global marketing principles 02102006

8/7/2019 Global Marketing Principles 02102006

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Global Marketing:Global Marketing:

Principles,Principles,

InsightsInsights

&&ChallengesChallenges


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InsightsInsightsIn Hong Kong, a German businesspersonis driving a Lexus; hes wearing BrunoMagli shoes, Irish cashmere socks, CalvinKlein underwear, an Armani suit, with aGucci belt. He has a Mont Blanc pen, in

his Italian shirt. Hes going to meet an

American investor at a KFC restaurant, fora Coke. After lunch, they stop for aBaskins-Robbins (actually a foreign firm)

ice cream sundae. --- OK, that

s a stretch.When he gets home, sitting on anottoman, he has an Absolut vodkanightcap, while listening to Americancountry western music.


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ChallengesChallenges Huge Foreign indebtedness

Unstable governments

Foreign-exchange problems

Foreign entry and governmentbureaucracy

Tariffs and other trade barriers

Corruption

E-commerce---doesnt offer complete

solutions

Technological pirating

High cost of product and communication

adaptations


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Global MarketingGlobal Marketing Marketing has become more complex.

Increases in new products, product

extensions, high cost of distribution andshelf space.

Expansion of retailer control and power,changing media habits, overload of

information, and array of communicationchoices.

Ultimate goal of programs

Timing goals


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Global Integration ForcesGlobal Integration ForcesDriving ForcesDriving Forces

Technology

Culture Market Needs

Costs

Free Markets

Economic Integration

Peace

Strategic Intent

Management Vision, Strategy and Action


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Global Integration ForcesGlobal Integration ForcesRestraining ForcesRestraining Forces

Culture

Market Differences Costs

National Controls

Nationalism

Peace vs. War/ Stability

Management Myopia

Organization History

Domestic Focus


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ChallengesChallenges Markets can present higher profit

opportunities than present markets.

Markets can offer size but not profits.

Company needs a larger customerbase for economies of scale.

Present customers are needingservice and products as they gointernational.


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Major DecisionsMajor Decisions Deciding to go abroad

Deciding which markets

Deciding how to enter markets

Deciding on marketing programs

Deciding on marketing organization


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Global MarketingGlobal Marketing Denotes the use of advertising and

marketing on a global basis.

Marketing is at the threshold of a new andexciting era: e-business, e-commerce ande-marketing

Business has two basic functions:

marketing and innovation (Drucker) New era of competition, demanding

customers

More stakeholders (customers,

employees, media).


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Global MarketingGlobal Marketing Companies need new set of guidelines,

values and insight

Marketing is a Strategic Business Concept

Marketing is too important to be left to the

Marketing Department. (David Packard)

Formulated, integrated, long-term Hold to the responsibilities of customers,

employees, investors


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Global MarketingGlobal Marketing Advantages, especially if the companies

emphasize selection, availability, quality,

reliability and lower prices. Economies of scale.

Lower marketing and advertising costs inplanning and control. Lower advertising

production costs. Exploiting your best ideas on a worldwide

basis.


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Global MarketingGlobal MarketingDeciding How to Enter a Market

Indirect Export-Thru export and thru

others.

Direct Export-Handle own exports.

Licensing-License a foreign company to

use trademark, manufacturing process,

trade secret, or other item for a fee orroyalty.

Joint Ventures- Join with local investors

Direct Investment- Direct ownership.


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Global MarketingGlobal Marketing

Joint Ventures-- Join with localinvestors to create venture. Coca-Cola and Nestle joined forces inready to drink

coffee and tea.

P&G with rival, Fater, in Italy andGreat Britain.

Whirlpool formed venture with Dutchelectronic group Philips on white-goods business to leapfrog intoEuropean market.


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Global MarketingGlobal MarketingDirect Investment--Ultimate form is

direct ownership of foreign-based

assembly or manufacturing facilities.

Can buy part or full interest in a local

company.


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Global MarketingGlobal MarketingPrinciple of Research

Understand the consumer-behavior

perspectives. Be sure you are asking right questions.

Use appropriate research techniques andcontrols.

Present clear, comprehensive andactionable results.

We study people using geographics,demographics, psychographics, lifestyles,

and behaviors.


