8/6/2019 00 GM Revisited & Exam Briefing
1/35
Use with INTERNATIONAL MARKETING STRATEGY:Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE
GLOBALMARKETING
Ian McPhee
Session 00
GM Revisited
& Exam Briefing
8/6/2019 00 GM Revisited & Exam Briefing
2/35
Use with INTERNATIONAL MARKETING STRATEGY:Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE
WHAT IS MARKETING?
Marketing Involves:
Focusing on the needs and wants of
customers Identifying the best method of satisfying
those needs and wants
Orienting the company towards the
process of providing that satisfaction
Meeting organisational objectives
8/6/2019 00 GM Revisited & Exam Briefing
3/35
Use with INTERNATIONAL MARKETING STRATEGY:Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE
Understanding
Global Marketing: a framework
Scope ofInternational Marketing
Company
capabilities Environment
Analysing
competitors
Culture, valuesand technology
Political economy&
created advantage
Public policy, risk& regulation
Product andbrand strategies
Market Selection
Market entry
Operations andperformance
Consumerproducts
Strategic alliances
Exporting
Distribution
Pricing
Acquisitions and FDI
Strategic market entry
Selling andnegotiations
Assessingperformance
Services
Stage 1
Stage 2
Stage 3
Stage 4
International Marketingin the global economy
Industrialproducts
Brand
8/6/2019 00 GM Revisited & Exam Briefing
4/35
Use with INTERNATIONAL MARKETING STRATEGY:Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE
1-4
Global Marketing
Create value forcustomers by
improving benefits or reducing price
Improve the product
Find new distribution channels
Create bettercommunications
Cut monetary and non-monetary costs andprices
Value=Benefits/Price
8/6/2019 00 GM Revisited & Exam Briefing
5/35
Use with INTERNATIONAL MARKETING STRATEGY:Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE
Globalization
Globalization is the inexorable integration ofmarkets, nation-states and technologies to adegree never witnessed beforein a way that isenabling individuals, corporations and nation-states to reach around the world farther, faster,deeper and cheaper than every before, and in away that is enabling the world to reach into
individuals, corporations and nation-statesfarther, faster, deeper and cheaper than everbefore.
Thomas Friedman
8/6/2019 00 GM Revisited & Exam Briefing
6/35
Use with INTERNATIONAL MARKETING STRATEGY:Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE
ECONOMIC ENVIRONMENT
Developed triad Economies account for 80% of world trade
Emerging Economies huge and growing consumer demand government directed economic reforms
dual economy
Less Developed Countries (LDCs) low GDP, limited manufacturing base infrastructure weaknesses
heavy reliance on one product/one trading partner
8/6/2019 00 GM Revisited & Exam Briefing
7/35
Use with INTERNATIONAL MARKETING STRATEGY:Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE
Porters Determinants of National Advantage
(1990)
Firm strategy,
structure,
and rivalry
Factory
conditions
Demand
conditions
Related and
supporting
industries
8/6/2019 00 GM Revisited & Exam Briefing
8/35
Use with INTERNATIONAL MARKETING STRATEGY:Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE
National Competitive
Advantages
Factorconditions e.g skilled labour,
infrastructure
Demand conditions e.g. home demandfor the product of service
Related and supporting industries e.g
raw materials, components Firm strategy, structure and rivalry
8/6/2019 00 GM Revisited & Exam Briefing
9/35
8/6/2019 00 GM Revisited & Exam Briefing
10/35
Use with INTERNATIONAL MARKETING STRATEGY:Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE
1-10
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
8/6/2019 00 GM Revisited & Exam Briefing
11/35
Use with INTERNATIONAL MARKETING STRATEGY:Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
1-11
The Importance of
Going Global
For U.S. companies, 75% of total world
market for goods and services is outside the
country Coca-Cola earns 75% ofoperating income and
2/3 of profit outside of North America
For Japanese companies, 85% of world
market is outside the country 94% of market potential is outside of
Germany for its companies
8/6/2019 00 GM Revisited & Exam Briefing
12/35
Use with INTERNATIONAL MARKETING STRATEGY:Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
Driving Forces Affecting Global Integration
and Global Marketing
Multilateral trade
agreements
Converging market needs
and wants and the informationrevolution
Transportation andcommunication improvements
Leverage Experience transfers
Scale economies
Resource utilization
Global strategy
Quality R&D as a percent of sales
World economic trends
2008 global crisis Growing middle class in China,
India, Brazil, etc.
