slide1 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Chapter 8 Global Marketing PowerPoint Presentation
Download Presentation
Chapter 8 Global Marketing

Loading in 2 Seconds...

play fullscreen
1 / 24

Chapter 8 Global Marketing - PowerPoint PPT Presentation


  • 127 Views
  • Uploaded on

Chapter 8 Global Marketing. The marketing mix in a global context. Specifications Size / Packaging Product launch. Standardization/Adaptation. PRODUCT. Waterfall/Sprinkle. High End/Low end Same across the world/Country segment specific. Target segments Value proposition.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Chapter 8 Global Marketing' - calais


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

Chapter 8

Global Marketing

slide2

The marketing mix in a global context

  • Specifications
  • Size / Packaging
  • Product launch
  • Standardization/Adaptation

PRODUCT

  • Waterfall/Sprinkle
  • High End/Low end
  • Same across the world/Country segment specific
  • Target segments
  • Value proposition

POSITIONING

  • Global brands/Local Brands
  • Communication messages
  • Single/multiple agencies
  • Name
  • Image
  • Advertising

BRAND

PRICE

  • Global Pricing/multiple
  • Mass vs Specialized
  • Logistics
  • Single Channels/Multiple Channels
  • Centralized/ Decentralised

DISTRIBUTION

  • Call centres
  • After sales

SERVICES

  • Centralized/ Decentralised
slide3

Marketing

Pure

Global

Adaptive

Usage

Adaptive

Product

Fully

Adaptive

Same

Different

Different

Product

Same

Same

Different

Same

Different

Message

Customer

Group

Same

Same

Different

Different

Usage

Same

Different

Same

Different

Same

Different

Distribution

Different

Same

Same

Different

Different

Brand

Same

Different

Different

Different

Price

Same

Apple

Swatch

Volvo

Mc Donald’s

Unilever

3

slide4

What determines the choice?

Supply

Demand

  • Costs (economies of scale)
  • Competition
  • Company’s capabilities
  • Company’s identity and brand integrity
  • Market segmentation across countries

Existence of a significant global segment across countries

  • Market segmentation within countries

Existence of a significant differentiated segment within countries

slide5

Market segmentation across countries

  • Large global
  • accounts for:
  • Finances
  • Insurances
  • Telecom
  • IT, consulting
  • Sourcing, logistics
  • Commodities
  • Capital equipment

GLOBAL

Cosmopolitan

elites

  • Most consumers
  • for durable goods:
  • Cars
  • Washers,
  • Cookers

REGIONAL

  • Nearly all companies for:
  • -Travel services and logistics
  • (unless global firms)
  • Some intermediate products
  • The vast majority of the population
  • for most of:
  • Food
  • Basic Services (Banks, Telecom,..)
  • News, entertainment
  • Nearly all companies for:
  • - Ancillary supplies
  • Specific localised services:
  • taxation, etc..
  • The majority ofSMEs

LOCAL

Business-to-Business Segments

Consumers Segments

slide6

Global Segment

Existence of a significant global segment across countries

Homogeneous needs and behaviour

slide7

Multiple types of global segmentation

CITIBANK CONSUMER BANKING

SWATCH

USA

Everywhere

UK

Hong Kong

VOLVO

HEINEKEN

Scandinavia

Everywhere

Elsewhere

slide8

Top End

  • High End:
  • Differentiated products
  • Functionalities and Performances
  • Less Price sensitive

Lower High End

Higher Low End

  • Low End:
  • Undifferentiated Products
  • Mass Production and distribution
  • Price sensitive

Lower End

Top End

Top End

Lower Top End

Higher End

Higher Low End

Miiddle Class

Lower High End

Higher Low End

Lower End

Lower End

Developing World Segmentation

Industrialized Countries Segmentation

  • Lower End dominates
  • Rising middle class but still relatively small
  • Tiny highly wealthy segment
  • Diverse segmentation
  • Middle Class Markets dominates

Segments within countries

Generic Segmentation

slide9

Top End

  • High End:
  • Differentiated products
  • Functionalities and performances
  • Less price sensitive

Lower High End

Higher Low End

  • Low End:
  • Undifferentiated products
  • Mass production and distribution
  • Price sensitive

Lower End

Positioning and segments choice within countries

  • Disadvantages
  • Lower volume
  • Advantages
  • Higher margin
  • Higher switching costs
  • Advantages
  • High volume
  • Cost based advantages
  • Disadvantages
  • Lower margin
  • Price rivalry
slide10

COCA COLA & PEPSI

BOTTLED WATER

PEANUT BUTTER

ICE CREAM

COFFEE

BUTTER

YOGURT

BEER

CANNED MEAT

CHOCOLATE

COOKIES

DESSERT

CHEESE

BREAD

FROZEN DINNERS

SAUSAGES

0

1

2

3

4

5

6

7

8

9

10

Unilever Survey

The physical product could be sold

successfully in each European

country without modification

The physical product would have

to be completely different to be sold

in each European country

slide11

Launch

in country of

origin

Launch in

countries ,

Region A

Launch in

countries ,

Region B

Launch in

countries ,

Region C

Time

Product Launch

Sprinkle

Waterfall

Launch

in country of

origin

Launch in

countries ,

Region B

Launch in

countries ,

Region C

Launch in

countries ,

Region A

iPad 3: Sales, Launch in 25 Countries

slide12

Common features of global brands (John Quelch*)

Most of the time

  • Consistent positioning
  • Address similar customer needs worldwide
  • Easy to prononce
  • Be present geographically in a balanced way

