M.N. Elahee

Global Marketing

M.N. Elahee

International Marketing: A Definition

Global or international marketing is defined as theperformance of business activities designed to plan,price, promote, and direct the flow of a company’sgoods and services to consumers or users in morethan one nation for a profit

Global or international marketing is defined as theperformance of business activities designed to plan,price, promote, and direct the flow of a company’sgoods and services to consumers or users in morethan one nation for a profit

Marketing concepts, processes, and principles are universally applicable all over the world

Marketing concepts, processes, and principles are universally applicable all over the world

M.N. Elahee

The International Marketing Task

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3. Economy

Environmentaluncontrollablescountry market A

Environmentaluncontrollablescountrymarket B

Environmentaluncontrollablescountrymarket C

1. Competition

1. Competition

2. TechnologyPrice Product

Promotion Place orDistribution

6. Geography andInfrastructure

Foreign Environment(Uncontrollables)

7. Structure ofDistribution

3. Economy

5. Political-Legal

Domestic environment(Uncontrollables)

(Controllables)

2 .Technology

4. Culture

5. Political-Legal

4. Culture

Target Market

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Reasons for Going Global:

Foreign markets with higher profit opportunities Stagnant or shrinking domestic markets Need larger customer base to achieve

economies of scale Keeping pace with competition Reduce dependency on single market Reach a larger market Reap higher profits Prolong the lifecycle of their products

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Global Integration Forces

Driving ForcesDriving Forces Technology Culture Market Needs Costs Free Markets and Economic Integration Strategy and Action

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Global Integration Forces

Restraining ForcesRestraining Forces Culture Market Differences Costs National Controls Nationalism Peace vs. War/ Stability Organization History Domestic Focus

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Developing a Global Awareness

To be globally aware is to have:To be globally aware is to have:

1. Tolerant of Cultural Differences, and

2. Knowledgeable of: (a) Culture, (b) History, (c) World Market Potential,(d) Global Economic, Social and Political Trends

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Cultural Differences

When Nike learned that this stylized “Air” logo resembled “Allah” in Arabic script, it apologized and pulled the shoes from distribution.

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Stages of International Marketing Involvement

In general, firms go through five different phases in going international:In general, firms go through five different phases in going international:

Infrequent Foreign MarketingInfrequent Foreign Marketing

No Direct Foreign MarketingNo Direct Foreign Marketing

International MarketingInternational Marketing

Regular Foreign MarketingRegular Foreign Marketing

Global MarketingGlobal Marketing

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Strategic Orientation: EPRG Schema

Orientation EPRG Schema

Domestic MarketingExtension

Multi-DomesticMarketing

Global Marketing

(Ethnocentric)

(Polycentric)

(Regio/Geocentric)

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Ethnocentric Orientation

Guided by domestic market extension concept: Domestic strategies, techniques, and personnel

are perceived as superior International customers are considered as

secondary International markets are regarded primarily as

outlets for surplus domestic production International marketing plans are developed in-

house by the international division

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Polycentric Orientation

Guided by the multidomestic market concept: Focuses on the importance and uniqueness of each

international market Likely to establish businesses in each target country Fully decentralized, minimal coordination with

headquarters Marketing strategies are specific to each country Result: No economies of scale, duplicated

functions, higher final product costs

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Regiocentric Orientation

Guided by the global marketing concept: World regions that share economic, political,

and/or cultural traits are perceived as distinct markets

Divisions are organized based on location Regional offices coordinate marketing activities

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Geocentric Orientation

Guided by the global marketing concept: The world is perceived as a total market with

identifiable, homogenous segments Targeted marketing strategies aimed at market

segments, rather than geographic locations Regiocentric and Geocentric are synonymous with a

Global Marketing Orientation where a uniform, standardized marketing strategy is used for several countries, countries in a region, or the entire world

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Major Decisions in Global Marketing

Deciding to go abroad Deciding which markets to enter Deciding how to enter the markets Deciding on marketing programs Deciding on marketing organization

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Major International Marketing Decisions

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Deciding Which Markets to Enter

Before going abroad, the company should try to define its international marketing objectives and policies.

What Volume of Foreign Sales is Desired?

How Many Countries to Market In?

What Types of Countries to Enter?

Choose Possible Countries and Rank Based on Market Size, Market Growth, Cost of

Doing Business, Competitive Advantage, and Risk Level

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Major Markets for the US

Canada Mexico Japan China UK

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Leading Suppliers

Canada China Mexico Japan Germany

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Any Question

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