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Global marketing

Prof. Kerem Gurses

Developing a Global Vision


Importance of global marketing
Impact of multinational firms
The International Environment
Level of involvement in International Markets
Developing a Global Marketing Mix
4.1

Global Marketing
Global Vision (being competitive both
at your home and at others home)

Importance of Global Markets


Globalization
Impact of Terrorism
4.2

WORLD TRADE
1985 ($ 200 million)
WHY?

2005 ($ 7 trillion)
4.1

Global COMPETITION

USA

1/3rd of corporate profit


25% of US economic growth
etc)
1 of every 10 jobs

OTHER
COUNTRIES
(Chindia, Europe,
Asian Countries

4.2

WHAT DO YOU THINK?

Globalization is BAD?
Millions of people lost their jobs
Most find new jobs that often pay less
Cultural homogenization (lost traditions,
local values and norms)
income inequality (poor getting poorer
and rich getting richer)

4.2

WHAT DO YOU THINK?

or GOOD?
Millions of people move away from
poverty
Income mobility (poor can get rich)
COMPETITION! which always benefit
the consumers
Higher valued goods for developing
countries- raising the standards of
living
Expands economic freedom
Encourages democratization
Promotes higher labor standards.
4.2

IT IS BOTH GOOD and BAD!!


Question is not whether it good or bad!. Question
is
How should we run our societies?
How should we influence rapid economic
development?
How can we COMPETE more efficiently and
effectively?
4.2

Levels of Globalization
Export: marketing products to customers in other
countries (All exporters)
Licensing: License another firm to use forms of
proprietary knowledge (McDonalds; KFC)
Joint Venture: buy or partner with a company to form a
new entity (Daimler-Benz)
Multinational Corporation: company with operations and
activities in more than one country
(Virgin Mobile, Coca Cola, Wal-Mart)
Global Corporation: organization that has markets
worldwide (Unilever, P&G)
4.6

Global
Strategy

Distribution

Single
Marketing Mix

Product

Promotion

Distribution
Promotion

Price

Customized
Strategies

World as One Market

Price

Product

Global
Planning

Promotion

Price

Standard

Product

Global vs. Customized


Strategies

Distribution

Tailored Marketing Mixes


4.7

World as Many Markets

Strategic Decisions Based


on:
Target Market

Firm Capabilities

Market Potential
4.8

The Global Marketing Mix


Product and Promotion
One product, one message
(MTV, Coca Cola Light)
Product innovation (different use of the products
depends on the culture/country)
Product adaptation (local tastes, Mc Kofte/ Mc
Tikka)
Message adaptation cultural differences in ads

INTERNATIONAL
MARKETING MISTAKES
When Gerber first started selling baby food in Africa, they

used the same packaging as here in the USA with the cute
baby on the label. Later they found out that in Africa
companies routinely put pictures on the label of what's inside
since most people can't read
The Chevy Nova never sold well in Spanish speaking
countries. "No va" means "it doesn't go" in Spanish.
When Pepsi started marketing its products in China a few
years back, they translated their slogan, "Pepsi Brings You
Back to Life" pretty literally. The slogan in Chinese really
meant, "Pepsi Brings Your Ancestors Back from the Grave.
3.11

The Global Marketing Mix


Distribution
Pricing
Exchange rates (Up and Down! Frustrating,
Fluctuating!) / tariffs/
transportation/insurance
Purchasing power

Dumping

Do you see any difference between these two books ?


(20$- India)

(150$- US)

External Environment for Global


Marketing
Culture (common set of
values)
Preferences (cereal,
beverages)
What is Acceptable
Language
Legal (Coca Cola in India)

(Coca-Cola:
bite the wax tadpole in Japanese)

4.3

External Environment for Global


Marketing
Economic Development and Technology Development
Political (most efficient systems: less regulations)
No private ownership

max personal freedom

(communism)
(liberalism=rights to life, liberty,
property/
US: classical liberal= oppose welfare state
Europe: social liberal=provision of welfare)

Legal (free trade)


WTO (balance between developed and developing countries)
Dropping Trade Barriers (Uruguay Round, 148 nations, global standardization)
EU (unified European Market: common foreign security, defense policies,
standardized trade rules, citizenship, health standards)

4.4

External Environment for Global


Marketing
Economic Development (purchasing power)
Gross national income (GNI) of the world- $34
trillion , $5,230 for every man
US- $12.3 trillion, $41,400 for every man,
Average Life Expectancy(ALE)-78 years, 625
computers per 1000 people
India- $745 (ALE- 58 years, 6 computers per
1000)

4.4

External Environment for Global


Marketing
Demographic Makeup
Population (quantity, quality,
and/or)
Standard of Living

Natural Resources

4.5