Global Versus Localized Marketing
• Global marketing emphasizes selling the same product with the same marketing mix all over the world
• Localized marketing emphasizes a unique marketing mix for each country or trading block
THE LAW OF COMPARATIVE ADVANTAGE
“Countries are better off producing items
where they have inherent advantages
and buying from others’ products
where they have handicaps.”
Foreign Market Selection Factors
• Size of Market (enough customers?)
• Distinct competitive advantage?
• Level of Financial Risk– Cultural differences– Government instabilities
Market Entry Strategies
• Export• Licensing• Joint ventures• Investing in your own facilities
Increasing levels
of commitment,
risk, control,
and profit potential
Risks in Global Marketing
Trade Restrictions
Currency Exchange
Unstable Governments
Cultural Factors
Problems with Global Marketing can be due to:
• Insufficient research on the intended countries
• Overstandardization or lack of flexibility in approaches utilized
Risks of Cultural Factors
Standard of Living Differences
Style of Living Differences
Religion Differences
Understanding Cultural Factors
• Overseas buyers often have different concepts of time, space, and etiquette
• Need to study how potential customers regard and use your product
• Examples:– Privacy may be viewed differently– comparative advertising or sexual innuendo
may be taboo
Think Global But Act Local
• Global marketing often works and can save money• Have global objectives• But don’t ignore local market conditions• Adjust plans to meet the special needs of particular
customers in other countries
DYNAMICS OF WORLD TRADE
• A New Reality: Global Competition Among Global Companies forGlobal Customers
Global Competition
Global Companies
• International Firm
• Multinational Firm
MultidomesticMarketing Strategy
• Transnational Firm
Global MarketingStrategy
1. Cross-cultural analysis involves the study of _________.
Concept Check
A: similarities and differences among consumers in two or more nations or societies
Slide 7-32
2. When foreign currencies can buy more U.S. dollars, are U.S. products more or less expensive for a foreign consumer?
A: Less expensive.
Concept Check
GLOBAL MARKET-ENTRY STRATEGIES
• Exporting
Indirect Exporting
Direct Exporting
• Licensing
• Joint Venture
• Direct Investment
Franchising
Global competition exists when firms originate, produce, and market their products and services worldwide.
Global competition exists when firms originate, produce, and market their products and services worldwide.
Global Competition
Multinational firms use a multi-domestic marketing strategy when they have as many different product variations, brand
names, and advertising programs as countries in whichthey do business.
Multinational firms use a multi-domestic marketing strategy when they have as many different product variations, brand
names, and advertising programs as countries in whichthey do business.
Multi-domestic Marketing Strategy
Transnational firms employ a global marketing strategy, which is the
practice of standardizing marketing activities when there are cultural
similarities and adapting them when cultures differ.
Transnational firms employ a global marketing strategy, which is the
practice of standardizing marketing activities when there are cultural
similarities and adapting them when cultures differ.
Global Marketing Strategy
Global consumers consist of customer groups living in many different
countries who have similar needs or seek similar features and benefits from
products or services.
Global consumers consist of customer groups living in many different
countries who have similar needs or seek similar features and benefits from
products or services.
Global Consumers
Cross-cultural analysis involves the study of similarities and differences among consumers in two or more
nations or societies.
Cross-cultural analysis involves the study of similarities and differences among consumers in two or more
nations or societies.
Cross-Cultural Analysis
Exporting is producing goods in one country and selling them in another
country.
Exporting is producing goods in one country and selling them in another
country.
Exporting
A joint venture is when a foreign country and a local firm invest
together to create a local business.
A joint venture is when a foreign country and a local firm invest
together to create a local business.
Joint Venture