Global Marketing Principles_ Insights _ Challenges by gjmpzlaezgx

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									Global Marketing:
   Principles,
    Insights

       &
   Challenges
Insights
 In Hong Kong, a German businessperson
 is driving a Lexus; he’s wearing Bruno
 Magli shoes, Irish cashmere socks, Calvin
 Klein underwear, an Armani suit, with a
 Gucci belt. He has a Mont Blanc pen, in
 his Italian shirt. He’s going to meet an
 American investor at a KFC restaurant, for
 a Coke. After lunch, they stop for a
 Baskins-Robbins (actually a foreign firm)
 ice cream sundae. --- OK, that’s a stretch.
 When he gets home, sitting on an
 ottoman, he has an Absolut vodka
 nightcap, while listening to American
 country western music.
Challenges
   Huge Foreign indebtedness
   Unstable governments
   Foreign-exchange problems
   Foreign entry and government
    bureaucracy
   Tariffs and other trade barriers
   Corruption
   E-commerce---doesn’t offer complete
    solutions
   Technological pirating
   High cost of product and communication
    adaptations
Global Marketing
   Marketing has become more complex.
   Increases in new products, product
    extensions, high cost of distribution and
    shelf space.
   Expansion of retailer control and power,
    changing media habits, overload of
    information, and array of communication
    choices.
   Ultimate goal of programs
   Timing goals
Global Integration Forces
 Driving Forces
  Technology
  Culture
  Market Needs
  Costs
  Free Markets
  Economic Integration
  Peace
  Strategic Intent
  Management Vision, Strategy and Action
Global Integration Forces
Restraining Forces
 Culture
 Market Differences
 Costs
 National Controls
 Nationalism
 Peace vs. War/ Stability
 Management Myopia
 Organization History
 Domestic Focus
Challenges
 Markets can present higher profit
  opportunities than present markets.
 Markets can offer size but not profits.
 Company needs a larger customer
  base for economies of scale.
 Present customers are needing
  service and products as they go
  international.
Major Decisions
 Deciding to go abroad
 Deciding which markets
 Deciding how to enter markets
 Deciding on marketing programs
 Deciding on marketing organization
Global Marketing
   Denotes the use of advertising and
    marketing on a global basis.
   Marketing is at the threshold of a new and
    exciting era: e-business, e-commerce and
    e-marketing
   Business has two basic functions:
    marketing and innovation (Drucker)
   New era of competition, demanding
    customers
   More stakeholders (customers,
    employees, media).
Global Marketing
   Companies need new set of guidelines,
    values and insight
   Marketing is a Strategic Business Concept
   Marketing is too important to be left to the
    Marketing Department. (David Packard)
   Formulated, integrated, long-term
   Hold to the responsibilities of customers,
    employees, investors
Global Marketing
 Advantages, especially if the companies
  emphasize selection, availability, quality,
  reliability and lower prices.
 Economies of scale.
 Lower marketing and advertising costs in
  planning and control. Lower advertising
  production costs.
 Exploiting your best ideas on a worldwide
  basis.
Global Marketing
Deciding How to Enter a Market
 Indirect Export-Thru export and thru
  others.
 Direct Export-Handle own exports.
 Licensing-License a foreign company to
  use trademark, manufacturing process,
  trade secret, or other item for a fee or
  royalty.
 Joint Ventures- Join with local investors
 Direct Investment- Direct ownership.
Global Marketing
  Joint Ventures-- Join with local
  investors to create venture. Coca-
  Cola and Nestle joined forces in
  “ready to drink” coffee and tea.
 P&G with rival, Fater, in Italy and
  Great Britain.
 Whirlpool formed venture with Dutch
  electronic group Philip’s on white-
  goods business to leapfrog into
  European market.
Global Marketing
Direct Investment--Ultimate form is
  direct ownership of foreign-based
  assembly or manufacturing facilities.
 Can buy part or full interest in a local
  company.
Global Marketing
    Principle of Research
   Understand the consumer-behavior
    perspectives.
   Be sure you are asking right questions.
   Use appropriate research techniques and
    controls.
   Present clear, comprehensive and
    “actionable” results.
   We study people using geographics,
    demographics, psychographics, lifestyles,
    and behaviors.
Global Marketing
 Bodily adornment, cooking, courtship, food
  taboos, gift giving, language, marriage,
  status, sex, and superstitions, in all
  societies, although each society attaches
  different values and traditions.
 The world, countries, regions, and
  subcultures.
 Different groups of people share
  subcultures---values, customs, and
  traditions.
 Geomarketing uses these differences in
  foods, terminology, subculture identities.
Global Marketing
 Example: Global youth are notorious for
  challenging norms and defying labels. A
  study of 27K teenagers in 44 countries.
  Insights and motivations.
 Six different segments.
 But remember that even in a specific
  country the teenagers are not
  homogeneous.
 Six segments in a Teen World values
  research study.
Global Marketing
 Thrills and Chills. Driving principles---fun,
  excitement, irreverence and friends.
  Expect everything in life. Make it a goal to
  get as much and as many good times.
  Popular kids in schools. Brand loyal.
  Mostly in Germany, England, Greece,
  South Africa, Netherlands, US, Belgium
  and Canada. 18%
 Resigned: Fun, Friends and Low
  expectations. Little discretionary income.
  Cynical. Denmark, Sweden, Korea,
  Norway, Germany, Belgium, Argentina,
  Canada and Turkey 14%
Global Marketing
 World Savers. Defining principles: Fun,
  Humanism, and friends. Models of what
  gives hope to next generation. Good kids,
  who care. Technologically advanced.
  Motivated by new and exciting. Attracted
  by honest and sincere messages.
  Sophisticated, sense of humor. Hungary,
  Philippines, Venezuela, Brazil, Spain,
  Argentina, Russia, France, Poland. 12%
 Quiet Achievers. Success, quiet, anti-indi-
  vidualism, social optimism. Have deter-
  mination and restraint. Study hard. Do well
  in school. Limit outside activities.
  Thailand, China, Hong Kong, Korea,
  Russia, Peru. 15%
Global Marketing
 Bootstrappers. Defining principles:
  Achievement, Individualism, optimism,
  determination, power. Try hard to please
  parents. Determined to succeed. Positive
  values. One in four in US; 14% overall.
  Nigeria, Mexico, US, India, Chile, Puerto
  Rico, Peru and Venezuela.
 Upholders. Family, tradition, respect for
  individuals. Dreamy. Quiet. Good teens.
  Follow their parents. Don’t like risks. Use
  proven products. Vietnam, Indonesia,
  Taiwan, China, Italy, Peru, India, 16%
Global Marketing
Principle of Integrated Marketing:
 Marketing is everyone’s business.
 “Marketing Community”


