Global Marketing Lecture 1.docx

Global firm is one that operates in more than one country and captures R and D, production, logistical, marketing, and financial advantages in its cost and reputation that are not available to purely domestic competitors Global Marketing: The whole process of planning, producing, placing, and promo...

Global firm is one that operates in more than one country and captures R and D, production, logistical, marketing, and financial advantages in its cost and reputation that are not available to purely domestic competitors Global Marketing: The whole process of planning, producing, placing, and promoting a company's products globally The global marketing mix varies depending: on regions. The mix refers to how much is standardized vs adapted to the local tastes & customs. Process: An infinite cycle of improvement **Challenges to Marketers** Marketers encounter unique or unfamiliar features in countries or regions --Local culture and business practices --Counterfeiting and piracy in China --Bribery and corruption --Structural impediments favoring local competitors Managers at global companies understand the importance of local excellence **Management Orientations** **Ethnocentric Orientation(Avoid)** -Home country is superior to others -Sees only similarities in other countries -Assumes products and practices that succeed at home will be successful everywhere -Leads to a **standardized** or **extension** **Polycentric Orientation(**Commonly employed by companies) -Each country is unique -Each subsidiary develops its own unique business and marketing strategies -Often referred to as **multinational** -Leads to a **localized or adaptation approach** that assumes products must be adapted to local market conditions **Regiocentric Orientation(**Also commonly employed by companies) --A region is the relevant geographic unit ▪Ex: The NAFTA or European Union market --Some companies serve markets throughout the world but on a regional basis **Geocentric Orientation(**Employed mostly by the largest companies) Entire world is a potential market Strives for integrated global strategies Also known as a **global or transnational company** Retains an association with the headquarters country Pursues serving world markets from a single country or sources globally to focus on select country markets Leads to a combination of **extension and adaptation elements** **Negative Forces Affecting Global Marketing** -Management Myopia -Organizational Culture -National Controls -Opposition to Globalization **Global marketing is in a constant state of flux** -*What you learn in this course will change over time due to politics, changes in the economy globally, and in individual countries*(**Economic issues and current / future wars are major problems**) -China? -EU ? -USA ? -Middle East? -Rest of the world? Domestic marketing is global marketing(Your in a globalized marketplace with international competitors)