Rapid growth in China pre-2008
Movement to free marketsworldwide
Product Development Costs
8/6/2019 00 GM Revisited & Exam Briefing
13/35
Use with INTERNATIONAL MARKETING STRATEGY:Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
Restraining Forces Affecting Global
Integration and Global Marketing
Management myopia
Organizational culture National controls
Opposition to globalization
8/6/2019 00 GM Revisited & Exam Briefing
14/35
Use with INTERNATIONAL MARKETING STRATEGY:Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
The World Trade Organization
Forum for trade-related negotiationsamong 150 members
Based in Geneva Serves as dispute mediator through
DSB
Has enforcement power and can imposesanctions
8/6/2019 00 GM Revisited & Exam Briefing
15/35
Use with INTERNATIONAL MARKETING STRATEGY:Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
3-15
Free Trade Area
Twoor more countries agree to abolish tariffs
and other barriers to trade amongst
themselves
Countries continue independent trade policieswith countries outside agreement
Rules of origin requirements restrict
transshipment of goods from the country with
the lowest tariff to another
8/6/2019 00 GM Revisited & Exam Briefing
16/35
Use with INTERNATIONAL MARKETING STRATEGY:Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
ENVIRONMENTAL INFLUENCES ON
INTERNATIONAL MARKETING
Socio/Cultural
Language
Religion
Aesthetics
Values and attributesSocial organisation
Material culture
Political
Operational restrictions
Discriminatory restriction
Physical actions
Environmental
Influences onInternational
Marketing
Legal
Local domestic laws
International law
Home domestic law
Technological
Satellite
Communications
ISDNInternet
WWW
The Electronic
Superhighway
EconomicDeveloped economies
Emerging economies
Less developed economies
Currency movements
8/6/2019 00 GM Revisited & Exam Briefing
17/35
Use with INTERNATIONAL MARKETING STRATEGY:Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
Society, Culture, and
Global Consumer Culture
Cultureways of living, built up by a group of
human beings, that are transmitted from one
generation to another Culture has both conscious and unconscious
values, ideas, attitudes, and symbols
Culture is acted out in social institutions
Culture is both physical (clothing and tools)
and nonphysical (religion, attitudes, beliefs,
and values)
8/6/2019 00 GM Revisited & Exam Briefing
18/35
Use with INTERNATIONAL MARKETING STRATEGY:Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
4-18
Society, Culture, and
Global Consumer Culture
Culture is the collective programming of the
mind that distinguishes the members of one
category of people from those of another.Geert Hofstede
A nation, an ethic group, a gender group, an
organization, or a family may be consideredas a category.
8/6/2019 00 GM Revisited & Exam Briefing
19/35
Use with INTERNATIONAL MARKETING STRATEGY:Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
High- and Low-Context Cultures
High Context
Information resides in
context
Emphasis onbackground, basic
values, societal status
Less emphasis on legal
paperwork
Focus on personalreputation
Saudi Arabia, Japan
Low Context Messages are explicit
and specific
Words carry allinformation
Reliance on legalpaperwork
Focus on non-personaldocumentation of
credibility Switzerland, U.S.,
Germany
8/6/2019 00 GM Revisited & Exam Briefing
20/35
Use with INTERNATIONAL MARKETING STRATEGY:Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
4-20
Hofstedes Cultural Typology
Power Distance
Individualism/Collectivism
Masculinity
Uncertainty Avoidance
Long-term Orientation
8/6/2019 00 GM Revisited & Exam Briefing
21/35
Use with INTERNATIONAL MARKETING STRATEGY:Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
Segmentation, Targeting &
Positioning
How to identify like groupsofpotential
customers?
How to chose the groups to target?
How tosegment those groups?
How toposition the brand in the mind of the
customer?
