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9/16/2007 Dr. Hotniar Siringoringo 1
GLOBAL MARKETING
• OverviewGlobal marketers consider
the world as their market and different country markets as components of this world market
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Defining Global Marketing
AMA’s Definition of Marketing:
Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives
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Defining Global Marketing• Distinguishing Features of AMA’s
Definition1. Includes nonprofit and for profit
activities2. Includes products, ideas, and services3. Includes activities that precede and
follow the production process4. Includes the four P’s and regards them
each as equally important
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Defining Global Marketing
• Global Marketing Defined:• … the coordinated
performance of marketing activities to create exchanges across countries that satisfy individual, organizational , and societal objectives
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Defining Global Marketing
Global marketing is conducted across countries (not domestic or foreign)Global marketing coordinates
activities across different country marketsGlobal marketing should be
motivated by individual, organizational, and societal goals
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The Global Marketing Environment
• Focal Point--Consumer
• Use the Four P’s to Satisfy Consumers
• Economic, Financial, Political, and Cultural Environmental of Each Country Affect marketing
• Regional and Global Environments Affect Marketing
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Why Should Firms Engage in Global Marketing?
• To Survive and Grow
1. Learn to satisfy consumers in diverse conditions
2. Manage marketing tasks more efficiently and effectivel
3. Preempt or counter competitive attacks in more than one market
4. Expand customer base to include developed and developing nations
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Why Should Firms Engage in Global Marketing?
• To Diversify Product and Market Portfolios and Improve competitiveness
1. Effects of seasonal and cyclical fluctuations in one market offset by others
2. Diversification increases market size and enhances economies of scale
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Why Should Firms Engage in Global Marketing?
• To Capitalize on the Attractiveness of Additional Country Markets
1. The U.S. is attractive-but won’t accommodate unlimited growth
2. Expand market size by expanding into other countries
3. Maurice G. Hardy: Why expand into other countries?
a. Keep competitors in their own countries;
b. Take advantage of growing opportunities in Europe and the Pacific
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Why Should Firms Engage in Global Marketing?
• To Operate Within a Global Marketplace
1. Goods, services, capital, technology, and labor are going global
2. Reduced government restrictions are affecting global marketing
3. Bilateral and multilateral negotiations are reducing restrictions
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What is Unique about Global Marketing? Country market environments different
• Economic Environment ( Purchasing Power, Competitive Intensity, Economy’s Health)
1. Fiscal policies - tax rates and spending programs of government
2. Monetary policies - regulate money supply
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What is Unique about Global Marketing? Country market environments different
• Financial Environment
1. Exchange rate - price of one currency in relation to another
2. Exchange rate fluctuations can adversely or favorably affect performance of a firm
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What is Unique about Global Marketing? Country market
environments different
• Political Environment1. Tariff barriers - taxes on imports paid to customs
officials – includes:
a. Specific - fixed amount per physical unit of import
b. Ad -valorem ( on the value ) - percentage of estimated value of import
2. Nontariff barriers include:
a. Import quotas
b. Exchange controls
c. Buy-domestic policies
d. administrative red tape
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What is Unique about Global Marketing?Country market environments different ?
• Cultural Environment
1. Differences encourage marketing adaptations
2. Similarities encourage standardization
3. Balancing the two is a key to success
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Why Should We Study Global Marketing ?
• Influences Product Choices of Consumers
• Influences standard of living
• Influences Job Opportunities
• Influences the society
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Global Marketing Decisions
CountryRegion
Global
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Examples of Global Marketing
Product Design
Brand Name
Product Positioning
Packaging
Advertising Strategy
Sales Promotion
Distribution
Customer Service
Canon photocopier/McDonald’s/Toyota
Marlboro/Coke/Sony/BMW/
Colgate toothpaste
Gillette razors
Coca-Cola/Benetton
IBM
Benetton/Ikea
American Express
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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
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What is Unique about Global Marketing?
• Political Environment• Tariff barriers• Nontariff barriers• Regulations
• Cultural Environment• Values• Beliefs• Attitudes
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Global Marketing Environment
GlobalGlobal
RegionalRegionalLocalLocal
Marketing MixMarketing Mix
EnvironmentEnvironment
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Management Orientation
• Ethnocentric
• Polycentric
• Regiocentric
• Geocentric
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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).
