187.Chap017

Global Marketing : 

Global Marketing Dr. Carol Reade Bus 187

Objectives : 

Objectives Review the debate on the globalization of markets - are all customers the same? Or are there distinct and significant differences? Introduce the marketing mix Better understand the factors that cause firms to alter the marketing mix across countries.

What is Marketing? : 

What is 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.

The Globalization of Markets and Brands : 

The Globalization of Markets and Brands In a classic Harvard Business Review article, Theodore Levitt argues that ancient differences in national tastes are disappearing powerful forces are driving the world toward common tastes and preferences = global market for standardized consumer goods To what extent is this true?

The Globalization of Markets and Brands : 

The Globalization of Markets and Brands Important to determine when product standardization is appropriate in an international market Firms need to consider market segmentation marketing mix in each country

Market Segmentation : 

Market Segmentation Refers to identifying distinct groups of consumers whose purchasing behavior differs from others in important ways Segments can based on: Geography Demography Socio-cultural factors Psychological factors

Marketing Mix : 

Marketing Mix The set of choices the firm offers to its targeted markets Four elements Product attributes Distribution strategy Communication strategy Pricing strategy

Element 1 - Product Attributes : 

Element 1 - Product Attributes A product can be viewed as a bundle of attributes Products sell well when attributes match consumer needs Consumer needs vary due to differences in Culture Economic development Product and technical standards

Cultural Differences : 

Cultural Differences Differ along dimensions such as social structure, language, religion, and education Some tastes and preferences becoming cosmopolitan Impact of tradition

Economic Development : 

Economic Development Consumer behavior is influenced by economic development Highly developed countries – tend to demand extra performance attributes in products Price not a factor due to high income level Less developed countries -- basic features OK Price a factor due to lower income level Cars: no air-conditioning, power steering, power windows, radios, and cassette players Product reliability is more important

Product and Technical Standards : 

Product and Technical Standards Government standards can rule out mass production and marketing of a standardized product Differing technical standards constrain globalization of markets DVD equipment

Element 2 - Distribution Strategy : 

Element 2 - Distribution Strategy Choice of the optimal channel for delivering a product to the consumer Optimal strategy is determined by the relative costs and benefits of each alternative Depends on differences between countries Retail concentration Channel length Channel quality

Element 3 – Communication Strategy : 

Element 3 – Communication Strategy Defines the process the firm will use in communicating the attributes of its product to prospective customers Marketing message Global Advertising Standardization versus non-standardization Overcome Cultural Barriers Develop cross-cultural literacy Use local advertising agency and sales force

Element 4 -- Pricing Strategy : 

Element 4 -- Pricing Strategy Three aspects of international pricing strategy Regulatory influence on prices Price discrimination Strategic pricing

Did You Know?Source: National Association of Pizza Operators : 

Did You Know?Source: National Association of Pizza Operators According to a survey by the American Dairy Association, pizza is America's fourth most craved food, behind cheese, chocolate and ice cream. Approximately 3 billion pizzas are sold in the U.S. each year. There are approximately 61,269 pizzerias in the United States. Americans eat approximately 100 acres of pizza each day, or 350 slices per second.

Configuring the Marketing Mix : 

Configuring the Marketing Mix Some variation of the marketing mix across countries is typical differences in culture, economic conditions, competitive conditions, product and technical standards, government regulations, etc. However, one or more elements of the marketing mix can often be standardized Core attributes, marketing message Cost-benefit analysis to determine what to customize and standardize