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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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
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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
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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