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Global Marketing Evolution
• Multinational Marketing (many markets; consolidation on regional basis; regiocentric orientation; standardization within regions).
• Global Marketing (international, multinational & geocentric orientation; company’s willingness to adopt a global perspective; global products with local variations).
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Global Marketing
• Standardization Efforts--product offerings, promotional mix, price, and channel structure.
• Coordination Across Markets—reducing cost inefficiencies.
• Global Integration—participating in many major world markets to gain competitive leverage, subsidize operations in some markets.
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Global Marketing Decisions
Internationalize Business?
Global Marketing Decisions
Market Entry Selection
Country Market Selection
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Why Global Marketing?• Exploiting Firm-Specific
Capabilities• Technological innovations• Strong Trade Names
• Lowering Cost Structure• Outsourcing• Hub and spokes model
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Why Global Marketing?• Diversification and
competitiveness• Product/market portfolio• Cross-subsidization
• Country market attractiveness• Income• Consumer preference
• Technology and market
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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.
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GLOBAL INTEGRATION
Restraining ForcesTechnology
Culture
Market Needs
Cost
Free Markets
Economic Integration
Peace
Management Vision
Strategic Intent
Global Strategy and Action
Culture
Market Differences
Costs
National Controls
Nationalism
War
Management Myopia
Organization History
Domestic Focus
Driving Forces
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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.
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Domestic and Global Trade Growth
0%
2%
4%
6%
8%
10%
12%
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000 Year
Percentage of Growth
Trade Growth Domestic Growth
Source: International Financial Statistics Yearbook 2000, International Monetary Fund, Washington D. C.
9/16/2007 Dr. Hotniar Siringoringo 32
The Changing Face of Exporting
0%
50%
100%
150%
200%
250%
300%
350%
400%
Gro
wth
(198
3-19
98)
Australia Canada Germany Japan USA
Merchandise Exports Commercial Services ExportsSource: The World Bank, World Development Report, 1999.
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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.
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“If we distributed pictures only in the United States, we’d lose money. It takes the whole world now to make the economics of movie-making work.”
- William MechanicPresident, 20th Century
Fox
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“Half the people in the world have yet to take their first picture. The opportunity is huge, and it’s nothing fancy. We just have to sell yellow boxes of film.”
- George M.C. FisherCEO, Eastman Kodak Company
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E-MARKETINGWakil presiden Al Gore :
information highway
Cyberspace
Pemikiran, strategi, pendekatanbaru
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Web Marketing Strategies
•Four Ps of marketing• Product : Physical item or service that
the company is selling• Price : Amount customer pays for the
product• Promotion : Any means of spreading
the word about the product• Place : Need to have products or
services available in different locations
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Product-Based MarketingStrategies
• When creating a marketing strategy• Managers must consider both the
nature of their products and the nature of their potential customers
• Most office supply stores on the Web• Believe customers organize their
needs into product categories
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• Good first step in building a customer-based marketing strategy
• Identify groups of customers who share commoncharacteristics
• B2B sellers
• More aware of the need to customize product and service offerings to match their customers’ needs
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Communicating with Different Market Segments
• Identify groups of potential customers • The first step in selling to those
customers
• Media selection • Can be critical for an online firm
• Challenge for online businesses • Convince customers to trust them
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Trust and Media Choice
• The Web is an intermediate step between mass media and personal contact
• Cost of mass media advertising can be spread over its audience
• Companies can use the Web to capture some of the benefits of personal contact, yet avoid some of the costs inherent in that approach
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• HOTNIAR SIRINGORINGO• LEMBAGA PENELITIAN• KAMPUS D GD 4 LT. 1• JL. MARGONDA RAYA NO. 100
DEPOK• [email protected]• [email protected]• http://staffsite.gunadarma.ac.id
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E-business vs. E-CommerceAlthough the terms are usually used
interchangeably:• E-Commerce comprises of electronic
transactions (buying and selling online)
• E-Business on the other hand, goes well beyond ecommerce as it also encompasses the integration of ICT into business processes of enterprises. This includes flows of information within the company, i.e., between departments, subsidiaries and branches. Flows of information within the company, i.e., between departments subsidiaries and
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E-Business/Commerce
E-Business – Definition:
the conduct of business with the assistance of telecommunications and Telecommunications-based tools*
* htt // d / l /R Cl k /EC/ECD
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E-Business/CommerceE-Commerce – Definition:
Selling online, with or through a website, or by means of email. E-commerce or electronic commerce is usually subdivided into B2B (business to business: wholesale), B2C (business to customer: retail) and C2C (customer to customer: auctions and information portals). * http://www.ecommerce-digest.com/ecommerce-definition.html
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E-Business/CommerceE-Commerce – Definition: (cont)
Much more demanding — and not usually served by off-the-shelf software — is e-business or electronic business, where information technology is applied to all aspects of company's operations. In e-business are to be found systems for CRM (customer resource management), ERP (enterprise resource planning), SFM (sales force management), SCM (supply chain management) and EP (electronic procurement).