Examples:
 Coca-Cola, Merrill Lynch, Xerox,
  American Express, British Airways,
  Gillette.
Global Marketing
 When all of the departments work together
  to serve the customer’s interests.
 Works on two different levels: All of the
  various marketing functions work
  together: sales force, sales promotion,
  advertising, PR, Product development,
  Marketing research
 Plus all of the departments work together.
  They must “Think Customer.”
Global Marketing
Global Standardization or Adaptation
 Toyota built the Corolla on a world
  platform. Ford with its Focus. McDonald’s
  uses chili sauce (salsa) on its hamburgers
  in Mexico. Coca-Cola is can be sweeter, or
  less carbonated.
 Adaptation elements: Product features,
  brand name, labeling, packaging, colors,
  materials, prices, sales promotion,
  advertising themes, media, execution.
 Marketing programs do work best when
  they are tailored to each target group.
Global Marketing
An endless process or principle:
 Customer attraction
 Customer satisfaction
 Customer retention.
 CEO is also the Chief Marketing
  Officer.
Global Marketing
Principle of Competition: Value War
 Create long-tern customer value.
 Continuously and consistently crated
  customer value.
 Look at total customer benefits vs.
  customer expenses
 Ultimate goal of project
 Relationship to other projects
 High-level timing goals
Global Marketing
Principle of Customer Satisfaction and
  Retention
 Look at overall satisfaction and
  customer loyalty
 Easier to retain a customer than to
  gain or win a new one.
 Consistently improve customer value
  to win the marketing war.
Global Marketing
Principle of Integration:
 Learn about the needs and wants.
 There are no “average” customers.
 Concentrate on the individual
  differences while looking at
  segmentation, targeting and
  positioning.
Global Marketing
More on Integration:
 Plan for and review differences in
  culture, markets, economic
  development, consumer differing
  needs, usage patterns, media
  availability and legal restrictions.
Global Marketing
Principle of Anticipation and Being
  Proactive. Not Reactive.
 Are you ready for change? Being adaptive
  to the marketplace.
 Macroenvironment Changes. The high
  income growth country has shifted from
  Japan to US. Low to medium has been
  concentrated in Southeast Asia and
  southern Asia with China as a unique,
  high-growth, large country in the region
  and the world. Also look at Singapore,
  Taiwan and South Korea.
Global Marketing
 Principle of the Growth of Internet and
 Information Technology.

