Chapter 1 Introduction to Global Marketing

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 Global vs. “Regular” Marketing
 Scope of activities are outside the home-country market
IBS 2001
International Marketing
Management
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INTERNATİONAL MARKETİNG MANAGEMENT
ASSİST. PROF. DR. ÖZGE ÖZGEN
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 An industry is global to the extent that a company’s
 Create value for customers by improving benefits or reducing
industry position in one country is interdependent with its
industry position in another country
price
 Improve the product
 Find new distribution channels
 Indicators of globalization:
 Create better communications
 Ratio of cross-border trade to total worldwide production
 Cut monetary and non-monetary costs and prices
 Ratio of cross-border investment to total capital investment
 Proportion of industry revenue generated by companies that compete in key
world regions
Fundemental difference between regular marketing
and global marketing is the scope of the activities
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Single Country Marketing
Strategy
 Target Market Strategy
 Marketing Mix
 Product
 Price
 Promotion
 Place
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 Prof. Theodore Levitt’ 1983 article in the Harvard Business
Global Marketing Strategy
Review
 Global Market Participation
 “homogenous global village”
 Marketing Mix
 He advised organizations to develop
 Standardized, high quality world products and market them around
the world by using standardized advertising, pricing and
distribution
Development
 4 P’s: Adapt or Standardize?
 Concentration of Marketing
Activities
 Coordination of Marketing
Activities
 Integration of Competitive
Moves
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“One size fits all” or Customiztaion
 Globalization (Standardization)
 Developing standardized products marketed worldwide with a
standardized marketing mix
 Essence of mass marketing
 Global localization (Adaptation)
 Mixing standardization and customization in a way that minimizes
costs while maximizing satisfaction
 Essence of segmentation
 Think globally, act locally
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In Switzerland $7.54
In USA $4.79
In Turkey $3.96
In Japan $3.14
In Ukraine $1.20
(in 2015)
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 For U.S. companies, 75% of total world
 1. Walmart $ 476,294 million
market for goods and services is outside the
country
 5. Apple $ 170,910 million
 31. Procter & Gample $ 84,167 million
 Coca-Cola earns 75% of operating income and 2/3 of profit
outside of North America
 the company generates approximately 44% of its operating profits
from outside North America and Europe (2015)
 GDPs (2013)
 TURKEY  $ 822,135 million
 Venezuela  $ 367,500 million
 Zambia  $ 22,240 million
 Botswana  $ 15,530 million
 For Japanese companies, 85% of world
market is outside the country
 94% of market potential is outside of
Germany for its companies
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 Ethnocentric Orientation
 Home country is superior to others
 Sees only similarities in other countries
 Assumes products and practices that succeed at home will be
successful everywhere
 Foreign operations or markets are typically viewed as being
secondary or subordinate to domestic ones
 Leads to a standardized or extension approach
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 Export of pessenger cars has started in 1958 to US
 Nissan Design Center (NDC) in Atsugi, Japan,
 “We tried for a long time to design cars in Japan and shove
 Creative Box (CBI) in Harajuku, Tokyo,
them down the American consumer's throat. That didn't work
very well"
 Nissan Design America (NDA) in San Diego, California and
 Nissan Design Europe (NDE) in London
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 Rexona deodorant brand has different
 Polycentric Orientation
 Each country is unique
 Each subsidiary develops its own unique business and marketing
strategies
 Often referred to as multinational
 Leads to a localized or adaptation approach that assumes products
must be adapted to local market conditions
package designs in different countries and
different formulations
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 Regiocentric Orientation
 A region is the relevant geographic unit
 Geocentric Orientation
 Entire world is a potential market
 Ex: The NAFTA or European Union market
 Strives for integrated global strategies
 Some companies serve markets throughout the world but on a
regional basis
 Also known as a global or transnational company
 Ex: General Motors had
 Retains an association with the headquarters country
four regions for decades
 Pursues serving world markets from a single country or sources
globally to focus on select country markets
 Leads to a combination of extension and adaptation elements
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European Union
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 Multilateral trade agreements
 Quality
 Converging market needs and wants and the information
 World economic trends
revolution
 Leverage
 Experience transfers
 Scale economies
 Resource utilization
 Global strategy
 Transportation and communication improvements
 Product development costs
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
Management myopia

Organizational culture

National controls

Opposition to globalization
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