chapter 1 introduction to global marketing l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Chapter 1 Introduction to Global Marketing PowerPoint Presentation
Download Presentation
Chapter 1 Introduction to Global Marketing

Loading in 2 Seconds...

play fullscreen
1 / 21

Chapter 1 Introduction to Global Marketing - PowerPoint PPT Presentation


  • 221 Views
  • Uploaded on

Chapter 1 Introduction to Global Marketing. Global marketplace/Local markets. Brands from one country are available in other countries E.g. McDonalds, Sony, Nokia, Levis, etc. are available world over Local brands compete with global brands

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 1 Introduction to Global Marketing' - jean


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
global marketplace local markets
Global marketplace/Local markets
  • Brands from one country are available in other countries
    • E.g. McDonalds, Sony, Nokia, Levis, etc. are available world over
  • Local brands compete with global brands
    • E.g. McDonalds & Jollibee in Philippines; Sony and Kenstar in India; Swatch and Titan in India; Kiki and Vogue Girl in Japan, etc.
  • Products are results of a value chain that encompasses several countries.
    • E.g. automobiles, A-380
global marketing vs traditional marketing
Global marketing vs. traditional marketing
  • Mind-set – evaluates global opportunities and threats on a continuous basis
  • Scope of activities – important activities conducted outside the home country
  • Seek markets in other countries
  • Standardization vs. adaptation decisions
reasons for global marketing
Reasons for Global Marketing
  • Growth Imperatives
    • Home market growth rates are relatively flat
    • Access to new markets
    • Access to resources
  • Survival
    • Against competitors from abroad with lower costs (due to access to cheaper resources)
overview of marketing
Overview of Marketing
  • A distinct functional area
  • The 4 P’s: product, price, place, and promotion
  • An activity in the firm’s value chain
  • Boundaryless marketing
    • Market orientation (customer orientation, competitor orientation & inter-functional coordination)
boundaryless marketing
Boundaryless Marketing
  • Goal is to eliminate communication barriers between marketing and other business functional areas
  • Properly implemented it ensures that a market orientation permeates all value creating activities
goal of marketing
Goal of Marketing
  • Surpass the competition at the task of creating perceived value for customers
  • The Guide line is the value equation –

Value = Benefits/Costs (Money, Time, Effort, Etc.)

competitive advantage
Competitive Advantage
  • Success over competition in industry at value creation
    • No longer can this be achieved at a local, regional or national scale
  • Achieved by integrating and leveraging operations on a worldwide scale
  • E.g. I-Pod and its components
globalization
Globalization
  • Globalization is the inexorable integration of markets, nation-states, and technologies to a degree never witnessed before - in a way that is enabling individuals, corporations, and nation-states to reach around the world farther, faster, deeper and cheaper than ever before, and in a way that is enabling the world to reach into individuals, corporations, and nation-states farther, faster, deeper, and cheaper than ever before.
          • Thomas Friedman
global industries
Global Industries
  • A global organization – Position in one country is interdependent with industry positions in other countries
  • Indicators of globalization:
    • Ratio of cross-border trade to total worldwide production
    • Ratio of cross-border investment to total capital investment
    • Proportion of industry revenue generated by companies that compete in key world regions
competitive advantage globalization and global industries
Competitive Advantage, Globalization and Global Industries
  • Focus
    • Concentration and attention on core business and competence

Nestle is focused: We are food and beverages. We are not running bicycle shops. Even in food we are not in all fields. There are certain areas we do not touch…..We have no soft drinks because I have said we will either buy Coca-Cola or we leave it alone. This is focus.

Helmut Maucher

    • Change in focus may be required as the business environment changes (e.g. IBM)
global marketing what it is and what it isn t
Global Marketing: What it is and What it isn’t
  • Global marketing does not mean doing business in all of the 200-plus country markets
  • Global marketing does mean widening business horizons to encompass the world in scanning for opportunity and threat
standardization versus adaptation
Standardization versus Adaptation
  • Globalization (Standardization)
    • Developing standardized products marketed worldwide with a standardized marketing mix
    • Essence of mass marketing
  • Global localization (Adaptation)
    • Mixing standardization and customization in a way that minimizes costs while maximizing satisfaction
    • Essence of segmentation
    • Think globally, act locally
  • Global Marketing Strategy
the importance of global marketing
The Importance of Global Marketing
  • For US-based companies, 75% of sales potential is outside the US.
    • About 90% of Coca-Cola’s operating income is generated outside the US.
  • For Japanese companies, 85% of potential is outside Japan.
  • For German and EU companies, 94% of potential is outside Germany.
management orientations
Management Orientations

Ethnocentric:

Home country is

Superior, sees

Similarities in foreign

Countries

Polycentric:

Each host country Is

Unique, sees differences

In foreign countries

Regiocentric:

Sees similarities and

differences in a world

Region; is ethnocentric or

polycentric in its view of

the rest of the world

Geocentric:

World view, sees

Similarities and

Differences in home

And host countries

the eprg framework
The EPRG framework
  • Ethnocentrism
    • Associated with national arrogance & home country superiority
    • Assumes what succeeds in the home country will also succeed in other countries
    • Domestic and international companies
    • Standardized approach to marketing
    • Foreign markets are secondary to the domestic market
    • E.g. Nissan in 60s, Coke in the late 80s/early 90s
the eprg framework18
The EPRG framework
  • Polycentrism
    • Opposite of ethnocentrism – each country market is unique
    • Highly localized / adapted approach to marketing
    • Multinational companies – Local “kingdoms”
    • E.g. Citicorp in the 90s.
the eprg framework19
The EPRG framework
  • Regiocentrism
    • Treat a world region as one homogeneous market (e.g. NAFTA region; the EU, etc.)
    • Localization / adaptation for the region; ethnocentric or polycentric view of the rest of the world
  • Geocentrism
    • World view – focused on standardizing programs but will adapt if indicated by research
    • Global / transnational company / a blurring of national identity
    • E.g. Toyota
forces affecting global integration and global marketing
Driving Forces

Regional economic agreements

Converging market needs and wants

Media & Internet

Transportation and communication improvements

Product development costs

World economic trends

Leverage

Restraining Forces

Management myopia

Organizational culture

National controls

Nationalism – anti-globalization protests

Forces Affecting Global Integration and Global Marketing
leverage
Leverage
  • An advantage by virtue of the company’s experience in several countries
    • Experience transfers
    • Scale economies
    • Resource utilization
    • Global strategy