Global Marketing

McDonalds Russia/Ukraine Ad

Sony/US Ad

Nokia/Finland

Swatch/Swiss

Global Marketing

We live in a global marketplace where brands like McDonalds (and Starbucks) are found practically everywhere on earth.

Global Marketing

But just as importantly…

We live in a world where markets are local.

And McDonalds must compete with the restaurant right down the street.

Including “Potato House”…

Global Marketing

Cool video

Would you like to see a cool video? Download it!

I’m lovin it

Enter

View it

Take it(screen saver)

Global Marketing

Globalization

Thomas Friedman said --

Globalization is… enabling individuals, corporations, and nation-states to reach around the world farther, faster, deeper and cheaper than ever before…

The business process outsourcing industry in India has grown by leaps and bounds and as its size increases so does its competitive advantage.-- Wikipedia

Global Industries

An industry is global when competitive advantage is achieved by the integration and leveraging of operations on a worldwide scale.

Dalian was officially named the first and only Model City for the Internationalization of the Software Industry in China

32 top global corporations, GE, IBM, Dell, to name a few, have established research and development centers here

Global Industries

An industry is global when competitive advantage is achieved by the integration and leveraging of operations on a worldwide scale.

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

Dell Plant China

Global Competitive Advantage through Focus

Concentration and attention on core business and competence

Global Marketing Strategy

Local Global

Target Market Strategy Global Market Participation

Product Product adaptation or standardizationPrice Price adaptation or standardizationPromotion Promotion adaptation or standardizationPlace Place adaptation or standardization

- Plus -

Coordination of Marketing ActivitiesConcentration of Marketing ActivitiesIntegration of Marketing Activities

Global Marketing Strategy

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 (SWOT).

Global Marketing Strategy - Scanning for Opportunity

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

Hebrew

Amharic (Ethiopian)

Arabic (Tunisia)

The Importance of Global Marketing

US-based companies, 75% of sales potential is outside the US.

• About 90% of Coca-Cola’s operating income is generated outside the US.

Japanese companies, 85% of potential is outside Japan.

German and EU companies, 94% of potential is outside Germany.

Japanese companies, 85% of potential is outside Japan.

Global Management Orientations

Ethnocentric: Home country is superior, sees similarities 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

Polycentric: Each host country is unique, sees differences in foreign countries

Geocentric: sees similarities and differences in home and host countries

Forces Affecting Global Integration and Global Marketing

Driving ForcesRegional economic agreementsMarket needs and wantsTechnologyTransportation improvementCommunication improvementProduct development costQualityWorld economic trendsLeverage

Restraining ForcesManagement myopia

Organizational cultureNational controls