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E-Business/Commerce
E-Business – Definition:Any business that is going to become a “on demand”businessAny business that is going to “practice” Electronic data interchange (EDI)Any business that is going to leverage their existing business through web based interfaces (ie website)
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E-Business/Commerce
Definition(s)/Implementations“Best Case” – All transactions are
performed electronically, between vendor and customer. Some companies like Ford Motor Co., check supplier inventory/price/shipping options and order parts all “computer to computer”
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E-Business/Commerce
Definition(s) /Implementations“Average Case” – Most
transactions are performed electronically, between vendor and customer. For example, ordering hams from Burgers’Smokehouse, where customer gets notified of specials via e-mail and can then click and order.
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E-Business/Commerce
Definition(s) /Implementations“Least Case” – Simple payment
portal, or maybe only a website with business description and product offerings. For example, my web hosting business accepts renewal payments via our website.
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E-Business/Commerce
Issue: Traditional E-BusinessAdvertsing/Exposure
Usually a local event. Reaching 10-50K people
Can reach all 275 million people in the US, or a large portion of the world
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E-Business/Commerce
Issue: Traditional E-BusinessSales “counter”
Each person can handle only hundred of people per day
Website can process millions of orders per day
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E-Business/Commerce
Issue: Traditional E-BusinessFund transfer
Mail or in person. Can take up to 7 business days
Instant
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E-Business/Commerce
Issue: Traditional E-BusinessDelivery Pickup in
person, U.S. Mail, truck delivery.
Can be via traditional means, or instantly via email or download
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E-Business/Commerce
Issue: Traditional E-BusinessCost If you hire
people to sell, at least $12K/yr/person
Can be as low as $350/yr to just a coupe of thousand per year
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E-Business/Commerce
Examples:Examples:AuctionsAuctions
Trading boardsTrading boards
OnOn--line salesline sales
Scheduling (like returning trucksScheduling (like returning trucks)
Information only (like what I have to sell)Information only (like what I have to sell)
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Decision Making ProcessA decision to adopt a technology happens onceperceived benefits outweigh perceived riskslimited by constraints. For example:
• Resources• Skills availability• TCO, ROI• Distribution network• Other constraint
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Internet usage growth in major direct selling markets
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Online Sales: A Surplus
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WEB STRATEGY IN DIRECT SELLING INDUSTRY• Web strategy objectives:
• Promote the brand internationally• Support global, Field organization
building• About the company
• Brand message• Region/country message• Public information
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Promote the brand internationally
• About the opportunity• Stories/testimonials• How to get started
• About the products• Categories/local specifics• Science• Marketing• How to purchase or promote
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Support Field Organization•Lead generation/conversion
• Contact management
– Collect, organize and mine information
– Leverage web technologies
• Training and communication
– Electronic documentation and presentation
– Leverage web technologies
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Enable Efficient E-Commerce
• Cost and operational interaction• Global reach• Self-service• Process integration
• Information for business management• Personnel• Product transactions
• Marketing• To distributors• To ultimate users
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Technology Plans and Providers• Begin with a global, integrated,
web-based backbone (e.g. QuinStreet)
• Implement in components/stages (e.g. order-entry,distributor tools)
• Add targeted, enhanced solutions• search (e.g. WebSideStory)• call center• events management (e.g. Lenos)
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