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Global Marketing

Global Marketing

 “…the world is becoming more


 “...distinctions between national markets

are fading and may disappear…”
Global Marketing Evolution

Develop Core
Business Strategy
Core Business Strategy

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
 Cost Factors

 avoiding cost inefficiencies and

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

 rapid product innovation, introduction,

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

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
 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
 Global strategic importance of the market

 Possible synergies offered by the market

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

Segment Focus

Market Segment A

Market Segment B

Market Segment C
Single or Multiple Segment
Segment A

or Segment B
Segments ?
Segment C
Bases for Global Market Segmentation
Bases for International
Market Segmentation


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
Global Marketing Program Development
 Development Decisions
 The location and extent of value-adding
 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
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
 Inflexibility in planning and
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
 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
 Management processes
 Enhance the global transfer of
 Interchange personnel to gain experience
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
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
 A global Identity favors no specific country.
Thank you!!!