global marketing management warren j. keegan chapter 5 global customers

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Global Marketing Management Warren J. Keegan Chapter 5 Global Customers

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Page 1: Global Marketing Management Warren J. Keegan Chapter 5 Global Customers

Global Marketing Management

Warren J. Keegan

Chapter 5 Global Customers

Page 2: Global Marketing Management Warren J. Keegan Chapter 5 Global Customers

Keegan: Global Marketing Management Chapter 5/ 2

Overview

Regional Market CharacteristicsMarketing in Transitional Economies & Less

Developed CountriesGlobal BuyersGlobal Marketing PlanSummary

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Learning Objectives

Become familiar with different regional marketsLearn how transitional & developing markets

differ from developed countriesUnderstand the customer value & the value

equationDiscuss diffusion theory

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Western Europe

Smaller than Australia32 % Global Income460 million population7% World Population23 Countries

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Product Strategies in the EU

Harmonization in product standards

Common patenting & brandingHarmonization in packaging

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Pricing Strategies in the EU

More competitiveWithdrawal of restrictions on

foreign productsAnti-monopoly measuresWidening of public procurement

market

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Distribution Strategies in the EU

Simplification of transit documents & procedures

Elimination of customs formalities

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Promotion Strategies in the EU

Common guidelines for TV broadcasting

Deregulation of national monopolies

Uniform standard for TV commercials

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Eastern & Central Europe

Balkans: Albania, Bosnia-Herzegovina, etc.

Baltics:Lithuania, Latvia & EstoniaCommonwealth of Independent

StatesPoland, Hungary, etc.

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Eastern & Central EuropeBefore – After Market Economy

Before After

% World GNP 6.9%2.5%

GNP per Capita $3,665$2,219

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Marketing in Eastern & Central Europe

Wide range in economic development

Young people have “unlearned” the communist past

Needs business and distribution infrastructure

Familiar with Western Brands

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North America - NAFTA

$9,254 trillion GNP30% of Global Income407 million population7% world population

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Asia-Pacific

$8,230 billion Global Income25% of Global Income2.8 Billion population52% World Population

Page 14: Global Marketing Management Warren J. Keegan Chapter 5 Global Customers

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Traditional Western & Asian Marketing Values

Western•Brand segmentation; personal choice & self expression through brands•Presenters/testimonials important but more to draw attention to brands•Seeding & diffusion from leading edge•“Understatement” of wealth •Environmentalism

Asian•Popular famous brands; confidence in brand & corporate names•Imitation,emulation,use of presenters as role models •Rapid adoption of successful brands•Display of wealth and status•Confidence in technology

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JAPAN

•Home of most demanding customers

•Home market of global customers

•Home market of global competitors

•Significant market of global competitors

•Major source of industry innovation.

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China

$1,179 Billion GNP3.9% Global Income1.27 Billion population21% world population$930 GNP per CapitaNearly 10% annual growth in

GNP

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India: A Closer Look2000

Per capita income $330

Per capita GDP $310

Population 950m

Literacy rate <50%

Telephones 6m

Television Sets 35m

Access to clean sanitation* 14%

Population with income>$2500 2.3%

Average household size 5.2

Growth Rate 3.5%

* One of the lowest rates of access in the world

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Latin America

Consists of South and Central America & Caribbean

Mexico is economically part of NAFTA

7% of global Income510 million population9.5% world population

Page 19: Global Marketing Management Warren J. Keegan Chapter 5 Global Customers

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Africa

3.5 times size of US3 Regions: North Africa, Sub-

Sahara and Republic of South Africa

1.3% Global Income730 million population12% of world populationAverage per capita = $536

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Transitional Economies & Less Developed Countries

1.      Low per capita income - under $4000 2.      High inflation – 10 to 30% annually 3.      Wide gap in income distribution 4.      High level of taxes, duties &

bureaucratic hurdles 5.      Lack of marketing awareness 6.      Fragmented communications &

distribution7. Inadequate infrastructure

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To Enter or Not to Enter?

Look beyond per capita GNPConsider LDCs collectivelyWeigh the benefits of being

firstSet realistic deadlines

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Middle East

16 countries2% of Global Income260 million population4% of world populationPredominately Muslim

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Roger’s Diffusion Theory

AwarenessInterestEvaluationTrialAdoption

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Roger’s Factors Affecting Rate of Innovation Adoption

Relative advantageCompatibilityComplexityDivisibilityCommunicability

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Summary

% Population is not related to % GNP

Major regions differ by income and population

Diffusion of innovation varies around world