global marketing 1

7/29/2019 Global Marketing 1

1/8

Global

MarketingGlobal EditionWarren J. Keegan Mark C. Green

Introduction to

Chapter 1

Copyright 2013, Pearson Education

Introduction toGlobal Marketing

Global Marketing(Global Edition)

2

Chapter topics:

The marketing concept

hree principles of marketingNontraditional marketing

Global marketing

Standardization vs. adaptation

Management orientations (EPRG)

Driving & restraining forces affecting global marketing

18 guiding principles of marketing companySTV model

2011 Pearson Education

Holistic marketing1-3

Global vs. Regular Marketing

Scope of activities are outside the home-country market


1-4


2/8

Concept has changed dramatically:

1950s: Focus on products

1960s: Development of marketing mix: product, price,

place, promotion (4Ps)

1990s:

Focus on customer in the context of the broader

Competition, government policy & regulation Focus on stakeholder value


Employees, customers, shareholders, society

Today:

wo ke tasks of marketin

Focus on customer & his/her environment

Shift towards

Positioning of firm in value chain to optimize

Profit as a measure of success, not an end in


The Three Principles ofMarketing

CUSTOMER VALUE


ause mar e ng

ven mar e ng


rgan za on mar e ng


3/8

Create value for customers byimproving benefits or reducing price Im rove the roduct

Find new distribution channels

Cut monetary and non-monetary costs andprices


1-9

Globalization is the inexorable integration of-,degree never witnessed beforein a way thatis enabling individuals, corporations andna on-s a es o reac aroun e worfarther, faster, deeper and cheaper than ever

,world to reach into individuals, corporations

and nation-states farther, faster, deeper andc eaper an ever e ore.


1-10

omas r e man

An industry is global to the extent that a companys

with its industry position in another country

Ratio of cross-border trade to total worldwide

Ratio of cross-border investment to total capitalinvestment

Proportion of industry revenue generated bycompanies that compete in key world regions


1-11

Comp Advantage, Globalization,and Global Industries

Focus Concentration and attention on core business and

competence

.are not running bicycle shops. Even in food we arenot in all fields. There are certain areas we do not

we will either buy Coca-Cola or we leave it alone.This is focus.

Helmut Maucher, former


1-12


4/8

Global Marketing: What It Isand What It Isnt

Single Country Global Marketingar e ng ra egy Target Market Strategy

Global Market Participation

Marketin Mix Develo ment Marketing Mix

Product 4Ps: Adapt or

Standardize?

r ce

Promotion

Activities

Coordination of Marketing

Integration of CompetitiveMoves


1-13

Standardization vs.Adaptation

Globalization (Standardization) Developing standardized products marketed

worldwide with a standardized marketing mix

ssence o mass mar et ng

Global localization (Adaptation) Mixing standardization and customization in a way

that minimizes costs while maximizing satisfaction Essence of segmentation

Think globally, act locally


1-14

Standardization vs.Adaptation

Arabicread right to left

Chinese

e icious appiness


1-15

The Faces of Coca-Cola Around the World

Marketing MixElement

Standardized(Extension)

Localized(Adaptation)

Product Big Mac McAloo Tikka potato burger(India)

Advertising Slogan

MakDo (Philippines)

McJoymagazine, Hawaii

Im Loving It Sur ing Hu a promotion(Japan)

-

Swiss rail system diningcars


1-16

Price Average price o Big Mac is$3.54 (US)

5.79 Norway

$1.83 (China)


5/8

The Importance ofGoing Global

For US companies, 75% of total world marketor goo s an serv ces s outs e t e country Coca-Cola earns 75% of operating income and 2/3

o pro ou s e o or mer ca

For Japanese companies, 85% of worldmar et is outsi e t e country

94% of market potential is outside ofGermany for its companies


1-17

Cigarettes $295

Cosmetics 200

ersona ompu ers

Flat-screen TVs 100

Bottled Water 100

Home Appliances 85Cell Phones 60

Video Games 43


1-18Recorded Music 32

Ethnocentric Orientation

Home country is superior to others

Assumes products and practices that

everywhere

ea s o a s an ar ze or ex ens onapproach


1-19

Polycentric Orientation

Each country is unique

business and marketing strategies

Leads to a localized or adaptation

approac a assumes pro uc s mus eadapted to local market conditions


1-20


6/8

Re iocentric OrientationA region is the relevant geographic unit

Some companies serve markets throughout,

Ex: General Motors had


1-21European Union

Geocentric Orientation n re wor s a po en a mar e Strives for integrated global strategies

Retains an association with the headquarterscountr

Pursues serving world markets from a single

country or sources globally to focus on selectcountry mar ets

Leads to a combination ofextension and


1-22

Driving Forces Affecting GlobalIntegration & Marketing

Multilateral trade

agreements Converging market needs

and wants and the infor-

Transportation and communication

Product development costs


1-23


Quality

R&D as a percentage of sales World economic trends

2008 global crisis

Growing middle class in China,India, Brazil, etc.

Rapid growth in China pre-2008

Movement to free marketsworldwide


1-24


7/8


Levera e Experience transfers

ca e econom es

Resource utilization

Global strategy


1-25

Restraining Forces AffectingGlobal Integration & Marketing

anagemen myop a

Or anizational culture

National controls

ppos t on to g o a zat on


1-26

Part 1: Introduction

Part 2: The Global Marketing

Part 3: Approaching Global Markets

Part 4: The Global Marketing Mix

Twenty-First Century


1-27

18 Guiding Principles of theMarketing Company

1. The Principle of the Company: Marketing is a Strategic BusinessConcept

2. The Principle of the Community: Marketing is EveryonesBusiness

.War

Topping4. The Principle ofRetention: Concentrate on Loyalty, Not Just

5. The Principle ofIntegration: Concentrate on Differences, NotJust Averages


6. The Principle ofAnticipation: Concentrate on Proactivity, NotJust Reactivity


8/8

18 Guiding Principles of theMarketing Company (contd)

7. The Principle ofBrand: Avoid the Commodity-like Trap8. The Principle ofService: Avoid the Business-Category Trap9. T e Princip e o Process: Avoi t e Function-Orientation

Trap

Strategy

10. The Principle ofSegmentation: View Your Market Creatively. e r nc p e o arge ng: oca e our esources ec ve y12. The Principle ofPositioning: Lead Your Customers Credibly


18 Guiding Principles of theMarketing Company (contd)

Tactics

13. The Principle ofDifferentiation: Integrate Your Content,on ex an n ras ruc ure14. The Principle of the Marketing Mix: Integrate Your Offer,

Price Lo istics and Communications15. The Principle ofSelling: Integrate Your Company, Customers

and Relationships

Implementation

16. The Principle ofTotality: Balance Your Strategy, Tactics andValue

17. The Principle ofAgility: Balance Your What, Why and How


. ,


PricePrice


global marketing 1

Documents