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Bodily adornment, cooking, courtship, foodtaboos, gift giving, language, marriage,status, sex, and superstitions, in allsocieties, although each society attaches

different values and traditions.

The world, countries, regions, andsubcultures.

Different groups of people sharesubcultures---values, customs, andtraditions.

Geomarketing uses these differences infoods, terminology, subculture identities.


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Global MarketingGlobal Marketing Example: Global youth are notorious for

challenging norms and defying labels. A

study of 27K teenagers in 44 countries.Insights and motivations.

Six different segments.

But remember that even in a specific

country the teenagers are nothomogeneous.

Six segments in a Teen World valuesresearch study.


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Global MarketingGlobal Marketing Thrills and Chills. Driving principles---fun,

excitement, irreverence and friends.Expect everything in life. Make it a goal toget as much and as many good times.

Popular kids in schools. Brand loyal.Mostly in Germany, England, Greece,South Africa, Netherlands, US, Belgiumand Canada. 18%

Resigned: Fun, Friends and Lowexpectations. Little discretionary income.Cynical. Denmark, Sweden, Korea,Norway, Germany, Belgium, Argentina,

Canada and Turkey 14%


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Global MarketingGlobal Marketing World Savers. Defining principles: Fun,

Humanism, and friends. Models of whatgives hope to next generation. Good kids,who care. Technologically advanced.Motivated by new and exciting. Attracted

by honest and sincere messages.Sophisticated, sense of humor. Hungary,Philippines, Venezuela, Brazil, Spain,Argentina, Russia, France, Poland. 12%

Quiet Achievers. Success, quiet, anti-indi-vidualism, social optimism. Have deter-mination and restraint. Study hard. Do wellin school. Limit outside activities.Thailand, China, Hong Kong, Korea,Russia, Peru. 15%


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Bootstrappers. Defining principles:Achievement, Individualism, optimism,determination, power. Try hard to pleaseparents. Determined to succeed. Positive

values. One in four in US; 14% overall.Nigeria, Mexico, US, India, Chile, PuertoRico, Peru and Venezuela.

Upholders. Family, tradition, respect for

individuals. Dreamy. Quiet. Good teens.Follow their parents. Dont like risks. Useproven products. Vietnam, Indonesia,Taiwan, China, Italy, Peru, India, 16%


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Global MarketingGlobal MarketingPrinciple of Integrated Marketing:

Marketing is everyones business.

Marketing Community

Examples:

Coca-Cola, Merrill Lynch, Xerox,American Express, British Airways,Gillette.


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Global MarketingGlobal Marketing When all of the departments work together

to serve the customers interests.

Works on two different levels: All of thevarious marketing functions work

together: sales force, sales promotion,

advertising, PR, Product development,

Marketing research

Plus all of the departments work together.

They must Think Customer.


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Global Standardization or Adaptation

Toyota built the Corolla on a worldplatform. Ford with its Focus. McDonaldsuses chili sauce (salsa) on its hamburgersin Mexico. Coca-Cola is can be sweeter, orless carbonated.

Adaptation elements: Product features,brand name, labeling, packaging, colors,

materials, prices, sales promotion,advertising themes, media, execution.

Marketing programs do work best whenthey are tailored to each target group.


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Global MarketingGlobal MarketingAn endless process or principle:

Customer attraction

Customer satisfaction

Customer retention.

CEO is also the Chief MarketingOfficer.


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Global MarketingGlobal MarketingPrinciple of Competition: Value War

Create long-tern customer value.

Continuously and consistently cratedcustomer value.

Look at total customer benefits vs.customer expenses

Ultimate goal of project Relationship to other projects

High-level timing goals


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Global MarketingGlobal MarketingPrinciple of Customer Satisfaction and

Retention

Look at overall satisfaction andcustomer loyalty

Easier to retain a customer than to

gain or win a new one. Consistently improve customer value

to win the marketing war.


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Global MarketingGlobal MarketingPrinciple of Integration:

Learn about the needs and wants.

There are no average customers.

Concentrate on the individual

differences while looking at

segmentation, targeting and

positioning.


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Global MarketingGlobal MarketingMore on Integration:

Plan for and review differences in

culture, markets, economic

development, consumer differing

needs, usage patterns, media

availability and legal restrictions.


