Global Marketing Strategies

• Global marketing encompasses introducing products and services to international markets.

Regular Marketing vs. Global Marketing

• Regular marketing focuses on a single market.
• Global marketing focuses on multiple countries.
• Global marketing involves adapting to different cultural, economic, and legal environments worldwide.

Global Marketing Strategies

• Global marketing strategies create customer value by improving benefits or reducing prices.
• Enhancing product quality and features increases customer value in international markets.
• Expanding ways to reach customers is achieved through e-commerce and retailers.
• Improving advertising and customer interactions engages global audiences through targeted cultural preferences.
• Reducing direct costs (lowering prices) or non-monetary costs increases convenience and simplifies product usage.
• Value of a product/service = Benefits/Price
• Higher value occurs when benefits increase or prices decrease.
• Lower value: Price is too high relative to perceived benefits.
• Companies boost value by refining product quality, customer experience, and pricing to suit diverse markets.

Reasons for Global Marketing

• Growth: Access new markets, customers, and revenue.
• Access to resources: Source raw materials, labor, or technology internationally at lower costs.
• Survival: Compete with lower-cost competitors due to increased access to resources.
• Other Advantages
  • Increased access to resources helps businesses stay competitive with cheaper labor/production costs internationally.
  • Economies of scale: Higher production volumes reduce per-unit costs and boost profitability.
  • Transfer experience: Apply successful strategies to other markets, increasing efficiency.
  • Uniform global image: An international presence builds brand recognition and trust.

Single Country vs. Global Marketing Strategies

• Single Country Marketing Strategy involves using a single target market strategy and marketing mix development (product, price, promotion, place).
• Global Marketing Strategy:
  • Global market participation is part of a global marketing strategy.
  • Marketing mix development includes standardization or adaptation of the 4 P's.
  • Focus marketing activities and coordination of marketing activities.
  • Integrates competitive moves.
• Global marketing means widening business scopes to scan the world for opportunities and mitigate threats.
• Global marketing extends beyond operating in all 200+ country markets.

Standardization

• Standardization involves developing standardized products for global marketing with a uniform marketing mix.
• Standardization focuses on mass marketing.

Adaptation

• Adaptation mixes standardization with customization.
• The goal of adaptation is to minimize costs while maximizing satisfaction.
• Adaptation is an essence of segmentation.
• Adaptation uses a think globally, act locally strategy.
• Coca-Cola adapts its branding and design to maintain a consistent global identity.
• Adaptation includes modifying for local languages, cultural preferences, and reading styles.
• Balance standardization with adaptation to maintain recognition while appealing to different markets.

Goals of Marketing

• Surpass competition to create perceived customer value.
• The value equation serves as the guideline.

Importance of Global Marketing

• U.S. companies: 75% of total world market for goods and services lies outside the country.
• Coca-Cola: 75% of operating income occurs, and 2/3 of profits are generated outside North America.
• Japanese companies: 85% of their market is outside the country.
• German companies: 94% of market potential exists outside of Germany.

Overview of Marketing

• Marketing is a distinct functional area of business from operations and finance.
• Central marketing tools: product, price, promotion, and place.
• Marketing is a firm's value chain activity.
• Boundaryless marketing involves marketers in all value-related decisions.
• Boundaryless marketing aims to eliminate communication barriers between marketing and other business functions.
• Implement boundaryless marketing to ensure market orientation permeates all value-creating activities.

McDonald’s Global Marketing

• Product: McAloo Tikka potato burger(India), Big Mac (standard)
• Promotion: Slang Macca’s (Australia), MakDo (Philippines), Brand Name (standard).
• Place: Home delivery(India), Swiss rail system dining cars, Free-standing (standard).
• Price: Big Mac $3.54 in US & Turkey (standard), $5.79 (Switzerland), $1.83 (China).

Management Orientations

• Ethnocentric: Home country is superior and only sees similarities in other countries.
  • Ethnocentricity believes products and practices successful at home are universally successful.
  • Ethnocentricity leads to a standardized or extension approach.
• Polycentric: The belief each country is unique.
  • Subsidiaries develop unique business and marketing strategies for each country.
  • Polycentric is referred to as multinational.
  • Polycentricity leads to a localized or adaptation approach adapting products to local markets.
• Regiocentric: A region is the relevant geographic unit (e.g., NAFTA, European Union).
  • Companies serve markets throughout the world on a regional basis.
• Geocentric: The entire world is a potential market.
  • Geocentric strives for integrated global strategies.
  • Geocentric is known as a global or transitional company.
  • Maintains association with the headquarters country.
  • Pursues serving world markets from single country or sources globally to focus on only select country markets.
  • Geocentricity leads to a combination of extension and adaption elements.

Driving Forces in Global Marketing

• Multilateral trade agreements reduce trade barriers.
• Market needs and information revolution, driven by globalization and digital access, make consumer preferences more similar.
• Transportation and communication improvements speed shipping and communication.
• Product development costs: Expensive research and development spreads across global markets.
• Quality Global marketing funds R&D, improving product quality.
• World economic: 2008 affected markets and consumer spending.
• Growing middle class creates demand in emerging markets (China, India, Brazil).
• Free markets movement reduces restrictions, encouraging global trade.

Restricting Forces Affecting Global Integration

• Management myopia and organizational culture fail to see global opportunities due to a narrow or short-term mindset.
• Ethnocentrism: Belief that one's country/culture is superior, limiting adaptation to foreign markets.
• National controls: Governments restrict foreign businesses.
• Limited market access and entry is related to tariffs, trade barriers, and local laws make market entry difficult.
• Opposition to Globalization causes concerns about cultural or economic impact.
  • Globalphobia includes fear of globalization, job losses, cultural changes, or foreign control.