Global Marketing Management

Global Customers

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Overview

� Regional Market Characteristics

� Marketing in Transitional Economies & Less Developed Countries

� Global Buyers

� Global Marketing Plan

� Summary

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Learning Objectives

� Become familiar with different regional markets

� Learn how transitional & developing markets differ from developed countries

� Understand the customer value & the value equation

� Discuss diffusion theory

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Western Europe

� Smaller than Australia� 32 % Global Income� 460 mill ion population� 7% World Population� 23 Countries

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Product Strategies in the EU

� Harmonization in product standards

� Common patenting & branding� Harmonization in packaging

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Pricing Strategies in the EU

� More competitive� Withdrawal of restrictions on foreign

products� Anti-monopoly measures� Widening of public procurement market

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Distribution Strategies in the EU

� Simplif ication of transit documents & procedures

� Elimination of customs formalit ies

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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 & Estonia� Commonwealth of Independent States� Poland, 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 GNP� 30% of Global Income� 407 million population� 7% world population

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Asia-Pacific

� $8,230 bil l ion Global Income� 25% of Global Income� 2.8 Bil l ion population� 52% 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 Bil l ion GNP� 3.9% Global Income� 1.27 Bil l ion population� 21% world population� $930 GNP per Capita� Nearly 10% annual growth in GNP

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India: A Closer LookPer 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 Income� 510 mill ion population� 9.5% world population

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Africa

� 3.5 times size of US� 3 Regions: North Africa, Sub-

Sahara and Republic of South Africa

� 1.3% Global Income� 730 mill ion population� 12% of world population� Average per capita = $536

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Transitional Economies & Less Developed Countries

� 1.       Low per capita income - under $4000� 2.       High inf lat ion – 10 to 30% annually� 3.       Wide gap in income distr ibution� 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 GNP� Consider LDCs collectively� Weigh the benefits of being first� Set realist ic deadlines

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Middle East

� 16 countries� 2% of Global Income� 260 mill ion population� 4% of world population� Predominately Muslim

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Roger’s Diffusion Theory

� Awareness� Interest� Evaluation� Trial� Adoption

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Roger’s Factors Affecting Rate of Innovation Adoption

� Relative advantage� Compatibil i ty� Complexity� Divisibil i ty� Communicabil ity

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Summary

� % Population is not related to % GNP� Major regions differ by income and

population� Diffusion of innovation varies around

world