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Global Marketing

Global Marketing

 “…the world is becoming more


homogenous…”

 “...distinctions between national markets


are fading and may disappear…”
Global Marketing Evolution

Develop Core
Business Strategy
Core Business Strategy

Internationalize
the Strategy

Globalize Country Country Country Country


the Strategy A B C D
Globalization Drivers
 Market Factors
 new consumer groups, developed
infrastructures, globalization of
distribution channels, cross-border retail
alliances
 Cost Factors

 avoiding cost inefficiencies and


duplicated efforts
Globalization Drivers
 Environmental Factors
 reduced governmental barriers,
rapid technological evolution
 Competitive Factors

 rapid product innovation, introduction,


distribution
The Strategic Planning Process
Global Strategy Formulation

Assessment and Adjustment of Core Strategy


Market/Competitive Analysis - Internal Analysis

Formulation of Global Strategy


Choice of Target Countries, Segments, and Competitive Strategy

Development of Global Marketing Program

Implementation
Organizational Structure - Control
The Strategic Planning Process
 Understanding and adjusting the core
strategy begins with a clear definition of
the business for which the strategy is to
be developed
 The Strategic Business Unit
 Based on product market similarities
 Similar needs or wants to be met
 Similar end user customers to be targeted

 Similar products or services used to meet needs of


specific customers
Market and Competitive Analysis
 First, understand the structure of the
global market industry; the common
features of customer requirements and
choice factors
 Internal analysis
 Examine the readiness and capability of the
firm to undertake strategic moves with its
current resources.
Formulating Global Marketing Strategy
 Formulation begins with a series of strategic
decisions
 Choice of competitive strategy
 Cost leadership

 Differentiation

 Focus
Formulating Global Marketing Strategy
Country markets choices
 Concentration or diversification

 Factors in country markets selection


 The stand-alone attractiveness of the
market
 Global strategic importance of the market

 Possible synergies offered by the market


Competitive Strategies
Source of Competitive Advantage
Competitive Low Cost Differentiation
Scope
Cost Broad
Industrywide Leadership Differentiation

Single
Segment Focus
Segmentation

Market Segment A

Market Segment B

Market Segment C
Single or Multiple Segment
Decision
Segment A

Single,
Multiple
or Segment B
All
Segments ?
Segment C
Bases for Global Market Segmentation
Bases for International
Market Segmentation

Marketing
Environmental
Management
Variables
Variables

Geographic Political Economic Cultural


Variables Variables Variables Variables

Product Promotion Price Distribution


Variables Variables Variables Variables
Global Marketing Program Development

 Development Decisions
 Product offering
 The degree of standardization and adaptation in
the product offering
 The marketing approach
 The marketing program beyond the product
variable
Global Marketing Program Development
 Development Decisions
 The location and extent of value-adding
activities
 Pooling production
 Exploiting factor costs or capabilities

 Strategic alliances

 Concurrent engineering

 Competitive moves to be made


 Cross-subsidization using resources accumulated in
one market to wage a competitive battle in
another.
Implementing Global Marketing
 Success will come from a balance between
local and regional / global concerns.
 “Think globally, act locally” is the operative
phrase for global marketers competing in
country markets.
 Product choices should consider individual
markets as well as transfer products from
one region to another.
Global Marketing Pitfalls to Avoid

 Insufficient local market research


 The tendency to overstandardize the
product
 Inflexibility in planning and
implementation
Global Marketing Pitfalls to Avoid
 The “Not-Invented-Here” syndrome (NIH)
 How to avoid the NIH syndrome
 Ensure that local managers participate in
the development of global brand marketing
strategies
 Encourage local managers to develop ideas
for regional or global use
Localizing Global Marketing
 Achieving a balance between in-country
managers and global product managers at
corporate headquarters will require action
to develop and implement a global
strategy.
 Management processes
 Enhance the global transfer of
communications
 Interchange personnel to gain experience
abroad
Localizing Global Marketing

 Headquarters should coordinate and


leverage resources
 Permit local managers to develop their
own programs within defined parameters
Localizing Global Marketing

 Maintain a product portfolio that includes


local as well as regional or global brands
 Allow local managers control over
marketing budgets to respond to local
customer needs and counter global
competition
Localizing Global Marketing

 Organization structures
 The shift to global account management
 Corporate culture
 The world is not one single market
 Plan and execute programs on a worldwide
basis
 A global Identity favors no specific country.
Thank you!!!