Global Marketing

Global Marketing DecisionsCountryRegionGlobal

Global MarketingCoordinated performance of marketing activities to create exchanges across countries that satisfy individual, organizational, and societal objectives.

Examples of Global MarketingProduct DesignBrand NameProduct PositioningPackagingAdvertising StrategySales PromotionDistributionCustomer ServiceCanon photocopier/McDonalds/ToyotaMarlboro/Coke/Sony/BMW/Colgate toothpasteGillette razorsCoca-Cola/BenettonIBMBenetton/IkeaAmerican Express

What is Unique about Global Marketing? Economic EnvironmentFiscal policies - tax and government expendituresMonetary policies - regulate money supplyFinancial EnvironmentExchange rates and fluctuationsForeign exchange reserves

What is Unique about Global Marketing? Political EnvironmentTariff barriersNontariff barriersRegulationsCultural EnvironmentValuesBeliefsAttitudes

Global Marketing EnvironmentGlobalRegionalLocalMarketing MixEnvironment

Management OrientationEthnocentricPolycentricRegiocentricGeocentric

Global Marketing EvolutionDomestic Marketing (domestic focus; home country customers; ethnocentric orientation).Export Marketing (ethnocentric orientation; products developed for home country customers).International Marketing (markets in many countries; polycentric orientation; use of multidomestic marketing when customer needs are different across national markets).

Global Marketing EvolutionMultinational Marketing (many markets; consolidation on regional basis; regiocentric orientation; standardization within regions).Global Marketing (international, multinational & geocentric orientation; companys willingness to adopt a global perspective; global products with local variations).

Global MarketingStandardization Efforts--product offerings, promotional mix, price, and channel structure.Coordination Across Marketsreducing cost inefficiencies.Global Integrationparticipating in many major world markets to gain competitive leverage, subsidize operations in some markets.

Global Marketing DecisionsInternationalize Business?Global Marketing DecisionsMarket Entry SelectionCountry Market Selection

Why Global Marketing?Exploiting Firm-Specific CapabilitiesTechnological innovationsStrong Trade NamesLowering Cost StructureOutsourcingHub and spokes model

Why Global Marketing?Diversification and competitivenessProduct/market portfolioCross-subsidizationCountry market attractivenessIncomeConsumer preferenceTechnology and market globalization

Why Global MarketingSaturation of domestic markets: Domestic market saturation in the industrialized countries and growing marketing opportunities overseas.Global competition: Competition around the world and proliferation of the Internet.Need for global cooperation: Global competition brings global cooperation.

GLOBAL INTEGRATIONRestraining ForcesTechnologyCultureMarket NeedsCostFree MarketsEconomic IntegrationPeaceManagement VisionStrategic IntentGlobal Strategy and ActionCultureMarket DifferencesCostsNational ControlsNationalismWarManagement MyopiaOrganization HistoryDomestic FocusDriving Forces

Global Trade ImportanceWorld trade has grown from $200 billion to more than $7 trillion in the past three decades.The Iron Curtain is gone and capitalism is the new economic order.Firms invest on a global scale.Increasingly more difficult to define where products come from.New trading blocs are emerging.

Domestic and Global Trade GrowthSource: International Financial Statistics Yearbook 2000, International Monetary Fund, Washington D. C.

The Changing Face of ExportingSource: The World Bank, World Development Report, 1999.

Domestic Policy Repercussions in the US1 out of every 3 U.S. farm acres is producing for export1 of every 6 U.S. manufacturing jobs produces for export$1 of every $7 of U.S. sales goes abroad 1 of every 3 cars, 9 out of 10 TVs, 2 out of 3 suits, and every VCR sold in the U.S. is imported.Travel and tourism is the #1 source of U.S. foreign exchange.$1 of every $4 of U.S. bonds & notes is issued to foreigners.

If we distributed pictures only in the United States, wed lose money. It takes the whole world now to make the economics of movie-making work.- William MechanicPresident, 20th Century Fox

Half the people in the world have yet to take their first picture. The opportunity is huge, and its nothing fancy. We just have to sell yellow boxes of film.- George M.C. FisherCEO, Eastman Kodak Company

Thank You!