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Global Marketing: Principles, Insights

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Title: Global Marketing: Principles, Insights


1
Global Marketing Principles,Insights
Challenges
2
Insights
  • In Hong Kong, a German businessperson is driving
    a Lexus hes wearing Bruno Magli shoes, Irish
    cashmere socks, Calvin Klein underwear, an Armani
    suit, with a Gucci belt. He has a Mont Blanc
    pen, in his Italian shirt. Hes going to meet an
    American investor at a KFC restaurant, for a
    Coke. After lunch, they stop for a
    Baskins-Robbins (actually a foreign firm) ice
    cream sundae. --- OK, thats a stretch.
  • When he gets home, sitting on an ottoman, he has
    an Absolut vodka nightcap, while listening to
    American country western music.

3
Challenges
  • Huge Foreign indebtedness
  • Unstable governments
  • Foreign-exchange problems
  • Foreign entry and government bureaucracy
  • Tariffs and other trade barriers
  • Corruption
  • E-commerce---doesnt offer complete solutions
  • Technological pirating
  • High cost of product and communication
    adaptations

4
Global Marketing
  • Marketing has become more complex.
  • Increases in new products, product extensions,
    high cost of distribution and shelf space.
  • Expansion of retailer control and power, changing
    media habits, overload of information, and array
    of communication choices.
  • Ultimate goal of programs
  • Timing goals

5
Global Integration Forces
  • Driving Forces
  • Technology
  • Culture
  • Market Needs
  • Costs
  • Free Markets
  • Economic Integration
  • Peace
  • Strategic Intent
  • Management Vision, Strategy and Action

6
Global Integration Forces
  • Restraining Forces
  • Culture
  • Market Differences
  • Costs
  • National Controls
  • Nationalism
  • Peace vs. War/ Stability
  • Management Myopia
  • Organization History
  • Domestic Focus

7
Challenges
  • Markets can present higher profit opportunities
    than present markets.
  • Markets can offer size but not profits.
  • Company needs a larger customer base for
    economies of scale.
  • Present customers are needing service and
    products as they go international.

8
Major Decisions
  • Deciding to go abroad
  • Deciding which markets
  • Deciding how to enter markets
  • Deciding on marketing programs
  • Deciding on marketing organization

9
Global Marketing
  • Denotes the use of advertising and marketing on a
    global basis.
  • Marketing is at the threshold of a new and
    exciting era e-business, e-commerce and
    e-marketing
  • Business has two basic functions marketing and
    innovation (Drucker)
  • New era of competition, demanding customers
  • More stakeholders (customers, employees, media).

10
Global Marketing
  • Companies need new set of guidelines, values and
    insight
  • Marketing is a Strategic Business Concept
  • Marketing is too important to be left to the
    Marketing Department. (David Packard)
  • Formulated, integrated, long-term
  • Hold to the responsibilities of customers,
    employees, investors

11
Global Marketing
  • Advantages, especially if the companies emphasize
    selection, availability, quality, reliability and
    lower prices.
  • Economies of scale.
  • Lower marketing and advertising costs in planning
    and control. Lower advertising production costs.
  • Exploiting your best ideas on a worldwide basis.

12
Global Marketing
  • Deciding How to Enter a Market
  • Indirect Export-Thru export and thru others.
  • Direct Export-Handle own exports.
  • Licensing-License a foreign company to use
    trademark, manufacturing process, trade secret,
    or other item for a fee or royalty.
  • Joint Ventures- Join with local investors
  • Direct Investment- Direct ownership.

13
Global Marketing
  • Joint Ventures-- Join with local investors to
    create venture. Coca-Cola and Nestle joined
    forces in ready to drink coffee and tea.
  • PG with rival, Fater, in Italy and Great
    Britain.
  • Whirlpool formed venture with Dutch electronic
    group Philips on white-goods business to
    leapfrog into European market.

14
Global Marketing
  • Direct Investment--Ultimate form is direct
    ownership of foreign-based assembly or
    manufacturing facilities.
  • Can buy part or full interest in a local company.

15
Global Marketing
  • Principle of Research
  • Understand the consumer-behavior perspectives.
  • Be sure you are asking right questions.
  • Use appropriate research techniques and controls.
  • Present clear, comprehensive and actionable
    results.
  • We study people using geographics, demographics,
    psychographics, lifestyles, and behaviors.

