Managing Marketing in the Global Economy Key Concepts
Global Firm Operates in two or more countries and captures R&D, production, logistics, marketing, and finance advantages not available to purely domestic competitors.
Breakthrough Marketing: Samsung • Samsung has invested more that $6 billion in marketing to upgrade its image!
Deciding Whether to Go Abroad Factors drawing companies into the international arena: • Higher profit opportunities • Need a larger customer base to achieve economies of scale or want to reduce dependence on any one market • To counterattack global competitors • Customers are going abroad and require international service
Deciding Whether to Go Abroad Risks: • Might not understand foreign preferences and could fail to offer a competitively attractive product • Might not understand the other country’s business culture or know how to deal with foreign regulations • May lack managers with international experience • Other country might change its commercial laws, devalue its currency, or undergo a political revolution and expropriate foreign property
Deciding Which Markets to Enter Product Geography Income and population Political climate Other factors
Standardized marketing mix Adapted marketing mix Deciding on the Marketing Program
For Discussion Discuss whether these products should standardize or adapt when selling in the United States: • British automobiles • French wine • South African diamonds • Australian clothing
Price and Distribution • Price escalation—must add the cost of transportation, tariffs, importer margin, wholesaler margin, and retailer margin to the product’s factory cost. • Gray market—branded products are diverted from normal or authorized distribution channels in the country of product origin or across international borders.
Country-of-Origin Effects Country-of-origin perceptions Distinct attitudes and beliefs about brands or products from particular countries.
Internal Marketing Requires that everyone in the organization buy into the concepts and goals of marketing and engage in choosing, providing, and communicating customer value.
Organizing the Marketing Department • Functionally • Geographically • Product or brand • Market • Matrix • Corporate/division
Relations with Other Departments • Marketing vice president, or CMO, tasks: • Coordinate the company’s internal marketing activities • Coordinate marketing with finance, operations, and other company functions to serve the customer
Managing the Marketing Process Marketing implementation The process that turns marketing plans into action assignments and ensures that they accomplish the plan’s stated objectives.
Marketing Metrics Sales metrics Customer readiness to buy metrics Customer metrics Distribution metrics Communication metrics
The Marketing Audit A comprehensive, systematic, independent, and periodic examination of a company’s (or business unit’s) marketing environment, objectives, strategies, and activities to identify problems and opportunities and to recommend improvements.
The Marketing Audit • Examines six major marketing components: • Macro-environment and task environment • Marketing strategy • Marketing organization • Marketing systems • Marketing productivity • Marketing function
Legal behavior Ethical behavior Social responsibility behavior Socially Responsible Marketing
Cause-related marketing Sustainability Socially Responsible Marketing
Marketing Skills:Cause-Related Marketing • Choose a cause that fits the company’s or brand’s image and be meaningful to employees and other stakeholders. • Prepare to brand the program, perhaps with a new self-branded organization associated with the cause. • Plan and manage it as carefully as all other marketing activities.
Reflection Think of other examples of cause-related marketing. Reflect on the case of Cabbages & Condoms campaign in Thailand