 Principles of:
 – Marketing Planning
 – Marketing Mix
 – 7P’s

 – Controls.
Global Marketing
 The old trade model is just old.
 It stated that as a product matures,
  production would shift to low-wage
  countries.
 Today, must look at transportation costs,
  availability of skilled labor, market
  responsiveness, market access and
  innovation in product design and
  manufacturing. Especially of products
  with less than 15% of labor in total cost.
Global Marketing
Principle of Branding:
 The umbrella. Determines price and value.
  Be more than a commodity.
 A brand is a name, term, sign, symbol, or
  design or a combination of them to
  identify the goods and services of a seller
  and to differentiate them from the
  competitors.
 Identifies seller or maker. We see a huge
  increase in the global brands for autos,
  food, clothing, electronics and more.
 Increasing number of cross-border
  marketing alliances.
Global Marketing
Principle of Service:
 Service before, during and after sale.
 Create long-term value and connect
  with customer.
 Both products and services. It’s
  creating more value.
Global Marketing
Principle of Process:
 Commands the company to be the captain
  of its supply-chain. It should manage from
  raw materials to finish goods. Enhance
  value-creating activities.
 Look at Strategic Alliances/Partners .
  Can be suppliers, customers and even
  parts of competitors. Benchmarking,
  reengineering, outsourcing, mergers,
  and acquisitions are examples.
 Brand, service and process are three
  value-creating principles and drivers to
  win customers and deliver market share.
Global Marketing
Principles of STP:
 Segmentation, Targeting and
  Positioning
 Process of segmenting. Look at
  demographics, geographics,
  psychographics and behavior
  variables.
 Look for market opportunities.
Global Marketing
Principle of Differentiation:
 Don’t be different just to be different.
 Design and plan for meaningful
  differences versus the competitors.
 Design truly different and unique
  products for customers.
Global Marketing
Principle of Marketing Mix:
 Integrate 4P’s and 7P’s.
 Offer, Logistics and Competition.
 The whole marketing concept.
Global Marketing
Principle of Selling:
 Integrate Company, Customers and
  Relationships/Partnerships.
 Create long-term relationships with
  customers.
 More than personal selling.
 Features and benefits of the product.
 AIDA: Awareness-Interest-Desire-Action.
 Manage communication.
Global Marketing
Principle of Balance:
 After focusing on the elements of
  marketing---segmentation, targeting,
  positioning (STP), differentiation,
  marketing mix, selling, branding, service
  and process, you need to balance the
  strategies, tactics and implementation.
 Share of Heart and Mind. Share of Voice.
 Dynamic environment. Timing.
 High-level timing goals
Global Marketing
Principle of Positioning:
 The act of designing the product or
  service (company’s offering and
  image) to occupy a distinctive place
  in the target market’s mind.
 Ultimate goal of product.
  Differentiation
 Relationship to other products.
Global Marketing
Principle of Future:
 Manage today’s products by
  managing a profit and by servicing
  customers of today and tomorrow.
 Develop tomorrow’s products.
 Look at Marketing Myopia.
Global Marketing
Principle of Global Experience
 Counts for companies
 Counts in the job market for
  employees.
 Marketing Audits.
 Marketing is not a destination, or a
  goal. It’s a process. A moving target.
Wrap-up on Global
Marketing Principles
 Companies cannot stay domestic
  and expect to maintain their markets.
 Companies need to define their
  global policies and objectives.
 Companies need to decide on how
  much to adapt marketing mix.
Wrap-up on Global
Marketing Principles
 Market entry and market control
  costs can be high.
 Product and communication
  adaptation costs can be high.
 Dominant foreign firms can establish
  high barriers of entry.
 Which types of markets and
  countries?
Global Marketing
 Ultimate goal of project
 Relationship to other projects
 High-level timing goals
 Attractiveness influenced by the
  product, geography, income,
  population, political climate and
  more factors.
 Review Forces:
          ---Driving and Restraining

								
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