16
Global Marketing
  • Bodily adornment, cooking, courtship, food
    taboos, gift giving, language, marriage, status,
    sex, and superstitions, in all societies,
    although each society attaches different values
    and traditions.
  • The world, countries, regions, and subcultures.
  • Different groups of people share
    subcultures---values, customs, and traditions.
  • Geomarketing uses these differences in foods,
    terminology, subculture identities.

17
Global Marketing
  • Example Global youth are notorious for
    challenging norms and defying labels. A study of
    27K teenagers in 44 countries. Insights and
    motivations.
  • Six different segments.
  • But remember that even in a specific country the
    teenagers are not homogeneous.
  • Six segments in a Teen World values research
    study.

18
Global Marketing
  • Thrills and Chills. Driving principles---fun,
    excitement, irreverence and friends. Expect
    everything in life. Make it a goal to get as much
    and as many good times. Popular kids in schools.
    Brand loyal. Mostly in Germany, England, Greece,
    South Africa, Netherlands, US, Belgium and
    Canada. 18
  • Resigned Fun, Friends and Low expectations.
    Little discretionary income. Cynical. Denmark,
    Sweden, Korea, Norway, Germany, Belgium,
    Argentina, Canada and Turkey 14

19
Global Marketing
  • World Savers. Defining principles Fun, Humanism,
    and friends. Models of what gives hope to next
    generation. Good kids, who care. Technologically
    advanced. Motivated by new and exciting.
    Attracted by honest and sincere messages.
    Sophisticated, sense of humor. Hungary,
    Philippines, Venezuela, Brazil, Spain, Argentina,
    Russia, France, Poland. 12
  • Quiet Achievers. Success, quiet,
    anti-indi-vidualism, social optimism. Have
    deter-mination and restraint. Study hard. Do well
    in school. Limit outside activities. Thailand,
    China, Hong Kong, Korea, Russia, Peru. 15

20
Global Marketing
  • Bootstrappers. Defining principles Achievement,
    Individualism, optimism, determination, power.
    Try hard to please parents. Determined to
    succeed. Positive values. One in four in US 14
    overall. Nigeria, Mexico, US, India, Chile,
    Puerto Rico, Peru and Venezuela.
  • Upholders. Family, tradition, respect for
    individuals. Dreamy. Quiet. Good teens. Follow
    their parents. Dont like risks. Use proven
    products. Vietnam, Indonesia, Taiwan, China,
    Italy, Peru, India, 16

21
Global Marketing
  • Principle of Integrated Marketing
  • Marketing is everyones business.
  • Marketing Community
  • Examples
  • Coca-Cola, Merrill Lynch, Xerox, American
    Express, British Airways, Gillette.

22
Global Marketing
  • When all of the departments work together to
    serve the customers interests.
  • Works on two different levels All of the various
    marketing functions work together sales force,
    sales promotion, advertising, PR, Product
    development, Marketing research
  • Plus all of the departments work together. They
    must Think Customer.

23
Global Marketing
  • Global Standardization or Adaptation
  • Toyota built the Corolla on a world platform.
    Ford with its Focus. McDonalds uses chili sauce
    (salsa) on its hamburgers in Mexico. Coca-Cola is
    can be sweeter, or less carbonated.
  • Adaptation elements Product features, brand
    name, labeling, packaging, colors, materials,
    prices, sales promotion, advertising themes,
    media, execution.
  • Marketing programs do work best when they are
    tailored to each target group.

24
Global Marketing
  • An endless process or principle
  • Customer attraction
  • Customer satisfaction
  • Customer retention.
  • CEO is also the Chief Marketing Officer.

25
Global Marketing
  • Principle of Competition Value War
  • Create long-tern customer value.
  • Continuously and consistently crated customer
    value.
  • Look at total customer benefits vs. customer
    expenses
  • Ultimate goal of project
  • Relationship to other projects
  • High-level timing goals

26
Global Marketing
  • Principle of Customer Satisfaction and Retention
  • Look at overall satisfaction and customer loyalty
  • Easier to retain a customer than to gain or win a
    new one.
  • Consistently improve customer value to win the
    marketing war.

27
Global Marketing
  • Principle of Integration
  • Learn about the needs and wants.
  • There are no average customers.
  • Concentrate on the individual differences while
    looking at segmentation, targeting and
    positioning.

28
Global Marketing
  • More on Integration
  • Plan for and review differences in culture,
    markets, economic development, consumer differing
    needs, usage patterns, media availability and
    legal restrictions.