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Global MarketingGlobal MarketingPrinciple of Anticipation and Being

Proactive. Not Reactive.

Are you ready for change? Being adaptiveto the marketplace.

Macroenvironment Changes. The highincome growth country has shifted from

Japan to US. Low to medium has beenconcentrated in Southeast Asia andsouthern Asia with China as a unique,high-growth, large country in the regionand the world. Also look at Singapore,

Taiwan and South Korea.


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Global MarketingGlobal MarketingPrinciple of the Growth of Internet andInformation Technology.

Principles of:

Marketing Planning

Marketing Mix

7Ps

Controls.


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Global MarketingGlobal Marketing The old trade model is just old.

It stated that as a product matures,

production would shift to low-wagecountries.

Today, must look at transportation costs,availability of skilled labor, market

responsiveness, market access andinnovation in product design andmanufacturing. Especially of productswith less than 15% of labor in total cost.


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Principle of Branding: The umbrella. Determines price and value.

Be more than a commodity.

A brand is a name, term, sign, symbol, or

design or a combination of them toidentify the goods and services of a sellerand to differentiate them from thecompetitors.

Identifies seller or maker. We see a hugeincrease in the global brands for autos,food, clothing, electronics and more.

Increasing number of cross-border

marketing alliances.


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Global MarketingGlobal MarketingPrinciple of Service:

Service before, during and after sale.

Create long-term value and connect

with customer.

Both products and services. Its

creating more value.


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Principle of Process:

Commands the company to be the captainof its supply-chain. It should manage fromraw materials to finish goods. Enhance

value-creating activities. Look at Strategic Alliances/Partners .

Can be suppliers, customers and evenparts of competitors. Benchmarking,

reengineering, outsourcing, mergers,and acquisitions are examples.

Brand, service and process are threevalue-creating principles and drivers to

win customers and deliver market share.


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Global MarketingGlobal MarketingPrinciples of STP:

Segmentation, Targeting and

Positioning Process of segmenting. Look at

demographics, geographics,

psychographics and behaviorvariables.

Look for market opportunities.


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Global MarketingGlobal MarketingPrinciple ofDifferentiation:

Dont be different just to be different.

Design and plan for meaningful

differences versus the competitors.

Design truly different and unique

products for customers.


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Global MarketingGlobal MarketingPrinciple of Marketing Mix:

Integrate 4Ps and 7Ps.

Offer, Logistics and Competition.

The whole marketing concept.


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Global MarketingGlobal MarketingPrinciple of Selling:

Integrate Company, Customers and

Relationships/Partnerships. Create long-term relationships with

customers.

More than personal selling.

Features and benefits of the product. AIDA: Awareness-Interest-Desire-Action.

Manage communication.


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Principle of Balance:

After focusing on the elements of

marketing---segmentation, targeting,positioning (STP), differentiation,marketing mix, selling, branding, serviceand process, you need to balance thestrategies, tactics and implementation.

Share of Heart and Mind. Share of Voice.

Dynamic environment. Timing.

High-level timing goals


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Principle of Positioning:

The act of designing the product or

service (companys offering andimage) to occupy a distinctive placein the target markets mind.

Ultimate goal of product.Differentiation

Relationship to other products.


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Principle of Future:

Manage todays products by

managing a profit and by servicing

customers of today and tomorrow.

Develop tomorrows products.

Look at Marketing Myopia.


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Principle of Global Experience

Counts for companies

Counts in the job market for

employees.

Marketing Audits.

Marketing is not a destination, or a

goal. Its a process. A moving target.


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WrapWrap--up on Globalup on Global

Marketing PrinciplesMarketing Principles

Companies cannot stay domestic

and expect to maintain their markets. Companies need to define their

global policies and objectives.

Companies need to decide on howmuch to adapt marketing mix.


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WrapWrap--up on Globalup on Global

Marketing PrinciplesMarketing Principles Market entry and market control

costs can be high.

Product and communicationadaptation costs can be high.

Dominant foreign firms can establishhigh barriers of entry.

Which types of markets andcountries?


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Ultimate goal of project

Relationship to other projects

High-level timing goals Attractiveness influenced by the

product, geography, income,

population, political climate andmore factors.

Review Forces:---Driving and Restraining

global marketing principles 02102006

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