain areas we
  do not touch..We have no soft drinks because I
  have said we will either buy Coca-Cola or we
  leave it alone. This is focus.
• Helmut Maucher

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Global Marketing What it is and What it isnt

• Strategy development comes down to two main
  issues similar to single country marketing
• Target market
• Marketing Mix

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Global Marketing What it is and What it isnt
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Global Marketing What it is and What it isnt

• Global marketing does not mean doing business in
  all of the 200-plus country markets
• Global marketing does mean ____________
• ___________________________________
• ____________________________________

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Standardization versus Adaptation

• Globalization (______________)
• Developing standardized products marketed
  worldwide with a standardized marketing mix
• Essence of _______________
• Global localization (____________)
• Mixing standardization and customization in a way
  that minimizes _______ while maximizing
  _____________
• Essence of ______________
• Think globally, ____________

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Standardization versus Adaptation
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The Importance of Global Marketing

• For US-based companies, 75 of sales potential is
  outside the US.
• About 90 of Coca-Colas operating income is
  generated outside the US.
• For Japanese companies, 85 of potential is
  outside Japan.
• For German and EU companies, 94 of potential is
  outside Germany.

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Management Orientations
____________ Home country is Superior,
sees similarities in foreign countries
_____________ Each host country Is unique, sees
differences in foreign countries
_____________ Sees similarities and differences
in a world region is ethnocentric or
polycentric in its view of the rest of the world
____________ World view, sees similarities
and differences in home and host countries
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Forces Affecting Global Integration and Global
Marketing

• Restraining Forces
• Management_______
• Organizational _______
• National controls

• Driving Forces
• Regional economic
• _____________
• Market ______and_____
• Technology
• Transportation and
• ____________
• improvements
• Product _________
• Quality
• World economic trends
• Leverage

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Forces Affecting Global Integration and Global
Marketing
Global Integration and Global Marketing
Restraining Forces
Driving Forces
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Overview of Book

• Part I Overview of Global Marketing
• Part II Environments of Global Marketing
• Part III Global Strategy
• Part IV Global Considerations of the Marketing
  Mix
• Part V Integrating the Dimensions of Global
  Marketing

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Looking Ahead to Chapter 2

• The Global Economic Environment