29
Global Marketing
  • Principle of Anticipation and Being Proactive.
    Not Reactive.
  • Are you ready for change? Being adaptive to the
    marketplace.
  • Macroenvironment Changes. The high income growth
    country has shifted from Japan to US. Low to
    medium has been concentrated in Southeast Asia
    and southern Asia with China as a unique,
    high-growth, large country in the region and the
    world. Also look at Singapore, Taiwan and South
    Korea.

30
Global Marketing
  • Principle of the Growth of Internet and
    Information Technology.
  • Principles of
  • Marketing Planning
  • Marketing Mix
  • 7Ps
  • Controls.

31
Global Marketing
  • The old trade model is just old.
  • It stated that as a product matures, production
    would shift to low-wage countries.
  • Today, must look at transportation costs,
    availability of skilled labor, market
    responsiveness, market access and innovation in
    product design and manufacturing. Especially of
    products with less than 15 of labor in total
    cost.

32
Global Marketing
  • Principle of Branding
  • The umbrella. Determines price and value. Be more
    than a commodity.
  • A brand is a name, term, sign, symbol, or design
    or a combination of them to identify the goods
    and services of a seller and to differentiate
    them from the competitors.
  • Identifies seller or maker. We see a huge
    increase in the global brands for autos, food,
    clothing, electronics and more.
  • Increasing number of cross-border marketing
    alliances.

33
Global Marketing
  • Principle of Service
  • Service before, during and after sale.
  • Create long-term value and connect with customer.
  • Both products and services. Its creating more
    value.

34
Global Marketing
  • Principle of Process
  • Commands the company to be the captain of its
    supply-chain. It should manage from raw materials
    to finish goods. Enhance value-creating
    activities.
  • Look at Strategic Alliances/Partners . Can be
    suppliers, customers and even parts of
    competitors. Benchmarking, reengineering,
    outsourcing, mergers, and acquisitions are
    examples.
  • Brand, service and process are three
    value-creating principles and drivers to win
    customers and deliver market share.

35
Global Marketing
  • Principles of STP
  • Segmentation, Targeting and Positioning
  • Process of segmenting. Look at demographics,
    geographics, psychographics and behavior
    variables.
  • Look for market opportunities.

36
Global Marketing
  • Principle of Differentiation
  • Dont be different just to be different.
  • Design and plan for meaningful differences versus
    the competitors.
  • Design truly different and unique products for
    customers.

37
Global Marketing
  • Principle of Marketing Mix
  • Integrate 4Ps and 7Ps.
  • Offer, Logistics and Competition.
  • The whole marketing concept.

38
Global Marketing
  • Principle of Selling
  • Integrate Company, Customers and
    Relationships/Partnerships.
  • Create long-term relationships with customers.
  • More than personal selling.
  • Features and benefits of the product.
  • AIDA Awareness-Interest-Desire-Action.
  • Manage communication.

39
Global Marketing
  • Principle of Balance
  • After focusing on the elements of
    marketing---segmentation, targeting, positioning
    (STP), differentiation, marketing mix, selling,
    branding, service and process, you need to
    balance the strategies, tactics and
    implementation.
  • Share of Heart and Mind. Share of Voice.
  • Dynamic environment. Timing.
  • High-level timing goals

40
Global Marketing
  • Principle of Positioning
  • The act of designing the product or service
    (companys offering and image) to occupy a
    distinctive place in the target markets mind.
  • Ultimate goal of product. Differentiation
  • Relationship to other products.

41
Global Marketing
  • Principle of Future
  • Manage todays products by managing a profit and
    by servicing customers of today and tomorrow.
  • Develop tomorrows products.
  • Look at Marketing Myopia.

42
Global Marketing
  • Principle of Global Experience
  • Counts for companies
  • Counts in the job market for employees.
  • Marketing Audits.
  • Marketing is not a destination, or a goal. Its a
    process. A moving target.

43
Wrap-up on Global Marketing Principles
  • Companies cannot stay domestic and expect to
    maintain their markets.
  • Companies need to define their global policies
    and objectives.
  • Companies need to decide on how much to adapt
    marketing mix.

44
Wrap-up on Global Marketing Principles
  • Market entry and market control costs can be
    high.
  • Product and communication adaptation costs can be
    high.
  • Dominant foreign firms can establish high
    barriers of entry.
  • Which types of markets and countries?

45
Global Marketing
  • Ultimate goal of project
  • Relationship to other projects
  • High-level timing goals
  • Attractiveness influenced by the product,
    geography, income, population, political climate
    and more factors.
  • Review Forces
    ---Driving and Restraining
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