Sony

Intel

Swatch

Nike

Sometimes

  • Product category focus (Mc Donald, Coke, Imac)
  • Strong in home market (Budweiser, Malboro )
  • Value of country of origin ( McDonald’s, Coke)
  • Corporate name (Disney, Sony, Gillette)

*John Quelch, « Global Brands:Taking Stock,

Business Strategy Review,1, 1999

slide13

Nestlé Branding Tree

7,500 Local brands

Responsibility of local markets

Texicana

Brigadeiro

Rocky

Solis

Mackintosh

Vittel

Contadina

Stouffer’s

Herta

Alpo

Findus

140 Regional

strategic brands

Responsibility of strategic

business unit and regional

management

KitKat

Polo

Cerelac

Baci

Mighty Dog

Smarties

After Eight

Coffee-Mate

45 Worldwide strategic

brands

Responsibility of general

management at strategic

business unit level

Nestle

Carnation

Buitoni

Maggi

Perrier

10 Worldwide

corporate

brands

Source: Nestlé:Andrew Parsons,

« The Vision of Local Managers »,

The McKinsey Quarterly,2, 1996

coke s 232 brands
Coke’s 232 Brands
  • Brazil
  • Argentina
  • Japan
  • Chile
  • Ecuador
  • India
  • China
  • El Salvador
  • Mexico
  • Taiwan
  • Philippines
  • South
  • Africa
  • Germany
  • Japan
slide15

Global Brands

Disadvantages

Avantages

  • Concentration of resources
  • Targetted impact
  • Cross border learning
  • Motivation for recruitment
  • Quality management
  • Over standardization
  • Ignorance of level of
  • market development
  • Skimming the surface
  • Rigid implementation
slide17

Country B

Country A

Profit Functions

Demand Functions

Global Pricing

Disadvantages

Advantages

  • Avoid arbitrage
  • Protect brand integrity
  • Facilitate the servicing of global customers

Sub-optimization

slide18

Channels

GLOBAL

SALES FORCE

LOCAL

AGENT

Civil aircraft

Large projects

GLOBAL/ REGIONAL

SALES FORCE

LOCAL DISTRIBUTOR

Machinery

Computers

LOCAL

SALES FORCES &

DISTRIBUTION CHANNELS

Fast moving

Consumer goods

Sales

Distribution

Many customers

(High Dispersion)

Few customers

(High Concentration)

Many customers

(High Dispersion)

Customer base

Few customers

(High Concentration)

Frequency of

purchase

Low

(Once in a while)

High

(Often)

Low

(Once in a while)

High

(Often)

slide19

Global solution selling

The capability for a company to deliver to a customer a customised product

and services integrating capabilities spread across different subsidiaries worldwide.

Financial engineering

  • BANKS

Solution to strategic,

managerial, technical problems

  • CONSULTING
  • INFORMATION

TECHNOLOGY

Customised applications of EDP,

communication problems

Turn key projects

  • ENGINEERING
slide20

Corporate

Legal and IT:

Dusseldorf

Subsidiary

generator:

Manchester

Subsidiary

turbine:

Pittsburg

Customer:

Tianjin

Project leader:

Hong Kong

Subsidiary

regulation:

Sydney

Global solution selling: a power plant project in China

slide21

Conclusions (1)

  • Trends towards global marketing
  • However need to facilitate regional/local adaptation of certaincomponents of the mix (communication, pricing, channels )
  • Global marketing management requires:
  • - Sharing of knowledge across borders
  • - Institutionalization through:
  • Global Brand Team ( Co-ordination of brand managers)
  • or Global Brand Manager ( e.g. IBM’s “brand stewards”)
  • or Global Management Team ( e.g. P&G’s categories team)
  • or Brand Champion ( Nestlé)
  • - Common information and planning tools

David Aaker and Erich Joachimsthaler, The Lure of Global Branding » Harvard Buisness Review, Nov-Dec 1999

slide22

Conclusions (2)

Marketing at the bottom of the pyramid

4 billion people live with less than $4 per day

1 billion people live with less than $1 per day.

Source: Prahalad, C. K. and Stuart Hart (2002), "The Fortune at the Bottom of the Pyramid," Strategy+Business, 26.

slide23

Differences between Traditional Middle Class strategies and Bottom of the Pyramid strategies

Traditional Middle Class

Bottom of the Pyramid

  • Value pricing based on differentiation and segmentation
  • Products obsolescence and renewal
  • Products, services functionalities and packaging are adaptation of industrialized markets
  • Advertising on mass TV and media supports
  • Products designed on ‘regular” environments
  • Urban areas focus
  • Transfer of technology
  • Use of skilled resources
  • Build supplies chains similar to industrialized world
  • Find new price-performances relationships leading to quality at low prices
  • Products built to last
  • Products, services functionalities packaging are “reinvented”to fit local conditions
  • Communication and advertising rely less on mass advertising and more on educational campaigns using government programs and non government organizations.
  • Products designed on “hostile environments.
  • Rural focus
  • Hybrid technology: combination of advanced and adaptation
  • Deskill the work process
  • Adapt supplies chains to local conditions

23

slide24

Conclusions (2)

Marketing at the Bottom of the Pyramid

Share of purchases by low-income and middle consumers in clothing and grocery

de Abreu Filho, Gilberto Duarte, Nicola Calicchio, and Fernando Lunardini (2003), "Brand Building in Emerging Markets," McKinsey Quarterly (2), 6.