8/6/2019 00 GM Revisited & Exam Briefing
22/35
Use with INTERNATIONAL MARKETING STRATEGY:Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
9-22
Marketing Entry Strategies
8/6/2019 00 GM Revisited & Exam Briefing
23/35
Use with INTERNATIONAL MARKETING STRATEGY:Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
Brand Equity Benefits
Greater loyalty
Less vulnerability to marketing actions
Less vulnerability to marketing crises Larger margins
More inelasticconsumer response to priceincreases
More elasticconsumer response to pricedecreases
Increased marketing communicationeffectiveness
8/6/2019 00 GM Revisited & Exam Briefing
24/35
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
Establishing Channels
Direct involvement the company
establishes its own sales force oroperates its
own retail stores Indirect involvement the company utilizes
independent agents, distributors, and/or
wholesalers
Channel strategy must fit the companyscompetitive position and marketing objectives
within each national market
8/6/2019 00 GM Revisited & Exam Briefing
25/35
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
Global Marketing Communications
Standardization vs.Adaptation
Primary Issue
Must the specific advertising
message and media strategy be
changed from region to region or
country tocountry?
Think ofcultural and legal issues
8/6/2019 00 GM Revisited & Exam Briefing
26/35
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
Sales Promotion: Global or Local
In countries with low levels of economicdevelopment, low incomes limit the range ofpromotional tools available
Market maturity can also be different from country tocountry
Local perceptions of a particular promotional tool orprogram can vary
Local regulations may rule out use of a particular
promotion in certain countries
Trade structure in the retailing industry can affect theuse of sales promotions
8/6/2019 00 GM Revisited & Exam Briefing
27/35
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
Global E-Commerce
Divided into three broad categories Business to Business (B2B)
Business to Consumer (B2C)
Consumer to Consumer
(Peer to peer)
Internet penetration
Korea 76.1% (highest)
U.S. 75%
China has 300 million users; largest e-commerce market
Western European online retail and travel sales will growat 8% CAGR, 2008-2014
37% (136 million) European adults shop online
8/6/2019 00 GM Revisited & Exam Briefing
28/35
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
THE CHALLENGES OF INTERNATIONAL MARKETING
Culture
Often diverse and multicultural
Markets
Widespread and sometimes fragmented
Data
Difficult toobtain and sometimes expensive
Politics
Regimes vary in stability, political risk an important variable
Governments
Can be a strong influence in regulating importers and foreignbusiness ventures
Economies Varying levels of development
Finance
Many differing finance systems and regulatory bodies
Control
Difficult tocontrol and co-ordinate across markets
8/6/2019 00 GM Revisited & Exam Briefing
29/35
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
INTERNATIONAL MARKETING STRATEGIES
Success and Failure
Failure arises from: inability to find right market niche
unwilling to adapt products
products not perceived as sufficiently unique vacillating commitment
assigning the wrong people
picking the wrong partners
inability to manage local stakeholders mutual distrust/lack of respect between HQ &
management
inability to leverage ideas to all countries
8/6/2019 00 GM Revisited & Exam Briefing
30/35
Global Marketing
Exam Briefing
8/6/2019 00 GM Revisited & Exam Briefing
31/35
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
Exam Briefing
Its a 3 houropen-book exam
Worth 50% of total module grade
Read the instructions and plan your answers
before you start.
8/6/2019 00 GM Revisited & Exam Briefing
32/35
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
Exam Briefing (cont)
Check the weighting of the questions
Divide your time equally between the questions.
You are strongly advised to read the questions
carefully. Dont start writing out your answers straight away
I suggest you allow at least 5-10 minutes perquestion in order to plan your answer.
8/6/2019 00 GM Revisited & Exam Briefing
33/35
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
Exam Briefing (cont)
Write legibly if your answers cannot be read,they cant be assessed!
Please write in a concise fashion. You will not
gain extra marks by including pointless waffle. The exam will test your ability to demonstrate
yourunderstanding of the key marketing theoriescovered during this module.
You are required to analyse, synthesize andevaluate, not merely describe whats going on inthe case study organisation
8/6/2019 00 GM Revisited & Exam Briefing
34/35
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
Exam Briefing (cont)
You will also be required toconsider the practicalimplications of such strategies in the organisation.
Please ensure that you answer the questions that
have been set, and not the ones that you wishhad been set!
Make sure you bring sufficient pens along withyou.
Remember to read the questions carefully and planyour answers.
8/6/2019 00 GM Revisited & Exam Briefing
35/35
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
Blooms Taxonomy
Analysing
Applying
Understanding
Remembering
Evaluating
Creating
Recognising;
Naming; Describing
Interpreting;Summarising; Explaining
Using; Executing;
Implementing
Comparing; Outlining;
Integrating
Judging;
Hypothesising; Testing
Designing;
Planning; Inventing
Top Related