Introduction to Global Marketing

1
Introduction to Global Marketing

• Chapter 1

2
Reasons for Global Marketing

• ___________
• Access to __________
• Access to ___________
• _________
• Against competitors with lower _______or greater
  ________

3
Global Marketing Vs. Marketing

• Marketing is the process of _______ and
  __________ the conception, pricing, promotion,
  and distribution of goods, ideas, and services to
  create exchanges that ______ individual and
  organizational goals.
• Global marketing focuses on ________ market
  opportunities and ________.

4
Differences between Global Marketing and Marketing

• Scope of activities Conduct business activities
  _____ country vs _______ country

• Nature of activities Other variables to
  consider when developing marketing strategy.

5
Overview of Marketing

• One of the functional areas of a business that is
  _______ from finance and operations
• Primary tools in marketing are product, price,
  place, and promotion
• Marketing is an activity that comprises the
  firms __________
• Current trend is to involve marketers in all
  value-related decisions called __________
  marketing

6
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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What is a Global Industry?

• An industry is global to the extent that a
  companys industry position in one country is
  ________ with its industry position in another
  country or one in which competitive advantage can
  be achieved by _________ and _______ operations
  on a world wide scale.
• 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

8
Keys to Global Success

• Value creation
• Competitive advantage
• Focus

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Value Creation

• Perceived Customer Value ____________
• What variables influence price?
• What may be customer benefits?
• 2 methods of value creation
• Improved ___________
• Lower ________

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Value Creation
Perceived Customer Value _______________________
What variables influence price? What may be
customer benefits
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Value Creation
Perceived Customer Value ___________ What
variables influence price? What may be customer
benefits
12
Competitive Advantage

• Success over __________ in industry at
  ____________
• Can be achieved by ________ and __________
  operations on a worldwide scale

13
Focus

• Concentration and attention on _____ business and
  _______
• 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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Standardization versus Adaptation

• Globalization (Standardization)
• Developing standardized products marketed
  worldwide with a __________ marketing mix
• Essence of _______ marketing
• Global localization (Adaptation)
• Mixing standardization and customization in a way
  that ________ costs while ________ satisfaction
• Essence of ____________
• Think _______, act ______

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Where in the World?

• How does a company decide which markets to enter?
• Company resources
• Managerial mind-set
• Nature of ________ and _______ in that market

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Examples of Global Marketers

• Coca-Cola
• Philip Morris
• Daimler-Chrysler
• McDonalds
• Toyota
• Ford
• Gillette
• IBM

• USA
• USA
• Germany
• USA
• Japan
• USA
• USA
• USA

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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 Germany, 94 of potential is outside the
  country. Germany is the largest single country
  market within Europe.
• Why is global marketing important to Central
  Florida?
• 40 of all jobs deal with international

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Management Orientations

• Ethnocentric
• Polycentric
• Regiocentric
• Geocentric

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Ethnocentric Orientation

• Ethno centric ____________
• Assumes ________ country is superior to the rest
  of the world associated with attitudes of
  national ___________ and __________
• Management focus is to do in _______ countries
  what is done in the _______ country
• Sometimes called an international company
• Products and processes used at home are used
  abroad without adaptation

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Polycentric Orientation

• Poly centric ___________
• Management operates under the assumption that
  every country is _______ the company develops
  country-__________ strategies
• Sometimes called a multinational company
• Company operates differently in each host country
  based on that situation
• Opposite of ethnocentrism

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Regiocentric Orientation

• Regio centric ________
• Region becomes the relevant geographic unit
  (rather than by country)
• Management orientation is geared to developing an
  ________ regional strategy
• European Union
• NAFTA

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Geocentric Orientation

• Geo center _________
• Entire world is a _______ market
• Managerial goal is to develop integrated world
  market strategies
• Global companies serve world markets from a
  single country and tend to retain association
  with a headquarters country
• Transnational companies serve global markets and
  acquire resources globally blurring of national
  identity

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Forces Affecting Global Integration (Fig. 1-3)
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Driving Forces

• Regional economic agreements
• Market needs and wants
• Technology
• Transportation and communication improvements
• Product development costs
• Quality
• World economic trends
• Leverage

25
Restraining Forces

• Management myopia
• Organizational culture
• National controls (Home and Abroad)
• Company resources

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Final Thoughts on Ch. 1

• Not every business desires or needs to go
  global.
• If they do become involved in international trade
  and business, they can do so in a number of ways
  depending on their goals and commitment
• Export
• Invest in foreign production, etc.
• Contract or manufacture in foreign country
• Acquire foreign businesses or operations
• Marketing strategies change as goals and
  commitment change.
• For the exam, all of Ch. 1 is important.