international marketing first lecture

8/3/2019 International Marketing First Lecture

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Global MarketingGlobal Marketing


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04/29/12 S. Akhter, College of Business Adm., Marquette Univ. 2


DecisionsDecisions

Country

Region

Global


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Coordinated performance of

marketing activities to createexchanges across countries that

satisfy individual, organizational,

and societal objectives.


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Examples of GlobalExamples of Global

MarketingMarketing

Product Design

Brand Name

Product Positioning

Packaging

Advertising Strategy

Sales Promotion

Distribution

Customer Service

Canon photocopier/McDonalds/Toyota

Marlboro/Coke/Sony/BMW/

Colgate toothpaste

Gillette razors

Coca-Cola/Benetton

IBM

Benetton/Ikea

American Express


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What is Unique about Global Marketing?What is Unique about Global Marketing?

Economic Environment Fiscal policies - tax and government

expenditures Monetary policies - regulate money supply

Financial Environment

Exchange rates and fluctuationsForeign exchange reserves


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What is Unique about Global Marketing?What is Unique about Global Marketing?

Political Environment Tariff barriers

Nontariff barriers

Regulations

Cultural Environment Values

Beliefs

Attitudes


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Global Marketing EnvironmentGlobal Marketing Environment

GlobalGlobal

RegionalRegional

LocalLocal

Marketing MixMarketing Mix

EnvironmentEnvironment


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Management OrientationManagement Orientation

Ethnocentric

PolycentricRegiocentric

Geocentric


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Global Marketing EvolutionGlobal Marketing Evolution

Domestic 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 aredifferent across national markets).


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Global Marketing EvolutionGlobal Marketing Evolution

Multinational 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).


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Standardization Efforts--product offerings,

promotional mix, price, and channel

structure.

Coordination Across Marketsreducing

cost inefficiencies.

Global Integrationparticipating in many

major world markets to gain competitiveleverage, subsidize operations in some

markets.


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Global Marketing DecisionsGlobal Marketing Decisions

Internationali

ze Business?

GlobalMarketingDecisions

Market EntrySelection

CountryMarketSelection


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Why Global Marketing?Why Global Marketing?

Exploiting Firm-Specific CapabilitiesTechnological innovations

Strong Trade Names

Lowering Cost Structure

Outsourcing

Hub and spokes model


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Why Global Marketing?Why Global Marketing?

Diversification and competitiveness

Product/market portfolio

Cross-subsidizationCountry market attractiveness

Income

Consumer preference

Technology and market globalization


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Why Global MarketingWhy Global Marketing

Saturation of domestic markets: Domesticmarket 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: Globalcompetition brings global cooperation.


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GLOBAL INTEGRATIONGLOBAL INTEGRATION

Restraining Forces

Technology

Culture

Market Needs

Cost

Free Markets

Economic Integration

Peace

Management Vision

Strategic Intent

Global Strategy and Action

Culture

Market Differences

Costs

National Controls

Nationalism

War

Management Myopia

Organization History

Domestic Focus

Driving Forces


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Global Trade ImportanceGlobal Trade Importance

World trade has grown from $200 billion tomore than $7 trillion in the past three

decades.

The Iron Curtain is gone and capitalism isthe new economic order.

Firms invest on a global scale.

Increasingly more difficult to definewhere products come from.

New trading blocs are emerging.


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Domestic and Global Trade GrowthDomestic and Global Trade Growth

0%

2%

4%

6%

8%

10%

12%

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000 Year

Percentage ofGrowth

Trade Growth Domestic Growth

Source: International Financial Statistics Yearbook2000, International Monetary Fund, Washington D. C.


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The Changing Face ofThe Changing Face of

ExportingExporting

0%

50%

100%

150%

200%

250%

300%

350%

400%

G

rowth(1983-199

8)

Australia Canada Germany Japan USA

Merchandise Exports Commercial Services Exports

Source: The World Bank, World Development Report, 1999.


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Domestic Policy Repercussions in the USDomestic Policy Repercussions in the US

1 out of every 3 U.S. farm acres is producing for export

1 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 everyVCR 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.


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If we distributed pictures onlyin 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


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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 yellowboxes of film.

- George M.C. Fisher

CEO, Eastman Kodak Company

international marketing first lecture

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