Global Marketing
M.N. Elahee
International Marketing: A Definition
Global or international marketing is defined as the
performance of business activities designed to plan,
price, promote, and direct the flow of a company’s
goods and services to consumers or users in more
than one nation for a profit
Marketing concepts, processes, and principles are universally
applicable all over the world
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The International Marketing Task
Foreign Environment
(Uncontrollables)
7. Structure of
Distribution
1. Competition
Domestic environment
(Uncontrollables)
Environmental
uncontrollables
country market A
(Controllables) 1. Competition
2. Technology
Price
Product
Target
5. PoliticalEnvironmental
7
Market
uncontrollables
6. Geography and Legal
country
Promotion Place or 2 .Technology
Infrastructure
market B
Distribution
4.
Culture
Environmental
3. Economy
uncontrollables
5. Political3. Economy
country
Legal
market C
4. Culture
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Reasons for Going Global:
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Foreign markets with higher profit opportunities
Stagnant or shrinking domestic markets
Need larger customer base to achieve
economies of scale
Keeping pace with competition
Reduce dependency on single market
Reach a larger market
Reap higher profits
Prolong the lifecycle of their products
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Global Integration Forces
Driving Forces
 Technology
 Culture
 Market Needs
 Costs
 Free Markets and Economic Integration
 Strategy and Action
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Global Integration Forces
Restraining Forces
 Culture
 Market Differences
 Costs
 National Controls
 Nationalism
 Peace vs. War/ Stability
 Organization History
 Domestic Focus
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Developing a Global Awareness
To be globally aware is to have:
1. Tolerant of Cultural Differences, and
2. Knowledgeable of:
(a) Culture, (b) History, (c) World Market Potential,
(d) Global Economic, Social and Political Trends
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Cultural Differences
When Nike learned
that this stylized
“Air” logo resembled
“Allah” in Arabic
script, it apologized
and pulled the shoes
from distribution.
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Stages of International Marketing
Involvement
In general, firms go through five different phases in going
international:
No Direct Foreign Marketing
Infrequent Foreign Marketing
Regular Foreign Marketing
International Marketing
Global Marketing
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Strategic Orientation: EPRG Schema
EPRG Schema
Orientation
Domestic Marketing
Extension
(Ethnocentric)
Multi-Domestic
Marketing
(Polycentric)
Global Marketing
(Regio/Geocentric)
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Ethnocentric Orientation
 Guided by domestic market extension
concept:
 Domestic strategies, techniques, and
personnel are perceived as superior
 International customers are considered as
secondary
 International markets are regarded primarily
as outlets for surplus domestic production
 International marketing plans are developed
in-house by the international division
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Polycentric Orientation
 Guided by the multidomestic market concept:
 Focuses on the importance and uniqueness of
each international market
 Likely to establish businesses in each target
country
 Fully decentralized, minimal coordination with
headquarters
 Marketing strategies are specific to each
country
 Result: No economies of scale, duplicated
functions, higher final product costs
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Regiocentric Orientation
 Guided by the global marketing concept:
 World regions that share economic, political,
and/or cultural traits are perceived as distinct
markets
 Divisions are organized based on location
 Regional offices coordinate marketing
activities
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Geocentric Orientation
 Guided by the global marketing concept:
 The world is perceived as a total market with
identifiable, homogenous segments
 Targeted marketing strategies aimed at
market segments, rather than geographic
locations
 Regiocentric and Geocentric are synonymous with a
Global Marketing Orientation where a uniform,
standardized marketing strategy is used for several
countries, countries in a region, or the entire world
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Major Decisions in Global
Marketing
 Deciding to go abroad
 Deciding which markets to enter
 Deciding how to enter the markets
 Deciding on marketing programs
 Deciding on marketing organization
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Major International Marketing Decisions
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Deciding Which Markets to Enter
 Before going abroad, the company should try to define its
international marketing objectives and policies.
What Volume of Foreign Sales is Desired?
How Many Countries to Market In?
What Types of Countries to Enter?
Choose Possible Countries and Rank Based on
Market Size, Market Growth, Cost of Doing
Business, Competitive Advantage, and Risk Level
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Major Markets for the US
 Canada
 Mexico
 Japan
 China
 UK
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Leading Suppliers
 Canada
 China
 Mexico
 Japan
 Germany
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Any Question
 ???
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