Global Marketing

Global Marketing Decisions

Country Region Global

04/29/12

S. Akhter, College of Business Adm., Marquette Univ.

Global Marketing
Coordinated performance of

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

Examples of Global Marketing Canon photocopier/McDonalds/Toyota Product Design

Brand Name Product Positioning Packaging Advertising Strategy Sales Promotion Distribution Customer Service Marlboro/Coke/Sony/BMW/ Colgate toothpaste Gillette razors Coca-Cola/Benetton IBM Benetton/Ikea American Express

What is Unique about Global Marketing?

Economic Environment
Fiscal policies - tax and government

expenditures Monetary policies - regulate money supply

Financial Environment
Exchange rates and fluctuations Foreign exchange reserves

What is Unique about Global Marketing?

Political Environment
Tariff barriers Nontariff barriers Regulations

Cultural
Values Beliefs

Environment

Attitudes

Global Marketing Environment

Global Regional Local Marketing Mix

Environment

Management Orientation
Ethnocentric Polycentric Regiocentric Geocentric

Global 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 are different across national markets).

Global 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).

Global Marketing
Standardization

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 Decisions

Internationali ze Business? Country Market Selection

Global Marketing Decisions

Market Entry Selection

Why Global Marketing?

Exploiting Firm-Specific Capabilities Technological innovations Strong Trade Names Lowering Cost Outsourcing Hub and spokes model

Structure

Why Global Marketing?

Diversification and competitiveness Product/market portfolio Cross-subsidization Country market Income Consumer preference Technology

attractiveness

and market globalization

Why Global Marketing

Saturation

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 INTEGRATION
Driving Forces
Technology Culture Market Needs Cost Free Markets Economic Integration Peace Management Vision Strategic Intent Global Strategy and Action

Restraining Forces
Culture Market Differences Costs National Controls Nationalism War Management Myopia Organization History Domestic Focus

Global Trade Importance

World

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 Growth

Percentage of Growth
12% 10% 8% 6% 4% 2% 0%
19 92 19 93 19 94 19 95 19 99 20 00 19 87 19 8 19 8 19 9 19 9 19 9 19 9 19 9

Year

Trade Growth

Domestic Growth
Source: International Financial Statistics Yearbook 2000, International Monetary Fund, Washington D. C.

The Changing Face of Exporting 400%

350% Growth (1983-1998) 300% 250% 200% 150% 100% 50% 0% Australia Canada Germany Japan USA

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

Merchandise Exports

Commercial Services Exports

Domestic 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 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 Mechanic President, 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. Fisher CEO, Eastman Kodak Company